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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