Sentences with phrase «yielding stocks because»

Be skeptical of the highest - yielding stocks because they're often at risk of a dividend cut.

Not exact matches

In other words, because investors can not generate a sufficient return from low - yielding bonds, they turn to stocks as their only alternative.

AT&T: «Look, AT&T is, actually, I think, putting in a bottom because people are buying stocks [of] domestic companies that have high yields where the cash flow's good and I think that's ATT.»

My reasoning: Return would be lower than Dividend Investing above because index funds need to hold stocks yielding 1 and 2 % as well as those yielding > 3 %.

This is especially useful because, if you invert the p / e ratio by taking it divided by 1, you can calculate a stock's earnings yield.

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.

However, keep in mind that the first move higher following a substantial market correction does not generally yield stellar results because new leadership in the stock market is just becoming established.

That helped bank stocks because rising yields mean banks can charge higher interest rates on loans.

Finally, the Fed's easy - money policies have pushed investors into the stock market because bond yields are so low.

The methodology provides a well - screened group of stocks that also delivers yields greater than the market (S&P 500 yields ~ 2 % while the stocks in our portfolio have an average yield of 6.5 %), safety in the sustainability of the yield because of strong free cash flow, and the potential for capital gains as each stock is currently undervalued.

When interest rates rise, they can become a challenge for stocks because they offer higher yielding investment alternatives and also make for higher borrowing costs for corporations.

In addition, dividend stocks often cause a stock to fall far less than non-dividend paying equities because they become «yield supported».

The mirror - image transactions — thousands of them over a four - year period — didn't yield any profit on the stocks, because they were conducted usually within moments of each other.

Instead of buying the TV this year, which will leave you with $ 0, you put the money into a savings account yielding 1 % (because stocks are too risky).

A 4 % yield on blue chip stocks is not worth it, because when the thing falls apart, your 4 % will be gone in an hour.

Because of yield - seeking speculation, stock and bond prices today are already where they are likely to be many years from today.

Description of each stock are little bit shorter than the high yield because you should know about them already.

This is because investors are worried about rising interest rates, something that makes investment in utilities less attractive compared to bonds and other high yield stocks.

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.»

We think they're attractive because they have faster rising earnings, higher dividend yields and lower valuations than U.S. stocks, and they can benefit as global growth accelerates.

Rising rates are never good for Wall Street banks (despite what you read) because it makes it harder for the banks» loan customers to survive and pay back their loans while also making the banks» stock dividend less attractive compared to U.S. Treasury yields.

Because of their high prices and low yields, growth stocks tend to have less downside protection and more volatility than cheaper companies.

With one week left in April I decided to deploy some fresh capital into a market that has been very, very generous as of late in terms of giving us much better buying opportunities in many «name brand» stocks that have been previously deemed untouchable because of low yields, high valuations and relatively speaking, high prices.

This is because the very long - term leases that underpin their steady and predictable cash flows (new leases are generally for 15 to 20 years) also create a higher beta to yield (i.e. their stock prices react more severely to movements in interest rates).

With fully two - thirds of its money invested in domestic and foreign stocks, private equity and «absolute return strategies» (i.e., hedge funds), the New York State pension fund has a risky asset allocation profile typical of its counterparts across the country — because chasing risk is its only hope of earning 7 percent a year in a market where the most secure long - term bonds yield barely 2 percent.

Its current yield has been sliding back recently, because the stock's price has been rising.

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.

The arbitrage of investment grade corporations buying back their own stock, or the stock of other corporations, because with investment grade yields so low, it makes sense to do it, at least in the short run.

Color me neutral now, because the supply of cash to invest in high yield bonds, stock IPOs, and private equity is substantial.

That's because it would cause bonds — and maybe even high - yield stocks — to fall in value.

Its yield got over 10 % as its stock sold off because investors were expecting a dividend cut.

For example, a dividend stock's yield could be high simply because its share price has dropped sharply in anticipation of a dividend cut.

A falling share price makes a stock's yield goes up (because you still use the latest dividend payment as the numerator to calculate yield — but the denominator, the price, has dropped).

Operating Earnings Yield (OEY) is one of my favorite metrics because, by using market capitalization as the denominator, it compares operating earnings to the price you are paying for the stock (or the current price).

That's because bond yields and stock valuations tend to track each more closely at higher levels of inflation.

Stocks would crater because now you could get a 3 % risk free return from Treasuries compared to a risky 3 % dividend yield from sStocks would crater because now you could get a 3 % risk free return from Treasuries compared to a risky 3 % dividend yield from stocksstocks.

When looking for stocks with high dividend yields, you should avoid the temptation of seeking out stocks with the highest yields — simply because they have above - average yields.

If a stock has a low yield I want to know if it's because the stock is overpriced or if and why the company is not returning enough to shareholders.

The underlying index methodology requires a long track record of distributions, meaning that this product is unlikely to include small, speculative firms that are offering an attractive distribution yield because their stock price has been depressed.

When looking for high - yield investments, you should avoid the temptation of selecting stocks simply because of their above - average yields.

Stocks are cheap relative to bonds because bond yields reflect little growth and aggressive central banks.

It is a conditioning screen for the dividend yield scan because, by itself, it does not indicate if the dividend yield is high or low, nor will it indicate if the stock is priced attractively.

When searching for in the money covered calls you should not just chase the highest yield, but instead do research and only get involved with stocks you wouldn't mind owning at the net debit price of the transaction, because if you do enough covered call trades then that will happen with some of your trades.

Although RioCan pays a higher yield than GICs and conveniently pays a monthly distribution, it is considered to be riskier than GICs because it's a stock that's innately volatile.

The key aspect of looking at dividends yields is that the yield shouldn't be high because of a beating that the price of the stock has taken.

If the stock price was above 50 then the covered call investment would yield $ 4 profit on the stock (because we paid $ 46 and will receive $ 50 when the option is exercised) plus $ 3 on the option (since we sold the option for $ 3), for a total of $ 7 / share (or $ 700 for 100 shares).

The PIMCO fund trails 80 % of its rivals over the past three years and has earned one - third as much because the declining value of its stocks have largely wiped out the fund's extra yield.

The yield for any particular stock may be up because the business prospects for that company are in decline, and the inevitable dividend cut has just not been announced yet.

Dividends can help combat volatility — that's because dividend yield increases as the market price of a stock falls, making the stock more attractive

Stocks are the most common IRA investment option because they have the potential to yield higher returns, but they are much riskier.