Market gyrations since the Brexit vote has pushed the spread between European equity dividend yields and Germany’s 10-year bund yield to over 400 basis points, the widest since Bloomberg started tracking the data in 2002. This shows that European stocks offer a very attractive alternative to income-starved investors while bund yields slip into negative territory. Such a high spread provides a floor to stock prices, strategists at Citigroup Inc. wrote in a note on July 6.

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