As if it isn't telling enough that the dividend yield on the S&P 500 is higher than the 10 year Treasury yield, here's another sign that stocks are extremely cheap right now compared to bonds: the difference in the yield on a 23 year Procter & Gamble (PG) bond (quote via Scottrade) and the dividend yield on its equity is just 60 bps.
Unlike S&P 500 dividends and Treasury coupons, Procter's coupons and dividends are paid out of the exact same cash flow, which was $13.2B in 2011. Yet the relative price of Procter's debt vs. equity makes it look like these are securities from two totally different companies.
Source: Seeking Alpha
Related Articles:
- 3 Dividend Stocks That I Will NEVER Lose Money On
- List of 195 Dividend Stocks Every Income Investor Should Know About
- These 11 Dividend Stocks Could Make You Wealthy
- 13 Dividend Stocks Headed In The Right Direction
- 12 Industrial Strength Dividend Stocks
Dividend Growth Stocks News
- The Smartest High-Yielding Dividend Stocks in the S&P 500 Index to Buy With $3,000 Right Now - MSN - 5/18/2025
- The Smartest High-Yielding Dividend Stocks in the S&P 500 Index to Buy With $3,000 Right Now - The Motley Fool - 5/18/2025
- High-Yield Realty Income Is a Buy if You Love Reliable Dividend Stocks - MSN - 5/17/2025
- Black Hills Corporation (BKH): One of the Best High-Yield Dividend Stocks for 2025 and Beyond - Yahoo Finance - 5/10/2025
- Don't Fall for These 3 Dividend Stocks: They May Have to Make a Cut. - The Motley Fool - 5/18/2025
- Automatic Data Processing Inc. (ADP) Dividend Stock Analysis - 5/16/2025
- Air Products and Chemicals Inc. (APD) Dividend Stock Analysis - 5/9/2025
- Waste Management, Inc. (WM) Dividend Stock Analysis - 5/2/2025
- Wal-Mart Stores, Inc. (WMT) Dividend Stock Analysis - 4/25/2025
- Abbott Laboratories (ABT) Dividend Stock Analysis - 4/18/2025
Dividend Vs. Debt Yield Shows How Cheap Stocks Really Are
Posted by D4L | Monday, September 12, 2011 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.