Sentences with phrase «yield than other stocks»

If you are looking for dividend stocks, it may seem tempting to look for stocks that have a higher dividend yield than other stocks.

Not exact matches

The biggest losers were energy (XLE), consumer staples (XLP) and materials (XLB), all down more than 7 percent amid riding bond yields — which makes dividend stock yields less attractive and overrode other factors, like stronger oil prices and a weak dollar.
-LSB-...] The Most Interesting Asset Class Over the Next Decade «Vanguard highlighted high - yield bonds to show how they typically perform worse than other types of bonds during a stock market drop.»
Vanguard highlighted high - yield bonds to show how they typically perform worse than other types of bonds during a stock market drop.
As usual, I don't place too much emphasis on this sort of forecast, but to the extent that I make any comments at all about the outlook for 2006, the bottom line is this: 1) we can't rule out modest potential for stock appreciation, which would require the maintenance or expansion of already high price / peak earnings multiples; 2) we also should recognize an uncomfortably large potential for market losses, particularly given that the current bull market has now outlived the median and average bull, yet at higher valuations than most bulls have achieved, a flat yield curve with rising interest rate pressures, an extended period of internal divergence as measured by breadth and other market action, and complacency at best and excessive bullishness at worst, as measured by various sentiment indicators; 3) there is a moderate but still not compelling risk of an oncoming recession, which would become more of a factor if we observe a substantial widening of credit spreads and weakness in the ISM Purchasing Managers Index in the months ahead, and; 4) there remains substantial potential for U.S. dollar weakness coupled with «unexpectedly» persistent inflation pressures, particularly if we do observe economic weakness.
Although decades of history have conclusively proved it is more profitable to be an owner of corporate America (viz., stocks), rather than a lender to it (viz., bonds), there are times when equities are unattractive compared to other asset classes (think late - 1999 when stock prices had risen so high the earnings yields were almost non-existent) or they do not fit with the particular goals or needs of the portfolio owner.
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.
I don't really worry about stocks being «overvalued» other than the reviewing P / E; I think price is reflected in the dividend yield and I'm investing more for income than capital gains.
Roughly half of the ETFs have a higher correlation to treasury bonds and the other half to the S&P 500 Index (i.e., CWB — convertible bonds, JNK — high yield corporate, PFF — preferred stock and XLU — utilities all react to interest rates but are more correlated to the stock market than to treasury bonds).
On the other hand, it is the first time in more than two years that investors can purchase the stock at a 3.5 % dividend yield.
If you were to place an equal weight (20 %) into each of these stocks, you would have a portfolio with a yield of 4.26 %, better than any of the other solutions we've discussed so far.
Municipal bonds can play an important role in an investor's portfolio, offering a higher tax - equivalent yield than many taxable fixed income alternatives, and the potential for portfolio diversification to stocks and other types of bonds.
(If there happens to be fewer than 75 stocks with yields above the median, other rules kick in.)
U.S. preferred stocks are perceived to be an attractive investment, as they have historically offered higher yields than other asset classes, especially when the global rates remain low.
European stocks, on the other hand, have been delivering an average dividend yield of more than 2.5 %, according to MSCI data as of February 27, 2015.
When the share price of a dividend stock decreases, the yield increases, so this usually tends to create upward pressure on the stock and more of a balance than other stocks.
Lower yielding stocks than LO to be sure but I too felt the value had topped out and had been wanting to get into some of these other stocks.
Higher - yielding stocks tend to offer higher returns over time than low - or no - yield stocks, according to research from Jeremy Siegel and others.
Perhaps this is why many researchers have found that other measures of value yield better results than book - to - market when building value stock portfolios.
Non-investment-grade bonds (aka junk bonds or high yield bonds) are more affected by factors other than interest rates, including some of the same factors (economic booms or recessions) that affect stocks.
I would also argue that many high yielding stocks are simply high yielding since they pay out more of their earnings in dividends and have higher leverage than the overall market, but their other underlying characteristics are very market like.
On the other hand, dividend investors raise strong points: — less fees: even though ETF fees are much smaller than mutual funds, they do charge more than holding those stocks directly — more control: being able to select your type of portfolio, holding stocks that you believe in and going for the stocks that you know and targeting the yield that matches you — more fun?
There are plenty of other investments to consider in the market that provide much higher yield (review some of the best high dividend stocks here) or much faster long - term growth prospects than Franklin Resources.
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.
On the other hand, it is the first time in more than two years that investors can purchase the stock at a 3.5 % dividend yield.
DIS sports much higher dividend growth (as I pointed out in the article and valuation analysis) than many other stocks with higher yields.
You will make more money there — businesses with a high earnings yield tend to do better than other stocks, and Facebook does not make it there, for now.
Your points are well made, but I think I can fairly argue that the range of yields you'll find in a particular property category will still be far narrower than pretty much any other property or stock metric you can think of...
In short, depending on the time span, nearly one - third to one - half of the long - term return on stocks comes from sources other than dividend yield, such as inflation, growth in dividends, and changes in valuation levels.
Stocks have continued on a tear, and corporate credit spreads are very tight, tighter than any of the other periods where the yield curve was shaped as it is now.
«As for common stocks, they should trade at an earnings or FCF yield greater than that of the highest after - tax yield on debts and other instruments.»
In other words, that manager only bought stocks that had a yield higher than a fixed threshold.
Personally I hold 4 main assets, higher yielding shares, property, gold and bonds but I guess I'm getting off topic a bit so I'll say no more other than If I could go back in time and advise a young me I'd say get a mortgage as soon as possible but also drip feed money into the stock market on a regular basis.
MLPs tend to offer higher yields than REITs or other dividend stocks, usually around a range of between 5 % and 7 % a year.
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