Only eight S&P 500 stocks offer dividend yields above the Vanguard Total Bond Market ETF’s 4% as equities surge.
The S&P 500’s dividend yield has fallen below 1% as stock prices climb, making income-focused investments harder to justify. The index has risen 10% year-to-date, further compressing yields for most components.
Vanguard’s Total Bond Market ETF (BND) now yields nearly 4%, widening the gap with equities. Just eight S&P 500 stocks still offer yields competitive with bonds, down from broader income opportunities in prior years.
Investors seeking yield may shift allocations as equities underperform fixed-income alternatives in relative terms.