How To Time Your Dividend Buys and Sells

“Are dividend stocks in a bubble? Like… the NASDAQ in 1999?” A reporter from Kiplinger called me last week, concerned investors were bidding up these issues to irresponsible heights. While not quite a bubble, many of the “safest” names are the worst places you could put your money today. Some are doomed to grind sideways for years while others have serious downside potential. But there’s an easy test you can run to see if you should buy, hold or sell your favorite dividend stocks – simply chart the share price versus the dividend. Your Total Returns = Current Yield Plus Payout Growth Over time your stock market returns will roughly equal the yield you buy today plus the dividend growth you enjoy in the years ahead. ... Read more