Market Surveillance: Dividends, Demographics and the Fed
Wed, Feb 22, 2012 | 0 Comments
According to our research, the last time the Fed held an explicitly capped interest rate policy [i.e. “rates held low until mid-2014”] was in 1945-51 [which ended with the Federal Reserve-Treasury Accord]. During this period, the 100 S&P 500 stocks with the highest dividend yield well outperformed the 100 with the lowest yields, as well as a good portion of the group with no yield. 2011 witnessed a run in strong dividend payers [utilities, health care, etc.]. Now in 2012, many have stated that these stocks will become laggards.