Almost every corner of the market is overpriced today. That includes dividend stocks, which cost too much and yield too little.
The S&P 500 is at multi-year highs in almost every valuation metric: P/E, P/B, P/S … you name it. And a lot of that froth is coming from traditional income sectors. Yardeni Research’s latest sector study shows that utility stocks, for instance, trade at 18 times estimates, at the very high end of its 10-year range. The sector’s typically high yields, meanwhile, have dried up to a mere 3%.
Hey! Where’d the Dividends Go?
The real estate industry is getting pricey, too, with the iShares U.S.… Read more