Advantage dividends

May 4, 2017
By BlackRock

Average dividend yields are still higher than 10-year government bond yields in most major markets including Canada.

 Key takeaways

  • The yield advantage of dividend paying stocks over government bonds has narrowed, but there are still potential opportunities to seek income with equities in a diversified portfolio.
  • Dividend growth ETFs like CUD and CDZ can be an important source of potential income for investors.
  • These funds invest in large and established companies with a track record of growing dividends over time.

Dividend vs. bond yields

Dividend vs. bond yields

Source: Thomson Reuters Datastream, BlackRock Investment Institute 4/17/2017.
Equity dividend yields are represented in each country by the following index: Switzerland (Swiss Market Index), UK (FTSE 100 Index), Germany (DAX 30 Index), Japan (TOPIX Index), Spain (IBEX 35 Index), Australia (S&P/ASX 200 Index), Italy (FTSE MIB Index), US (S&P 500 Index) and Canada (S&P/TSX Composite Index).