Is 50 Too Old To Start Investing?

  • Globe Life (GL) hiked the dividend by 5.3% to $0.1975 from $0.1875 per share quarterly. The forward yield is 0.8%. This is the 15th consecutive annual increase. Globe Life is a Dividend Contender.
  • Hingham Institution for Savings (HIFS) raised the dividend 4.3% to $0.49 from $0.47 per share quarterly. The forward yield is 0.7%. This is the tenth yearly increase in a row. Hingham is a Dividend Contender.
  • Bank OZK (OZK) increased the dividend 0.9% to $0.28 from $0.2775 per share quarterly. This forward yield is 2.75%. This is the 25th straight annual increase. Bank OZK is a Dividend Champion.

Dividend Cuts and Suspensions List

I updated my dividend cuts and suspensions list at end of March. The number of companies on the list has risen to 518. We are well over 10% of companies that pay dividends, having cut or suspended them since the start of the COVID-19 pandemic. There were no new companies to add to the list this past month (March 2021).

Market Indices

  • Dow Jones Industrial Averages (DJIA): 33,153 (+0.24%).
  • NASDAQ: 13,480 (+2.60%).
  • S&P 500: 4,019 (+1.14%).

Market Valuation

The S&P 500 has been trading at a price-to-earnings ratio of 40.9X and the Schiller P/E Ratio has been at about 36.2X. These two metrics have been up throughout the past week.

I continue to believe that the market is overvalued at this point. I personally view anything over 30X as overvalued based on historical data. Note that we are near 40X and valuation levels are near the top of the dot-com era.

S&P 500 PE Ratio

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Shiller PE Ratio

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Stock Market Volatility – CBOE VIX

The CBOE VIX was down this past week to 17.33. The long-term average is approximately 19 to 20. This is the first time since the pandemic started that the CBOE VIX went below the long-term average.

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Source: Google Finance

Fear & Greed Index

I also track the Fear & Greed Index. The index has recently stalled on Neutral at a value of 58. This is up 6 points from the past week. There are seven indicators in the index. They are Put and Call Options, Junk Bond Demand, Market Momentum, Market Volatility, Stock Price Strength, Stock Price Breadth, and Safe Haven Demand.

Junk Bond Demand is indicating Extreme Greed. Investors are accepting 2.00% yield over investment grade corporate bonds. The spread is down from recent levels, indicating that investors are taking on more risk.

Safe Haven Demand is indicating Extreme Greed. Stocks have outperformed bonds by 7.76% over the past 20 trading days. This is close to the strongest performance over the past two years as investors rotate back into stocks after a period of weakness. Market Momentum is indicating Greed. The S&P 500 has been 8.31% over its 125-day average. This is above the average over the past two years.

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Disclosure: Divided Power has partnered with Sure Dividend, which is one of the best newsletters for dividend investing. The newsletter comes out monthly and highlights their top 10 ...

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