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Mr. Hone noted that Microsoft, for example, had a healthy yield of 2.6 percent.
Government bonds from Greece (deficit last year, 5.2% of GDP; debt, 108%; but GDP growth, healthy) yield about the same as Italy's.
Ian Forrest, investment research analyst at The Share Centre, said: Although bid speculation has raised its head recently the main appeal for investors in United Utilities remains its defensive nature, healthy yield and aim of increasing its dividends in line with inflation through to at least 2020.
The stock's strength reflects both the solid operating results as well as the healthy yield of more than 7%.
Investors are paid a healthy yield of nearly 4% while they wait for a turnaround in the stock.
Despite the healthy yield floor, most of these adjustables are selling below par today because they are viewed as inflation hedges in a period when inflation fears are absent.
Similar(54)
The combination of price appreciation and healthy yields would lead to solid total returns for corporate bond investors, said Robert D. Arnott, chairman of the investment management firm Research Affiliates.
Mr. Zaharoff is a fan of stocks with healthy yields, too, particularly "well-regarded global companies that have strong franchises and plenty of cash," he said.
Very low interest rates can persist only for so long; as rates rise, he said, the ability of companies to raise payouts will give stocks with healthy yields an edge.
As a publicly traded company, Bank of America's mandate is to yield a healthy return to shareholders; presumably all the bank's strategy and marketing decisions are designed to achieve that goal.
"It makes sense that people look for the quality companies that give them a healthy dividend yield which are often telecoms, pharmaceuticals and utilities.
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