Wednesday, August 18, 2010

Yield: Dow 30 Components vs. 10-year U.S. Treasury

From the Economic Forecasts and Opinions blog by way of Investment Postcards from Cape Town:


On the other hand, stocks are relatively cheap compared to bonds. For investors looking for yield and inflation protection, the average 2.94% dividend yield (see Dow table) − plus the potential stock price appreciation − of all 30 Dow Jones Industrial average stocks is looking a lot better than the 2.568% yield on the 10-year Treasury.