Topsy-Turvy Market Has Stocks Overtaking Junk-Bond Yields: Chart

“High-yield” debt may deserve a name change, according to Bank of America Merrill Lynch. The dividend yield paid by European stocks has surpassed junk bonds for the first time, strategists led by Ronan Carr calculate. While companies in the Stoxx Europe 600 Index have been less prone than U.S. counterparts to shareholder-friendly corporate actions, robust earnings and cash flow generation could set the stage for share buybacks or higher dividends in the months ahead, they wrote.

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