Stock dividends are yielding more than the 30-year Treasury bond for the first time in a decade
Comment of the Day

August 29 2019

Commentary by Eoin Treacy

Stock dividends are yielding more than the 30-year Treasury bond for the first time in a decade

This article from CNBC may be of interest to subscribers. Here is a section:

For the first time since 2009, S&P 500′s dividend is yielding more than 30-year Treasury bonds.

The only other similar inversion in the past four decades came in March 2009 — a low point of the financial crisis, according to data from Bespoke Investment Group. But it might bode well for stocks as investors have few other options to find yields.

“For an investor looking to hold something for the long term, it makes equities relatively attractive,” says Bespoke’s Paul Hickey. 

Eoin Treacy's view

The contraction in government bond yields, globally, have driven demand for higher yielding assets. It has been one of the primary factors in containing risk in the high yield sector and it is also likely to continue to represent a major factor in the ability of the primary indices to continue to hold in the region of their peaks.

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