7 Diversified Dividend Picks for the Next 5 Years

While stocks might look risky in the short-term, they offer the highest yield in the long-run, says Prof. Jeremy Siegel, of the University of Pennsylvania, Wharton School of Business. In his book Stocks for the Long-Run, Siegel suggests that stocks offer more stable real returns than bonds in the long run, thanks to the mean reversion effect: Remarkable stability of long-term real returns is a characteristic of mean reversion, a property of a variable to offset its short-term fluctuations so as to produce far more stable long-term returns. His book also offers many different ways for choosing the best stocks for the cheapest price. One of the interesting methods suggested uses a combination of three metrics: A rule of thumb for stock valuation that is found on Wall Street is to calculate the sum of the growth rate of a stock's earnings plus its dividend yield and divide by its... Read more