The average dividend yield is now a miserable 0.8%.
Plus, REITs have an average dividend yield of 7.5%.
The historical average dividend yield is a much greater 4.36%.
In addition, the firm's cash flow per share, $1.87, is greater than the market mean of $1.57, and its dividend yield is a strong 4.48%, two more reasons that the O'Shaughnessy value strategy gives it high marks.
On that basis, Wall Street looks pretty expensive, but the ratio assumes that profits are set to mean revert.Switching to dividend yields or asset prices as a valuation measure does not eliminate the problem.
"It pays a generous 6.7% dividend yield, which means that investors are getting paid very well while they wait for the financial sector to take off, which could be in another year from now.
Special Offer: Just because a stock has a fat dividend yield does not mean it is cheap.
With Brit shares closing 2.25p higher at 83.25p last night, that means it is offering a potential dividend yield of 8.4% - a level that is bound to prove attractive to income investors.
"If the dividend yield is high, that means the share price is down," Mr. Decello said.
On each occasion until this one, the dividend yield eventually returned to the mean.
The dividend yield is 5%.
