Dividend yield: Both investors & traders can use it in volatile times: 5 stocks with the right mix of dividend yield & upside potential
In stock trading and investing, dividend yield is a somewhat overlooked metric. Most traders focus purely on price charts, momentum, and news flow. But it is useful even to traders. How? Let's take an example: Hindustan Unilever (the stock is not in our list) rarely yields above 1%. If it did approach, say, 2% due to a sharp stock correction, it would likely be a strong value signal, indicating that, for the first time in years, it’s cheap relative to its dividend payouts. There are some steps to be followed which will probably help people use this matrix both while investing and trading. By following these steps, you will be using dividend yield as a contrarian indicator. It’s almost like having an insider’s gauge on valuation.
In stock trading and investing, dividend yield is a somewhat overlooked metric. Most traders focus purely on price charts, momentum, and news flow. But it is useful even to traders. How? Let's take an example: Hindustan Unilever (the stock is not in our list) rarely yields above 1%. If it did approach, say, 2% due to a sharp stock correction, it would likely be a strong value signal, indicating that, for the first time in years, it’s cheap relative to its dividend payouts. There are some steps to be followed which will probably help people use this matrix both while investing and trading. By following these steps, you will be using dividend yield as a contrarian indicator. It’s almost like having an insider’s gauge on valuation.
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