Not exact matches
The quality portfolio may have higher risk - adjusted returns
than the
broad market, but it will also likely have lower overall returns due to the lower
yield.
However, these higher
yielding bonds are often the most risky, resulting in a lower risk - adjusted return
than the
broad market.
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.
That
yield, by the way, is much higher
than the industry average and the
broader market.
Also, property stocks typically offer higher
yields than the
broad equity
market, they may serve as an effective inflation hedging tool, and they may help diversify a portfolio due to their generally low correlations Read more -LSB-...]
The result is a selection of bonds with higher volatility, lower credit quality, and higher
yield than the
broader high -
yield market.
High
yield munis did even better
than the
broader muni
market in 2014, but I still have a hard time poking holes in the investment case.
But that's not really the case here: Amgen's stock
yields 2.63 %, which is not only much higher
than the
broader market but also more
than 100 basis points higher
than the stock's average
yield over the last five years.
For that matter, your bond holdings could also have been more risky
than the
broad bond
market, which could be the case if you invested heavily in high -
yield, or junk, bonds, which lost more
than 25 %.
The quality portfolio may have higher risk - adjusted returns
than the
broad market, but it will also likely have lower overall returns due to the lower
yield.
That
yield, by the way, is much higher
than the industry average and the
broader market.
F&M Bank currently
yields 2.1 %, which is higher
than the
broad market's dividend
yield, but that is not a very high dividend
yield at all.
When 10 - year Treasury
yields surged by more
than one and a half percentage points in early 1994, for example, the
broad bond
market lost roughly 6 % over the course of a little more
than three months, and long - term Treasuries lost nearly twice that amount.
Also, property stocks typically offer higher
yields than the
broad equity
market, they may serve as an effective inflation hedging tool, and they may help diversify a portfolio due to their generally low correlations to stocks and bonds.
If you're looking for substantially more
yield than what's on offer from the
broader market (Standard & Poor's 500 - stock index delivers about 1.9 % at present), you'll want to look at so called «high dividend» funds like the HDV.
REITs are an easy way to get
broad real estate exposure, and
yields are typically higher
than the
market average.
Also, property stocks typically offer higher
yields than the
broad equity
market, they may serve as an effective inflation hedging tool, and they may help diversify a portfolio due to their generally low correlations Read more -LSB-...]
At times when the
yield spread was less
than 80 basis points — when REIT dividend
yields were extraordinarily high, reflecting REIT stock prices that were especially low relative to current distributions — REIT performance over the next year tended to be especially strong, with total returns that averaged 20.81 percent and outpaced the
broad stock
market by 5.67 percentage points.
At times when the
yield spread was greater
than 180 basis points — that is, when REIT dividend
yields were extraordinarily low, reflecting REIT stock prices that were especially high relative to their current distributions — REIT performance over the next year tended to be weak, with total returns that averaged 6.98 percent and underperformed the
broad stock
market by 1.84 percentage points.