Although the monthly dividends yield 11.2%, fully 28% of that is a return of your own capital, up from zero in January 2012.
It really just comes from a belief that dividends currently yield about 2%.
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Those extra readers are a long-term asset that will yield dividends forever.
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Note that the company pays less in interest than it would pay in dividends (current yield of 2.8%) so by borrowing at 2% it essentially lessens the cash impact of paying the dividend along with being able to deduct the interest from its income, further lowering its cost.
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The relatively modest cost of improved regulatory environments can yield huge dividends for any economy.
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Beyond this direct impact, we know that charitable activities yield indirect dividends in many ways.
So study charts of earnings yield (earnings per share divided by stock price) versus dividend yield (dividends divided by stock price).
In an emerging economy, other forms of innovation can yield bigger dividends.
While Grasslands only just completed its first year in operation, rancher Jim Howell reports that the two South Dakota ranches are expected to double in value and in productivity over a ten-year period and to yield annual dividends on the order of 4% to 5% in the early years, increasing to 10% to 11%.
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And at least some members of the Republican caucus who are not part of the tea party wing of the party recognize that the possibility and prospect of compromise on fiscal issues could improve the economy and resolve outstanding issues like tax reform, the debt ceiling, and entitlement reform, and this in turn can yield political dividends.
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The annual yield, meaning dividends divided by the stock price, is now 2.9%.
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When new assets come into an ETF that throws off a hefty yield, the dividends paid by the underlying companies must be spread over more investors.
Gold mining stocks have been steadily increasing dividends (effectively doubling their yield over the past twelve months) and are expected to make record payouts this year.
That's a shame for investors, because around 90% of the market's long-term return can be linked directly to dividends--the basic yield and then the growth over time of that coupon.
What's more, Italy's dividend yield, meaning annual dividends divided by the stock price, is above 4%, compared with just 2.7% for the world overall.
Just as good, the company instituted dividends last year, and the payout yield now is 2.6%.
The shares trade for less than 8 times earnings and yield over 5% in dividends.
The dividend yield on the index (dividends divided by the stock price) is just 2.1% a fraction of historic averages, and barely enough to keep pace with current, subdued inflation.
Viable stocks with rising dividends, just as long as they yield 3 percent or more going in, are bond surrogates for AAA corporates, 10-year, even 30-year Treasuries which yield 2.7 percent, 2 percent and 3.2 percent, respectively.
To add to their allure, the stocks also pay significant dividends, with a floor set at a yield of 2.3%.
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Instead they are seeking promising yield, creating an environment wherein dividends continue be favored, even while the cyclical stocks accelerate.
Armour take on no credit risk, but rising interest rates from the Federal Reserve or a flatter yield curve will pressure earnings and dividends.
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Many state funds are allowed to assume an investment return of 8% a year, which is barmy when government bonds yield less than 2% and dividends only a little more.
So you can think of earnings yield as the engine that drives both dividends and capital gains, the two forms in which shareholders receive most of their income from their shares.
They pour billions into dividend-seeking ETFs, they put up with clunky companies whose only attraction is a fat yield, they rhapsodize over prospects for getting more dividends from Apple.
All three have raised their dividends every year for the past decade, and all three currently yield more than the 10-year bonds of the United States, Germany, or Japan.
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Utilities were the worst-performing sector again Friday, while consumer staples, health care and financials, areas that offer yield but have not been bid up solely for their dividends, were in the best shape.
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This puts it in stark contrast to, say, the Vanguard Dividend Appreciation ETF (VIG) , which has a low current yield but holds companies with a long history of raising their dividends.
The problem with high dividend yield stocks, though, is that they are hyped for their dividends.
In some cases the dividends paid on shares, divided by share prices, are even outstripping the yield on bonds issued by the same company.
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