Sentences with phrase «yield companies fall»
Distress Like a used car's disrepair following many miles of aggressive driving, some high - yield companies fall prey to distress.
https://www.researchaffiliates.com/ Not exact matches
Because a falling stock price typically represents poor business fundamentals, a company with a temporarily high yield is often a company that is about to cut its dividend.
Knowing that market predictability is all a guess, all I can really do is diversify my investments among companies that sport safe and reliable yields all the while simply holding and averaging down my cost should prices fall dramatically and make monthly buys no matter what's going on in the world or market.
Oil prices have fallen more than 15 percent since March 4 to a six - year low of $ 42.3, wiping out $ 7 billion of market value of high - yield debt issued by energy companies.
High - dividend stocks such as utilities and phone companies fell; those stocks are often compared to bonds and they tend to fall when bond yields rise, as higher bond yields make the stocks less appealing to investors seeking income.
High - yield bonds are usually issued by firms that have an uncertain financial outlook — either they have fallen into deteriorating credit situations, they are emerging growth companies, or they are undergoing corporate restructurings.
When stock prices fall, dividend yields rise unless the company has to reduce its quarterly payouts.
Banks and Insurance companies appear to have been very rational in their portfolio management of Treasury holdings over time, cutting back as yield levels fell over multi-decade periods.
If the stock appreciates, the current yield may fall — even as the company increases the dividend.
• The company's current yield falls to a very low percentage (perhaps no longer delivering the amount of income that you want from that stock) or climbs to a very high percentage (suggesting that the dividend is in danger).
In this environment, where yields have fallen over the past few years, it is difficult for financial companies that have bought bonds to replace the income if they sell the bond.
insurance companies and retirees) crowd into the high yield stocks as interest rates fall, and then exit when rates rises.
In fact, one reason many companies have overly high yields is because the stock price has fallen significantly, usually due to a loss in future earnings power, and this means the yield has moved up, but only temporarily, as the market is pricing in a dividend cut.
A high yield percentage could just mean that the value of the stock has fallen, and that the company is going to soon cut the dividend.
However, yields can also increase simply because a company's share price is falling.
If a company's bond ratings are downgraded, the price of the bonds usually falls, resulting in increased yields.
Because a falling stock price typically represents poor business fundamentals, a company with a temporarily high yield is often a company that is about to cut its dividend.
Of course, yields on 10 - year Treasuries (USGG10YR) have since fallen to 2.6 percent from 3 percent at the end of December and company bonds have resumed their rally.