S&P 500 Dividend Yield Vs. 10-Year Yield Blowout

The subsequent rally off of the March 23rd low has seen the dividend yield pull back to 2.15%.
Dividend cuts on account of slowed business could result in that yield falling further as earnings season progresses.
At the moment, the S&P 500's yield remains far more attractive than that of US Treasuries which are historically low after the flight to safety recently.
With the dramatic plunge in equities in late February and March, the S&P 500's dividend yield rose all the way up to a high 2.81% on the March 23rd low. The subsequent rally off of that March 23rd low has seen the dividend yield pull back to 2.15%. While dividend cuts on account of slowed business could result in that yield falling further as earnings season progresses, at the moment, the S&P 500's yield remains far more attractive than that of US Treasuries which are historically low after the flight to safety recently. As of today, the 10-Year Treasury only yields 55 bps which is just off of the March 9th low of 54.07 bps.

On March 23rd the difference between the S&P 500's dividend yield and that of the 10-Year Treasury was around 1.915 percentage points; the most in the past half century. Today the spread has narrowed a bit to 1.59 percentage points, but as shown below, that still remains wider than anything we've seen over the last 50 years.

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