High
yield stocks get a lot of attention and sometimes it's for a good reason.
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.
«If you
get into a bumpy economic cycle, high
yield typically correlates with
stocks, and that is one thing to be concerned about,» he said.
If the
stock market
gets wild again, junk bonds will also
get hit, but if you can wait out turmoil, the higher
yield will pay you more income.
However, in the spring of 2013, high -
yielding stocks, which were basically trading as bond alternatives,
got crushed.
The earnings
yield on enormous blue - chip
stocks such as Wal - Mart, which had little chance to grow at historical rates due to sheer size, was a paltry 2.54 % compared to the 5.49 % you could
get holding long - term Treasury bonds.
As far as dividend
stocks go — please — sell your dividend
stocks off so that I can
get a higher
yield!
Didn't want anyone to buy the
stock thinking they were
getting a 7 %
yield.
We have found that
stocks and bond
yields historically have been positively correlated until the 10 - year
yield gets up around 5 %, at which point the correlations break down.
The $ 3.46 - per - share dividend currently
yields a solid 2.6 %, which, when coupled with its steady growth in revenue, suggests that Diageo is a
stock investors can count on when times are good, but even more when times
get tough.
When investors buy
stocks, they
get a higher
yield than in banks or Treasury bonds, and they essentially
get the company for free!
With IBM
stock trading for just 11 times its guidance for adjusted earnings this year, investors can
get a near - 4 % dividend
yield, along with a long history of dividend growth, all for a bargain price.
Before The Bell - A modest decline in
yields on the 10 - year Treasury note helped
stocks get off on a bullish note yesterday.
Within that group of high - dividend
stocks, the ones that could potentially
get hit the most are the richly valued ones, as there's a greater chance that they have been overbought due to their
yields.
I agree, a price below $ 120 would be a great buying opportunity with a
yield around 3.0 % but not sure if a
stock like JNJ would
get that low anytime soon, short of a market correction.
In general, I think most long term dividend growth investors follow a very similar methodology, though I suspect some first timers
get lured by the high
yield stocks initially only to
get burned down the road with dividend cuts or eliminations.
First up is a
stock that I'm sure will
get the high
yield dividend bloggers excited, Veolia Environnement S.A. (VE).
It doesn't help that 10 - year bond
yields are still lower than the prospective operating earnings
yield on the S&P 500 (the «Fed Model»), not only because the model is built on an omitted variables bias (see the August 22 2005 comment), but also because the model statistically underperforms a simpler rule that says «
get in when
stock yields are high and interest rates are falling, and
get out when the reverse is true.»
If the 10 - year
yield stays at this level, then, according to our indicator, we don't have to start worrying about
stocks until the 90 - day
yield gets over 1 %.
If we lived in a world where treasury bonds
yielded 10 % and most blue - chip
stocks had 2 % dividend
yields and 4 % earnings
yields, I'd shut the heck up about dividend
stocks and start writing about the exhilarating world of fixed income that
gets everyone's juices flowin».
I do think there is merit in looking at general rates (we likely won't return to the rate environment of the early 1980's for example), but I wouldn't be
getting excited about
stock prices at these levels for the sole reason that bond
yields are really low.
I've only grab 10 shares, if it falls to the low $ 90s, I'll
get more, as this
stock has pretty low beta and stable dividend
yield over the years.
My retirement plan is to
get my ROTH up to at least 250K in value and generate the bulk of my retirement income through it by investing in high
yield dividend income
stocks.
With the recent
stock price drop, D's
yield is
getting closer to 5 %.
That's not bad on top of the 4 % dividend
yield investors are already
getting from the
stock.
So using the 3 % number for riskless and adding 3 % for our ERP, we
get to a 6 % earnings
yield for a fully priced
stock market.
I am trying to find a balance between
yield and growth and I try not to
get too focused solely on a
stock just because it has a high
yield.
Their dividends are usually qualified dividends, which
get taxed at a lower tax rate, their
yield is usually higher than common
stock yields, and they may provide less share price volatility.
One idea I have is that rather than staying in TIPS and knowing that my account balance «will decline» while I wait for a PE / 10 to decrease to 14 or so (which might not happen in my lifetime) it might be better to look at
getting yield from Preferred Stocks, REITs, MLP's or maybe even High Yield B
yield from Preferred
Stocks, REITs, MLP's or maybe even High
Yield B
Yield Bonds.
If the price of the
stock doubles, you'd still
get $ 4, but the
yield would drop to 2 %.
The price of that
stock is (supposed) to be worth a value representative of the expected
yield or how much of a dividend you'd be
getting.
Investment - grade bonds may have paltry
yields, but generally hold their value when
stocks get hammered — indeed, they may rise in value as investors flee to safety and drive interest rates down.
One of the oldest tricks in the game is to offer a high current
yield, where the
yield can
get curtailed through early prepayment (typically in low interest rate environments), or some negative event that forces the security to change its form, such as when a
stock price falls with reverse convertibles.
A reasonable dividend
yield: You can identify income
stocks by their high dividend
yields (the percentage you
get when you divide a company's current yearly payment by its share price).
Its
yield got over 10 % as its
stock sold off because investors were expecting a dividend cut.
By using this method of earning
yield and ROC, an investors will
get a list of at least 5/10
stocks at time which ranks well in the ranking based on high earning
yield and ROC.
I tend to let the dividends accrue in cash (we'll sweep them to a high interest account so they are still working), but then once a quarter we look for the holding that is down the most (there's always one, it seems) and we will put it all into that one
stock that is down — to
get the higher
yield.
It's the investor who has held a
stock for twenty years and has seen their dividend
yield - on - cost march its way up to 40 % of their initial purchase price who
gets to enjoy compounding's magic.
My conclusion is that it is possible to
get an excellent income stream (10 % or so after fees) from a combination of buying strong
yield stocks and writing call options against the positions.
Be wary of any blue chip
stocks with unusually high dividend
yields: Investors should avoid judging a company based solely on its dividend
yield (the percentage you
get when you divide a company's current yearly payment by its share price).
Stocks would crater because now you could get a 3 % risk free return from Treasuries compared to a risky 3 % dividend yield from s
Stocks would crater because now you could
get a 3 % risk free return from Treasuries compared to a risky 3 % dividend
yield from
stocksstocks.
The preferred
stocks reflect a part of the credit market that hasn't
gotten whacked too bad, offering a decent
yield for the junior debt on healthy companies risk.
The moment incremental financing seems less likely or more expensive, companies that will need financing
get re-evaluated by the market —
stock prices move down, bond
yields go up.
A portfolio to
get you going To help
get you started with Canadian
stocks, I've constructed a mini-portfolio based on combining
stocks with generous
yields and dividend growth.
After years of investors chasing the highest
yielding stocks, many classic defensive sectors — utilities and telecom, for example — have
gotten expensive.
Or if somehow it did — if investors
got so petrified that they piled into bonds to the extent that
yields went negative to that degree — then I would assume the
stock portion of your portfolio effectively fell to zero at that point.
On the positive side, I
get yields that are higher (sometimes * much * higher) than what corporate
stock dividends typically offer and totally blow away CDs (What?
A dividend
yield is the percentage you
get when you divide a
stock's current yearly dividend payment by its price.
Generally, for a typical 3 - 5 % dividend
yield large cap
stock, you can
get at least as much from the call premium as you earn from the dividend (effectively doubling the dividend).
But with access to mortgage REIT American Capital Agency (NASDAQ: AGNC), midstream energy specialist Linn Energy (NASDAQOTH: LINEQ), and other high -
yielding dividend
stocks, you can use a Coverdell to
get similar tax benefits that 529 plans offer while boosting your portfolio income.