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At 2.28%, the S&P 500 dividend yield is 51 bps higher than the yield on the 10-year...

At 2.28%, the S&P 500 dividend yield is 51 bps higher than the yield on the 10-year Treasury. Anybody under 50 is mostly unfamiliar with stocks yielding more than Treasurys as the only other time it's occurred in the last half century was at the winter 2009 lows. Fifty-one bps and any returns from adaptable managements and human ingenuity are to be had for free.
Comments (3)
  • Tom Armistead
    , contributor
    Comments (5718) | Send Message
     
    Plus, the supply of stocks may become limited as some companies have been doing a lot of buybacks.

     

    The supply of 10-year Treasuries is unlikely to diminish anytime soon.
    14 May 2012, 12:35 PM Reply Like
  • alkulig
    , contributor
    Comment (1) | Send Message
     
    Year in and year out, the strategy of buying good quality companies with growing dividends has greatly benefitted my clients. This is an opportune time to be positioning these solid dividend paying and growing companies. And, Tom made an excellent point with his comments on the supply of stocks diminishing.
    14 May 2012, 03:02 PM Reply Like
  • Rationalexuberance
    , contributor
    Comments (91) | Send Message
     
    As well it should be. People seem to forget there should be a risk premium to stocks vs. bonds.
    14 May 2012, 03:58 PM Reply Like
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