In the first stage of a bull run, non-dividend stocks generally see better results than their dividend paying counterparts. But in the latter stages of a bull market, it's dividend payers that outperform -- since 1974 they have outperformed by three percentage points during the second leg, and seven percentage points during the third, according to Ned Davis Research.
A higher dividend yield can merely be a sign of a depressed stock price. And when a stock is trading at a discount, there's often a good reason. Which is why we looked to see which high-yielding stocks were also seeing insider buying. It's fair to assume that a firm's management has a lot more access to intel than we do -- so if they're snapping up company stock, it's a pretty good sign of things to come.
Source: Motley Fool
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Posted by D4L | Tuesday, January 11, 2011 | ArticleLinks | 0 comments »________________________________________________________________
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