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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Steve Felix who wrote (9426)	7/14/2011 8:53:15 AM
From: Grommit	Read Replies (2) \| Respond to of 34328

Don't think that you quite understand my post. I am suggesting that valuation is another filter to use to avoid a stock that is overpriced. You still would ONLY buy stocks from your list of great dividend payers (whatever that is), but shorten the list by crossing out the overvalued stocks. So you would still avoid CAG in this case, due to your beliefs, just as you avoid chinese stocks. What's the big deal? I am not telling you what to buy, just suggesting what to avoid.

To: Steve Felix who wrote (9426)	7/14/2011 9:03:04 AM
From: Grommit	1 Recommendation Read Replies (2) \| Respond to of 34328

Another example is O. I have posted that it is overpriced, and it is still overpriced with a PE of $34 / $2 = 17. Others posted "so what, I get 5%". Well, there are plenty of other reits paying 5% that are not overvalued. I avoid O. Here's a few that I own. Compare O to these in a year. BDN 5%, PE 9 DRE 4.8%, PE 12 AHT 3.2%, PE < 6 DLR 4.4%, PE 15 (much higher growth potential than O) GOV 6.4%, PE 13 LXP 5.1%, PE 10 MPW 6.7%, PE 16 COR 3%, PE 14-16 (more growth) LTC 6%, PE 12-13 If I owned O now, I would sell it and buy something else.