22 of 33 people found the following review helpful
This review is from: The Little Book of Big Dividends: A Safe Formula for Guaranteed Returns (Hardcover)
The book is meant for absolute newbies. It does not contain any useful discussion for seasoned investors. The book actually argues that investors should not look to buy and own high dividend stocks! (instead just own stocks spitted out by the BSD formula given in the book). The explanation of the BSD formula itself is very superficial.
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Initial post: Jul 9, 2011 2:12:31 PM PDT
Gisela Hippolt-Squair says:
Most seasoned investors know that the higher the dividend, the higher the risk. One should never pick stocks based strictly on the yield.
Posted on May 21, 2012 12:40:11 PM PDT
I think you may be the newbie. His rationale is very clear: the higher the yield, the higher the risk, and the less sustainable the dividend is over time. Moderate dividend yields are better if you are wanting to buy-and-hold since you get sustained compounding of your money.
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