Exact(7)
Woolwich, the UK's fifth-largest mortgage lender, yesterday delighted its army of shareholders by announcing they will receive an average dividend payout of £168.
Stocks, on the other hand, are paying an average dividend of about 3percentt, which is better than the interest on many savings accounts, and stocks are also almost certain to rise over the next couple of decades.
Coupled with an average dividend yield of just over 1percentthathat works out to a 12percentt average annual return for the market from now until September 2005.
The other piece of good news for the stocks is that the integrated oil companies have characteristics that in today's market ought to be highly valued, things like accounting transparency, excellent cash-flow generation, very strong balance sheets and an average dividend yield of around 3percentt.
Plus, REITs have an average dividend yield of 7.5%.
Furthermore, the 23 buyback companies on the list have an average dividend yield of 2%.
Similar(53)
Corporate bonds with Baa ratings pay 6.3% interest, while REITs pay a 5.1% average dividend yield.
Stromberg's objective is easy: Find companies with a history of strong earnings growth whose managements pay out a regular and above average dividend.
As he puts it, "I have a bias toward companies that sell at a low valuation with above average dividend yields".
Before the 1990's, stocks invariably entered a major bear market when their average dividend yield dropped to 3percentt.
The fund's numbers are pure Graham-Dodd: the average dividend yield is a healthy 5%, the average P/E ratio is 8, and the average price-to-book multiple is 1.2.
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