“We characterize it as economic post-traumatic stress syndrome,” said David Baskin, president of Toronto-based Baskin Financial Services. “Having gone through the experience of 2008-09, investors don’t want to go through it again.” Nervousness is natural, investors, because there’s a lot we don’t know about what’s ahead. But Mr. Baskin makes a case that what we do know argues strongly for buying high-quality dividend stocks right now.
Research by Mr. Baskin’s firm shows that over the past 60 years, the dividend yield on the composite index has been a little less than half of the 10-year bond yield. Between 1960 and 2007, the index dividend yield never rose above 70 per cent of the interest rate on 10-year bonds. All of these numbers suggest to Mr. Baskin that dividends have never been more attractive, compared to interest rates, than they are today. “Things in the economic world always revert to the mean,” he said. “The mean is not a TSX with a dividend yield that high. It’s so far off the charts, it’s like a black swan event.”
Source: Globe and Mail
Related Articles:
- A Strong Bias for Action
- Time is My Friend
- My Top 3 Investing Mistakes
- MMA Rates are Falling, What are You Going to Do?
- MMA Rates are Falling, What are You Going to Do?
A clear-cut case for dividend stocks
Posted by D4L | Thursday, December 08, 2011 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
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...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Today we'll talk dividend deals. Big payers. Stocks yielding up to 10.3% and trading for as little as three-times free cash flow (FCF). ...
-
How high is too high when it comes to dividend stocks? Of course, every income investor wants as much yield as possible. However, they also ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.