Stock dividends vs Gold dividends.
![MGLICKER](https://forums.collectors.com/applications/dashboard/design/images/banned.png)
With the S&P500 hitting record highs today, I took my weekly look and saw that dividend yields on that index are at a near record low of 1.87%. The only time it was lower was in the late nineties, before the dot com bust.
100 year average is above 4%.
Gold of course, pays no cash dividend. Holders are generally looking for price appreciation or in some cases, just a store of wealth.
So is this sub 2% dividend yield a worry, or can it drop to near zero for the hearty investor as long as equity prices keep rising, creating paper profit?
100 year average is above 4%.
Gold of course, pays no cash dividend. Holders are generally looking for price appreciation or in some cases, just a store of wealth.
So is this sub 2% dividend yield a worry, or can it drop to near zero for the hearty investor as long as equity prices keep rising, creating paper profit?
0
Comments
"The good old days when “JUSTICE” stood for something instead of “JUST US.”" - Martin Armstrong
If I invested $1,000,000 as a passive owner of an established restaurant, I would expect more than an $18,700 check each year.
Two things, a "paper profit" is like a paper loss? Just because its on paper doesnt mean you have it?
And, compare the dividend yield to other yield bearing instruments. The sub-2% in 2000 was compared to 7% in treasuries. Today with treasuries yielding 3% the dividend yield is still very attractive.
Knowledge is the enemy of fear
<< <i>So is this sub 2% dividend yield a worry, or can it drop to near zero for the hearty investor as long as equity prices keep rising, creating paper profit?
Two things, a "paper profit" is like a paper loss? Just because its on paper doesnt mean you have it?
And, compare the dividend yield to other yield bearing instruments. The sub-2% in 2000 was compared to 7% in treasuries. Today with treasuries yielding 3% the dividend yield is still very attractive. >>
Agree and agree. I suppose the bet is whether treasury yields will remain low.
<< <i>I suppose the bet is whether treasury yields will remain low. >>
Or if FED can keep it low.
"The good old days when “JUSTICE” stood for something instead of “JUST US.”" - Martin Armstrong