So Goes The Dividend, So Goes The Stock

The principles of dividend investing are reasonably straightforward; however, the process of determining what to buy or sell and when to do it is incredibly complex. For that reason, I will offer additional ABCs in the future on this blogspot, zeroing in on confusing markets or worrisome stocks to help our readers see how our team arrives at buy and sell decisions.

Stocks with high dividend yields and low dividend growth perform well in falling interest rate or weak economic environments. Stocks with high dividend growth do best in rising interest rate environments or when the economy is beginning to accelerate. I see many dividend investors ignoring price appreciation. That might seem like a more pure way of looking at dividends, but it is not realistic. Price appreciation must always be taken into consideration.

Source: Seeking Alpha

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