5 Dividend Stocks in Need of a Market Correction
We have all heard that trees don't grow to the sky, but that seems to be what is happening in this bull market that started back in early 2009. When investors see their portfolio dramatically increase in value, it leaves them with a sense of accomplishment. However, if you are an investor in dividend growth stocks, a higher portfolio may not be in your best interest. Consider the following...Higher Values, Lower YieldsOne of my favorite comments from the unenlightened is, 'How could you buy XYZ stock? Its price has been flat for over 10 years?' If a company has increasing earnings, cash flow and dividends for 10 years, and there is nothing fundamentally wrong with the company, I am ecstatic if the stock price is flat. When this occurs the shares purchased today will have a significantly higher initial yield than the ones purchased 10 years ago. Conversely,... Read more