Equities yielding more than the 30-year Treasury
For the first time since late 2008, the yield on the 30-year U.S. Treasury has fallen below the dividend yield of the S&P 500 index. What this implies for investors looking for steady income from their investments is that they might be better off assuming the greater risk of equities to hit their income targets.
A look at the currently inverted yield curve shows that the 30-year Treasury is still among the better-yielding options, with the 10-year now near 1.5% and 5-year at 1.3%.
The index's current dividend yield of 1.99%, just ahead of the 30-year's 1.95%, includes more growth-oriented companies that pay little or no dividend. The index's more value-leaning energy, utilities and real estate sectors are yielding well more than 2%.