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Two Out of Five Investors View Stock Yields as Too Low

This week’s Sentiment Survey special question asked AAII members for their opinion on the current yields that stocks are trading at. Slightly more than two out of five respondents (42%) view prevailing yields as being too low or believe companies should do more to raise their payouts. Nearly 34% are either content with dividends or think they are at fair/average levels. About 18% described dividends as attractive, particularly when compared to bond yields and the interest rates offered by banks.

Here is a sampling of the responses:

  • “Current yields are low reflecting (too) high prices of equities.”
  • “Dividend yields are barely adequate, but they’re better than bonds.”
  • “Dividends yields are reasonable versus other types of interest earning vehicles such as bonds and savings accounts.”
  • “Okay so long as interest rates remain low.”
  • “Could be better if companies would do fewer stock buybacks and use their cash for dividends.”
  • “Hard to give a complete answer as some stocks pay high dividends and others pay very low dividends.”

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