My main plan was to set up an automatic withdrawal from my regular banking account and then a couple of times a year pick a bucket of good dividend
yielding stocks from their list.
The 50 stocks represent the five highest -
yielding stocks from 10 different sectors of the S&P 500.
The index selects the five highest -
yielding stocks from each sector, holds them for a year, and then starts the process again.
James O'Shaughnessy looked at the returns of large high -
yielding stocks from 1951 to the end of 2003 in his book What Works on Wall Street.
The PowerShares High Yield Equity Dividend Achievers ETF (PEY) offers a smaller, higher - yielding slice of the dividend achievers universe, taking only the 50 highest -
yielding stocks from the dividend achievers screen.
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.
Buy HSCEI (Hang Seng China Enterprises Index)-- The Hong Kong
Stock Exchange is set to benefit
from higher
yields.
The German lender believes European banking
stocks and diversified financials should benefit the most
from the rise in
yields, outperforming other European sectors by around 10 percent.
Specifically, Einhorn wants Apple to distribute high -
yielding preferred
stock and charges that the company is trying to adopt new rules to prevent that
from happening.
Looking at the forward earnings
yield for S&P 500
stocks, BAML finds dispersion is the highest since 2009, when the market was just starting to recover
from the financial crisis.
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.
Yield hunters are ignoring warning signs
from the «real» economy, pushing share prices for some major
stocks higher.
Also, Ablin added a large portion of the recent rally involved a rotation
from bonds into
stocks as low interest rates forced investors to seek
yield in the
stock market.
It has a 6 %
yield, and the
stock price should climb
from the US$ 48 it's at now to $ 51, he says.
History shows when the benchmark rate for everything in the economy
from corporate bond
yields to mortgage rates moves by this much, this fast, the
stock market struggles in the following months.
Given Osiris's strong five - year record of growth and profitability, Bowers was able to help make Miller's wishes come true: he structured a deal that raised $ 13 million
from a large local pension fund — the Pennsylvania Public School Employees Retirement System (see «What Pension Funds Want,» [Article link]-RRB--- by selling a package of subordinated debt and convertible preferred
stock, which included a fixed interest rate and dividend
yield.
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.
Is n`t — do n`t you think there will come a time when the
yield on the 10 year will start to provide some competition
from the
yields in the
stock market and that will have a problem for equity investors?
The Treasury market often becomes a safe haven
from falling
stocks, and that pushes
yields lower.
The potential counter weights that could cap the 10 - year
yield would be a negative
stock market reaction that drives investors to bonds; lower interest rates outside the U.S. that make the U.S. debt relatively more attractive, and good demand for longer - dated securities
from insurers and others.
While the «pure» MSCI World High Dividend
Yield Index outperformed its parent MSCI World Index from November 1998 to August 2015, when we applied screens to the stocks in our study to avoid yield - traps, the active return increased to an annualized 3.3 percentage po
Yield Index outperformed its parent MSCI World Index
from November 1998 to August 2015, when we applied screens to the
stocks in our study to avoid
yield - traps, the active return increased to an annualized 3.3 percentage po
yield - traps, the active return increased to an annualized 3.3 percentage points.
Investors have long known that a high - dividend strategy has been subject to various «
yield traps,» such as those stemming
from temporarily high earnings, high payouts or falling
stock prices.
Another area of confusing stems
from making
yield comparisons across
stocks and bonds.
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 %.
Leadership, transportation
stocks, and Treasury
yields, among other factors, have improved
from their lows.
And even if the indicator was valid (counterfactually), the article asks readers to accept as given that earnings are properly reported here, that they will grow by nearly 50 % over the coming year, and that investors are willing to key the long - term return they require
from stocks to the
yield on 10 - year bonds, which has been abnormally depressed in a flight to safety.
For
stocks, it's important to have
stocks in your portfolio
from a large variety of companies, including companies in different sectors or industries, such as consumer staples or materials;
from companies of different sizes, such as large - cap or small - cap
stocks;
from companies in different countries and
from companies that either have growth potential or good dividend
yields.
Removal of
stocks from the index due to maturity, redemption, call features or conversion may cause a decrease in the
yield of the index and the Fund.
Typically, I have a fairly long list of
stocks to pick
from as values and
yields for many names appeared attractive.
A simple
stock pricing model shows that the impact of a corporate tax cut
from 35 percent to 21 percent
yields a one - time increase in equity values of 21.54 percent.
I have been adding to my AFL for a few months already but what I found interesting
from this article is the high
yield that many of these low PE
stocks offer.
Some comments
from White House Economic Advisor Kudlow (will be accompanying Mnuchin, all disputes to be discussed, has «high hopes» for outcome, met with Apple's Cook who made some helpful suggestions) also helped boost
stocks, and take the 10 - year
yield down to 2.981 %.
When I was a junk bond trader in the 1990's, high
yield money would be pulled
from the market abruptly and quickly, usually about a week before the
stock market would undergo a big sell - off.
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 %).
Small
stocks and many international
stocks don't pay much income; income
from high -
yield and foreign bonds may be higher than for high - quality bonds, but also more variable.
Income - producing investment ideas you can act on,
from bond funds to high -
yield stocks - includes the Motley Fool Options service
But since the 10 - year bond
yield declined
from 2.85 % to 2.75 % after the 5 %
stock market drop, and futures were signaling another 5 % drop in the
stock market, I figured it was time to deploy some significant cash.
If you need income
from your portfolio and want some of the favorable attributes that dividend
stocks have, then the Vanguard High Dividend
Yield ETF is a smart choice for you.
The
stock is barely 2 % away
from its 52 - week lows and is
yielding 2.5 %, as of this writing.
So, investing in
stocks that have a good record of dividend growth may help toward beating the effect of inflation, but some current
yield may have to be sacrificed to benefit
from such future dividend growth.
Coupling that lower valuation on the company's earnings with the much higher current
yield leads to a lot of upside, along with what could be more near - term and long - term income
from the
stock.
Yeah, investors often confuse
yield with fixed income risk, but I agree that junk bonds are much closer to
stocks from a risk perspective.
All this currency intervention
from central bankers is not only causing
stocks to rise, but bond prices have risen as their
yields fall in response to news that central bankers are going to be buying bonds in an attempt to lower interest rates further still.
If you prefer equity - like risk to come
from equities in your search for
yield, dividend
stocks are a logical place to look.
Because of
yield - seeking speculation,
stock and bond prices today are already where they are likely to be many years
from today.
For
stocks, the «
yield - to - maturity» comes
from two components: income plus capital gain.
Retirees for example will focus on higher
yielding stocks in order to receive an adequate revenue derived
from their portfolio.
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.
This forced investors to seek income
from «bond - surrogate» investments such as high - dividend - paying
stocks, high -
yield bonds, levered loans and real estate.
You may also be interested in considering High
Yield Bond ETFs High
Yield Real Estate Investment Trusts (REITs) High
Yield Closed End Funds High
Yield Utility
Stock ETFs Return
from High
Yield ETFs to More on High
Yield Passive Income