The 10-year Treasury note is a useful benchmark for income-oriented investors. But that doesn’t only apply to those who buy bonds. When the yield on a 10-year Treasury rises, it raises a legitimate question for anyone holding dividend-paying stocks: Why take on equity risk when the government guarantees you a fixed return?
That's a fair challenge. Buy a 10-year Treasury at 4%, and you'll receive that 4% at every point until maturity, backed by the full faith and credit of the U.S. government. There's no board of directors that can cut the yield, and no earnings miss that could send your principal lower.
