I don't call it «Excellent,» because I usually reserve that for stocks
with yields of 5 % or more.
The banks can easily make money
with a yield curve that steep... not much money, but enough to keep them alive (the financial sector would shrink under these rules).
For this example, you'd need a taxable
bond with a yield of 4 % to get the same return as a municipal bond.
With yields rising and credit spreads a little wider over the past few months we have taken the opportunity to add back some duration and credit exposures.
Which is why I won't buy too many shares and focus on stocks
with yields in the 9 - 11 % range.
I see far too many dividend investors buy anything and everything
with a yield at any price because they focus too much on dividends.
However, when it comes to the dividend yield I try to find companies
with a yield above 4 %.
With yields low — the index's yield to maturity is just 2.3 % — sharply higher rates would likely result in negative returns.
With yields so low, it becomes harder to meet your return objectives, which might force you to save more, work longer or spend less in retirement.
This is just an OK resume, although again remember that we are talking about a
company with a yield of nearly 7 %.
Yet,
even with yields hovering around 3 % for the first time since 2013, investors should not be so quick to accept the bearish consensus view.
Looks like we're at a similar level here
with the yield near that same spot, except the stock has advanced quite a bit on higher earnings.
However,
with yields from treasury bonds now at a little over 1.5 %, many investors are looking for other ways to create income in retirement.
Today, five - year CDs can be bought
with yields as high as 2.6 percent (with a three - month early withdrawal penalty).
Unfortunately, you're not going to be able to create a safe, diversified
portfolio with a yield much higher than this.
The new bonds issued in euros were
issued with a yield close to historic minimums in the euro market.
But since production isn't always perfect, that could just translate to 32 million OLED iPhones a
year with a yield of 60 %.
With $ 500 you can open a
CD with a yield for each time frame, ranging from six months to six years.
With yields down, investors are exploring other parts of the bond market that offer the prospect of higher income.
The income pays for day - to - date expenses, and research has shown that companies
with a yield tend to post higher long - term total returns than those without.
However, because the lender is guaranteed to receive all of the interest on the loan, you can usually get a better interest rate on
loans with yield maintenance.
However, because the lender is guaranteed to receive all of the interest on the loan, you can usually get a better interest rate on loans
with yield maintenance.
That said,
especially with yields as low as they are, you give up some of the upside of long - run stock market returns when you hold bonds.
I hear from many investors who
start with the yield, which they see as a cushion for a possible decline in prices.
There is an optimum point that you can
reach with yield vs. risk, and I believe this falls around 5 - 6 %.
He also buys
businesses with yields of at least 5 %, but he says he can find good companies playing closer to 9 %.
Gold is known as the yellow
metal with no yield, but simple math tells us no yield is better than a negative one.
You'll also have to find a high - grade municipal bond that fits your time
horizon with a yield high enough to beat the other short - term investment options.
Minimum yield Dividend growth stocks
come with yields ranging from 0.1 % to double - digits.
With yields recently falling toward historic lows, bond investors have increasingly recognized that the long bull market in bonds since the 1980's may be behind us.
So many are reaching for yield amid a weak
economy with yields that are low relative to past trends.
With yields so low, it will only take a modest amount of share price depreciation to cause returns to fall below the rate of inflation.