Yields slightly increased, as the market’s growth slowed (but there was price appreciation)
Weighted dividend yield at the end of Q1,’14 was 2.48%, compared to 2.44% for Q4,’13, and Q1,’13 was 2.61%
Dividend yields remain relatively attractive compared to other instruments such as corporate bonds, treasuries, and bank CDs, especially considering the lower (permanent) tax rate advantage
Payout rates (dividends as a percentage of As Reported GAAP earnings) remain low, as companies payout record amounts, but payout less as a percentage of what they are making -> cash sets another record
U.S. common stocks set a Q1 record (from 1955) for increases, beating out 1979 (fyi: 10-year is 2.68%, was 10.33% in ’79 and then went up to 15.8%; 500 yield is 1.9% and was 5.2%)
This article was written by S&P Dow Jones Indices Senior Index Analyst Howard Silverblatt.
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