Hi Tom
I've run a similar test but using yearly yield values and subtracted the dividend yield from Gross Building Society rates (cash-deposit)
Can't see much particularly noteworthy leaping out from that.
It appears the UK has been more generously paid for its common stock investment risk than has the U.S. over much of time.
On a total returns basis the two markets tend to compare reasonably well. The Dow for example gains more in capital than the FT100, but the FT100 generally pays a higher dividend yield. I've put that down to the US's choice to unfavourably tax dividends in the more recent past resulting in a greater proportion of retained earnings.
Best regards.
Clive.
I've run a similar test but using yearly yield values and subtracted the dividend yield from Gross Building Society rates (cash-deposit)
Can't see much particularly noteworthy leaping out from that.
It appears the UK has been more generously paid for its common stock investment risk than has the U.S. over much of time.
On a total returns basis the two markets tend to compare reasonably well. The Dow for example gains more in capital than the FT100, but the FT100 generally pays a higher dividend yield. I've put that down to the US's choice to unfavourably tax dividends in the more recent past resulting in a greater proportion of retained earnings.
Best regards.
Clive.
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