Equity investors have flocked to high dividend-paying stocks in recent years, with many asset managers calling them the "new fixed income", reports Financial Times.
It says retirees and risk-averse investors like the "stability of companies that regularly pay out income and generate long-term wealth for their portfolios."
In the U.S. specifically, many clients are taking advantage of how they're taxed, since payouts have been taxed at only 15% since 2003.
With the fiscal cliff looming, however, investors are fretting over whether the dividend tax break can be saved. Read more.