Sentences with phrase «aaa bonds yield»

Similarly, buying into businesses where pre-tax earnings yield was in excess of twice of AAA bond yield, and the business had a strong balance sheet was one of the key methods of Graham for identifying a bargain security.

If the AAA bond yield is 5.5 %, a stock would need to have an earnings yield of at least 11 % to meet the Rea - Graham criterion.

Buying stocks where the dividend yield was at least two - thirds the AAA bond yield would have generated an average compound growth rate of 19.5 %; and

The fourth criterion of the «first five» required the dividend yield to be greater than or equal to two - thirds of the average AAA bond yield.

In order to receive a whole point, the dividend yield must be at least two - thirds that of the AAA bond yield.

Therefore, if the AAA bond yield is 5 %, a stock must have a dividend yield of at least 3.35 % (5 % × 0.67).

Vertical factor: spread of Baa bond yields over Aaa bond yields — Hypothesis: When spreads are high, stock valuations tend to be low.

Deploy it in assets which would earn a return lower than AAA bond yield net of inflation, in which case value is destroyed and the cash should be valued at a discount; and

Imagine that there are a few stocks in your «investible universe» whose upper estimate of expected return is less than AAA bond yield.

You may use long - term historical Nifty returns too if you prefer but I use AAA bond yield, which, at this time is about 10 % pretax.

Well, I propose that you use AAA bond yield as a benchmark.

When you calculate EPS / Price yield are you using trailing earnings and is the AAA bond yield a 30 - year maturity?

What a deal; it is difficult to find AAA bonds yielding 0.5 % more than Treasuries.

Here is his formula: (10 yr avg EPS / 2x Moody's AAA bond yield) * 1.5 = Central Value of Stock Market.

We devised an index to see how much earnings growth the market is pricing in a given time (S&P 500 E / P less 7 - year AAA bond yield adjusted for one year of earning growth).

Not exact matches

Investment grade bonds contain «AAA» to «BBB - «(or Aaa to Baa3 for Moody's rating scale) ratings and will usually see bond yields increase as ratings decreaAAA» to «BBB - «(or Aaa to Baa3 for Moody's rating scale) ratings and will usually see bond yields increase as ratings decreaAaa to Baa3 for Moody's rating scale) ratings and will usually see bond yields increase as ratings decrease.

Y represents the current yield on AAA corporate bonds.

That's what to watch for now - things like the difference between commercial paper yields and Treasury bills, the difference between Moody's BAA and AAA yields, the difference between the Dow Jones Corporate Bond Index yield and 10 - year Treasury yields, and so forth.

If the ratio is at 100 %, it indicates that the yield on a AAA - rated municipal bond is the same as a Treasury security of the same maturity.

Using monthly levels of Moody's yield on seasoned Aaa corporate bonds and the Dow Jones Industrial Average (DJIA) during October 1928 through February 2018 (about 90 years) and monthly levels of the 10 - year government bond interest rate and the stock market from Robert Shiller during January 1871 through February 2018 (about 148 years), we find that: Keep Reading

The credit spread is the difference in yields between the 10 - year Treasury note and Moody's AAA seasoned corporate bonds.

We used the Yahoo! Finance Bonds Center (finance.yahoo.com/bonds) as our source for the five - year AAA corporate bond yield.

One criterion Rea and Graham used required that the earnings yield be at least twice the average AAA corporate bond yield.

The earnings yield is greater than or equal to twice the average AAA corporate bond rate (alternatively, the price - earnings ratio is less than or equal to one - half of [100 ÷ the average AAA corporate bond rate]-RRB-

Buying stocks with an earnings yield at least twice that of the AAA bond rate would have generated an average compound growth in price over the 50 - year period of 19.9 %, versus 7.5 % for the Dow Jones industrial average;

The long term AAA yield for corporate bonds is about 5.9 %.

BAA bond yields could be expressed as spreads against AAA yields, but the mathematical results would be the same.

While high quality ratings often imply lower yields, the S&P International Corporate Bond Index has a weighted average yield - to - worst of 2.16 %, which is higher than the average yields of U.S. treasuries and comparable to the 2.26 % yield of the S&P 500 AAA Investment Corporate Bond Index.

The time before the crisis offered many opportunities for bond managers to add yield in structured securities that were rated AAA.

The fund has invested almost 80 % in AAA rated bonds while the rest of the portfolio is invested in AA rated bonds which may increase the yield without taking much credit risk.

AAA bonds carry lower yields than junk bonds much like the interest you get when lending to people with higher or lower credit ratings.

Municipal Bonds — Municipal yields were mostly down this week, with the exception of the 2 - year AAA - rated bonds that increased by 3 bps to yield 1.Bonds — Municipal yields were mostly down this week, with the exception of the 2 - year AAA - rated bonds that increased by 3 bps to yield 1.bonds that increased by 3 bps to yield 1.76 %.

When risk - free and AAA - rated corporate bonds yield less than 4 %, 3.5 % yield on utilities and 6 % yields from junk ETFs are difficult to pass up.

Sparinvest's High Yield Value Bonds was rated AAA - by the German rating agency, TELOS.

Right now the premium on AAA corporate and the like is so low that I wouldn't recommend picking them up, but when the yield curve eventually becomes a curve again, you can find good risk - adjusted returns in corporate bonds (providing you're holding to maturity).

also provide a yield table for AAA - rated insured revenue bonds, a useful benchmark for prices of other municipal issues.

For example, the Government of Canada has AAA - rated bonds (4.25 % due 1/6/2018) maturing in five years with an annual yield of 1.6 %.

With the 20 - year AAA corporate bond and 30 - year Treasury bond yields rising, they'll become increasingly better than stock dividend yields.

They consider four potential predictors: (1) the default spread (between Moody's BAA and AAA rated bonds); (2) the broad stock market dividend yield; (3) the implied volatility of the S&P 500 Index (VIX); and, (4) the monthly net aggregate flow into the hedge fund industry.

In the 1990s, the 10 - year treasury note on average yielded 0.94 % more than a like maturity AAA - rated municipal bond.

The 2 - year AAA - rated bonds decreased 1 bps to yield 0.84 %.

V * = Intrinsic value EPS = Trailing twelve months earnings / share 8.5 = P / E base for a no - growth company g = Expected long term earnings growth rate 4.4 = Average yield of high - grade corporate bonds in 1962, when the formula was introduced Y = Current average yield on 20 year AAA corporate bonds

The MMD AAA is the US Municipal Bond Yield Benchmark used to measure price and rate movements.

If company ABC (Rating: AAA) wanted to issue bonds at 5.00 % their competitor XYZ (Rating: AA) would have to pay a higher yield to attract the equivalent investment because of the perceived lesser quality of their debt.

Investment grade bonds contain «AAA» to «BBB - «(or Aaa to Baa3 for Moody's rating scale) ratings and will usually see bond yields increase as ratings decreaAAA» to «BBB - «(or Aaa to Baa3 for Moody's rating scale) ratings and will usually see bond yields increase as ratings decreaAaa to Baa3 for Moody's rating scale) ratings and will usually see bond yields increase as ratings decrease.

Why not replace it with equally safe and liquid assets that offered considerably more yield, like bonds backed by AAA - rated subprime or Alt - A mortgage collateral?

Yields are listed only for bonds with the highest credit ratings (AAA to A) or just slightly below.

Spreads on Illinois debt to MMD (Municipal Market Data, the yield curve of the highest rated, AAA / Aaa municipal bonds, as published by Thompson Reuters) have widenAAA / Aaa municipal bonds, as published by Thompson Reuters) have widenAaa municipal bonds, as published by Thompson Reuters) have widened.

Last November I got a couple of issues of my state's AA and AAA municipal bonds at yield - to - maturity of 5.3 %: tax free coupon rate of 5 % on one and 5.25 % on another, but I bought below par.

There is a credit factor that effects yields, and the effect on Baa bonds is roughly 1.5 x that of Aaa bonds.