An Alternative to Bonds

Monday, February 25, 2013

Preview:

As the attached graph illustrates, average dividend yields for large cap stocks are currently within range of their historical dividend yield averages. The continual increases in dividends for most large cap equities has permitted dividend yields to remain within their long term averages even though stock prices have risen in recent years. Conversely, bond yields (yields to maturity) are currently at all‐time lows, as the FED continues to pump massive amounts of liquidity into the fixed income markets.

What does this say about asset allocation opportunities as we enter 2013 and for the years ahead?
 
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