Sentences with phrase «yield on stocks»

So that 7.1 % yield on stocks can be considered the expected real, or after - inflation, return.

Bull markets rarely end when the earnings yield on stocks — now around 6 % — is higher than benchmark bond yields.

In fact, the dividend yield on stocks has accounted for almost one - half of their total long - term return.

It's a great way to boost the yield on stocks you already own... or to lower your cost basis on stocks you'd like to own.

On the other hand, if the yield on stocks rises over your holding period, your actual return will be even less than the yield - to - maturity you bargained for.

If I assume a dividend growth rate of 6 percent (about the long - run average *), the current S&P 500 dividend yield of 2.1 percent (from multpl.com), a terminal S&P 500 dividend yield of 4 percent (Hussman says that the dividend yield on stocks has historically averaged about 4 percent), the expected nominal return over ten years is 2.4 percent annually.

Historically, the dividend yield on stocks has averaged about 4 %, and has fluctuated both above and below this 4 % figure.

Investors have a choice between stocks and bonds, and the Fed model assumes that if the yield on bonds is higher than the yield on stocks, investors will sell stocks and buy bonds until the yields converge, and vice versa.

Eventually a spike in stock prices and / or an earnings decline caused by a recession will lower the earnings yield on stocks, but until then, nervous investors will likely continue to underperform.

With the yield on stocks so much better than bonds, investors can't go wrong.

Suppose, for example, you measured the trailing one - year dividend yield on stocks in 1950.

Writing covered calls is a great way to boost your yield on stocks you already own, and involves a lot less risk than most investors think.

Bull markets rarely end when the earnings yield on stocks — now around 6 % — is higher than benchmark bond yields.

On the other hand, if the yield on stocks rises over your holding period, your actual return will be even less than the yield - to - maturity you bargained for.

If I assume a dividend growth rate of 6 percent (about the long - run average *), the current S&P 500 dividend yield of 2.1 percent (from multpl.com), a terminal S&P 500 dividend yield of 4 percent (Hussman says that the dividend yield on stocks has historically averaged about 4 percent), the expected nominal return over ten years is 2.4 percent annually.

-LRB-...) Those who want the security of holding government paper have to lock up their money for just a year to beat the dividend yield on stocks, with the 1 - year Treasury bill yielding 2 %.

In order to drive the long - term return on stocks even 1 % higher, the market would have to plunge over 40 % (this would drive the yield on stocks from the current 1.4 % to 2.4 %).

But however you measure the yield on stocks, there's no value here.

For example, in order to drive the yield on stocks from 1.5 % to just 2 % - a tiny half percent increase - prices have to plunge by fully 25 %.

One popular «valuation» model compares the earnings yield on stocks with the 10 - year Treasury note.

Jason Ware, Albion Financial chief investment officer, and Stephen Wood, Russell Investments chief market strategist, discuss the threat of rising yields on the stock market and earnings.

At some point, provided that dividend is safe and investors are convinced it is going to be maintained, the dividend yield on the stock itself is going to be so attractive that it brings in buyers from the sidelines, people who otherwise can not stand to see the yield right there in front of them without doing something about it.

For example, earnings yields on stocks were just 3.4 % in March 2000.

Outside of the financial crisis, that's as high a yield on this stock as you could have possibly snagged over the last 10 years.

It's just what happens when yields on stocks and bonds decline.

In the past the dividend yields on stocks were typically higher than bonds, so a working strategy was to sell stocks whenever yields dropped below bonds and then buy them back again when yields were higher than bonds.

I raise this ticklish issue (investors are passionate about their dividends) because the yield on a stock, unlike a bond, doesn't indicate how much the company is worth.

The earnings yield on a stock is simply the earnings per share divided by the share price.

I suppose I could go further back in history and use Schiller's dataset, but the era of high dividend yields on stocks is over, at least for now.

It's possible that we get a rally from here in the short run — yield spreads are relatively wide compared to earnings yields on stock.

But in the aftermath of the bubble, yields on stocks dropped to 1 %, compared to 6 % in bonds.

Stock experts are advising pension funds that total yields on stocks may not exceed 5 % for two to five years.

Not exact matches

He says that if you can get only a 2 % return on bonds — rates we're seeing today — and 5.5 % yields on blue - chip stocks like BCE, it makes sense to overweight stocks, no matter what your age.

NEW YORK, May 2 - U.S. stocks edged higher while the dollar and Treasury yields fell on Wednesday after the Federal Reserve held interest rates steady and said inflation had «moved close» to its target.

Stock markets were routed around the globe on Monday and bond yields rose as resurgent U.S. inflation raised the possibility central banks would tighten policy more aggressively than had been expected.

While investors will have to find stocks with higher yields, pay more for them and take on more risk in bonds, the biggest change in a permanently low - rate world is that people will need to set aside more of every paycheque if they want to keep the same goal for retirement income.

The gap between the earnings yield on the S&P and Baa corporate bonds is over two standard deviations in favour of stocks.

NEW YORK, May 2 (Reuters)- U.S. stocks edged higher while the dollar and Treasury yields fell on Wednesday after the Federal Reserve held interest rates steady and said inflation had «moved close» to its target.

Carson says that writing call options on a basket of stocks with high - dividend yields can generate a return of between 10 percent and 15 percent.

April 26 - U.S. stock index futures pointed to a strong open for the tech - heavy Nasdaq on Thursday as a slew of upbeat earnings from Facebook and Qualcomm helped set aside worries over rising U.S. bond yields and corporate costs.

April 25 - Dow Jones Industrial Average futures erased losses on Wednesday after Boeing reported strong results and forecast, but concerns about rising U.S. bond yields and corporate costs continued to weigh on U.S. stocks.

While these companies are unsurprisingly out of favour with many investors — a lot simply won't buy these companies on moral grounds — they think the sector's high yields, low correlation with market cycles and steady earnings will make investors give them another look, and then stock prices will appreciate.

The younger O'Shaughnessy said that under his leadership, OSAM will remain focused on four investing principles: pick stocks of companies that are profitable, cheap, have very strong price trends and offer high yields for shareholders.

He says that under his leadership, OSAM will remain focused on four investing principles: pick stocks of companies that are profitable, cheap, have very strong price trends and offer high yields for shareholders.

«Without the high dividend yield, this may create further pressure on the stock price,» wrote Boland.

NEW YORK, March 5 - Treasuries yields rose on Monday afternoon as the U.S. stock market recovered and fears of a trade war eased after senior Republicans urged President Donald Trump to reconsider his threat to impose tariffs on imported steel and aluminum.

The average stock on the S&P 500 stock index has a dividend yield of about 2 percent whereas the 10 - year Treasury note yields 1.7 percent.

Government debt yields fell to multimonth lows, with the 10 - year yield slumping below 2.1 percent as stocks declined on global economic worries.

Markets around the globe are keeping a close eye on the U.S. bond market after the most recent move in yields exacerbated a sell - off in stocks on Tuesday.

Seifert points out that the stock is still cheap — «shares are undervalued on both a relative and historical basis,» she says — and with a 2.57 % yield it's also a decent income play.