By Jack Forehand, CFA, CFP® (@practicalquant) — Ok, I’ll admit that the title of this article is a little aggressive. That is especially true when you consider the fact that I don’t think…
Tag: Dividends
Sizing the Upswing in Buybacks and Dividends
Corporations’ pandemic response of cutting costs and increasing liquidity has left them with hefty cash balances, and a recent CFA Institutearticle outlines ways to determine if corporate cash “givebacks” are…
A ‘Red Flag:’ The S&P 500 Inflation-Adjusted Yield is Below Zero
The dividend and earnings yield of the S&P 500 is at a record low—even though it still beats that of Treasuries—and is raising some concern. This according to a recent…
Why Dividend Investing May Be Overrated (Ep. 65)
Dividend based investing strategies are very popular among investors. The ability to receive regular cash payments from the equities they own and a belief that dividend paying stocks outperform the…
Dogs of the Dow Strategy Could Work in 2021
The stock picking strategy referred to as the Dogs of the Dow— that calls for buying the 10 highest-dividend-yielding stocks in the Dow Jones Industrial Average—was a bust in 2020,…
Considerations For Investors Seeking High Dividend Paying Stocks
Many stock investors seek out high dividend paying companies. Over time, dividends have been an important component of long-term stock returns and many investors, particularly investors drawing off their portfolios,…
When Comparing Dividend Payer vs. Nonpayer Performance, Consider the Context
Although dividend paying stocks “don’t always win the race” in performance numbers, investors should take a closer look. This according to a recent article in Barron’s. The article reports that…
No Dividend Cuts During the Pandemic for ‘Dividend Aristocrat’ Stocks
None of the S&P 500 Dividend Aristocrat stocks—a group of 65 companies that have increased dividends for at least 25 years—have reduced their payouts, according to a recent article in…
Should Companies Tie Dividends to Cash Flow?
In a recent Barron’s interview, Goldman Sachs global co-head of single-stock research Jim Covello makes the case for variable dividends that are contingent on business’s available cash flow. According to…
Nine-Year Dividend Squeeze Coming for U.S. Investors
Investors in the U.S. will have to wait nine years for dividends to recover from the coronavirus-related downturn, according to a recent article in the Financial Times. The prediction is…