Certainly, it offers an attractive level for longer - term investors such as pension and insurance funds to lock in
a relatively decent yield, and will tempt some portfolio managers to buy bonds rather than equities.
Not exact matches
My issue with using this strategy is that dividend
yields are
relatively low at 2 - 3 %, so you'd need a lot of capital to generate a
decent amount of passive income.
Yet the few sectors offering
decent yields are
relatively small and becoming pricey.
I had assumed high
yield would enjoy one more year of
relatively decent returns.
With low interest rates and a volatile stock market, investors were (and still are) desperately looking for
relatively safe investments that provide a
decent yield.
The unfilled corn cob pictured above is a
relatively decent example of what the US corn crop is
yielding this year.