captainccs

Dividend Investment Myths

Using the growth since the last 52 week low as an indicator of long term grow is just pure nonsense. All it shows is that these companies do bounce back and that is just reversion to the mean working. The only other path would have been to zero. This is an example of data mining,

Also note these two statements:

>> I always focus on those Dividend Achievers that are within 5% of their 1-year low
>> When considering stocks to buy, avoid those that are in industries which are at or near a new high.

Dividends are used to select a universe of stocks but nowhere is there a comparison between this universe and a universe of non divided paying stocks. All the above says is buy low, sell higher.

Of the above list I hold FDO, the 5th or 6th highest bouncer-back on the list at 70.45%. I bought it three years ago when I thought it was at a low. Current Average Growth Rate (CAGR), a dismal 4.4%. Dividends did little to support this stock.