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

Foreword

It is with a great deal of pleasure that I introduce Kelley Wright's new book about the dividend-yield approach to lifelong growth of capital and income in the stock market.

This investment concept first was published in 1966 in what then was a new investment advisory service, Investment Quality Trends. Forty-three years and three books later, the service is still helping investors master the stock market by investing in high quality, dividend paying, blue chip stocks. It helps them know when stocks are undervalued, when they can be bought, and overvalued, when they should be sold.

The importance of dividends in determining value in the stock market cannot be overstated. The main reason investors are willing to risk their capital in anything is to get a return on their investment. In the real estate market, that return is rent. In the money market, it is interest. And in the stock market, it is a cash dividend.

Folks who ignore the importance of dividends in making stock market selections are not investors. They are speculators. Speculators hope that the price of a stock will go up and reward them with profits. Investors know that stocks that pay dividends go up too. Meanwhile, they are getting a return on their capital. They believe the old adage: A bird in the hand is worth two in the bush.

The legendary Charles Dow has written, "To know values is to know the meaning of the market. And values, when applied to stocks, are determined in the end by the dividend yield."

It is ...