68 S&P 500 Stocks Yield More than the Average Corporate Bond

I really miss the Old Normal. Sigh.

More than $600 billion have gone into bond funds since the end of 2008, according to the Investment Company Institute, a Washington-based trade group. That’s even as 68 stocks in the Standard & Poor’s 500 Index paid dividends exceeding the average corporate bond yield of 3.8 percent as of Aug. 31, more than at any time in at least 15 years, data compiled by Bloomberg and Charlotte, North Carolina-based Bank of America Corp. show.

This means that there can be free money for a company to issue bonds and use the proceeds to buy back its stock.

Posted by on September 29th, 2010 at 11:30 pm

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