Title page
S&P 500 Index's dividend yield quietly fell
income managers who have extolled the virtues of compounding dividend payments
Markets have been propelled higher
Since 2016, the weight of low-yielding stocks
Are Equities Overvalued?
The ERP has taken a dramatic round trip
Conversely, the ERP ballooned
It is worth noting
Looking at the broad US equity market
What Could This Mean for Future Returns?
Over the last 30+ years
This conclusion seems reasonable
Non-payer returns exhibited the strongest correlation to the starting P/FE
High-yielder returns showed the weakest relationship with starting P/FE ratios
At quarter-end, high-yielders offered a more attractive relative setup
Due to the tighter dispersion of starting P/FEs
This analysis may understate high-yielders’ true relative advantage
Miller/Howard will continue to focus
Definitions
Disclosure