1/3 of Stocks in the S&P 500 are no longer qualified to be included

reuters.com

12 pointsksvs5 comments

It is even worse (or better if you're buying), the dividend yield on S&P 500 is now more than the yield on 10 year treasury bond.

Can you extrapolate a little more for the business illiterate?

In the good old days stocks were considered too risky and to compensate for that they had to return more than bonds.

Earnings are a lot easier to fake than dividends that's why some consider dividend rate more reliable indicator than P/E (esp. when comparing with other asset classes). Last time S&P returned more than treasuries was in 1950's.

it's probably a discount for future dividend cuts / bankruptcies.

www.newmogul.com

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