ald: expect the dividend to get a haircut. Stocks don't yield 10% in a 2% divi environment. they usually will yield LESS than that in the near future, and not because the price of the security goes up.
FWIW, I would be extremely careful of ANY financial company today. Banks, insurance, morgatge, ANY. Unless you know they're run by UNASSAILABLE people, such as Buffett or Bryne. Why? Because the earnings in a financial company are usually whatever management hopes, wishes, and wants them to be. Much of the earnings are based on estimates, reserves, and time value of money calculations. Pay close attention to Buffett and Mungers comments at this years meetings. ALso, see Jim Rogers piece in Worth on the next "bubble." |
