The increase in the stock prices of companies that have strong cash flow and high dividends almost certainly will continue as investors look for safe havens that pay investors an actual return. Treasuries may be safe, but they pay out nothing. Companies like Verizon (NYSE: VZ) and AT&T (NYSE: T) have ironclad balance sheets. Their sales or earnings could slow, but cash reserves and cash flow make it extremely unlikely they will have to cut dividends.
Douglas A. McIntyre