Treasury yield's gap to S&P 500 payouts cause concern

Treasury yields are reaching a point at which “bonds can challenge stock returns,” David Templeton, a money manager and principal at Horan Capital Advisors LLC, wrote Monday in a blog posting. Templeton cited the gap between the yield on 10-year notes and the dividend yield on the S&P 500 Index, which topped one percentage point last month for the first time since January 2014. The potential for the spread to widen further “will serve as a headwind for stocks,” he wrote.