This “Zero-Level Analysis” Can Crush Your Dividend Income

Who’s cooking Thanksgiving dinner for you tomorrow? Specifically, I want to know if your family is doing the cooking – or if you’re outsourcing the meal prep to a robot. If it sounds like a silly question, well, let’s frame it with respect to our usual beat – generating safe 7% and 8% yields in your retirement portfolio . Would you blindly buy and sell dividend payers based on the “insights” of a computer? I often hear from readers who catch a “robo rating” on one of our holdings and worry. Even when the analysis is mere inches deep, like this one: (Your stock) appears to be not be meeting its earnings expectations for past 6 quarters, the profitability of the company is poor which affects its valuation, and its ability to maintain its dividend. … Read more