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.
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