Friday, February 28, 2020

Yield advantage shifts to S&P 500 from 30-year Treasuries

Income-seeking investors may now be better off with U.S. stocks than with Treasury securities of any maturity. The dividend yield on the S&P 500 Index exceeded the 30-year bond yield Thursday by 24 basis points, the most since March 2009, according to data compiled by Bloomberg. The gap swung in favor of stocks on Monday as the 30-year yield dropped to a record low, and widened the next three days as the Treasury yield fell further. Each basis point amounts to 0.01 percentage point.

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