IB Net Payout Yields Model

Dividend Stocks Priced For Perfection

On Wall Street it appears that a good thing has to always end in a bubble as investors follow the herd.

With interest rates on government debt so low, naturally investors finally began flocking into high dividend-paying stocks in the 2nd half of 2011. It only makes sense to grab a 4% yielding large cap when the 10-year Treasury pays a sub 2% rate.

What doesn't make sense though is that investors have begun flocking to dividend-paying stocks with reckless abandon. The thought process is apparently void of any concept that capital appreciation or at least stabilization is so crucial in that 4% dividend paying off.

Read the full article on Seeking Alpha.

Disclosure: No positions. Please review the disclaimer page for more details. 


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