Malkiel

A Contrarian Strategy For Quick Capital Gains

Dividends became fashionable again last quarter as a lot of public buzz got generated among the talking heads on CNBC about how investors are rediscovering dividends and becoming unhappy with share buyback programs which don't seem to lift share prices. Expect companies to begin to align themselves with the zeitgeist, offering dividends where they hadn't before or upping them if they had. This means that your indicator has run smack into the fad of the moment and won't have much utility for the rest of the year as companies get their hands slapped for trimming dividends and decide it isn't worth generating the commotion...