Citigroup strategists recommend that 'bond refugees' invest in large stocks
that have had a low drawdown and offer an attractive dividend yield, with food
groups Danone and Nestle, and consumer goods company
Unilever featuring in the investment bank's top 10 ranking of such
The strategists write in a note that their ranking of such bond-like stocks
with premium dividend yields and low drawdowns is aimed at 'bond refugees', or
investors "dissatisfied by the low yields available in fixed income markets but
wary of equities because of the associated drawdowns."
Europe is where dividend yields are the highest in developed markets,
according to Thomson Reuters Datastream. The average dividend yield on the STOXX
Europe 600 index is 2.7 percent, about 120 basis points higher than
German 10-year Bund yields trading at 1.52 percent.
Europe's earnings yield vs Bunds: link.reuters.com/hut68v
Danone has a dividend yield of 2.75 percent, Nestle's dividend yield is 3.2
percent and Unilever's is 3.38 percent, according to Thomson Reuters data.
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