Sentences with phrase «yields than stocks»

As interest rates have fallen, REITS have provided a higher dividend yield than stocks (on average), because they have to pay out 90 % of their profits.

It looked dumb on current performance, but if you look at investing as a business asking what level of surplus cash flows the underlying investments will throw off, it was an easy choice, because bonds were offering a much higher future yield than stocks.

Not exact matches

While retirees shouldn't abandon dividend stocks, many investment experts are now looking for companies that provide a little growth with that income, rather than just a high yield.

Stock markets were routed around the globe on Monday and bond yields rose as resurgent U.S. inflation raised the possibility central banks would tighten policy more aggressively than had been expected.

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.

This year, just two of the 10 dividend companies we list here have yields that low, which should reinforce the notion that there is more to picking dividend stocks than seeking out the company with the highest yield.

The stocks that hedge funds have largely ignored tend to be much larger than the hotels, have less debt, grow earnings more slowly but consistently, and pay bigger dividends (an average yield of nearly 3 % for the S&P 500 constituents, compared with 2 % for the index overall).

There is also opportunity abroad: Non-U.S. stocks with the highest dividend yields (average price / earnings ratio of 15.8) are cheaper than domestic counterparts (23.1), according to O'Shaughnessy Asset Management.

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 %.

Of course, in recent years, stock prices have grown much faster than earnings and dividends, driving the P / E far above its historical average and the dividend yield (D / P) far below its historical average.

So yes, interest rates fell during that period, but stock yields fell far more than can be attributed to the decline in interest rates alone.

It's common to object to the dividend yield as a measure of valuation, given that companies have devoted more of their earnings to stock repurchases than dividend payments in recent years.

With rates at historic lows, many investors have used high - dividend stocks, rather than low - yielding bonds, in pursuit of income.

The «search for yield», i.e. for better return on financial investments than the declining interest rate, thus led to the series of bubbles & bursts: deregulated savings & loans (immediately), high - tech stocks (late 90's), mortgage derivatives — > house prices (2000's).

When the stock market dividend yield yields more than a 10 - year US treasury bond yield, it's generally a good sign to invest in equities.

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.

Sands» forward yield of 4 %, which is much higher than Wynn's 1 % yield and MGM's 1.4 % yield, should also protect the stock during market downturns.

When the yield on the S&P 500 was higher than that for the 10 - year, however, stocks rose an average 19 percent and gained in price about 80 percent of the time,» he wrote.

With the Fed no longer buying bonds and investors expecting greater inflation, analysts say higher yields could make bonds more attractive than stocks.

This Model Portfolio only includes stocks that earn an Attractive or Very Attractive rating, have positive free cash flow and economic earnings, and offer a dividend yield greater than 3 %.

To some extent, stock market action also implies expectations for slower economic growth, though interest rate signals, such as a flat yield curve, are more suggestive of slow growth than stock market action is, and we've yet to see a substantial widening of credit spreads that would suggest imminent recession.

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.

According to Morgan Stanley's Chris Metli, a strengthening dollar — the greenback put in its best monthly rise since President Donald Trump's election in April — and a rising 10 - year Treasury note yield TMUBMUSD10Y, -0.63 % — the 10 - year yield touched its highest level in more than four years above 3 % late last month — are also factors weighing on stocks.

U.S. stocks plunged on Tuesday, with the Dow Jones Industrial Average sinking more than 400 points as rising government bond yields drove investors into risk - off mode...

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

«It grows earnings not so much by the brilliance of management or the diversity of their operations, as Welch and Immelt claim, but through the acquisition of companies (more than 100 companies in each of the last five years) using high - powered, high P / E multiple GE stock or cheap near Treasury Bill yielding commercial paper.

Also, the yield on the 10 - year Treasury note was over 6 % 15 years ago versus roughly 2 % today, making the risk premium of stocks versus bonds much higher today than it was then.

* More than 1 trillion euros wiped off European stocks in August Dollar slides vs euro, yen; Treasury yields hit 4 - mth low

So far the lack of yield on gilts is more than made up for by the negative correlation with stocks on down days, but more curious how the long term total return compares.

As I previously detailed, «Some studies have shown that the, highest yielding, low payout stocks perform better over time than stocks with higher payouts and lower yields.»

When investors buy stocks, they get a higher yield than in banks or Treasury bonds, and they essentially get the company for free!

As a result, bond yields were lower than the yields on common stocks.

Some studies have shown that the, highest yielding, low payout stocks perform better over time than stocks with higher payouts and lower yields.

It is better for a stock's yield to be near the top of its historical range than near the bottom.

There are currently 26 dividend aristocrat stocks yielding more than 10 year treasuries which closed Thursday at 2.58 %.

This is an indirect way of calculating fair value, based on the idea that if a stock's yield is higher than normal, it may indicate that its price is undervalued (and vice-versa).

Switching out of stocks and into cash before the onset of a recession yields a performance bonus of more than 5 % over a simple buy - and - hold strategy.

Since total return is comprised of income (via dividends or distributions) and capital gain, with the former counting much more over the long term, the case for this stock having a great 2018 is certainly already there based on that higher - than - average yield.

Clearly, combining dividend reinvestment, with high yielding stocks that offer a good rate of dividend growth pays more than dividends!

-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.»

There's the market - beating yield of 2.99 % that's also more than 100 basis points higher than the stock's own five - year average yield.

The trade - off is these usually offer higher yields than regular savings accounts but more security than a 401 (k) or the stock market.

With a 6 % + yield, more than 30 consecutive years of dividend growth, and the possibility that shares are 28 % undervalued, this is a compelling long - term dividend growth stock investment right now.

My rule is: A new stock must have a higher Yield than the average yield of my Vrijheid Fond or have a betterYield than the average yield of my Vrijheid Fond or have a betteryield of my Vrijheid Fond or have a better DGR.

Whilst high yield stocks tend to be less volatile than growth stocks, they will still be subject to market forces and outside influences that management can not control.

That yield, by the way, isn't just much higher than the broader market, it's also almost 90 basis points higher than the stock's own five - year average yield.

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.

The current yield of 1.55 % might not be massive like AT&T's dividend (which is why we diversify, and it's why I'm listing 10 different stocks with different dynamics here), but Walt Disney more than makes up for that via strong dividend growth: the five - year dividend growth rate is 30.1 %, which is one of the higher rates you'll run across.

And the stock's yield, as noted earlier, is significantly higher than its recent historical average.