Very recently, we have applied our calculators by using TIPS as a surrogate to determine the conditions at which
high dividend stocks become more attractive than the market as a whole (i.e., the S&P 500 index).
When the market becomes extremely volatile,
high dividend stocks become attractive to many investors because of their more certain payouts.
Not exact matches
During the first half of 2016, a rotational migration to low volatility, potentially
higher - income assets
became evident, as did the outperformance of
dividend - generating
stocks.
As it's
become clear that low interest rates are here to stay,
high quality
dividend stocks are harder to find.
As a result, the biggest losses went to
high -
dividend companies such as utility and real estate companies whose
stocks become less appealing than bonds to investors seeking income.
We start by investing entirely in TIPS and switching to
high quality,
high dividend stocks later when they
become attractive enough.
Later you buy
stocks from
high quality companies when their
dividend yields
become high enough.
Even though their
high dividend yields act as a natural buffer to slow down any decline in
stock price (i.e. if CTL drops 7 % in
stock price then the 8.4 %
dividend becomes a 9 %
dividend - very attractive to yield hungry investors), it would be nice to have some downside protection...
In recent years,
high paying
dividend stocks have
become incredibly popular with retired investors — and young baby boomers too.
About DDT Father of 1 son aiming to maximize our frugal lifestyle and to
become financially independent when im 45 years old by living a frugal lifestyle early on in life and investing most of my spendable money on
high quality
dividend paying
stocks
That's because
high - tech firms are
becoming some of the best
dividend stocks to own while still offering lots of new growth.
If your goal is capital appreciation with downside protection, go for
high growth
stocks with
dividend (like Page in Prasenjit's writeup; due to growth,
dividend yield at purchase price
becomes significant as years go by, along with further capital appreciation).
It is best to ease into
stocks when
dividend yields start to
become attractive, buying heavily when yields from quality companies are exceptionally
high.
Unfortunately, it has
become exceedingly difficult to find
high quality
dividend growth
stocks that meet all of those criteria.
Due to the low interest rate environment resulting from the policies of global central bankers, major oil and natural gas
stocks have
become very appealing due to the
high dividend yields.
When yields
become attractive enough, replace TIPS with
high dividend stocks from
high quality companies.
I investigated owning 100 % TIPS, followed by 100 %
high dividend stocks from
high quality companies when
dividends become sufficiently attractive.
and as a result my portfolio
became heavily weighted towards a few
high yield
stocks, which has left me vulnerable to
dividend cuts.