Vanguard High Dividend Yield ETF VYM- January 30, 2007 Into the already crowded space of dividend ETFs, enters a new fund from Vanguard. It's called the Vanguard High Dividend Yield ETF, tracks the FTSE High Dividend Yield Index and trades under the symbol VYM.Vanguard is the proverbial 500-pound gorilla in the index fund business. Any offering they come up with is bound to be a contender. At the very least it's worth looking at.The FTSE index they track is proprietary, and comes with a legal warning that prevents me from doing my usual dissection..http://whereistheyield.blogspot.com/2007/01/vanguard-high-dividend-yield-etf-vym.html Short Dividend Screen- January 25, 2007 Most investors are familiar with the idea of the short squeeze: When a lot of investors sell a stock short, there is the possibility that when they finally cover (all at once), they will drive prices up considerably. The probability of a short squeeze increases when the short ratio (the number of shares short divided by the float) is high.It gets more interesting when the company sold short pays a dividend. When you short a stock, you have to pay the dividend. If the dividend yield happens to...http://whereistheyield.blogspot.com/2007/01/short-dividend-screen.html Rebuttal- January 22, 2007 My take on AAPL drew out the following comment from Tim Bueneman on Seeking Alpha:"Really weird - and naive comment! Every study I have ever seen of the stock market's biggest winners historically (studies by Wm O'Neill, Ken Fisher, ThinkEquity, etc., etc.) show those stocks usually had nil or no dividends. You shouldn't apply value stock measurements to growth stocks. I used to be a research director at a large investment firm, and I'd FIRE any analyst who made such a comment!"While I've been..http://whereistheyield.blogspot.com/2007/01/rebuttal.html How Much is Apple (AAPL) Worth- January 18, 2007 Take a minute and think about the question. How much is a share of AAPL really worth Is it worth $94.95 because that's what somebody paid for it at the close yesterday Is it worth $105 because that (according to yahoo) is the average one-year price target pegged by analysts Is it worth $11.674, because that's the book value on the balance sheet Is it worth ten times earnings twenty times one hundred Is it worth buying regardless of any of these valuations, because it keeps coming up with snazzy.http://whereistheyield.blogspot.com/2007/01/how-much-is-apple-aapl-worth.html The Gordon Equation- January 8, 2007 I've been catching up on some fashionable 2002 reading material, namely William Bernstein's The Four Pillars of Investing. While I can't say I've been converted to his views completely - I never was a fan of active management to begin with - I can certainly say that he's provided me with what must be the simplest way of explaining to newbies the idea of dividend investing. This wonderful bit of simplicity is called The Gordon Equation, and it looks a little like this:Total Return = Dividend...http://whereistheyield.blogspot.com/2007/01/gordon-equation.html |