But going back to the appreciation, my investments have
yielded average appreciation > 10 % per year in multiple markets.
Not exact matches
This, in conjunction with the stock's impressive
yield and above -
average appreciation potential, make it appealing to investors of all ilks.
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.
Medium Risk — Growth (M / GRW) Lower to
average risk equities of companies with sound financials, consistent earnings growth, the potential for long - term price
appreciation, a potential dividend
yield, and / or share repurchase program.
If you are also looking for price
appreciation, Stovall also offers up this tidbit: «With the S&P 500 now
yielding 2.0 % versus 2.2 % for the 10 - year Treasury, history reminds us that since 1953 whenever the
yield on the S&P 500 was within one percentage point of the 10 - year
yield, the «500» gained an
average of 11 % in price in the subsequent 12 months and was higher about 80 % of the time.»
In the 1940s toward the top of the table, the
yield was high — it
averaged 5.87 % and capital
appreciation averaged 4.10 % for an annual total return of 9.97 %.
High - Yielders with Capital
Appreciation Potential: Above -
average dividend
yields and potential growth
Consequently, I believe it offers the rare combination of above -
average and growing current
yield with the opportunity to generate above -
average capital
appreciation over the long run and perhaps the short run as well.
High Yielders with Capital
Appreciation Potential: Above -
average dividend
yields and potential growth
Consequently, when combined with the first 10 research candidates, the complete group potentially offers risk control, high -
yield and above -
average capital
appreciation potential.
Far from offering high price
appreciation, it is far easier to cheat many people by offering a high
yield, because
average people look for ways to stretch their limited resources with a tight budget.
When you see the Total Return in the examples in the article, I am referring to an aggregation of the cash flow
yield plus the
average annual capital
appreciation of an investment asset.
Current
average yield 5.9 % on dividends with some nice 5 - 10 % capital
appreciation on top.
REITs featured an
average total return (dividend
yield plus price
appreciation) of better than 14 percent last year, following a 35 percent increase in 1991.