by Caroline Valetkevitch NEW YORK (Reuters) – In a context Low rates, high dividend values are on the rise on Wall Street and the search for yield should continue to make the utilities sector and, to a lesser extent, that of telecommunications in the coming weeks. S & amp index, P-500 sector “utilities”, which the dividend yield at 3.9% is more than 100 basis points in the yield on the Treasury 10-year, led the gains in the American Stock Exchange on Friday, while the yield on the lighthouse fell to a lowest in 14 months. Since the beginning of the year, the sector index gained 8.8%, the third best performance in the market after those technologies and health. Telecoms have not done as well, with a gain of only 0.8% for ranked, but two values of the sector, Windstream and Frontier Communications Holdings, jumped over some 40% over the period. As of June 30, utilities showed a gain of 16.4% making it the best performing sector on Wall Street, as a result of profit taking which reduced their lead. The utilities benefit at the same time their high dividends, a safe-haven in times of economic uncertainty and the ongoing favorable valuation, since their price ratio / results is estimated at 14.9 against 15.2 for the S & amp; P-500, according to Thomson Reuters data According to analysts, this favorable combination should continue. “The 10-year-old American provides an attractive yield given the context of very low yields elsewhere. This reinforces the attractiveness of sectors with high dividend and it’s a bit what makes ‘the’ on the market, “said Quincy Krosby, strategist at Prudential Financial in Newark, New Jersey. Read more …
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