Comments on: The pros and cons of pursuing the highest dividend yield http://www.thickenmywallet.com/blog/wp/2009/01/27/the-pros-and-cons-of-pursuing-the-highest-dividend-yield/ Everything to do with thickening your wallet Wed, 01 Feb 2012 15:44:00 +0000 hourly 1 http://wordpress.org/?v=3.3 By: How to Get a 49,250% Return On Investment http://www.thickenmywallet.com/blog/wp/2009/01/27/the-pros-and-cons-of-pursuing-the-highest-dividend-yield/comment-page-1/#comment-18861 How to Get a 49,250% Return On Investment Tue, 26 May 2009 09:38:39 +0000 http://www.thickenmywallet.com/blog/wp/?p=682#comment-18861 [...] get greedy imagining the higher pay-offs with larger yields.  Of course, the stocks usually have a high yield for a reason - the market doesn’t feel the dividend is secure.  With companies like Bank of America, the [...] [...] get greedy imagining the higher pay-offs with larger yields.  Of course, the stocks usually have a high yield for a reason – the market doesn’t feel the dividend is secure.  With companies like Bank of America, the [...]

]]> By: A Lap Of The Blogs : WhereDoesAllMyMoneyGo.com http://www.thickenmywallet.com/blog/wp/2009/01/27/the-pros-and-cons-of-pursuing-the-highest-dividend-yield/comment-page-1/#comment-17982 A Lap Of The Blogs : WhereDoesAllMyMoneyGo.com Fri, 30 Jan 2009 04:25:03 +0000 http://www.thickenmywallet.com/blog/wp/?p=682#comment-17982 [...] My Wallet discusses the pros and cons of buying stocks with high dividend yields. There seem to be a number of stocks that look attractive based on the yield alone. Buyer [...] [...] My Wallet discusses the pros and cons of buying stocks with high dividend yields. There seem to be a number of stocks that look attractive based on the yield alone. Buyer [...]

]]> By: Silicon Prairie http://www.thickenmywallet.com/blog/wp/2009/01/27/the-pros-and-cons-of-pursuing-the-highest-dividend-yield/comment-page-1/#comment-17980 Silicon Prairie Thu, 29 Jan 2009 15:14:48 +0000 http://www.thickenmywallet.com/blog/wp/?p=682#comment-17980 It may be based on switching every year then... that's something that should be specified! Another reason this could happen may simply be that there's less attention. Buying high-yielding stocks is a well-known idea, which may cause the prices to be bid up and decrease the future returns. But if you go for the "second highest" yield there could be less competition. Of course if prices are bid up that lowers the yield so the effect would be a bit weaker. It may be based on switching every year then… that’s something that should be specified!

Another reason this could happen may simply be that there’s less attention. Buying high-yielding stocks is a well-known idea, which may cause the prices to be bid up and decrease the future returns. But if you go for the “second highest” yield there could be less competition. Of course if prices are bid up that lowers the yield so the effect would be a bit weaker.

]]> By: Ray http://www.thickenmywallet.com/blog/wp/2009/01/27/the-pros-and-cons-of-pursuing-the-highest-dividend-yield/comment-page-1/#comment-17978 Ray Thu, 29 Jan 2009 07:26:37 +0000 http://www.thickenmywallet.com/blog/wp/?p=682#comment-17978 This is a pure gem, thanks. As someone who has been burnt twice by buying very high dividend stocks only to find the stock price or dividend to come crashing down in a short period of time - I can relate. I've recently added things like "Payout Ratio" to my analysis of income trusts to make sure it doesn't exceed 75% so that the company is likely to have enough spare cashflow to pay the distributions and still grow the company. This is a pure gem, thanks. As someone who has been burnt twice by buying very high dividend stocks only to find the stock price or dividend to come crashing down in a short period of time – I can relate. I’ve recently added things like “Payout Ratio” to my analysis of income trusts to make sure it doesn’t exceed 75% so that the company is likely to have enough spare cashflow to pay the distributions and still grow the company.

]]> By: admin http://www.thickenmywallet.com/blog/wp/2009/01/27/the-pros-and-cons-of-pursuing-the-highest-dividend-yield/comment-page-1/#comment-17971 admin Wed, 28 Jan 2009 05:50:14 +0000 http://www.thickenmywallet.com/blog/wp/?p=682#comment-17971 From what I understand from the research, it was the top quantile so you could have the same stock move from quantile to quantile periodically. From what I understand from the research, it was the top quantile so you could have the same stock move from quantile to quantile periodically.

]]> By: Silicon Prairie http://www.thickenmywallet.com/blog/wp/2009/01/27/the-pros-and-cons-of-pursuing-the-highest-dividend-yield/comment-page-1/#comment-17970 Silicon Prairie Tue, 27 Jan 2009 15:30:46 +0000 http://www.thickenmywallet.com/blog/wp/?p=682#comment-17970 That's a very interesting result - dividend yields do have some predictive power but you don't want the companies that actually have a good reason for a high yield. In the long-term study was the result based on holding the same stocks for the whole period or changing regularly? That’s a very interesting result – dividend yields do have some predictive power but you don’t want the companies that actually have a good reason for a high yield. In the long-term study was the result based on holding the same stocks for the whole period or changing regularly?

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