Dividend Yields vs. Treasury Yields
While down a bit today, this week has seen a spike in long-term Treasury yields. Given the surge in yields, there has been a shake-up in the relationship between Treasury yields and dividend yields for stocks. As shown below, currently only 7.9% of stocks in the S&P 500 have dividend yields above the 10-year Treasury yield (4.59% at the time of writing). Additionally, only 12.1% of stocks in the index have dividend yields above that of the 2-year Treasury (4.0%).
Of course, yield dynamics are different for different sectors. As shown below, Real Estate has the highest percentage of stocks with dividend yields above the yield on the 10-year and 2-year. Energy, Utilities, and Materials are the sectors with the next largest shares, whereas cyclical groups like Tech, Industrials, and Consumer Discretionary hardly have any members with dividend yields larger than Treasury yields.
At the moment, there are 40 S&P 500 stocks with higher dividend yields than the 10-year yield, and we list them below. Two Materials stocks top the list with 9%+ dividend yields and over 20% declines on the year.
Like this post? Join our complimentary Dividend Discovery email newsletter to receive a dividend-centric post in your inbox a couple of times per week. If you’re interested in dividend stocks and ETFs, this newsletter is for you! CLICK HERE to sign up with just your email or click on the image below.
