Chart o’ the Day: 2/3rds of the S&P 500 yield more than Treasurys
Courtesy of Joshua Brown, The Reformed Broker
Nice, clean chart representing one of the year’s biggest themes via the Bank of America Merrill Lynch RIC Report:
At the end of July, the dividend yield on 65% of the stocks in the S&P 500 exceeded the yield on the 10-year Treasury.
Josh here – A reversal in rates will change this quickly, as we saw in 2013. Can the stock market hold up when the stocks become less interesting as yield plays vs the 10-year? The answer is yes, so long as bond interest rates are rising for the right reason (growth pickup).
Source:
The RIC in Pictures
Bank of America Merrill Lynch – August 11th 2016



