Likewise, Morningstar found dividend stocks, measured
by its Dividend Yield Focused Index, were overvalued by around 6 %.
Not exact matches
There is no doubt that, based on pure, cold, logical data, stocks are the single best long - term performing asset class for disciplined investors who are not swayed
by emotion,
focus on earnings and
dividends, and never pay too much for a stock, often as measured on a conservative beginning earnings
yield relative to the Treasury bond
yield basis.
There are a multitude of reasons as to why this occurs but it's a powerful enough force that many investors have done quite well for themselves over an investing lifetime
by focusing on
dividend stocks, specifically one of two strategies -
dividend growth, which
focuses on acquiring a diversified portfolio of companies that have raised their
dividends at rates considerably above average and high
dividend yield, which
focuses on stocks that offer significantly above - average
dividend yields as measured
by the
dividend rate compared to the stock market price.
All 30 of the components of the Dow Jones Industrials (DJINDICES: ^ DJI) are stocks that pay
dividends, but
by focusing on some of the top -
yielding stocks in the average, you can capture more in
dividend payments — and sometimes produce great returns.
Unlike most emerging markets indexes, which are dominated
by large - cap companies, the WisdomTree indexes
focus on
dividends and have whopping
yields in the 6 % to 7 % range.
The investor who is
focused only on the
dividend will enthusiastically point out that his income has risen
by 5 % every year, and that he's now earning a 6.5 %
yield on cost.
Dividend oriented investors often
focus too much on current
yield (i.e. how much the company pays the investor today), which,
by extension, leads to a portfolio of mature slower growth businesses like regulated utilities or telecommunications service companies.
Rather than
focusing on companies with the highest
dividends in terms of dollars, income investors gauge potential investments
by their
dividend yield.
Okay, here's a great piece done
by O'Shaughnessy that adds detail to the same conclusion:
dividend investors would do better
by focusing on
dividend yield rather than
dividend growth.
Because of this, it's not surprising that most investors
focus solely on the
yield provided
by dividend payments.
Well, I think one can attain plenty of
dividend growth and
yield by focusing on stocks across the spectrum.
Dividend Beginner -[June / 2016]- Subscribe to RSS feed Dividend Beginner is a 22 year old Canadian dividend growth investor striving for financial independence by focusing on high - yielding monthly
Dividend Beginner -[June / 2016]- Subscribe to RSS feed
Dividend Beginner is a 22 year old Canadian dividend growth investor striving for financial independence by focusing on high - yielding monthly
Dividend Beginner is a 22 year old Canadian
dividend growth investor striving for financial independence by focusing on high - yielding monthly
dividend growth investor striving for financial independence
by focusing on high -
yielding monthly payers.
A key marketing tool where a vertical
focus can
yield substantial
dividends is the homepage of a firm's website, as illustrated in a marketing case study recently published
by MarketingSherpa on Zaphyr Technologies, a firm that provides IT consulting and services for the small - medium business sector.