TheStreet.com Dividend Stock Advisor
I posted an article yesterday about dividend paying stocks wondering if this mania will turn out to be wrong. Now the Street.com is offering a newsletter devoted to dividend paying stocks written by David Peltier.
Mr. Peltier may be a great stock picker but if the whole dividend theme unravels, his ability won't be the important thing. If your portfolio contains nothing but high yielding value stocks you are taking the same type of risk as owning all internet stocks five years ago. Before you go berserk on me for that one, I am not saying you face the same consequence, an 80% loss, but loading up on one thing is never a good idea. Overweight is one thing, 100% is something else. If you are inspired to email me a nasty gram, please re-read the paragraph and get my intended meaning.
The SPX and the Nasdaq are eroding as of now but check out some the Aussie stocks.
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3 comments:
I agree with your comment, but think the following is additive. On that site, the dividend newsletter charges $99 per year for subscription (if paid upfront). As an example, on that same site, the telecom stock newsletter charges $799 per year on the same basis. Of course, I have no idea what the take rate is for either newsletter. And I further can not comment on the relative value of each subscription. But I can say that the editors at that site believe investors would pay 8 times what they would pay for a good dividend portfolio to find a great, or horrible, telecom stock. Food for thought.
I couldn't agree with you more. The whole idea of diversification is to reduce overall risk. A 100% bond portfolio is higher risk than a 10% equity/90% bond portfolio. Exact same goes for a 100% dividend portfolio. That is what modern Portfolio therapy teaches. You can reduce risk overall, even by adding a higher beta holding to a bond portfolio. Keep up the interesting blogs. very thought provoking.
At the risk of stating the blindingly bloody obvious, dividend-paying stocks are hot because of the Bush tax...ahem...revisions. Very early in my career I learned that when "tax reasons" were being cited for doing something, it was probably a lousy business case. This too shall pass...just like the REITs thing (see earlier comments on this blog).
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