The S&P 500 closed at 4,458 on Friday. The index is up over 20% as of last Friday’s close and has reached 54 records so far this year. The P/E ratio stands at over 34, well above the historic levels at around 20. At current levels, US stocks are expensive indeed. However that does not …
Continue reading ‘The S&P 500 Dividend Yield is at a 20-Year Low’ »
Investing in dividend-paying stocks is an important strategy for success with investment in equities. Stocks that not only pay dividends but also increase them consistently over time are even better for long-term investment. Picking and holding dividend growers and reinvesting dividends automatically can generate excellent total returns if held over a decade or more. I …
Continue reading ‘The Power of Reinvested Dividends: McDonald’s Example’ »
Success with investing in equities depends on many factors such as market conditions, quality of stocks held, dividend reinvestment, buying when stocks are super cheap, holding for the long-term, etc. Of all these factors one of the most important is the ability to identify and avoid common behavioral finance mistakes. Sometimes simply making wise behavioral …