Investors’ Opinions Split on Level of Current Dividend Yields


This week’s Sentiment Survey special question asked AAII members for their opinion of the dividend yield that stocks currently trade at. Responses were mixed. About 23% of respondents view current yields as being too low. Conversely, nearly 22% describe yields as being fair or reasonable and 14% think they are good. About 7% say stock yields are attractive relative to bond yields. Almost 8% say it depends on the stock, with some yields being more attractive than others. Some respondents say they either don’t pay attention to dividends or that yields aren’t a consideration in their investment strategy.

Here is a sampling of their responses:

  • “Dividend yields are too low across the board.”
  • “The dividend yield on quality stocks is sufficient to make equities the better choice over investment grade bonds.”
  • “I find them attractive as long as the company has the ability to pay out of earnings and not out of assets.”
  • “I have no opinion. I don’t invest in dividend stocks.”
  • “Dividend yields seem mostly reasonable.”
  • “They are generally appropriate given the current level of interest rates and anticipated earnings growth.”

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