Not exact matches
The high -
yield market has underperformed equities this year,
often seen as a sign of trouble for
stocks.
When bond
yields rise, investors
often start weighing whether
stocks are the only game in town for return.
Screening
stocks by dividend
yield often works, but the «dogs of the TSX» strategy can have a nasty bite
There is no doubt that, based on pure, cold, logical data,
stocks are the single best long - term performing asset class for disciplined investors who are not swayed by emotion, focus on earnings and dividends, and never pay too much for a
stock,
often as measured on a conservative beginning earnings
yield relative to the Treasury bond
yield basis.
The Treasury market
often becomes a safe haven from falling
stocks, and that pushes
yields lower.
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.
I've long noted that the analysis of market action can help to overcome some of this frustration, as
stocks have
often provided good returns despite rich valuations so long as market internals were strong, and the environment was not yet characterized by a syndrome of overvalued, overbought, overbullish, and rising
yield conditions.
Investors
often buy those
stocks when bond
yields are falling.
High - dividend
stocks such as utilities and phone companies fell; those
stocks are
often compared to bonds and they tend to fall when bond
yields rise, as higher bond
yields make the
stocks less appealing to investors seeking income.
In addition, dividend
stocks often cause a
stock to fall far less than non-dividend paying equities because they become «
yield supported».
But short - term volatility is
often a long - term opportunity, and this
stock has the potential for 14 % upside on top of a market - crushing
yield of almost 6 %.
Yeah, investors
often confuse
yield with fixed income risk, but I agree that junk bonds are much closer to
stocks from a risk perspective.
Stocks with a history of consistently growing their dividends have historically tended to perform well and exhibit less volatility in a rising rate environment, while high
yielding dividends,
often considered «bond - like proxies,» have tended to be more vulnerable (due to their high debt levels) and have historically followed bond performance when rates rise.
Finally, there is an
often overlooked option for investors looking to balance risk and
yield: preferred
stocks.
While some investors choose to go it alone and select individual
stocks for the income portion of their portfolio, the beauty of high
yield ETFs is that they spread the individual company risk across several issues,
often across sectors, and sometimes, even across countries.
When the Fed lowers its overnight rates, the expectation is
often that long - bond
yields will follow, lending a boost to
stock valuations.
The cause is always speculative distortion that was well - known for quite some time: elevated valuations,
often accompanied by speculation and new issues of low - quality
stocks representing some «new economy» theme, or
yield - seeking speculation and heavy issuance of low quality debt.
Often,
stocking up on pantry essentials from various locations will
yield the greatest bargain ---- even if this approach does take twice as long.
The»70s had many people buying
stocks with high
yields, dividends
often exceeding what earnings could deliver.
Other investments are
often touted as a substitute for high - quality bonds, including dividend
stocks, preferred shares, real estate investment trusts (REITs) and high -
yield bonds.
More importantly, this is providing an example of how bonds
often are not correlated with
stocks (they don't move up and down together), thus giving us the diversification benefits of including the fixed - income asset class in our portfolios, while providing a higher
yield and higher expected return than cash.
Realty Income's current
yield of 4.8 % puts it in a higher -
yield category than we
often see in dividend growth
stocks.
Although most investors diversified beyond this model and incorporated small caps, foreign
stocks, high
yield bonds, and perhaps something more exotic like REITs or commodities, a simple mix of 60 % S&P 500 and 40 % Barclays U.S. Aggregate Bond is
often the shorthand definition of a balanced portfolio.
Be skeptical of the highest -
yielding stocks because they're
often at risk of a dividend cut.
The rest of the S&P's highest - paying dividend
stocks yield 5.6 % or less — but their
yields are
often more sustainable.
Finally, there is an
often overlooked option for investors looking to balance risk and
yield: preferred
stocks.
Dividend investors tend to look for high
yielding stocks and
often use an index as a way to determine what is actually high and what is low.
In fact, the
stock market rises more
often than it falls when the 10 year Treasury
yield rises.
While investing in
stocks, shares and funds is
often considered a somewhat risky strategy — as your money can go up as well as down — it has historically
yielded excellent returns.
An exceptionally high current
yield often means that investors have sold off the
stock or bond due to real, fundamental problems with the business.
In fact, the
stocks with the highest
yields are the ones that
often trip up investors the most.
But short - term volatility is
often a long - term opportunity, and this
stock has the potential for 14 % upside on top of a market - crushing
yield of almost 6 %.
But short - term volatility is
often a long - term opportunity, and this
stock appears 14 % undervalued on top of a market - crushing
yield of almost 6 %.
The Balance warns,
often stocks have a high
yield because the company is in trouble.
In fact, the
stocks with the highest
yields often trip up investors the most.
E.g. buyers of dividend
stocks and preferred shares too
often look only at the dividend
yield, and ignore the potential for capital gains / losses.
Generally avoid
stocks with the highest
yields because
often that indicates the dividend is at risk and growth prospects are low.
I'd be a bit more picky in terms of averaging down on a
stock I might not want to go too heavy on due to anticipated risk,
yield, or something else, but I'm pretty excited about increasing the size of this position fairly quickly, which is something I tend to do quite
often as I discussed in the article.
The dividend
yield on high
yield stocks is
often the only return investors will see.
Often (but not always), high
yield stocks offer little in the way of growth potential.
When someone says that the
stock market looks expensive,
often what he is saying is this: the current earnings
yield that you are receiving is quite low.
I still advise avoiding the very highest
yielding dividend
stocks from these income - oriented categories, since outliers are more
often than not outlying for a reason.
This can
often yield stocks which are emerging from consolidations.
It's just not particularly
often that you can buy a
stock with a
yield near 6 % and growth in the upper single digits.
When the Fed lowers its overnight rates, the expectation is
often that long - bond
yields will follow, lending a boost to
stock valuations.
The expense ratio could eat up every bit of a fund's
yield, or the manager might decide to gun for higher -
yielding (and
often higher - risk)
stocks to offset the fund's built - in expense disadvantage.
That's below the
yield on 10 - year treasuries, so the
often - cited argument that the income generated from holding
stocks is preferred to that offered by bonds, holds far less weight.
So it only makes sense that, with dividend
yields these days
often substantially higher than interest rates on fixed - income securities, it might be preferable in some cases to put dividend
stocks inside the RRSP, not outside.
According to data released last summer by Mellon Capital, the realized dividend
yield of high -
yield S&P 500 dividend
stocks between 1996 and 2015 was
often much lower than investors expected.
Emerging - market
stocks are
often considered a growth play, and the mediocre 2 %
yields offered by the likes of IEMG and EEMV don't dispel that notion.