Login | November 10, 2026
Bond yields rising
Motley Fool
Published: November 10, 2026
Q. I see that bond yields are rising. What does that mean? -- J.B., Albuquerque, New Mexico
A. Yields (return on investment) for government and other types of bonds can rise due to interest rate hikes by the Federal Reserve. They can also rise when many investors sell bonds, perhaps due to concerns about high levels of inflation and government debt. Both the war with Iran and America's hefty debt -- which recently hit a record high of $40 trillion -- are contributing to shrinking consumer confidence, and that can lead investors to demand higher yields from bonds. Yields had already been rising when the Fed hiked interest rates by 0.25 of a percentage point in mid-September, and another boost is widely expected before the end of the year.
A key takeaway here is that rising yields and interest rates will help those who are saving money -- while making it more costly for people and companies to borrow money. It can also hurt the stock market and other investments when bonds become more attractive due to higher yields.
Q. What does a board of directors do? -- K.W., Zachary, Louisiana
A. The job of a public company's board of directors (which is elected by shareholders) is to oversee the company's leadership and long-term strategy. Board members may be company insiders or outsiders, and they are typically charged with making decisions in the best interest of the company and its shareholders.
The kinds of things a board may do include authorizing dividends and share buybacks; approving the company's capital allocation (how it finances its operations to maximize profits); recruiting, guiding and setting compensation for top executives; and planning for leadership succession.
Fool's School
Return on Assets, Explained
As you become a more experienced investor, you may want to learn about measures that can help you evaluate companies. A fine example is return on assets (ROA).
A company's ROA shows how efficiently it's using its assets to generate profits. The figure is calculated by dividing net income for a certain period (often the last quarter or year) by the average total assets over that period. Then the result is multiplied by 100 and expressed as a percentage. In general, the higher the ROA, the better.
Here's an example (with a little math involved, though it's only averaging and division): Consider Coca-Cola's numbers for 2025. Its net income for the year, found on its income statement, was $13.1 billion. Its total assets, found on the balance sheet, were $104.8 billion at the end of 2025 and $100.5 billion at the end of 2024. Average those two and you'll get $102.7 billion. Divide $13.1 billion by $102.7 billion, and you'll get 0.128, or 12.8%. That's Coca-Cola's ROA for 2025, and it means that the company was generating nearly $0.13 in profits from each dollar of its assets in 2025.
The math isn't hard, but you probably don't even have to do it because you can find ROAs calculated for you at sites that offer financial data for companies, such as Finance.Yahoo.com and Morningstar.com. Once you have a company's ROA, you can compare it to those of competitors and to its own past numbers to see whether it's using its assets more or less productively.
Note that ROAs will differ by industry, too. Capital-intensive businesses such as railroads, manufacturers and utilities have lower numbers, often in the 2% to 10% range, while asset-light businesses such as software companies, consultancies and franchisers tend to have higher ROAs, sometimes topping 10%.
Like many measures, a company's ROA alone is not enough to base an investment decision on. Always assess a range of numbers, such as cash and debt levels, profit margins and growth rates.
My Smartest Investment
A Data Center Boom
Last year, I made several purchases of Powell Industries stock at an average purchase price of about $55 per share. I'd read that its newer customers included data centers, which seemed promising. I calculated its price/earnings-to-growth (PEG) ratio to be below 1.0, which also looked good. I hoped to earn as much as 25% on my investment this year, but boy, was I wrong! In one year, the value of my stake more than doubled. I think it's a great company with good prospects, but it's probably a little overvalued right now, so I've sold some shares. I'm holding most of them, though. -- T.H., via email
The Fool responds: You did well! The PEG ratio, which divides a company's current price-to-earnings (P/E) ratio by its earnings growth rate (typically over the past year or more) is a rough valuation measure. A result under 1.0 suggests an undervalued stock, and vice versa.
Most of us know that data centers are proliferating, and Powell's last earnings report showed the company approaching record revenue levels, with a $2.4 billion backlog, a third of which is tied to data center work. Powell specializes in making custom equipment to manage electricity for large industrial plants and utilities -- and data centers.
(Do you have a smart or regrettable investment move to share with us? Email it to TMFShare@fool.com.)
Foolish Trivia
Name That Company
I trace my roots back to the 1849 founding of Pfizer, my former parent company, which spun me off in 2013. In 2021, I donated thousands of doses of COVID-19 vaccines for zoo animals. In 2023, I was included in Ethisphere's list of the "World's Most Ethical Companies." Today, with a recent market value near $29 billion, I'm the world's leading animal health company, developing and marketing ways to predict, prevent, detect and treat animal illness while serving veterinarians, livestock producers and pet owners. I offer medicines, vaccines, diagnostics, biopharmaceuticals and digital solutions. Who am I?
Last Week's Trivia Answer
I trace my roots back to 1978, when two fellows fired from a hardware store decided to open their own. By the end of 1979, they had three stores and 200 employees. By 2005, I had 2,000 stores. I launched Orange magazine in 2010. Today, with a recent market value of $292 billion, I'm the world's largest home improvement specialty retailer, boasting more than 2,350 stores across North America. My typical store averages 105,000 (indoor) square feet and features more than 35,000 products. I employ more than 470,000 people and rake in around $170 billion annually. Who am I? (Answer: The Home Depot)
The Motley Fool Take
General Mills for Dividend Income
General Mills (NYSE: GIS) is home to Annie's, Betty Crocker, Cheerios, Gold Medal, Green Giant, Larabar, Nature Valley, Old El Paso, Progresso and Wheaties -- among many other brands. It's also a dividend-paying stock, with a huge recent dividend yield of 7.7%.
Like its peers, General Mills is facing declining sales and profits. Consumers are stretched thin, and packaged food companies are having difficulty passing along rising costs to them. Consumers are also shifting their preferences toward healthier and not-processed items.
But General Mills has a strong brand portfolio with an emphasis on breakfast meals and snacks, so it should be better positioned than other packaged food companies. And the stock seems dirt cheap, with a recent forward-looking price-to-earnings (P/E) ratio of 10, well below its five-year average of 15.
General Mills' net sales increased 1% to $4.6 billion in its fiscal 2026 fourth quarter (which ended May 31). Its adjusted earnings per share, boosted by stock buybacks, surged 27% to $0.95.
To win more sales, General Mills plans to create new products catering to health-conscious shoppers. It also intends to slash costs by $750 million in fiscal 2027 and a total of $3 billion by fiscal 2030. General Mills could take years to return to meaningful growth, but it's offering generous dividend income while you wait.
COPYRIGHT 2026 THE MOTLEY FOOL, DISTRIBUTED BY ANDREWS MCMEEL SYNDICATION, 1130 Walnut, Kansas City, MO 64106; 816-581-7500