As I mentioned before, this is well
below the average yield of the portfolio, but offers greater long - term growth and greater increases to my dividend income.
• At 1.7 % (including the impact of the most recent 11 % dividend increase on April 27), AAPL's yield is below average for the best dividend growth stocks, and well
below the average yield of all 690 Dividend Champions, Contenders, and Challengers (CCC), which stands at 2.8 %.
Based on the stock's price at the time of this writing, the dividend yields 0.93 %, well
below the average yield of the S&P 500 at 2.31 %.
Not exact matches
For the first time ever, the
average 10 - year bond
yields of the «G3» — the U.S., Japan and Germany — are now trading
below 1 %.
The spread between indexed and nominal
yields has fallen, on
average, well
below survey measures of long - run inflation expectations.
Of course, in recent years, stock prices have grown much faster than earnings and dividends, driving the P / E far above its historical
average and the dividend
yield (D / P) far
below its historical
average.
While investors appear more convinced that the Federal Reserve (Fed) will indeed hike rates later this year, real
yields remain well
below where they started the year and even further
below their long - term
average.
A direct consequence of this is that dividend
yields on S&P 500 stocks have fallen to 1.91 % and are now 32 %
below their long - term
average.
The 1 % free cash flow (FCF)
yield of JETS's holdings is slightly
below the 2 % offered by XLI and the
average Industrials stock due to the airline industry's above
average capital expenditures.
Although the benchmark US 10 - year Treasury
yield is up around 60 % from its July 2016 lows, it's still way
below its 40 - year
average.
The correction has brought the S&P 500 Index to a more attractive level, compared to its 30 - year
average of 16.7 x, and this means that the S&P 500 Index valuation has reached an attractive level, given 10 - year Treasury
yields that now are
below 3.00 %.
However, the recent advance has now re-established a combination of overvalued, overbought, overbullish conditions that has historically been associated with stock returns
below Treasury bill
yields, on
average.
We expect long - term bond
yields to rise gradually over the next five years but to stay well
below historical
averages.
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.
Real interest rates implied by the
yields on indexed bonds, as well as the real lending rates derived using various measures of inflation expectations, are also slightly
below their long - term
averages.
Nonetheless, at around 65 basis points, the slope of the
yield curve remains
below its medium - term
average (Graph 67).
Australian dividend
yields have continued to
average just
below 4 per cent (Graph 58).
And judging by the index bond
yields, inflation will
average well
below target for the next 10 to 20 years.
Looking at periods where the price to peak earnings was above 19 and inflation and bond
yields were
below 2.5 percent and 4.5 percent, respectively, stocks had an
average seven - year return of 6 percent.
Low returns have followed characteristics that are more similar to today — a CAPE ratio in the mid-20's, where dividend
yields, bond
yields, and inflation were
below average.
An alternative, and perhaps more likely, interpretation is that the market expects that the target cash rate will remain
below its
average over recent years for some time, and this expectation is reflected in bond
yields.
For example, since 1950, the S&P 500 has enjoyed total returns
averaging 33.18 % annually during periods when the S&P 500 price / peak earnings ratio was
below 15 and both 3 - month T - bill
yields and 10 - year Treasury
yields were
below their levels of 6 months earlier.
By itself, this
below -
average spread might normally be taken to imply slightly tighter - than -
average conditions, although a more likely interpretation is that bond
yields have been held down by offshore bond - market developments reflecting expectations that short - term interest rates around the world will remain
below average for some time.
Still, CAT is a dividend machine that is currently
yielding a high 5.04 % and a current PE of 12.7 which is well
below its five year
average.
Fixed lending rates on housing and business loans have also risen over recent months in response to higher bond
yields, although they too remain
below the
average of the past decade.
While the combination of rapid credit growth and
below -
average interest rates suggests that financial conditions remain expansionary, the slope of the
yield curve, as measured by the spread between the
yield on 10 - year bonds and the cash rate, suggests a somewhat different picture.
What initial retirement portfolio withdrawal rate is sustainable over long horizons when, as currently, bond
yields are well
below and stock market valuations well above historical
averages?
Those strong performers tended to have
below -
average exposure to economic cycles or had above -
average dividend
yields.
Bonds are near historically low
yields, yet stocks remain priced slightly
below their long - term
average P / E multiple.
To start, interest rates are likely to move higher at a slow and moderate pace that could keep bond
yields well
below historical
averages over the next five years, according to the BlackRock Investment Institute (BII).
This second trend borne from ultra-loose monetary policy has forced many investors to seek out higher -
yielding alternatives including dividend stocks, which, on
average,
yield more than 10 - year government bonds in most major developed markets, including Canada (see chart
below).
In 2017 alone, however, 11 people were killed by Hindu extremists in connection to claims of the slaughter or sale of cows, and
average milk
yields remain well
below international standards.
Grape Harvest
Yields 30 % to 40 %
Below 3 Year
Average in Napa With Napas earliest harvest on record expected to finish up next week, the Napa Valley Grapegrowers held their annual harvest press conference at Cliff Lede Vineyards in Yountville this morning to reflect on the growing season and look ahead...
Yields were just
below average, down 20 percent from 2012, with good ripeness and balance.
Overall, non-Hispanic white students scored 0.27 standard deviations above the
average on the math exam in the fall of kindergarten, while black students fell 0.36 standard deviations
below the
average,
yielding a raw black - white gap of 0.63 standard deviations.
The chart
below shows the
average 12 - month returns in some of the industries that make up the MSCI World Index - including Materials, Energy, Industrials, Consumer Discretionary, and Consumer Staples - subsequent to different shapes of the global
yield curve.
Today, with the
average yield below 3 %, that 1 % increase would create a negative return of -3.41 % on a typical core bond fund.
Trade: Buy the 10 - year US Treasury note when real
yields are more than one standard deviation above the long - term moving
average sell when they are more than one standard deviation
below.
To start, interest rates are likely to move higher at a slow and moderate pace that could keep bond
yields well
below historical
averages over the next five years, according to the BlackRock Investment Institute (BII).
At 6.4 %, DLR is
below that
average, but I consider that in the context of its high
yield.
The roughly 1.7 per cent current
yield on a 10 - year Government of Canada bond is still well
below its historical
average over the past 30 years, according to Bloomberg data.
As of this writing, Newell Rubbermaid has a market cap of 20 billion, a forward P / E ratio of 15 and a dividend
yield of 1.71 %, which is just
below its five - year
average.
These floating rate
below investment grade loans have seen their weighted
average yield rise by 19bps since May month end.
The duration on this set of funds is
below the market
average, quality is above, and
yield is above as well.
We expect long - term bond
yields to rise gradually over the next five years but to stay well
below historical
averages.
The stocks listed
below are considered core holdings of our portfolio and offer an
average yield of 3.5 %, well above that of the
average dividend aristocrat at only 2.5 %.
It isn't a surprise that
yield focused sectors pay high
yields, nor is it surprising and sectors with
below average dividends are primarily high growth industries and commodity stocks.
With the
average dividend
yield on the S&P 500 now
below 2 % and prices at all - time highs, dividend stocks may end up being a safety - minded investor's worst nightmare.
As a result, the sector has a
below -
average yield and the smallest percentage of dividend payers in the index.
The
average yield for five - year CDs dropped
below 1 percent for the first time on record last month, down from more than 4 percent in early 2007 and down roughly one - third from last fall, according to survey by Bankrate.com, a financial news site.