5 ms·
SP500 dividend yield (1.27%) is lower than 10Y Treasury yield (1.56%)
- jleyank 5y agoIs this bad or surprising? I would hope that the SP500 shows a whole lot more price appreciation than the 10-year Treasuries as there's not a whole lot of increase they can do without going to negative yields. (Tech) companies can start to pay dividends, but for years they have told a growth story re: price appreciation rather than being labeled a "widow and orphans" stock.
- rogerkirkness 5y agoAlso: companies seem more durable than US gov financially at this point.
- devops000 5y agoI would expect the equity riskier than gov bonds and therefore having higher risk premium. As of now, gov bonds are less risky than equity (by definition) but provide higher yields. I don’t know a metric like div yields which take into account dividends+buybacks+Reinvested earnings.