High Dividend Yields Could Start Attracting Big Investors Back Into the Stock Market. Major stock declines have raised dividend yields to levels investors haven’t seen in years. As as result, we believe, could be a trigger for some major institutions to return to the markets to buy high-yielding stocks that they perceive now have become oversold by the recent Corona-induced rush out of equities. Below is a chart of earnings yield+dividend yield-treasuries starting to show value.
The chart below from SentimenTrader shows that there haven’t been as many S&P 500 stocks with dividends of 5% or more since the 2008 financial crisis.
The chart below we created with Adam Newar of Eden Capital shows the ratio of dividend yield to Treasuries is among the most attractive in 50 years. Something positive that could start to signaling a potential bottom as the result of the recent major declines.