Friday, 26 June 2009

Dividend Paying Stocks Lose Ground This Year

These guys don't know what they are talking about. Bloomberg should be worried about the data-crunching they are doing. Essentially, investors want stocks for capital appreciation (not cash flow, that's irrelevant) instead of dividends. Signaling a continued frenzy for stocks in this so-called "green shoots" bull market. Major cyclical bottoms occur in the stock when the dividends reach double digit percentages. Go do the research. Dividends for the DJIA right now are still around 4%-5%, not characteristic of a major bottoms. A worrisome sign if you are looking to get fully invested right now. (Also, all the stocks he mentioned are trash! Go look at their charts. E-Trade, Sprint, etc.)

No comments: