http://finance.yahoo.com/columnist/a...ureinvest/3810

Read this article. From 1957 to 2005, the top performing stocks all pay dividends, and are mainly consumer brand & large pharmaceuticals. Also, the most amazing thing is that the average P/E ratio of these stocks is 16. Compare that with Google's 87. Bottom line: Over the long term, your best off in quality companies and reinvesting dividends.

It's a sobering though, but I don't think the GOOG chasers have finished with their bubble yet.

Nice article, Benson - seems to underline the point of keeping your own head, when everybody else is losing theirs.

I was actually having a discussion about dividend companies the other day with someone. It is my desire that more companies went back to paying dividends. I think this would change some of the philosophy and mind-set where people feel that their stock needs to rise in direct value at an obscene rate. That is why we end up with so manyinflated p/e ratios.



Very nice article though, good to get back to the basics.

I wish the company where I have my stocks will also resume giving dividends as I haven't heard from them for quite a long time.

It is said time and time again that to gain in the market you usually have to be in it for the longterm. Don't run scared just because everyone else is doing so. While short term stocks can be profitable, unless you are very skilled, then you should keep your portfolio filled with some long termers. Just because they had you in the slump for a year or more truly means nothing.

I agree. I think that even if you are in it for the thrill (and money), you should always keep some long term investments in your portfolio for the relative stability.

Yeah I like the long term investments those are the one's to help you retire on your portfolio.

Yup! Agree with that, they are those which you start while you're still young and then you reap the rewards when you are older and you don't need to work more.

I'm not really a fan of reinvesting dividends because on an auto reinvest situation, you're not necessarily getting the best price. Just my opinion.

Peter Leeds, a formidable teacher and self-taught investor who is a millionaire...says that those people who are a success with the stock market, well, it has more to do with PERCEPTUAL INVESTING than one might think!

I totally agree with this Brian. So called analysts can be misleading. Also, I have heard that stockbrokers get perks for losing peoples’ money! An ex-boyfriend told me this as well..he drummed it into my head to do my own investing after he refused a job as a stockbroker for this very reason. He became a paramedic who then invested on his own:-)