As at December 31, 2017, 10-year Government of Canada bonds are yielding approximately 2%. The target rate of inflation of the Bank of Canada is also 2% which means that the bond yield is completely eroded by inflation. After taxes the situation is even worse. Investing in equities, over time, provides a hedge against inflation. Investing in a dividend equity portfolio with a higher (dividend) yield than a 10-year bond creates the opportunity for a positive yield after taxes and inflation.