Value Investing News

It seems that every financial adviser or financial publication is proclaiming that you should own dividend stocks. Each are eschewing the virtues of dividend stocks from their own perspective. To that I have two questions:

When looking for value-priced stocks, the Price-To-Book (P/B) ratio is one that I like to focus on. P/B is calculated as share price divided by book value per share. Book value is most often calculated as Assets less Liabilities.

If your goal is to accumulate wealth for a comfortable retirement, then there is no risk-free path. Yield and risk tend to follow each other. As risk increases, the investor demands more yield to compensate for that risk. Sometimes it is desirable to accept higher risk for a higher yield. Other times we may be accepting higher risk and are not being adequately compensated for the additional risk.

With all the other investment strategies out there, why should investors consider dividend or income investing? There are a multitude of reasons to follow a dividend growth strategy. These include: investment stability, security of cash, continuous feedback, potential higher returns, low maintenance, et. al.

If your goal is to accumulate wealth for a comfortable retirement, then there is no risk-free path. Throughout time every angle has been tried and failed. Inherently, individual stocks will carry higher risk due to the lack of diversification when evaluated on a stand-alone basis.

Advertisement:

Sector Close –Up on Water Stocks for World Water Week
Water-Stocks.com, an investor and industry portal for the water sector within Investorideas.com, presents a sector close-up on water stocks on water and climate change, following comments from World Water Week in Stockholm.

Water-Stocks.com, an investor and industry portal for the water sector within Investorideas.com updates investors with recent news and developments from publicly traded water companies,
Wescorp Energy Inc. (OTC.BB: WSCE), Calgon Carbon (NYSE: CCC) and Duoyuan Global Water Inc. (NYSE: DGW).

www.Water-Stocks.com, an investor and industry portal for the water sector within Investorideas.com, reports on recent news and developments in the water sector. Additionally worldwaterweek.org reports, prior to this years upcoming conference in September, on global water stats, evidencing why investing in the sector has never been more imperative.

This is the first installment in a multi-part series that looks at various options used by income investors to boost their yield while waiting for dividend growth to lift their portfolio’s overall yield-on-cost. This week we are looking at Utilities – those investments long considered as a safe harbor for “orphans and widows.”