Comparing Historical Bond Yields to the S&P Composite Dividend and Earnings Yields; and Is Silver Breaking Out?

The following chart compares Moody’s Aaa bond yields with the dividend yield of the S&P Composite. Notice that stock yields remained above bond yields from 1929 until the mid 1950’s.

Click picture for sharper image

The following chart compares Moody’s Baa bond yields with the dividend yield of the S&P Composite. Notice that here, too, stock yields remained above bond yields from 1928 until the mid 1950’s. Stocks were considered to be more risky than bonds in those days.

Click picture for sharper image

The next two charts compare Long-term U.S. Treasury and 10 year U.S. Treasury bond yields with the dividend yield of the S&P Composite. In both cases, stock yields remained above bond yields from 1928 until the late 1950’s. (more)