For example, homes in less expensive neighborhoods typically offer the highest
current yield potential, but generally come with more volatility, or risk, than more affluent neighborhoods.
As a general rule, homes in less expensive neighborhoods offer the highest
current yield potential, but generally come with more volatility, or risk, than more affluent neighborhoods.
Not exact matches
These behavioral finance influences can skew a portfolio's overall allocations toward an overemphasis of potentially higher -
yielding equities that in some instances may represent more downside risk than upside
potential at
current valuation levels.
As usual, I don't place too much emphasis on this sort of forecast, but to the extent that I make any comments at all about the outlook for 2006, the bottom line is this: 1) we can't rule out modest
potential for stock appreciation, which would require the maintenance or expansion of already high price / peak earnings multiples; 2) we also should recognize an uncomfortably large
potential for market losses, particularly given that the
current bull market has now outlived the median and average bull, yet at higher valuations than most bulls have achieved, a flat
yield curve with rising interest rate pressures, an extended period of internal divergence as measured by breadth and other market action, and complacency at best and excessive bullishness at worst, as measured by various sentiment indicators; 3) there is a moderate but still not compelling risk of an oncoming recession, which would become more of a factor if we observe a substantial widening of credit spreads and weakness in the ISM Purchasing Managers Index in the months ahead, and; 4) there remains substantial
potential for U.S. dollar weakness coupled with «unexpectedly» persistent inflation pressures, particularly if we do observe economic weakness.
If they bought and held a Topix ETF (Japanese stocks) instead, they would earn a
current dividend
yield of 2.37 percent per year, not including any gains from
potential appreciation in the share prices.
«We expect in the
current market that quality peri-urban assets such as these with rezoning
potential and multiples titles will remain popular, particularly investment assets with reliable tenants that generate 7 to 8 per cent
yields to investors,» Mr Forrest said.
The portfolio you see here would
yield a high amount of
current income from the bonds and would also
yield long - term capital growth
potential from the investment in high quality equities.
You also have to be wary of companies with high
current yields because the market may be discounting slower dividend growth or worse, a
potential dividend cut.
Despite the negative impact this activity has had on
yields, there are several
potential positives to take away from the
current state of senior loans.
To give a recent example, I believe that the
potential returns far outweigh the risks in Spanish telecom giant Telefonica (NYSE: $ TEF), despite the risks implied by its 11 %
current yield.
When coupled with its
current 3.6 % dividend
yield, the stock appears to offer total return
potential of at least 9 - 12 % per year.
Given the
current low interest - rate environment, adding a high -
yield allocation to your core bond portfolio or investing in a multisector bond fund may help increase your investment income — just remember that many of these types of funds still come with the
potential for significant volatility, particularly during times of heightened economic and / or stock market volatility.
Coupled with its robust dividend
yield, that provides for a
potential double - digit return for those who buy Caterpillar at
current price levels.
I select investments that meet one or both of the following criteria - one, they offer a high
current yield relative to competing investments and two, they provide income from the investment that has a long history of rising over time, or I believe that it has
potential to rise going forward.
Most high
yield stocks only offer
current income
potential, with weak - at - best growth prospects.
But I am very pleased with the income
potential — a 2.2 % return compares favorably to
current 10 year treasury
yields of about 2.7 %, considering that treasuries have no real capital gain
potential, which could be significant over a 10 year period in the index stock funds.
Besides the
potential currency appreciation, the boom in Chinese debts comes amid an increasing appetite for fixed income assets in addition to the
potential yield pick - up offered in the
current low - rate environment.
That higher
yield not only positively impacts
current and ongoing income, but it also positively impacts one's long - term
potential total return, as dividends / distributions (income) is one of two components of total return (the other being capital gain).
In somewhat similar vein, you can obviously equate earnings
yield to RoME, but that would perhaps miss the point — with an analysis, how you get there is often just as important as the end - result... If you re-read that section of my post, the important point is to force myself (or readers) to stop focusing on book value, or intrinsic value, or even the
potential upside — and to re-focus more specifically on what kind of return may be on offer, based on the
current market cap & ignoring any revaluation
potential.
Its
current property valuation &
yield, occupancy rate, colossal 66 % discount to NAV, plus the presence of multiple activist investors on its board / register, all offer significant operational & share price upside
potential.
For buyers who can afford to speculate,
current yields in many sectors of the muni market offer the
potential for equity - like returns.
Bond Markets While bonds have produced good returns in 2012, it is discouraging to look at
current yields and consider a
potential challenges ahead.
Typically, the faster growing stocks will offer a lower
current yield but obviously a faster rate of compounding and, therefore, a greater
potential for a higher total return.
But the former strategy will appeal more to investors in search of
current income, whereas the latter approach is the way to go for investors who seek financially strong companies with future growth
potential but who care less about
yield.
(Bear in mind that this fund focuses on companies with a history of dividend appreciation; Vanguard Equity Income (VEIPX) is a good example of a cheap offering that focuses on companies with both good long - term
potential and solid
current yields.)
That higher
yield not only positively affects
current investment income, as well as possibly aggregate investment income over the long run, but it also gives the long - term total return
potential a boost via the very nature of total return.
That's because at
current price levels and valuation multiples, LANC's long - term annual total return
potential is only about 8.8 % to 10.8 % (1.8 %
yield + 7 % to 9 % earnings growth).
I will be using a discounted dividend model to show what type of upside
potential the stock has with the
current dividend
yield of 22 %.
Related I also recently found a useful resource for anyone looking to focus research on places in the world where the gap between
current crop
yields and
potential yields is greatest: The Global
Yield Gap Atlas.
the difference between crop
yields observed at any given location and the crop's
potential yield at the same location given
current agricultural practices and technologies.
Where buyers do see the
potential for
yields given the
current market conditions is the necessity retail space.
The goal is to provide our institutional partners with attractive risk - adjusted returns to provide a stable,
current income
yield with upside
potential.
I do the best I can to study my local trends (jobs, incomes, housing inventories, construction prices, etc), and then buy deals with solid
current fundamentals (
yield > expenses, no risky debt,
potential upside from adding value).