Unfortunately, money fund yields will probably slump even more in the next few months. Many experts expect another half-point cut in the key federal funds rate, which is the rate at which banks make overnight loans to each other. At that rate, you would double your money in roughly 20 years. If you're a conservative investor who can't afford to take any risk, you have to learn to live with low yields. In fact, you'd be silly not to look at dividends when you invest.
Dividends are an enormous part of the stock market's return over time.
But that's just the average. Alliance is an investment management company best known for its mutual funds. It's a contrarian play, because autos have been wretched performers lately. And that's the one problem with examining stocks with high dividend yields. You have to ask why a stock has such a high yield.