In his latest piece for NASDAQ.com, Validea CEO John Reese takes a look at some dividend stocks that also offer solid fundamentals.
In the article, Reese looks at Patrick O’Shaughnessy’s latest research on dividend payers, which shows that high yielding stocks no longer trade at the discount to the market that they traditionally have. According to Reese, the fact that this valuation advantage no longer exists means that investors need to look much more closely at the fundamentals of a company and cannot rely on dividend alone. As Reese puts it, “Rushing blindly into high-dividend stocks simply because they have a high yield is not good investing. Sometimes, the dividend yield will be high because the price of the stock is very low, and low for good reason (i.e., the firm is a dog and its shares are going nowhere). And, after all, what’s the point of getting a high dividend payment if the stock costs you money by performing poorly?”
Using his guru models from Validea.com, Reese identifies 4 dividend payers that also exhibit solid fundamentals that may be worth consideration. To read the full article, click here.