4 High-Dividend Stocks In Oversold Territory
2011 has been the year of dividend investors. The old-n-good Dow 10 strategy (where one picks and holds the top 10 dividend stocks in the Dow Jones index) significantly outperformed the market. I think investing in dividend stocks is one of the safest ways to achieve long-term success in the stock markets. Dividend stocks have a tendency to be ignored by investors. However, when we look at the markets over a long-term horizon, a significant portion of the returns are due to the dividends. The dividends can also provide a safety cushion against market downturns. I have a natural tendency to go against the crowd. If a stock is overbought, I rate it as a sell. On the contrary, whenever a stock is oversold, it appears as a short-term deal to me. At least I believe that oversold stocks should not be sold while they are in this territory. Investors... Read more