• dividends

DIV 7.6% Earnings Yield Looks Thin Beside 5.18% Bonds

The 10 year Treasury yield closed last week at 5.18%, up nearly 19 basis points and back above 5%. The 10 year TIPS yield rose with it and now sits at its highest level since a brief push above 3% in November 2008. The Global X SuperDividend US ETF (DIV) still shows a 7.6% adjusted weighted average earnings yield, mostly from small and mid cap value stocks with very weak earnings growth. The government coupon and that stock basket are close enough that the gap has to be earned.