Bonds Now Cost More Than Stocks

What to do when inflation makes the safer bet seem too risky.

Yan Barcelo 24 November, 2021 | 5:28AM
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A highly unusual situation is occurring in all markets but a few emerging ones: Stocks dividends are above bond yields – while rate hikes loom closer. Where’s an investor to go?

Data from Macro Hive shows that bond yields are far below stock dividends, a situation “that has prevailed in recent years but that has not occurred in a long time, at least since 1959,” says John Rekenthaler, Vice-president of research at Morningstar.

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About Author

Yan Barcelo  is a veteran financial and economic journalist with more than 30 years of experience, writing for many publications in Toronto and in Montreal, including CPA MagazineLes Affaires and Commerce.

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