We choose a few randomly selected “Dividend Aristocrats” stocks to provide empirical valuation support for the thesis.
Interest rates are still at historic lows, and a rise in rates and/or inflation will not be good for dividend-paying stocks.
Many stable dividend-paying stocks do not offer a sufficient risk premium due to a false sense of security.
The owners earnings or free cash flow yield cannot be ignored just because a company has a history of stable dividends.
Many investors have forgotten what a normal interest rate environment feels and acts like. Remember that 5% money market rate in 2006? (I know... it's a near forgotten memory.) The collective investing mindset seems to