Sunday, July 22, 2012

Are Dividend Growth Stocks In A Bubble? - Seeking Alpha

Are Dividend Growth Stocks In A Bubble? - Seeking Alpha: Introduction and Background

There has been a spate of recent articles and comments stating or implying that dividend growth stocks are in a bubble. David Jackson, the founder and CEO of Seeking Alpha, stated the following in a recent comment.

I haven't found any other asset class [beside dividend growth stocks] where there are similar causes or indicators of potential overvaluation risk, specifically:
1. macro factors (interest rates, demographics, and tax rates),
2. a significant preponderance of positive articles on SA, with relatively few "challenging" articles,
3. high and rising interest from novice investors. (Please note: I'm *not* saying that all dividend investors are novices; there are many deeply experienced and sophisticated dividend investors.)

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