Friday, April 26, 2013

Many Of My Dividend Growth Stocks Have Become Overvalued, What Do I Do Now? - Seeking Alpha

Many Of My Dividend Growth Stocks Have Become Overvalued, What Do I Do Now? - Seeking Alpha: To me, there's almost nothing better than finding a great company that I truly want to own at a fair valuation, or better yet, undervalued. In the long run, it has been my experience that this usually leads to outsized future returns, especially if you buy stocks when they are undervalued at the time. But there is quite often a side effect that can prove very disconcerting. Once an undervalued stock starts moving to the upside, momentum will often carry it above what prudent fair valuation would dictate.

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