The S&P 500 Yields Just 1.1% While 10-Year Treasury Yields Have Surged to 5%. This Dividend Stock Provides a Middle Ground for Long-Term Investors.
Coca-Cola may be a Goldilocks investment in a high-bond-yield/low-equity-yield world.
Overview
Investors today could be forgiven for feeling as though they're back in driver's education class, because they're sure hearing a lot about yield these days.
While the average dividend yield on the S&P 500 is hovering around 1.1%, it hit an all-time low of 1.04% last month. Conversely, yields on 10-year Treasuries briefly nudged above 5% this month before retreating modestly. As of Friday midday, they were at almost precisely 5%. The point is that stock prices are rising, forcing their dividend yields down, while bond prices are faltering, boosting those securities' yields in the process.
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Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.