At one time analysts liked to do this by quoting the yield gap (though this became inverted when dividend yields fell below bond yields in the 1950s) or the yield ratio, both of which relate share to bond yields.
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You can't compare performance to pay for a single year: Both numbers are far too volatile to yield a meaningful ratio.
Normally, a ratio of bond yield to earnings yield of 1.0 is considered cheap.
Similarly, with WaMu, Buckingham notes the 4% dividend yield and price to earnings ratio of 9.3.
Even the new proposed high-speed line in Britain has been shown to yield a benefit-cost ratio of around two-to-one.
Its shares come with a 5.5% dividend yield, and its payout ratio (47.9%) is in line with its historical average (44.7%).
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In simplified terms, if a fund holds stocks yielding an average of 3% and the fund has a 1% expense ratio, the yield to fund investors will be around 2%.
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Diageo trades at 14.5 times earnings, sports a 2.5% dividend yield, and trades at a PEG ratio of 1.73.
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The company trades at 14.3 times 2012 earnings, sports a 1.5% dividend yield, and trades at a PEG ratio of 1.15.
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If you fear rising interest rates and prefer to keep your bond maturities short, the ratio of muni to Treasury yield is actually highest at the short end (140%-261% for one- to five- year triple-AAA paper).
With a PE ratio below 9 and a dividend yield of about 4.6%, Intel is either a bargain or a fabled tech giant that has lost its way.
In Britain shares in the FTSE 100 index trade on an historic price-earnings ratio of less than ten and yield 5%, around three-quarters of a percentage point more than government bonds.
Seagate has a current dividend yield of 3.92% and a payout ratio of 32%.
Its price-to-book ratio of 2.2x and dividend yield of 2.3 percent make it a relatively expensive market.
Earlier this month, it had a current dividend yield of 3.32% with a payout ratio of 33%.
Cisco initiated a dividend just last year with a current yield of 1.68% and a payout ratio of 10%.
It has a higher yield of 3.3% and an expense ratio of 0.51%.
Nationwide diversified financial services company, Wells Fargo has a dividend yield of 2.7 percent and a payout ratio of 0.05.
Accenture has paid a dividend since 2005 and currently has a dividend yield of 2.33% with a payout ratio of 28%.
It has a yield of 1.6% with an expense ratio of 0.19%, and gives one good exposure to the major oil companies.
Shares of Anheuser-Busch InBev trade at 14.6 times 2012 earnings, sport a 1.5% dividend yield, and have a price to earnings growth ratio of 1.18, according to Yahoo Finance.
Cablevision also has a PEG ratio of 0.9 and a dividend yield of 1.5%.
This affirms a healthy yield of 2.1% and a solid payout ratio of 53%.
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Even so, Baytex shares yield a steady 4.7% and the payout ratio is lower than other ex-CRTs.
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As a measure of valuation, Segarra uses the operating earnings yield (the inverse of the price-operating earnings ratio).
Shares of PepsiCo trade at 14.2 times 2012 earnings, it has a 2.8% dividend yield, and trades at a price to earnings growth ratio of 1.90.
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The Schwab California AMT Tax- Free Money-Fund, with a tempting 3% yield (net of a 0.45% expense ratio), contains, according to the latest published portfolio, a significant chunk of revenue bonds--meaning bonds not backed by the taxing authority of a state or local government.
The dividend yield for the market is a function of its price-earnings ratio more than the dividend payout ratio on earnings.
Aflac ( AFL) meets the ROE test, trades at a sub 10 PE ratio and its current 2.8% dividend yield is part of a steady dividend growth picture.
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