4 ms·
It is even worse (or better if you're buying), the dividend yield on S&P 500 is now more than the yield on 10 year treasury bond.
by gaika 18y ago
It is even worse (or better if you're buying), the dividend yield on S&P 500 is now more than the yield on 10 year treasury bond.
- lpgauth 18y agoCan you extrapolate a little more for the business illiterate?
- gaika 18y agoIn the good old days stocks were considered too risky and to compensate for that they had to return more than bonds. Earnings are a lot easier to fake than dividends that's why some consider dividend rate more reliable indicator than P/E (esp. when comparing with other asset classes). Last time S&P returned more than treasuries was in 1950's.
- jsn 18y agoit's probably a discount for future dividend cuts / bankruptcies.