Seeking Stocks With Cheap, Safe Dividend Streams [View article]
I'm amazed at how many people make the "dividend error": dividends are no different than stock buybacks (they're actually slightly worse after-tax), and both are funded from profits. So a stable dividend is irrelevant if a company's earnings or projected earnings are in free fall.
BAC? Not exactly a pretty stock in a pretty sector. Guess what Countrywide's dividend will be next year.
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I'm amazed at how many people make the "dividend error": dividends are no different than stock buybacks (they're actually slightly worse after-tax), and both are funded from profits. So a stable dividend is irrelevant if a company's earnings or projected earnings are in free fall.
Jan 09 15:23 pm
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All Comments by Long-Short Guy »Seeking Stocks With Cheap, Safe Dividend Streams [View article]
BAC? Not exactly a pretty stock in a pretty sector. Guess what Countrywide's dividend will be next year.