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“For My Money the Sun Rises and Sets on…”

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I found this gem from Richard C. Young’s Intelligence Report, December 1988 issue. Some things never change.

When it comes to serious money invested in common stocks, for my money, the sun rises and sets on dividends. With dividends as your friend, you have the miracle of compounding on your side through thick and thin.

What question should you ask first before you invest in common stocks? You ask, what is today’s yield on stocks compared to the historical yield on stocks? If the current yield is higher than the average yield over many cycles, you can take advantage of a period of value. If the current yield is below the historical norm, that’s a warning of relative lack of value. During low-yield periods such as we have now, you should have higher-than-average cash reserves and you should adopt an increasingly defensive strategy as yields decline.

SandP 500 div yield

E.J. Smith

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306.

He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris.

Please get in touch with E.J. at ejsmith@youngresearch.com.

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