Wednesday, December 17, 2014

Dividend Yields

There have been a number of studies that show the higher the dividend yield when you buy a stock, the better the long term gain is. This article from MPL Communications tells the same story along with a lot more information on Dividend paying stocks.

It is interesting that a number of studies show the same sort of results, which is that the higher the yield at the start, the better the stock did in the longer term. I have stocks with low dividend yields and high dividend increases and high dividend yield with low dividend increases and ones in between. What I am going for is a relatively good dividend income increase each year. This is a slightly different thing.

I suspect that the high yields on the stock in Professor Jeremy Siegel study were high because the stock prices were low. This sort of fits into my looking at buying stocks when the relative dividend yield on a stock is more than historical averages or median values.

I do go on about this sort of thing when generally once a month I look at a stock's current dividend yield against its historical and 5 year median dividend yield.

On my other blog I am today writing about Mullen Group Ltd. (TSX-MTL, OTC- MLLGF)) ... continue...

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

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