Stocks v. Bonds
Stocks or bonds? Which is the best choice for income?
This article compares the yields on bonds with ~10 years to maturity to the dividend yield from the issuing company. At current prices, most of these companies could theoretically issue ten-year paper, use the money for share buybacks and actually improve their cash flows - the coupon payments on the bonds would be less than the dividend payments on the stock after taxes. In my opinion, that situation makes the stocks a much better deal than the bonds from the same companies even considering the different risk profiles.
As always, comments welcome. Even / especially if you disagree.