What about dividends? Stocks are usually a buy when yields peak. For one, at bear market bottoms when no one wants to own stocks, companies forced to pay out more in earnings to attract equity buyers. Secondly, economic troughs are accompanied by higher interest rates. The higher interest rates in the real economy are usually matched with higher yields on corporate bonds and larger dividends.
June 3rd, 2010 | Dan Denning | 21 comments | ContinuedAll Posts Tagged With: "dividend yield"
Bear Markets Do Not End With Stocks Still Trading at Nearly 20 Times Earnings
What’s more, stock market trends tend to follow long cycles. The last bear market bottom was in ’82. It came after 14 years of disillusionment and disappointment. By the time stocks were ready to go up investors were sick of hearing about them.
September 4th, 2009 | Bill Bonner | 2 comments | Continued
