Investors want dividends these days. Maybe it's a fad, maybe it isn't. Either way, I think it's a good thing as long as it lasts. Dividends have historically treated investors very well because they: 1. Are a key component of total equity returns, 2. Are an indicator of a company's financial health and 3. Provide downside protection in the form of "yield support. I could continue, but I'm going to assume you're already convinced of the importance of dividends. And in that case, what you're after is which dividend stocks you should be herding into your portfolio.
In a paper from Tweedy, Browne titled "The High Dividend Yield Return Advantage," the revered value manager brings together a collection of academic and Wall Street research that not only highlights the need for dividends, but extolls the virtues of higher-yielding equities. One of these reports in particular -- a 2006 paper from Credit Suisse titled "High Yield, Low Payout" -- caught my eye. By studying stock returns during the period between 1990 and 2006, the researchers came to the conclusion that investors should focus on higher yields, but not simply the highest yields. They found that the best performance was captured by investing in the highest-yielding stocks that also had the lowest dividend payout ratio.
Source: Motley Fool
Related Articles:
________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
When a company pays a dividend, it's a good thing for shareholders. When a company consistently pays a dividend every quarter, it's ...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
My top financial goal is to eventually become financially independent. The foundation of my strategy is to make investments that produce an ...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
Double your money in a short time. Few investors would walk away from such an opportunity. Of course, there's no guarantee that any inve...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.