What do big dividends tell you about stocks?

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.

diggy70 · 10th May 2008, 10:41 PM

buy oil stocks,
exxon for low dividend or penn west high dividend....12%.wow.. btw warren buffent is buy in these 2 stocks

diggy70 · 10th May 2008, 10:43 PM

ooo for got the high dividend paying bank stocks... stay away.. till half the houses where u live are in foreclosure.

Mashuna · 11th May 2008, 01:05 AM

If you're buying stocks for investment, you'd try to invest in a company where you think the stock price is going to increase.

If you're buying for income (say you want to invest your lump-sum retirement money), you'd want to go for stocks that pay a large dividend.

10th May 2008, 07:48 PM	#1
skepticalbeliever Thinker Join Date: Oct 2007 Posts: 199	What do big dividends tell you about stocks? 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.
skepticalbeliever Thinker Join Date: Oct 2007 Posts: 199

10th May 2008, 10:41 PM	#2
diggy70 Scholar Join Date: May 2008 Posts: 90	buy oil stocks, exxon for low dividend or penn west high dividend....12%.wow.. btw warren buffent is buy in these 2 stocks
diggy70 Scholar Join Date: May 2008 Posts: 90

10th May 2008, 10:43 PM	#3
diggy70 Scholar Join Date: May 2008 Posts: 90	ooo for got the high dividend paying bank stocks... stay away.. till half the houses where u live are in foreclosure.
diggy70 Scholar Join Date: May 2008 Posts: 90

11th May 2008, 01:05 AM	#4
Mashuna Ovis ex Machina Join Date: Jan 2006 Location: Welsh Wales Posts: 6,578	If you're buying stocks for investment, you'd try to invest in a company where you think the stock price is going to increase. If you're buying for income (say you want to invest your lump-sum retirement money), you'd want to go for stocks that pay a large dividend.
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