The S&P 500 has more than tripled in value since early 2009. It's one of the best five-year periods in market history, roughly matching the 1995-2000 bull market that created one of the largest bubbles ever. What's that mean for market values today? Depends who you ask. James Paulsen, chief investment strategist at Wells Capital Management, noted last week that the median S&P 500 company now trades at the highest price-to-earnings ratio since his records began in 1950.
The only reason the market as a whole doesn't look as overvalued as the median component is because some of the S&P 500's largest companies that carry the most weight in the index, like ExxonMobil (NYSE: XOM) and Apple (NASDAQ: AAPL), are still fairly cheap. The median company is also near a record high measured on price-to-book value and price-to-cash flow. These are eye-opening statistics that show how much the rally of the last five years may have borrowed from future returns. But then again... There are all kinds of ways to value the market. None is necessarily right or wrong, because what matters -- what moves markets -- is whatever investors care about at a given moment. And what do people care about right now? Dividends, for one.
Source: Motley Fool
Related Articles:
- Dividend Growth Stocks With A Defined-Benefit Pension
- 7 Higher-Yielding Stocks With A Low Price To Book
- Don't Forget: Buy And Hold Is Not Buy And Forget
- 5 Stocks With Strong Dividend Growth Metrics
- Are Defense Stocks Good Defensive Stocks?
Somewhere Between Dirt Cheap and Bloody Expensive
Posted by D4L | Saturday, February 14, 2015 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
The most dependable dividend stocks typically have a long track record of sustaining payouts through different market cycles. Companies with...
-
Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.