Analysts agree we’re in a bull market, but many feel that we’re closer to the end than the beginning. At this stage, growth stocks are expensive, but as money has flowed out of safer, blue-chip plays and into more speculative ones, there is a lot of value to be had out there — especially with dividend stocks.
Right now, banks aren’t giving you much more than a few pennies on the dollar to hold your money. Money market, CDs, etc., it doesn’t matter — yields are low. But at the same time, there are stocks out there that will pay you 5-6% to hold them. And in the meantime, you can bet the inflation-adjusted value of your dollars will go down, while your stock investments at least have a chance of going up — and beating inflation. Add in that 5-6% return and you’re doing quite well.
So your next question should be, where do I sign up? Not everyone needs to make dividend investing their cornerstone of their trading strategy, but it can be a nice complement or even a hedge against riskier plays.
In this episode, you will learn:
- The basics: how dividends are paid, what to look out for, basic terminology, etc.
- Dividend statistics: How to calculate yield, what is meant by payout ratio, what happens to a stock’s dividend yield when the stock itself goes up or down in price, and much more.
- How to manage the dividend payment date and ex-dividend date in your trading strategy and not get burned.
- What kind of stocks pay dividends and what that means. How should you integrate this into your broader investment strategy.
We also focus on a particular high-dividend blue-chip stock that’s a steal at its current valuation. We look at how the stock has lost 18.4% over the past four years, but when you adjust things to take dividends into account, this stock has actually been an overlooked money-maker!
Dividend-paying stocks have outperformed non-dividend paying stocks since the end of the gold standard. Dividend initiators and raisers have fared best, followed by stocks that have maintained their dividends. But even stocks that have decreased or suspended their dividends have outperformed non-dividend paying stocks during this time period. Don’t you think it’s time to give dividend stocks a second look?
Happy Trading!
Manny Backus
CEO, Wealthpire Inc.
It’s time to give dividend stocks a second look.
