Chasing yield refers to buying an investment because it pays an above -
average yield rather than due to any fundamental analysis of the underlying investment itself.
Chasing yield refers to buying an investment because it pays an above -
average yield rather than due to any fundamental analysis of the underlying investment itself.
Not exact matches
While spreads between
yields on highly - rated corporate bonds and government bonds have remained above their historical
averages, this continues to reflect strong demand for Commonwealth Government bonds
rather than concerns about corporate credit quality.
It is important to note that our Fund does not own highly leveraged real estate companies and regulated utilities, but
rather is focused on under - leveraged companies around the globe that are undervalued and pay a dividend
yield north of the market
averages.
In cases where there are multiple purchases, I will simply use the
average purchase price to approximate an overall initial
yield rather than showing multiple values which will only obfuscate what the chart is intending to show.
Assuming this new ETF will use a strategy similar to that of the Vanguard High Dividend
Yield (VYM), which also tracks a FTSE index, it will focus on stocks with above -
average current
yields rather than dividend growth.
Rather than rely on past
averages to forecast future returns, we use a building - block approach that adds current
yield, likely long - term growth in income, and some mean reversion in valuation multiples to create forward - looking returns.
I like to add to my equity holdings over time using a dollar cost
averaging strategy, so
rather than stop investing I added to my position each month in the Vanguard High Dividend
Yield ETF (VYM).
Roger — calculations based on annual changes will
yield spurious results if compiled into a distribution
rather than
averaged out.