Motley Fool Top 10 Dividend stocks (for dividend investors)

Discussion in 'Share Investing Strategies, Theories & Education' started by Hodor, 12th May, 2017.

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  1. Hodor

    Hodor Well-Known Member

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    So I just came across this link by the Motley Fool

    The top 10 stocks for dividend investors

    After almost 3 years there is one thing in common, every single one's share price has under performed the AORD index. Seriously that is some great dart throwing, I don't think I could pick 10 stocks to under perform the index and have a 100% hit ratio.

    They must think dividend investors are silly and happy to throw away capital.
     
    Perthguy and Redwing like this.
  2. Perthguy

    Perthguy Well-Known Member

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    They fell for the old Yeild Trap.

    Beware the Dividend Yield Trap
    You may buy a company with a high dividend yield, but one that is also on its way to the poor house and may not be able to afford to pay any dividend in the near future.

    What do the other fundamentals look like? Dividends are paid out of cash and cash comes from earnings. Does the company have a healthy supply of cash and a consistent history of earnings and earnings growth?

    Beware the Dividend Yield Trap

    I wonder if those buying Telstra how have taken these into consideration.

    In 2002, BHP's dividend was 19 cents. Today, it is $1.10. Telstra's dividend in 2002 was 22 cents. Today, it is 28 cents - not much of an increase compared with BHP's dividend growth.

    Minbatiwala says investing in BHP from a total-return perspective would also net investors substantial benefits.

    According to his analysis, if an investor bought $10,000 worth of Telstra shares in 2001, the total value today would be $10,953. If the same $10,000 had been invested in BHP, the value today would be $50,440.

    ASX - Request Rejected
     
  3. Hodor

    Hodor Well-Known Member

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    BHP hasn't been the best example of late.

    If you can pick stocks that will under-perform with some certainty, you could construct a portfolio that will provide substantial out-performance. i.e. buy the ASX200 minus 20 under-performers and you'll be a happy camper.

    Some LICs do this to some extent. Motley Fools ability to pick the under-performers in the article was amazing, maybe an ETF that excludes companies based on the criteria used to select those in the article could be a winner.
     
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  4. b0b555

    b0b555 Well-Known Member

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    The trouble with an xMotleyFool ETF is that it might only have 2 stocks in it. They seem to pretty much pick every stock at one time or another.
     
  5. wombat777

    wombat777 Well-Known Member

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    Have completely lost any and all respect for Motley Fool. They got me started with actively investing but there is so much better sage discussion and 'not advice' here on PC.
     
  6. The Falcon

    The Falcon Well-Known Member

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    Motley fool ; the Kings of Chutzpah
     
  7. Nodrog

    Nodrog Well-Known Member

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    How can you say such a thing. As posted awhile back the video clip in the following from Motley Fool is simply inbelievable:D:
    Everlasting Income Hub