Tuesday, August 30, 2016

Do You Own the 10 Best Dividend Stocks?

Last week Barron's came out with an article that identified what it says are '10 companies with above-market (dividend) yields, below-market price/earning ratios' and other favorable characteristics that 'could reward shareholders in multiple ways in coming years.'  The stocks they identified, in order of highest current dividend yield (4.3%) to lowest (2.4%) were:

  • Verizon Communications (VZ)
  • MetLife (MET)
  • AbbVie (ABBV)
  • Dow Chemical (DOW)
  • Qualcomm (QCOM)
  • Cisco Systems (CSCO)
  • Target (TGT)
  • Carnival (CCL)
  • JPMorgan Chase (JPM)
  • U.S. Bancorp (USB)

Despite the fact that 'expert opinions' are just as likely to be wrong than right, the description of these stocks certainly sounds appealing.  Fortunately, at Trinity Financial Planning we don't have to worry about whether we should buy these stocks now or not.

Our clients all already own them.

It's reassuring to know that we own every one of those stocks as part of our globally diversified index-based investment philosophy.

And that when they get overheated from a run-up in their sector, we are selling them at incrementally higher prices.

And that when they sink because of market sentiment, we are adding more at attractive prices.

And we are doing that all through a disciplined investment process including systematic rebalancing - not in any way relying on predictions, forecasts, hunches or other guesses.

Do you already own these attractive stocks, or maybe are thinking of buying them with bond yields so low now?  Leave a comment and let us know your thoughts.

1 comment:

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