Comments on: Which Dividend Stocks Are Worth Looking At? http://livingoffdividends.com/2009/08/23/which-dividend-stocks-are-worth-looking-at/ Join me on my journey to achieve financial independence through dividends, passive income and investments Tue, 13 Dec 2011 07:31:37 -0800 http://wordpress.org/?v=2.8.1 hourly 1 By: Steve http://livingoffdividends.com/2009/08/23/which-dividend-stocks-are-worth-looking-at/comment-page-1/#comment-101385 Steve Tue, 27 Apr 2010 16:37:39 +0000 http://livingoffdividends.com/?p=1235#comment-101385 There is an investment philosophy called value investing that speaks directly to this question. It is not someone telling you which ones to buy by name but it tells you how to identify "Which Dividend Stocks are Worth Looking at". They keys are that they have a track record of 20 years or more with dividends. Their P/E ratio is low and the dividend yield is high. The company's budget shows a history of strong & positive cash flow and the balance sheet shows a debt/equity ratio that is low and affordable. It is about knowing how to catch a fish. There is an investment philosophy called value investing that speaks directly to this question. It is not someone telling you which ones to buy by name but it tells you how to identify “Which Dividend Stocks are Worth Looking at”. They keys are that they have a track record of 20 years or more with dividends. Their P/E ratio is low and the dividend yield is high. The company’s budget shows a history of strong & positive cash flow and the balance sheet shows a debt/equity ratio that is low and affordable. It is about knowing how to catch a fish.

]]> By: Mike http://livingoffdividends.com/2009/08/23/which-dividend-stocks-are-worth-looking-at/comment-page-1/#comment-64854 Mike Sun, 13 Sep 2009 22:02:52 +0000 http://livingoffdividends.com/?p=1235#comment-64854 "...risk-free currency CDs offered by Everbank." ______________ I would encourage you to be more careful with your wording. These CDs are certainly not "risk-free": presumably what you mean is that there is no risk to principal because of the FDIC, which we assume will always be able to afford the cost of bailing out depositors whose banks fail. There is, though, a currency risk: if the dollar actually strengthens against the currency you buy-- i.e., if your prediction turns out wrong, then you lose money. And conversely, if you put say US$150k-200k into your Everbank account and the currency you buy strengthens against the dollar, you could find yourself crossing the FDIC $250k threshold pretty quickly. I'm not condemning the idea of non-US currency CDs; but let's be cautious about throwing around the phrase "risk-free". “…risk-free currency CDs offered by Everbank.”
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I would encourage you to be more careful with your wording. These CDs are certainly not “risk-free”: presumably what you mean is that there is no risk to principal because of the FDIC, which we assume will always be able to afford the cost of bailing out depositors whose banks fail. There is, though, a currency risk: if the dollar actually strengthens against the currency you buy– i.e., if your prediction turns out wrong, then you lose money. And conversely, if you put say US$150k-200k into your Everbank account and the currency you buy strengthens against the dollar, you could find yourself crossing the FDIC $250k threshold pretty quickly.

I’m not condemning the idea of non-US currency CDs; but let’s be cautious about throwing around the phrase “risk-free”.

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