Now that rates are going up, will folks abandon the dividend and income strategy? I doubt it. In picking dividend stocks, I use two services. I am associated with combining both fundamentals and technicals. One service has a definite fundamental bias. The other is more balanced and may tilt a little more to factors other than fundamentals. Many years ago, one of my clients was in the top tier mutual funds for dividend and income. They had an elegant buy and sell discipline that did much more than just a linear buy and sell discipline. It was simple. If the stock dividend yield went above a certain rate, they would buy, and if it went below a certain rate, they would sell.
All stocks were pre-selected for excellent fundamentals and put on the approved list. Their portfolio managers could then select from that list and compete with one another for performance. The elegance of the buy/sell discipline was that if dividend yield was high, the price was probably low, and they would buy on weakness automatically. Likewise for sells; as yield dropped, the price was probably going up, and they could easily sell into strength. Another by-product of this elegant system was they were always in undervalued stocks, and many would be acquired at a nice premium for big gains on a lowly dividend play.
Source: Seeking Alpha
Related Articles:
- Who is Ben Grossbaum and Why Should We Listen to Him?
- 9 High-Yielding Mega-Cap Stocks
- Best Stocks for 2013
- Dividend Investors Should Focus On Stocks, Not The Market
- The Secret Ingredient of Dividend Growth Stocks
________________________________________________________________
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.