Yield ratios of municipals to Treasuries for some maturities are higher than 200 % or 300 %.
The yield ratios of municipals to Treasuries, as well as the widening of credit quality spreads would have been unimaginable even a couple of months ago.
But at the same time, steep price declines have pushed
yield ratios of municipals to Treasuries to the highest levels ever recorded at every point of the yield curve.
If you evaluate municipal bonds by the traditional criterion,
the yield ratio of municipal bonds to Treasuries of the same maturity, munis are incredibly cheap: All along the yield curve, munis yield, in absolute terms, anywhere between 150 % to even 300 % of Treasuries.
Toward the end of February 2008,
the yield ratio of munis to Treasuries reached 130 %, and that ratio stayed there for a couple of weeks.
By way of comparison, using an average of 2.5 hours / day (which is not out of line with the surveys described above) would
yield a ratio of 1:1.
Not exact matches
The forward price / earnings
ratio of the top 25 %
of S&P 500 stocks by dividend
yield is 17, vs. a 36 - year average
of 12, according to Ned Davis Research.
To calculate today's earnings
yield, and hence the cost
of capital, we'll use the «cyclically adjusted price - to - earnings»
ratio, or CAPE, developed by Yale economist Robert Shiller.
The earnings
yield is the inverse, and mirror image,
of the P / E
ratio.
«If we assume extremely pessimistic nominal earnings growth
of 3 % over the coming decade and a compression in the price - earnings
ratio to 10, equities would still deliver returns above current bond
yields.
Comparing them to a 30 - year Treasury bond
of 3 % (133 %
yield ratio) and 1.9 % core inflation, their value is evident.
These changing material
ratios — what the industry calls an «evolving ton» — have led to higher processing costs for recyclers, as they have to push much larger volumes
of waste through their facilities to
yield each one - ton bale
of raw material.
There is also opportunity abroad: Non-U.S. stocks with the highest dividend
yields (average price / earnings
ratio of 15.8) are cheaper than domestic counterparts (23.1), according to O'Shaughnessy Asset Management.
Like the P / E
ratio and the dividend
yield, the payout
ratio is a snapshot
of a specific point in time - contrary to profit growth covering a whole period.
Free cash flow
yield is an overall return evaluation
ratio of a stock, which standardizes the free cash flow per share a company is expected to earn against its market price per share.
«Our credit policy adjustments that began in the middle
of the first quarter continue to
yield benefits, with sequential improvements in both our Provision Rate and 15 + Day Delinquency
Ratio.
Artesian Resources Corporation (NASDAQ: ARTN.A) has a nice dividend
yield of 2.57 % and has a payout
ratio of 60.82 %.
Compared to the broad XIC, XEG has a) a price to earnings
ratio that is only slightly higher, b) a price to book
ratio that is lower, c) a debt to equity
ratio that is about half
of XIC, d) a dividend
yield that is comparable and e) profit margins that grew 30 % this year versus 18 % for XIC.
By combining both dividend
yield and payout
ratios, you will be in a better position to identify high
yielding stocks that have better chance
of increasing their distribution in the future.
Based on BlackRock's long - term assumptions, some
of the better return - to - risk
ratios are in high
yield bonds, EM dollar - denominated debt and bank loans.
Investors should monitor current events, as well as the
ratio of national debt to gross domestic product, Treasury
yields, credit ratings, and the weaknesses
of the dollar for signs that default risk may be rising.
The share
of a large car manufacturer, for example, may trade on a low P / E
ratio, and have a great Dividend
Yield, but if it has a pile
of debt repayable next year then the low share price might be valid.
With market volatility hitting multi-decade lows, junk bond
yields also at record lows, the median price / revenue
ratio of S&P 500 constituents at a record high well - beyond 2000 levels, and the most strenuously overvalued, overbought, overbullish syndromes we define, I'm increasingly concerned about the potential for an abrupt «air pocket» in the prices
of risky assets that could attend even a modest upward shift in risk premiums.
A 6.67 % earnings
yield is simply a P / E
ratio of 15.
Our paper examines a comprehensive suite
of volatility measures including actual volatility, volatility implied by option pricing, beta, credit default spreads, preferred stock
yields and earnings price
ratios.
Simply Safe Dividends gives ALL
of the criteria items I need in just one place in both numerical as well as graphical format for each stock: dividend
yield, P / E
ratio, Dividend Safety & Growth scores, EPS & FCF payout
ratios, ex-dividend dates, pay dates, 1 -, 3 -, 5 -, and 10 - year dividend growth rates, dividend payout history, return on equity, and more.
Value can be determined by a variety
of measures, including price - to - earnings
ratio, price - to - book
ratio, or dividend
yield.
Finally, Fortress Investment Group LLC (FIG), an asset management company
yields 4.20 % with a moderate payout
ratio of about 60 %.
ORI currently
yields 4.30 % with a moderately high payout
ratio of 81.1 %.
The stock currently
yields a healthy 4.60 % with a very low payout
ratio of only 11.9 %.
Kick in a 1.4 % dividend
yield, and the S&P 500 Index is currently priced to deliver a long - term return
of 7.4 % annually assuming that P / E
ratios remain at their current extreme forever.
A forward P / E
ratio of 16.5 times earnings isn't anything to write home about, even if the stock trades on a forward free cash flow - to - enterprise value (market cap plus net debt)
yield of 5.2 %.
How does the U.S. stock market earnings
yield (inverse
of price - to - earnings
ratio, or E / P) interact with the U.S. inflation rate over the long run?
It was earning $ 2.28, and someone that bought the stock would have locked in an earnings
yield of 4.34 % as the P / E
ratio was 23.
The earnings
yield (earnings per share divided by the share price, or the inverse
of the price - to - earnings
ratio) gauges the attractiveness
of equities versus bond
yields.
Effectively, a high
yield (D / P) is just the inverse
of a low price - to - dividend
ratio (P / D), a cheapness measure similar to a low price - to - earnings or low price - to - book
ratio.
The proceeds were used to purchased Nucor (NUE), which currently
yields 3.97 % and has a payout
ratio of 61 %.
The remaining stocks are assigned a rank based on the
ratio of their dividend
yield to payout
ratio (the same as a trailing earnings / price
ratio, or the inverse
of the trailing P / E
ratio).
These conditions comprise the following: S&P 500 overvalued with the Shiller P / E (the
ratio of the S&P 500 to the 10 - year average
of inflation - adjusted earnings) greater than 18; overbought with the S&P 500 within 3 %
of its upper Bollinger band (2 standard deviations above the 20 - period average) at daily, weekly, and monthly resolutions, more than 7 % above its 52 - week smoothing, and more than 50 % above its 4 - year low; overbullish with the 2 - week average
of advisory bullishness (Investors Intelligence) greater than 52 % and bearishness below 28 %; and
yields rising with the 10 - year Treasury bond
yield higher than 6 - months earlier.
«While shortening the duration
of a TIPS exposure results in a lower
yield, the chart below shows it still provides an attractive breakeven
ratio, or
yield received for the amount
of risk that an investor takes.
For a company growing its sales and cash flows so rapidly and
yielding 2.2 % in dividends, the stock is anything but pricey at a price - to - sales
ratio of 1.8 and price - to - FCF
ratio of about 19.5.
KMI is trading at P / E
ratio of 48.80 with a healthy dividend
yield of 4.86 % and Market Cap
of $ 85.73 B.
DLR is trading at P / E
ratio of 46.50 with a good dividend
yield of 5.01 % and Market Cap
of $ 9.22 B. It's 52 week high was $ 75.39 and currently trading at $ 67.93, almost 10 % lower.
DLR is trading at P / E
ratio of 28.30 with an excellent dividend
yield of 5.90 % and Market Cap
of $ 7.67 B. It's 52 week high was $ 65.43 and currently trading at $ 56.66, almost 13.5 % lower and fairly valued.
The flip side
of that high
yield is that the payout
ratio is at 96 %, leaving not much room for (near) future dividend growth.
DLR is trading at P / E
ratio of 64.90 with a healthy dividend
yield of 5.27 % and Market Cap
of $ 8.75 B.
With a 2.5 % +
yield, double - digit long - term dividend growth, a very moderate payout
ratio, and the possibility that shares are 15 % undervalued, this is still one
of my Top 10 Stocks for 2018 (and beyond).
DE is trading at P / E
ratio of 9.60 with a good dividend
yield of 2.74 % and Market Cap
of $ 31.88 B. Its 52 week high was $ 94.89 and currently trading at $ 87.73, almost 7.7 % lower.
The SPDR Barclays High
Yield Bond (NYSE: JNK) pays a dividend yield of 5.77 % and charges a 0.4 % expense r
Yield Bond (NYSE: JNK) pays a dividend
yield of 5.77 % and charges a 0.4 % expense r
yield of 5.77 % and charges a 0.4 % expense
ratio.
PM is trading at P / E
ratio of 16.10, a healthy dividend
yield of 5.21 % and Market Cap
of $ 118B.