Browsing the business section of the local paper enabled one to pick up stocks with dividend yields of 4.0% or greater.
No intelligent investor, no matter how starved for yield, would ever buy a stock for its dividend income alone; the company and its businesses must be solid, and its stock price must be reasonable.
But, thanks to the bear market that began the last few months, some leading stocks (blue chips) are now outyielding FDs.
So, even the most defensive investor should realize that selectively adding stocks to an all-bond or mostly-bond portfolio can increase its income yield - and raise its potential returns.
Ref: modified version based on Intelligent Investor by Benjamin Graham
Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
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