You may still be looking for the mix of investments where you can get a good return, without too much risks.  I know when I look at my bank savings account and see that it is barely keeping up with the cost of living (just compare bank interest rates to the consumer price index) and bonds only returning 3 to 4% I start to look around for something better.  If you are like me, then you might be on the hunt for any investment that can turn out a better yield than savings or bonds.

Trouble is stocks have everyone rightful cautious.  But you should be aware that since the market lows of March 2009, stocks in companies that don’t pay a dividend gained 65% while the 363 stocks in the S&P 500 that pay dividends gained 26%. So the case could be made that low quality companies should be where you want to invest in 2010.  It was the place to be in 2009, but low-quality stocks with no dividends and no earnings typically out perform the market, only because we are coming out a market recovery. As we start to enter a new phase of economic recovery, will see quality companies that pay a dividend do better. The best performers in the last four months have been strong dividend payers. The first and second quarters of 2010 may very well see a weak recovery.

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