Dividend-News

Daily dividend news for investors in dividend stocks


Dividend Yields Vs. Bond Yields: An Easy Pick

Published Fri, 13 Mar 2020 05:54:03 -0400 on Seeking Alpha

The 30-Year U.S. Treasury bond yield briefly crashed below 1% and now stands at 1.30% as of March 11th, while the 10-Year U.S. Treasury note yield went below .6% before pushing back above .8%.
After recent interest rate declines, the S&P 500's dividend yield is now almost four times the 10-Year U.S. note yield, and almost 100 basis points (bps) higher than the 30-Year Treasury bond yield.
WisdomTree is increasingly convinced interest rates are going to stay low for much longer than we previously anticipated. This will create challenges for traditional investors.
By Jeremy Schwartz, CFA
Interest rates are hitting fresh, all-time lows due to coronavirus fears hitting an economy that had previously been quite strong.
The 30-Year U.S. Treasury bond yield briefly crashed below 1% and now stands at 1.30% as of March 11th, while the 10-Year U.S. Treasury note yield went below .6% before pushing back above .8%.
30-Year U.S. Treasury Bond Yield

During the 2008 global financial crisis, the S&P 500's dividend yield briefly went above the 30-Year U.S. Treasury bond yield, but it did not stay there long.
Investors forecasted severe dividend cuts, which pushed dividend yields up just as Treasury rates were plummeting.
Both yields normalized as realized dividend cuts brought down dividend yields and improving economic conditions pushed Treasury rates up.
Treasury Yields vs. Dividend Yield

One interesting fact about the market's gains over the last decade is that equity appreciation coincided one-for-one with dividend growth on the market. So, the market has not actually become more expensive on a price-to-dividend or a dividend-yield basis.
S&P 500 - Price Return and Dividend Growth

After recent interest rate declines, the S&P 500's dividend yield is now almost four times the 10-Year U.S. note yield, and almost 100 basis points (bps) higher than the 30-Year Treasury bond yield.
Dividend Weighting Goes... Read more


DLN,DTD - DLN,DTD
DLN,DTD - DLN,DTD  


Older articles featuring Dln,dtd (DLN,DTD):
Dividend Investing In A Volatile Market
Dividends By The Numbers In July 2019
UST Yields Vs. S&P 500 Dividend Yields
Snapshot Of Cumulative Dividends Cuts Through The End Of Q2 2018
Dividends By The Numbers Through January 2018
Who To Follow: Delving Into Dividends & Income
Undervalued Aristocrats: Exclusive Dividend Aristocrat Buy And Sell Recommendations From Sure Dividend
Dividend Growth Vs. High Yield Vs. Retirement
Why Investors Need To Get Comfortable With Low Interest Rates And Dividend Stocks
Avoiding The Traffic Jam In High-Dividend Stocks

More