By Stock Croc:
A time-tested market axiom has it that stocks that pay dividends are less risky than those that pay little or no dividends. The dividend-payers are older, more established companies, probably in the twilight of their years, past their prime growth. Is this yesterday's news?
Not necessarily. For starters, only companies with good cash flow can afford to pay out dividends, and good cash flow is one attribute of successful businesses. A tiny dividend may reflect tiny profits. Or very high dividends may signal very high risk. Both statements may be true. Certainly, dividends are one way of earning money in the stock market, and the stocks discussed below illustrate different pieces of the market puzzle.
The Boeing Company (BA) was cruising recently above $74 a share, in the upper end of its 52-week price range of $56.01 - $80.65. Its price earnings ratio was 13.9% on earnings of $5.32 per
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