Why is the yield on cost so much
more than the current yield?
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.
Yield quotations
more closely reflect the
current earnings of money market funds
than the total return quotations.
The one - day loss for many funds, including Vanguard Total Bond Market, iShares Core U.S. Aggregate Bond, Pimco Total Return and Metropolitan West Total Return, while less
than a half a percentage point, still amounted to
more than 10 percent of their
current yield.
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
current yield of 1.55 % might not be massive like AT&T's dividend (which is why we diversify, and it's why I'm listing 10 different stocks with different dynamics here), but Walt Disney
more than makes up for that via strong dividend growth: the five - year dividend growth rate is 30.1 %, which is one of the higher rates you'll run across.
As Mr Draghi said in his press conference today, the bank will be buying bonds with a negative
yield of no
more than -0.2 pc (which is the ECB's
current deposit rate).
But until the market takes out the significant 108.15 level I continue to view the
current move as little
more than a pre FOMC meeting squeeze driven by
yields and positioning and believe there will be substantial resistance between 107.50 - 108 levels.
Compared to bonds, stocks have a higher
current yield, and unlike bonds are likely to be worth
more in a decade
than they are today.
«We think the recently lowered dividend payout is sustainable, providing investors with an attractive 6 per cent fully franked
yield at
current prices... we view the risks facing Telstra as
more than reflected in the
current stock price, trading at 12 times forward earnings per share and 5.5 times earnings before interest, tax, depreciation and amortisation,» the analysts said.
The Panel acknowledges that «clinically based programs may cost
more per candidate
than current programs» but then simply asserts that they «will be
more cost - effective by
yielding educators who enter the field ready to teach.»
Either this discordant plan is a front for public school expansionism, bent on adding another grade or two to its
current thirteen, and adding the staff (and dues - paying union members) that would accompany such growth, or it's a cynical calculation: only by appealing to the middle - class desire for taxpayers to underwrite the routine child - care needs of working parents will any movement occur on the pre-K front, and the heck with the truly disadvantaged youngsters who need
more than that strategy will
yield.
PG's
current yield of
more than 3 % after its recent dividend hike supports that conclusion.
The 1.3 %
current yield might not be exceptionally high, but whatever the stock lacks in
yield it
more than compensates with dividend growth.
It bears repeating, that when it comes to investment safety, a long history of steady dividends is
more important
than a
current high dividend
yield.
Note, though, that when it comes to investment safety, a long history of steady dividends is
more important
than a
current high dividend
yield.
However, it's worth noting that
current yields assume that bonds will be held to maturity; some market participants may believe they will be able to sell the bonds for
more than they paid (i.e.,
yields will fall even
more).
With a
current dividend
yield of 2.0 %, it doesn't pay significantly
more than the S&P 500's 1.9 %.
- In fact, of all fixed income funds
more than five years or older that have
current yields of 6 % or
more, nearly 3 out of 4 had a down - year of 20 % or
more.
Here's the break - out, by fund inception date: Some observations: - Every fund listed (5 years or older) with
current yields of 6 % or
more, lost
more than 20 % of its value in 2008, except three: PIMCO Income A PONAX, which lost only 6.0 %; TCW Total Return Bond I TGLMX, which lost only 6.2 % (in 1994); and First Eagle High
Yield I FEHIX, which lost 15.8 %.
Yield more closely reflects
current performance
than total return.
To summarize then, when it comes to investment safety, a long history of steady dividends is
more important
than a
current high dividend
yield.
But note, though, that when it comes to investment safety, a long history of steady dividends is
more important
than a high
current dividend
yield.
Above all, note that when it comes to investment safety, a long history of steady dividends is
more important
than a
current high dividend
yield.
The seven - day
yield quotation
more closely reflects the
current earnings of the fund
than the total return quotation.
The
current yield of 1.55 % might not be massive like AT&T's dividend (which is why we diversify, and it's why I'm listing 10 different stocks with different dynamics here), but Walt Disney
more than makes up for that via strong dividend growth: the five - year dividend growth rate is 30.1 %, which is one of the higher rates you'll run across.
Keep in mind that this
yield is also
more than 150 basis points higher
than its five - year average, which leads back to one of the points I made earlier about undervaluation and higher
yield (which then results in
more current income,
more aggregate income, and potentially higher total return over the long run).
The
yield presented in this table
more closely reflects the
current earnings of the Money Market Portfolio
than the total return.
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.
That gives shares a
current yield of 4.3 %,
more than a 100 % premium to the S&P 500's 2.0 %.
That gives shares a
current yield of 11.3 %,
more than a 400 % premium to the S&P 500's average 2.0 %
yield.
But note, though, that when it comes to investment safety, a long history of steady dividends is
more important
than a
current high dividend
yield.
For example, dividend consistency and growth are two things that are significantly
more important for long - term investors
than the stock's
current yield.
If there is a material difference between the quoted total return and the quoted
current yield, the
yield quotation
more closely reflects the
current earnings of the portfolio
than the total return quotation.
It's also a small asset management company, it is a net - net with
more cash and cash equivalents
than it's market cap, it is profitable and paying a big dividend (
current yield is 8.5 %).
Although it feels good to be closing in on a portfolio value of $ 150,000, I'd much prefer a natural correction in the stock market which would allow my
current capital (which is
more limited
than usual) to go further by being able to purchase cheaper equities with higher
yields.
At
current levels of the market, the
yield of these bonds
more than compensates for the possibility of capital growth in equities (valuations are stretched)
Notice that the 5.9 %
yield on cost is a full 48 %
more than the portfolio's
current yield of 4.0 %.
But the portfolio's
yield on cost has now ballooned to a
current run - rate of 5.9 %, or
more than 2.8 times what it delivered in its first year of existence.
Consider, too, that the stock's
current yield is
more than 100 basis points higher
than its five - year average of 1.8 %.
The major reason I wanted to buy UNS it very good 12 - 14 % dividend growth, If I'd buy it
than, probably I would sell it too, because suddenly dividend growth went down to 2 %... another prove that
current yield is
more important that hoping of consistent higher dividend growth....
Current value (10/31/08): -2.4 % (equities
yield 2.4 %
more than bonds)
However, on a
more normalized basis, Seahawk is likely to
yield more than 65 % of its
current market capitalization in cash flow and 50 % in FCF.
Take the JPMorgan Series Y preferred share, which
yields 6.1 % as I write,
more than triple the
current payout on JPM's common stock!
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.
More goes into it
than looking at share price and the
current dividend
yield.
Besides, while bonds certainly seem risky in that at their
current low
yields they're especially vulnerable to rising rates, viewed from another angle they may be a lot
more valuable
than many investors realize.
But note that when it comes to investment safety, a long history of steady dividends is
more important
than a
current high dividend
yield.
Based on many studies covering a wide range of regions and crops, negative impacts of climate change on crop
yields have been
more common
than positive impacts (high confidence)... Since AR4, several periods of rapid food and cereal price increases following climate extremes in key producing regions indicate a sensitivity of
current markets to climate extremes among other factors (medium confidence).
The scientific process would seem to
yield a much
more reliable foundation on which to drive societal choices, rather
than the
current process of hobbling along with a failed energy market, the freedom to confuse people about science by knowingly lying about it in mass media, and unlimited, anonymous money in politics.