Monday, April 2, 2012

29 Dividend Champions That Beat The Market, Inflation And 2 Recessions Since 2001 - Seeking Alpha

29 Dividend Champions That Beat The Market, Inflation And 2 Recessions Since 2001 - Seeking Alpha: This article is a follow-up to my earlier article on March 28, that was stimulated by commentary on an article on March 16 by David Van Knapp titled Has Dividend Growth Kept Up With Inflation? However, since that article was oriented to the prudent dividend growth investor, there were a couple of weaknesses with my previous article that I would like to rectify with this current offering.

First of all, I feel that the 30 sample companies used in my first offering were not the best representation of high-quality dividend growth stocks as claimed by the book cited in both articles above, and secondly, there was a lot of overvaluation bias built into the time frame being measured. Consequently, I do not believe that a clear and fair representation of the value of a true dividend growth stock was effectively revealed. On the other hand, the first article did show that even an inferior group of dividend paying companies were capable of providing income that beat inflation over time.

Wikio

No comments:

Post a Comment