15 days ago
Dividend-paying stocks are taking a beating as surging Treasury yields make bonds a more competitive income source, creating a difficult environment for baby boomers who lean on dividend funds and individual stocks to cover living expenses in retirement.
Utilities, real estate, and materials have all experienced share-price declines as climbing bond yields have drawn income-seeking investors away from dividend stocks. The 10-year Treasury yield has remained north of 5%, recently hovering between 5.2% and 5.3%, while the 20-year has hit 5.68% and the 30-year has reached 5.62% — marks last seen more than two decades ago, according to Benzinga.
The pain shows up clearly in fund performance. The Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) lost 7.59% over the trailing month, and the iShares Select Dividend ETF (DVY) shed 6.02% in the same window, according to CNBC. The Vanguard High Dividend Yield Index ETF (VYM) gave back 3.85% over the past month. The WisdomTree U.S. Quality Dividend Growth Fund (DGRW) stands apart, with its heavy tilt toward technology helping limit its one-month loss to just 0.81%.
The Federal Reserve raised its overnight rate by a quarter percentage point on Sept. 16, and markets are pricing in additional increases, keeping pressure on rate-sensitive dividend sectors. The 10-year yield touched 5.342% and the 30-year reached 5.683%, their highest marks in 24 years, driven in part by rising public debt, geopolitical tensions, and the prospect of a prolonged high-rate environment.
Despite the pressure, financial advisors caution retirees against making reactive moves. "The worst thing that a retiree could do is sell a high-quality dividend payer at depressed prices to chase income somewhere else in the stock market just to get higher yield," Timothy Chubb, chief investment officer at Girard, a Univest Wealth Division, told CNBC. Chubb said he would rather own a company growing 4% to 5% annually with a 3% dividend yield than pursue an 8% yield from a deteriorating business.
#Dividend #yield #month #treasury
Utilities, real estate, and materials have all experienced share-price declines as climbing bond yields have drawn income-seeking investors away from dividend stocks. The 10-year Treasury yield has remained north of 5%, recently hovering between 5.2% and 5.3%, while the 20-year has hit 5.68% and the 30-year has reached 5.62% — marks last seen more than two decades ago, according to Benzinga.
The pain shows up clearly in fund performance. The Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) lost 7.59% over the trailing month, and the iShares Select Dividend ETF (DVY) shed 6.02% in the same window, according to CNBC. The Vanguard High Dividend Yield Index ETF (VYM) gave back 3.85% over the past month. The WisdomTree U.S. Quality Dividend Growth Fund (DGRW) stands apart, with its heavy tilt toward technology helping limit its one-month loss to just 0.81%.
The Federal Reserve raised its overnight rate by a quarter percentage point on Sept. 16, and markets are pricing in additional increases, keeping pressure on rate-sensitive dividend sectors. The 10-year yield touched 5.342% and the 30-year reached 5.683%, their highest marks in 24 years, driven in part by rising public debt, geopolitical tensions, and the prospect of a prolonged high-rate environment.
Despite the pressure, financial advisors caution retirees against making reactive moves. "The worst thing that a retiree could do is sell a high-quality dividend payer at depressed prices to chase income somewhere else in the stock market just to get higher yield," Timothy Chubb, chief investment officer at Girard, a Univest Wealth Division, told CNBC. Chubb said he would rather own a company growing 4% to 5% annually with a 3% dividend yield than pursue an 8% yield from a deteriorating business.
#Dividend #yield #month #treasury
1 month ago
Walmart exists to serve, said David Guggina, the president and CEO of its U.S. division.
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#david #fast #pass #Trump
Most Read from Fast Company
Priority Pass members are getting a huge airport upgrade over the next 12 months
Experts say Trump ballroom interiors represent 'historic monarchies' over American ideals
Martha Stewart reflects on her empire, Kris Jenner, prison, and Snoop
#david #fast #pass #Trump
1 month ago
The selloff in global bonds gained traction on Tuesday, pushing the 10-year U.S. Treasury yield to its highest level since 2007 ahead of the U.S. Federal Reserve's interest rate decision.
Investors accelerated selling of other global bonds too, pushing yields on 10-year German and ******* anese government debt to multiyear highs.
The Stagnant Housing Market Is About to Face a 7% Mortgage
American Businesses Have No Idea How to Set Prices Right Now
What Comes Next, Now that the 10-Year Treasury Yield Has Crossed 5%?
#tuesday
Investors accelerated selling of other global bonds too, pushing yields on 10-year German and ******* anese government debt to multiyear highs.
The Stagnant Housing Market Is About to Face a 7% Mortgage
American Businesses Have No Idea How to Set Prices Right Now
What Comes Next, Now that the 10-Year Treasury Yield Has Crossed 5%?
#tuesday
2 months ago
US stocks edged lower on Friday morning as Treasury yields rose and investors ramped up bets of a Federal Reserve rate hike following a surprisingly strong August jobs report.
The Dow Jones Industrial Average (^DJI) fell 0.3%, and the S&P 500 (^GSPC) declined by 0.1% after the two benchmark indexes posted their best day in nearly a month. The tech-heavy Nasdaq Composite (^IXIC) traded near the flat line.
All eyes were on the August payrolls report, which showed 162,000 jobs added in the previous month, blowing past economists' expectations of 55,000 jobs added. That offered a strong countersignal to the economic data released this week, which suggested the labor market remained stuck in a pattern of sluggish but stable growth.
The question on Wall Street was whether August's strong jobs number would be enough to tilt the Fed toward hiking interest rates. Following the hot jobs report, traders increased their bets of a Fed rate hike in September to roughly 60% odds, according to CME Group.
In individual stock moves, Lululemon stock tanked 16% after the athleisure apparel company cut its revenue and profit guidance, and second quarter revenue declined. There are no other notable earnings reports scheduled for Friday.
#strong #august #rate #declined
The Dow Jones Industrial Average (^DJI) fell 0.3%, and the S&P 500 (^GSPC) declined by 0.1% after the two benchmark indexes posted their best day in nearly a month. The tech-heavy Nasdaq Composite (^IXIC) traded near the flat line.
All eyes were on the August payrolls report, which showed 162,000 jobs added in the previous month, blowing past economists' expectations of 55,000 jobs added. That offered a strong countersignal to the economic data released this week, which suggested the labor market remained stuck in a pattern of sluggish but stable growth.
The question on Wall Street was whether August's strong jobs number would be enough to tilt the Fed toward hiking interest rates. Following the hot jobs report, traders increased their bets of a Fed rate hike in September to roughly 60% odds, according to CME Group.
In individual stock moves, Lululemon stock tanked 16% after the athleisure apparel company cut its revenue and profit guidance, and second quarter revenue declined. There are no other notable earnings reports scheduled for Friday.
#strong #august #rate #declined
