Sentences with phrase «earnings at higher yield»

And if a business can't redeploy the earnings at higher yield, it makes sense to give it back to shareholders in form of dividends.

Not exact matches

Looking at the forward earnings yield for S&P 500 stocks, BAML finds dispersion is the highest since 2009, when the market was just starting to recover from the financial crisis.

The yield on CDZ is lower at 3.2 % and its price - to - earnings ratio is higher at about 15.3 times but it is much more diversified.

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.

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.

The advance would persist, even intensify, as the afternoon moved further along, with strong earnings enabling traders to look past the recently higher yields, at least for one day.

And since it is growing that profit (at 20 % annually in recent years) that 6.5 % earnings yield today should look much higher in just a few years.

Earnings reports from some of the biggest U.S. companies at a decline in the ten - year treasury yield combined to send the major averages sharply higher.

The insatiable search for yield has driven many income assets to high valuations, but dividend growers are still attractively priced at 13.4 times forward earnings, our analysis shows.

EarthLink, Inc. (ELNK), an Internet service provider primarily offering dial - up Internet access to consumers, has the highest earnings yield among the passing companies at 31.3 %.

I have solved the equations at today's earnings yield (of 3.5 %, roughly), which is exceedingly high, and at an earnings yield of 10 % (P / E10 = 10.0), which is favorable, but well within the historical range.

In addition, the company should continue compounding earnings - per - share at 7 % to 9 % a year giving high yield investors solid growth as well.

Wajax also trades at a low price - to - earnings ratio of 11.5, based on this year's forecast profits, and its recent 35 % dividend increase gives it a high 6.8 % yield.

Contrarian strategies (low Price / Earnings, low Price / Book Value, low Price / Cash Flow and high dividend yield) consistently outperform alternatives at a greatly reduced risk.

JP Morgan's Thomas Lee notes that if the S&P earnings yield merely equaled the high yield bond (a frequent past metric), the S&P 500 would be at 1600.

The insatiable search for yield has driven many income assets to high valuations, but dividend growers are still attractively priced at 13.4 times forward earnings, our analysis shows.

Both trade at low price - to - earnings ratios relative to the overall market, and both have decent growth prospects, and both have high dividend yields.

CMP trades at about 14x forward earnings and offers a dividend yield of 3.6 %, which is meaningfully higher than its five year average dividend yield of 2.7 % and a great starting base for investors living off dividends in retirement.

These companies have increased their dividend for at least 15 years and have a lower than average price to earnings (PE) ratio, a higher operating margin, a low price to book, a reasonable dividend yield and payout ratio.

It pays a hefty yield of 5.6 %, trades at 13 times earnings, and is very close to its 52 - week high.

Shoe retailer Foot Locker has the lowest earnings multiple at 7 and pays the highest dividend yield at 4.0 %.

And with our high yield CD, of which many terms are available, you'll be locking in the earnings with a yield in the top 5 % of Competitive Accounts at opening.3 So get one or ladder a few, it's your call.

Eaton trades at a forward price - to - earnings multiple of 14.2 and has a dividend yield of 3.7 %, which is higher than its five - year average dividend yield of 3.1 %.

This study attempts to quantify whether a 4 percent withdrawal rate can still be considered as safe for U.S. retirees in recent years when earnings valuations have been at historical highs and the dividend yield has been at historical lows.

Valero offers a high yield of 4.4 %, trades at less than 10x trailing earnings, and has more than doubled the S&P 500's return over the -LSB-...]

A Review of the Evidence, in which Fernando Duarte and Carlo Rosa argue that stocks are cheap because the «Fed model» — the equity risk premium measured as the difference between the forward operating earnings yield on the S&P 500 and the 10 - year Treasury bond yield — is at a historic high.

And since it is growing that profit (at 20 % annually in recent years) that 6.5 % earnings yield today should look much higher in just a few years.

This study attempts to quantify whether a 4 % withdrawal rate can still be considered as safe for U.S. retirees in recent years when earnings valuations have been at historical highs and the dividend yield has been at historical lows.

The present environment is characterized by unusually overvalued, overbought, overbullish conditions, with rising 10 - year Treasury bond yields, heavy insider selling, valuations on «forward earnings» appearing reasonable only because profit margins are more than 70 % above historical norms (fully explained by the negative sum of government and personal savings as a share of GDP), with the S&P 500 at a 4 - year market high, in a mature market advance, with lagging employment indicators still positive but more than half of all OECD countries already in GDP contraction, Europe in recession, Britain on the cusp, and the EU imposing massive losses on depositors in order to protect lenders in an unstable banking system where Cyprus is the iceberg's tip.

At year 10, percentage earnings yield 100E5 / P has a slightly higher slope than 100E10 / P.

From a valuation standpoint, the stocks that High Dividend Yield owns are also just slightly cheaper than the holdings of Dividend Appreciation, at least on a trailing earnings basis.

At the start of each month, companies who are not in the portfolio and whose earnings yield ranks higher than the target portfolio size are bought.

«As for common stocks, they should trade at an earnings or FCF yield greater than that of the highest after - tax yield on debts and other instruments.»

During the recent bottom in March 2009, high quality companies could be bought for less than their net worth and at earnings yields unseen since 1973 - 74.