Published Wed, 06 Nov 2019 08:35:00 -0500 on Seeking Alpha
Co-produced with Beyond Saving and PendragonY
"Buy low, sell high" is a tenant of investing that is simply common sense. Ironically, one of the most common criticisms we hear about any investment pick is some version of "Why would I buy that? The price is down x% over this time frame!" In other words- "Why would I buy that? The price is too low!"
While it is certainly true that a downward spiraling price could be a warning sign, it is also true that most stocks will go down at some point for reasons far more benign than a failure of their business model. The stock market is frequently focused on quarterly earnings and whatever the news cycle is today, and will oversell stocks that don't meet current expectations, even if their long-term future is sound.
For investors, who are willing to go against the grain, and invest in stocks that are currently unpopular, these dips are a buying opportunity. Today, we see a situation where value stocks have become undervalued relative to growth stocks. This is particularly noticeable among higher-yielding value stocks, that are frequently labeled as "high risk" even when their fundamentals remain solid.
We saw a brief period in September where value stocks gained against growth stocks, and that was just a peek at the future potential for those who are willing to focus on fundamentals and invest in companies that are value-priced, as opposed to buying the shiniest growth stock hoping that someday later they can find someone willing... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
|AMERICAN CAPITAL AGENCY||15.64||0.0||-1.54||1.92||12.21|
|SIMON PROPERTY GROUP||155.27||20.8||7.48||8.40||5.21|
Older articles featuring Wp Glimcher (WPG):Our 2020 High Yield REIT Portfolio
50 Dividend Dogs With 10%-Plus Yield At $1-$10 Prices For December
The Mystery Of REIT Dividend Cuts In The Great Recession
Macerich: To Cut Or Not To Cut Its 11% Dividend (And Why It's Irrelevant)
False Red Flags And Dividend Myths
Depressed Hotel REITs Provide Opportunities For Dividend Investors
89 Over 10%Yield, Under $10 Priced Dividend Dogs Fall Fortunes
Our High Yield REIT Portfolio
Macerich: 10%-Yield Gem Is On Sale For A Limited Time; Insiders 'Loading Up'
101 10%+ Dividend Yield Dogs Romp In October