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)

This article has 3 comments

  1. Off topic: It would be great if you had a suggestion box or a place to email you with questions/suggestions.

    I just learned a new term called “washing” which allows you to avoid foreign currency conversions inside your RRSP. I thought it was a good tip and figured it’s worthy of a blog post for others.

  2. Anonymous: I apologize for not having a “Contact me” button. For now, you can contact me at ccapitalist-at-yahoo-dot-com.

  3. There’s a Canadian version of IQ Trends at http://www.dividend-growth.org/ and it’s FREE.