The Other Side of the Dividend Bubble

A year ago, I wrote an article about a possible dividend bubble.

Dividend yields were falling, I wrote, as low interest rates on bonds pushed investors into dividend-paying stocks. That set up a dangerous environment of lofty valuations. 

In some cases, that's still true. But there's more to the dividend story than I once thought.

In this video, Fool analyst Matt Koppenheffer and I discuss the dilemma, which has been a long-running debate between the two of us.

If you're an investor who prefers returns to rhetoric, you'll want to read The Motley Fool's new free report, "5 Dividend Myths ... Busted!" In it, you'll learn which stocks provide premium growth and whether bigger dividends are better. Click here to keep reading. 


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  • Report this Comment On May 09, 2013, at 2:57 PM, JohnMaxfield37 wrote:

    This reminds me of a quote by Lloyd Blankfein: "I spend 98% of my time worrying about 2% probability events."

    Given that banks are in the risk business, that's probably not a bad philosophy. And it's one that would have served Rubin and Diamond well. At the end of the day, a great bank CEO plays better defense than offense.

  • Report this Comment On May 09, 2013, at 3:15 PM, JohnMaxfield37 wrote:

    I meant to post that on your conversation about CEOs.

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