Very highly rated corporates offer some diversification, so
they trade at lower yields than the behemoth that needs more and more liquidity.
Not exact matches
Germany's benchmark 10 - year bond
yield was up almost 2 bps
at 0.58 percent in early
trade, above a one - week
low of 0.56 percent hit on Friday.
In fact, credit spreads in many markets are
trading at the
lowest levels as a percentage of their overall
yield in a decade (see chart below).
Although they are not as egregiously expensive as 10 - year Swiss government bonds — currently
trading at a
yield of negative 0.25 % — Canadian bonds are offering a relatively paltry real return, even after adjusting for
low inflation.
Based on our framework, the telecom, financials, and real estate sectors are currently
trading at the
lowest relative valuations, based largely on their compelling earnings and dividend
yields.
Japan's recession left little demand
at home, so its banks developed the carry
trade: lending
at a
low interest rate to arbitrageurs to buy higher -
yielding securities.
The Fear
Trade, of course, is driven by
low to negative real interest rates — when inflation erodes away
at government bond
yields — deficit spending, a weaker U.S. dollar and geopolitical uncertainty.
Now, ARCP has dropped so much that its current dividend
yield is 11.12 % and currently
trading at $ 8.99, closer to its 5 years
low of ~ $ 8.
DLR is
trading at P / E ratio of 46.50 with a good dividend
yield of 5.01 % and Market Cap of $ 9.22 B. It's 52 week high was $ 75.39 and currently
trading at $ 67.93, almost 10 %
lower.
DLR is
trading at P / E ratio of 28.30 with an excellent dividend
yield of 5.90 % and Market Cap of $ 7.67 B. It's 52 week high was $ 65.43 and currently
trading at $ 56.66, almost 13.5 %
lower and fairly valued.
This is evident in a number of developments, including: increased demand for higher - risk assets; the increase in «carry
trades» — a form of gearing where funds are borrowed short - term
at low interest rates and invested in higher -
yielding assets, often in other countries; growth in alternative investment vehicles such as hedge funds; and growth in alternative investment strategies such as selling embedded options (see Box A).
DE is
trading at P / E ratio of 9.60 with a good dividend
yield of 2.74 % and Market Cap of $ 31.88 B. Its 52 week high was $ 94.89 and currently
trading at $ 87.73, almost 7.7 %
lower.
The
yield on the benchmark 10 - year Treasuries slumped 2 basis points to 2.97 percent, the super-long 30 - year bond
yields also plunged 2 basis points to 3.15 percent and the
yield on the short - term 2 - year
traded nearly 1 basis point
lower at 2.48 percent by 12:35 GMT.
Yields on US 10 - year Treasury notes edged
lower,
trading at 2.34 % versus 2.42 % a week ago.
There are other examples of speculation such as some European junk bonds
trading at yields so
low that no company should ever have to suffer the indignity of bankruptcy but for pure entertainment value you can't beat Jesus coin.
Even so, with the market's valuations today being cheaper than the two previous times that the S&P 500
traded at these levels — and with the
yields on the two primary alternatives, bonds and cash, being very
low by comparison — this could be a great time to own companies by investing in th stock market.
The
yield on the benchmark 10 - year Treasuries slipped 1 basis point to 2.95 percent, the super-long 30 - year bond
yields also fell 1 basis point to 3.12 percent and the
yield on the short - term 2 - year
traded 1-1/2 basis points
lower at 2.48 percent by 10:45 GMT.
All the excess liquidity being added to Europe and suppressing bond
yields makes European equities, which
trade at markedly
lower multiples than in the U.S., relatively attractive.
At the same time, lots of stocks that
trade on
low PE's,
low price to book values and high dividend
yields have turned out to be terrible investments.
Although they are not as egregiously expensive as 10 - year Swiss government bonds — currently
trading at a
yield of negative 0.25 % — U.S. bonds are offering a relatively paltry real return, even after adjusting for
low inflation.
«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.
Historically, stocks do tend to
trade at higher valuations when bond
yields are
lower.
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.
In a
low -
yield world where dividend - paying stocks are
trading at a premium, this type of approach might boost income if it works out.
That is not a 100 % probability (otherwise the bond would
trade at a higher price /
lower yield to reflect the
lower risk).
Although they are not as egregiously expensive as 10 - year Swiss government bonds — currently
trading at a
yield of negative 0.25 % — Canadian bonds are offering a relatively paltry real return, even after adjusting for
low inflation.
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.
Although they are not as egregiously expensive as 10 - year Swiss government bonds — currently
trading at a
yield of negative 0.25 % — U.S. bonds are offering a relatively paltry real return, even after adjusting for
low inflation.
NNN's stock
trades at 19.4 times estimated 2016 FFO per share and has a dividend
yield of 3.8 %, which is significantly
lower than its five - year average dividend
yield of 4.9 %.
This combination of capital intensity,
low - margins and economic sensitivity is probably why automakers
trade at such
low multiples and offer high
yields.
On a forward basis, AEM is currently
trading at 8.5 x FY17 earnings with a prospective dividend
yield of 2.9 % (S$ 0.0755 / S$ 2.57) on a
low dividend payout ratio of 25 %.
However, high
yielding stocks are a VERY crowded
trade because the Central Banks have kept interest rates
low, probably in large part to facilitate servicing of the national debts and to allow the investment banks to recapitalize and
at least partially recoup their bad leveraged bets.
XOM is
trading at P / E ratio of 12.20 with a nice dividend
yield of 2.89 % and market cap of $ 406.98 B. Its 52 week high was $ 104.61 and currently
trading at $ 95.43, almost 8.9 %
lower than its 52 week high.
Premium refers to a price above the par value (price
at maturity) and the interest rate is
lower than the coupon of the bond
at par.E.g.: Company ABC Corporate 2015 6.50
trading at $ 105 (6.20 %
yield).
No wonder BBEP
trades at a
lower valuation and has a higher
yield than other similar MLPs.
USD JPY Tumbles as Return of Risk Aversion Rocks the Markets The USD JPY reversed its four day rally as traders sought safety in
lower yielding assets following an announcement by President Obama to curb
trading at financial institutions.
Banks commonly
trade at under their book value in environments of
low interest rates, flat or inverted
yield curves, and high amounts of regulation.
Dividend Growth Investor: My understanding is Japanese equities
traded at sky high valuations and ultra
low dividend
yields in the 80s.
If, on the other hand, the stock was
trading at a
lower price, such as $ 25, the dividend
yield would increase ($ 5 dividend ÷ $ 25 share price = 20 % dividend
yield).
Shares currently
trade at $ 20.64,
yielding an 18,500 percent return from the
low.
Justin Bender of PWL Capital agrees it can make sense to hold
low -
yielding GICs in taxable accounts, but he stresses most bonds are currently
trading at premiums, and can easily suffer negative after - tax returns.
Both offer dividend
yields approaching 4 % and
trade at price - to - earnings ratios of just under 13, which is quite
low compared to most Canadian stocks.
Most people say I have too many already — I have savings accounts
at ING Direct, Emigrant Direct, E *
TRADE, Citibank, and I just cancelled a
low -
yield one
at Bank of America.
If a company's financial health worsens over time, investors in the bond market will adjust to the increased risk and
trade the bonds
at lower prices and therefore
at higher
yields.
Even after it began to drop, Kodak attracted some diehard value - seekers who were drawn by its high dividend
yield, and the fact that it was
trading at very
low values.
Senior bonds
trade with
low yields, junior bonds
at higher
yields, and preferred stock
at higher
yields yet.
Since many of these blue chips are
trading at historically
low valuations, they are offering an entry - level dividend
yield that is in some cases a multiple of what you would normally expect to be able to get from these stocks.
Now, ARCP has dropped so much that its current dividend
yield is 11.12 % and currently
trading at $ 8.99, closer to its 5 years
low of ~ $ 8.
This suggests that NTRs may offer a better option for investors who are concerned about rich public REIT valuations that may overstate underlying asset value, especially now, when
traded REIT prices are
at historic highs and
yields are near historic
lows.
Simon Property may not appear as the cheapest mall REIT in terms of
yield and P / FFO ratio, particularly since some of its peers, such as Macerich, are
trading at slightly
lower multiples of FFO and offer a dividend
yield of ~ 5 %.