Stock market already feeling sting of higher rates     Text
Size   Published: Thursday, 5 Sep 2013 | 4:42 PM ET By: |
Markets Reporter for CNBC Getty Images  The relatively sharp
jump in interest rates since the beginning of May has taken a
toll on the stock market, and analysts see more pain ahead.
While the broader stock market has moved higher in that period
of time, select groups have been battered with every tick higher
in yields. Among those most vulnerable to the sting of rising
rates are stocks with bond-like characteristics, meaning
companies that are valued on their yield—or the amount they
payout in dividends relative to their share price.  These high-
yielding dividend stocks typically fall into certain sectors,
like utilities and telecommunication services. Electric and
phone companies often pay out a much larger part of their
earnings in the form of dividends. This helps some investors get
a bigger portion of their returns from income than from the
capital appreciation of the stock.  However, as