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Surveyed Members Mixed on Current Dividend Yields

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This week’s Sentiment Survey special question asked AAII members for their opinion of the dividend yields that stocks currently trade at. Responses varied. The largest group of respondents (23%) described dividends as currently being too low. Several said that the low dividends indicate high valuations for stocks. Slightly more than 12% felt that dividend yields are currently adequate. Approximately 10% described the current dividend yields as being better than what is available on bonds and bank accounts. Roughly 7% said that dividends are currently too high or otherwise unsustainable. Nearly 4% thought that yields are attractive at current levels.

Here is a sampling of the responses:

  • “It’s better than the yield from fixed-income investments.”
  • “You have to be careful, as very high dividend yields may not be sustainable.”
  • “It’s good, but we need higher earnings to support further dividend increases.”
  • “Adequate, but could be better if the economy got rolling.”
  • “It’s just too low, meaning most are overvalued.”

Want to weigh in? Take the survey yourself and see results online at http://www.aaii.com/sentimentsurvey.

If you want to become an effective manager of your own assets and achieve your financial goals, consider a risk-free 30-day Trial AAII Membership.

 

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