We strongly believe that yield oriented stocks are coming back into favor as income from the higher yielding stocks now far out paces the earnings growth of the S&P 500. For the first quarter of 2015 earnings estimates are expect to be down -4.9%, and for all of 2015 earnings for the S&P 500 are currently expected to be up just 2.2%. We believe earnings for the S&P 500 will likely be negative for the year, and that the consensus is still too high. The expected yield of our portfolio is currently approximately 4.3%. In 2014, earnings grew at 5.0% for the S&P 500, very slow growth. Earnings have been decelerating.

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PVG – Equity Income Monthly Update (April 2015)