Wednesday, March 4, 2020

Record-low Treasury yield gives S&P 500 utilities more appeal

Utility stocks have more to offer income-seeking investors now that the yield on 10-year Treasury notes has set a record low. The S&P 500 Utility Index’s dividend yield surpassed the Treasury yield by more than 200 basis points Tuesday, when the latter fell below 1% for the first time, according to data compiled by Bloomberg. The yield gap rose above the threshold Friday for the first time since June 2013, and then narrowed Monday as stocks rallied. Utility and 10-year yields diverged after coming within 8.5 basis points of each other in November 2018. Each basis point equals 0.01 percentage point.

No comments:

Post a Comment