Dividend Stocks Emerging as Winners With Stocks Rising, Treasury Yields Low
The current financial market is making it difficult for any investor — aggressive or defensive — to find value.
The S&P 500 is up almost 17% year to date, making it hard for performance-hungry investors to find bargains.
The average forward one-year earnings multiple is just below 17, above the 10-year average of 14.8. Plus, “We are tweaking our 2019 forecasts to reflect increased risk to economic growth and corporate profits from the ongoing trade conflict between the United States and China,” wrote LPL Financial Chief Investment Strategist John Lynch in a Monday note.
LPL reduced its S&P 500 earnings-per-share estimate to $165 from $170.
But the 10-year Treasury is yielding all of 1.6%. That’s better than the negative yields found in some EU government debt, but upside to Treasury prices looks limited as the market has priced in several more interest rate cuts.