Surging Bond Yields Catch Up to Dividend Yields, Dimming Appeal of Dividend Stocks

The yield on the 10-year Treasury is now about the same as the highest dividends paid by S&P 500 firms, according to Goldman Sachs.

Bond yields have surged as investors fret over higher-for-longer interest rates.

Dividend funds have seen big outflows this year, Goldman said.

The gap between dividend yields and the 10-year Treasury yield has completely closed.

Dividend-paying stocks unlikely to do well until Fed begins cutting rates, which may not happen until end of 2024.