Nearly One-Third of Investors Think Dividend Yields Are Low


This week’s Sentiment Survey special question asked AAII members what they thought about the current dividend yield stocks are trading at. Three out of 10 respondents (30%) describe dividends as either being low or too low. Slightly more than 17% are satisfied with the current level of dividends, while 8% express a favorable opinion of the yields. About 10% of respondents either expect or want dividends to grow. Almost 5% of respondents say they do not consider dividends as part of their investing process.

Here is a sampling of the responses:

  • “Way too low. I strongly prefer fewer stock buybacks and more dividends to reward shareholders.”
  • “The yields are currently acceptable since they are still higher than the average interest paid on savings accounts.”
  • “Too low, but so are yields from bonds and cash accounts!”
  • “Satisfactory. Companies are continuing to increase their dividends at a solid pace.”
  • “Dividends will increase as a result of company performance, and the yield will increase.”

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