skepticalbeliever
10th May 2008, 07:48 PM
Ah, so I had to do a report for class about Pfizer. I found that Pfizer paid over a billion dollars in dividends per year and had great financial ratios. But Pfizer did not have good growth ratios and had a stock chart that made me want to short it. The yield of Pfizer is over 6 points.
I just looked at GE and GM and found that they seem to have healthy dividends, but that had charts that trended lower. I don’t even understand the logic of GM paying a dividend given how much money it looses. Look how many people must have lost money in Citigroup and Thornberg mortgage because they found stocks with generous yields.
It seems that too many people feel that stocks with high dividends are inherently worth owning. It seems that growth stocks can be a lot safer to own. My rule would be to look at stock with sustainable yields of 2-3 % if you must own an income stocks.
I just looked at GE and GM and found that they seem to have healthy dividends, but that had charts that trended lower. I don’t even understand the logic of GM paying a dividend given how much money it looses. Look how many people must have lost money in Citigroup and Thornberg mortgage because they found stocks with generous yields.
It seems that too many people feel that stocks with high dividends are inherently worth owning. It seems that growth stocks can be a lot safer to own. My rule would be to look at stock with sustainable yields of 2-3 % if you must own an income stocks.