Negative real rates could drive investors towards high-yield stocks

Topics Markets | Investors | stocks

Real rates in India have slipped into the negative zone with inflation above 7 per cent and yield on the benchmark 10-year government security (g-sec) well below 6 per cent. This could drive many investors towards stocks that offer high-dividend yield, say analysts. “Over the past one year, as interest rates continued to dip and inflation rose, real interest rate has dipped into the negative territory which has improved prospects for high dividend yield stocks. High dividend yield stocks appear attractive as their yields are now comparable to other fixed-income instruments while ha.....

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