About one third into the following video, Dennis Gartman of The Gartman Letter was introduced. Gartman stated that an increase in dividends might be a better guide to a company's health.
Over and over again during this season, we observed that value investors coming out and say that the high quality, large cap US stocks represent good value after a decade of going nowhere. Gartman just added to that if you get 3 to 4%, you are half-way there in terms of achieving the total return of 7-8% expected of the stock market.
It is interesting to watch how the other guys in the panel question this simple strategy. One would question if a company is paying a dividend, it is an indication of lack of growth opportunity and no place to invest. Gartman snapped back “give it to me then”.
The other guy simply hate dividend paying stocks because they don’t make good trading candidates. I would contest that it is even better if people do not make senseless trading of the stocks I am holding. Too bad, go somewhere else.
Over and over again during this season, we observed that value investors coming out and say that the high quality, large cap US stocks represent good value after a decade of going nowhere. Gartman just added to that if you get 3 to 4%, you are half-way there in terms of achieving the total return of 7-8% expected of the stock market.
It is interesting to watch how the other guys in the panel question this simple strategy. One would question if a company is paying a dividend, it is an indication of lack of growth opportunity and no place to invest. Gartman snapped back “give it to me then”.
The other guy simply hate dividend paying stocks because they don’t make good trading candidates. I would contest that it is even better if people do not make senseless trading of the stocks I am holding. Too bad, go somewhere else.
