This article is a response to a comment to our prior article that is a fairly common point of view. We think the view is potentially dangerous and deserves a rebuttal. The commenter said: "When discussing dividend stocks, 2-3% is just too low. Not talking about risky high fliers that pay 10% +, just stocks, ETFs, and funds that pay enough to live on, say 4-8%. There are plenty of them, why discuss 2-3% payers?"
We generally disagree with the assumption behind the commenter's question. There is not a significant number of equities with 4% to 8% yields that are also high quality, low volatility and consistent dividend growers (nor that have bullish analyst ratings) - all of which we consider to be highly desirable. If an investor seeking to live on dividends selects 4% to 8% yield stocks, that investor (based on history) will not find the income to reliably and consistently grow, and will not be able to find many instances of that level of income among equities with low volatility price and high quality characteristics.
Source: Seeking Alpha
Related Articles:
- 8 Stocks With Strong Dividend Growth Metrics
- 10 Dividend Stocks Balancing Yield And Growth
- Defense Stocks May Not Be Defensive Stocks
- 10 Dividend Stocks That Gave Me A 20%+ Annualized Return
- All Investments Carry Risk
________________________________________________________________
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...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
A good dividend stock has more than a high yield. Dividends need to be supported by cash flow, and cash flow depends on the long-term streng...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
-
BDCs can be excellent investment options for those seeking high returns, particularly when acquired at favorable valuations and supported by...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.