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Lowered Expectations: Finding The Dividend Sweet Spot

2016-08-29 06_57_15-Morguefile.com free stock photosIf given the choice, would you pick a dividend stock with a 9% yield or one with a 6% yield? It turns out that the 6% yield stock may be the better pick. Today’s article examines – based on data compiled by Mellon Capital – how, when it comes to high-dividend stocks, “you often don’t get what you pay for.” Mellon’s data shows that, over the last two decades, a 9% forecast yield generated a realized yield of closer to 4%, while a forecast yield in the 6-7% range generated a realized yield of over 5%. Given this, how does Mellon suggest that investors avoid being tricked by high dividend yields and find the dividend sweet spot? CLICK HERE to find out.