You are previewing Dividends Still Don't Lie: The Truth About Investing in Blue Chip Stocks and Winning in the Stock Market.
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Dividends Still Don't Lie: The Truth About Investing in Blue Chip Stocks and Winning in the Stock Market

Book Description

A timely follow-up to the bestselling classic Dividends Don't Lie

In 1988 Geraldine Weiss wrote the classic Dividends Don't Lie, which focused on the Dividend-Yield Theory as a method of producing consistent gains in the stock market. Today, the approach of using the dividend yield to identify values in blue chip stocks still outperforms most investment methods on a risk-adjusted basis.

Written by Kelley Wright, Managing Editor of Investment Quality Trends, with a new Foreword by Geraldine Weiss, this book teaches a value-based strategy to investing, one that uses a stock's dividend yield as the primary measure of value. Rather than emphasize the price cycles of a stock, the company's products, market strategy or other factors, this guide stresses dividend-yield patterns.

  • Details a straightforward system of investing in stick-to-quality blue-chip stocks with reliable dividend histories

  • Discusses how to buy and sell when dividend yields instruct you to do so

  • Investors looking for safety and transparency will quickly discover how dividends offer the yields they desire

With Dividends Still Don't Lie, you'll gain the confidence to make sophisticated stock market decisions and obtain solid value for your investment dollars.

Table of Contents

  1. Copyright
  2. Foreword
  3. Acknowledgments
  4. Introduction
  5. I. THE ART OF DIVIDEND INVESTING
    1. 1. First Things First
      1. 1.1. It's All About the Cash
      2. 1.2. The Importance of Planning
      3. 1.3. Our Purpose
      4. 1.4. A Trusted Approach
    2. 2. The Case for Investing in Stocks
      1. 2.1. Investment Needs
      2. 2.2. Stocks, Bonds, or Cash?
      3. 2.3. The Case for Stocks
      4. 2.4. The Growth Rates of Stocks
      5. 2.5. Knowledge, Strategy, and Tactics
    3. 3. The Dividend-Value Strategy
      1. 3.1. The Two Paths of Stock Return
      2. 3.2. Measures of Value
      3. 3.3. Quality of Earnings
      4. 3.4. Rising Dividends Boost Share Price
      5. 3.5. Why Dividends Are So Important
      6. 3.6. Total Return Revisited
      7. 3.7. Quality Tells
      8. 3.8. The Natural Order
      9. 3.9. Dividends Still Don't Lie
    4. 4. Quality and Blue Chip Stocks
      1. 4.1. Quality and the Stock Market
      2. 4.2. What Is a Blue Chip Stock?
      3. 4.3. The Criteria for Select Blue Chips
        1. 4.3.1. Dividend Increases and Earnings Improvement
        2. 4.3.2. S&P Quality Ranking in the "A" Category
        3. 4.3.3. At Least Five Million Shares Outstanding
        4. 4.3.4. At Least 80 Institutional Investors
        5. 4.3.5. At Least 25 Years of Uninterrupted Dividends
      4. 4.4. The Importance of Dividends
      5. 4.5. There Is No Profitable Substitute for Quality
    5. 5. Value and Blue Chip Stocks
      1. 5.1. Finding Good Value
        1. 5.1.1. Price-Earnings Ratio
        2. 5.1.2. Price-Book Value Ratio
        3. 5.1.3. Dividend Yield
      2. 5.2. The Bluest of the Blue Chips
      3. 5.3. The Faded Blues
      4. 5.4. Back to Basics
  6. II. BARGAINS STILL COME IN CYCLES
    1. 6. Value and the Stock Market
      1. 6.1. Dividend-Yield Cycles
      2. 6.2. Undervalue and Overvalue Cycles
      3. 6.3. Bull and Bear Market Cycles
      4. 6.4. Dow Jones Industrial Average Cycles
      5. 6.5. The Dow Jones Utility Average
      6. 6.6. Value Cycles
      7. 6.7. Value Still Prevails
    2. 7. Finding Undervalued and Overvalued Stocks
      1. 7.1. A Sophisticated Approach
      2. 7.2. Undervalued Stocks
        1. 7.2.1. Are the Numbers Chiseled in Stone?
        2. 7.2.2. The Market of Stocks
      3. 7.3. The Overvalued Phase
        1. 7.3.1. No One Gets Bonus Points for Being a Hero
      4. 7.4. The Rising Trend
    3. 8. Value, Cycles, and the Dow Jones Averages
      1. 8.1. Charles H. Dow and the Dow Jones Averages
      2. 8.2. The Dividend-Yield Theory and the Dow Jones Industrial Average
      3. 8.3. A Long Blow-Off Top
      4. 8.4. The Walls Come Tumbling Down
      5. 8.5. The End Game
      6. 8.6. The Next Bull Market
  7. III. WINNING IN THE STOCK MARKET
    1. 9. Developing a Successful Stock Strategy
      1. 9.1. Take Care of Your Business
      2. 9.2. Investment Goals
        1. 9.2.1. The Investor Who Needs to Preserve Capital
        2. 9.2.2. The Investor Who Needs Income
        3. 9.2.3. The Growth Investor
        4. 9.2.4. The Young Investor
      3. 9.3. Know Your Limitations
      4. 9.4. Ideal Portfolio Size
      5. 9.5. Diversify, Diversify, Diversify
    2. 10. Building and Managing the Dividend-Value Portfolio
      1. 10.1. Macro versus Micro
      2. 10.2. Expansion and Contraction
      3. 10.3. Kaboom and Kabust
      4. 10.4. Recessions
      5. 10.5. Recovery
      6. 10.6. Politics and Markets
      7. 10.7. Don't Fight the Fed
      8. 10.8. A Yen for Dollars, or Pounds, or Euros
      9. 10.9. Putting It All Together
        1. 10.9.1. What Is the Primary Trend?
        2. 10.9.2. What Is the Current Phase of Value?
        3. 10.9.3. What Is the Reading of the Blue Chip Trend Verifier?
        4. 10.9.4. What Is the Interest Rate Trend?
        5. 10.9.5. Expansion, Contraction, or Recession?
      10. 10.10. Portfolio Tactics
        1. 10.10.1. Scenario 1
        2. 10.10.2. Scenario 2
    3. 11. The Stock Market and the Economy
      1. 11.1. The Stock Market
      2. 11.2. Industries and Stocks to Watch
      3. 11.3. The Economy
    4. 12. Questions and Answers
      1. 12.1. Dividends
      2. 12.2. Stocks
      3. 12.3. The Dividend-Value Strategy
    5. 13. Conclusion
  8. Recommended Reading
    1. Books
    2. Magazines, Newsletters, and Newspapers
    3. Web Sites
  9. About the Author