I learnt about the Investment Quality Trends stock newsletter from this Forbes magazine interview column. IQ Trends has a very interesting stock selection strategy. A stock is undervalued (and hence a buy) when its dividend yield is at the high end of its historical range. At the other extreme, a stock is overvalued and should be sold.

In the Forbes video interview, the newsletter’s editor mentions the following stocks:

  • Citigroup (C) – 3.54%
  • AIG (AIG) – 0.65%
  • Claire’s Stores (CLE) – 1.46%
  • Sigma-Aldrich (SIAL) – 1.20%
  • Bristol-Myers (BMY) – 4.38%

(Full Disclosure: I own shares in AIG)