AboutDr. Joseph de Beauchamp Expertise I am an MBA professor and I publish on over 2000 public companies, a good portion of these belong to the telecommunications industry.
Question Hello, Dr.de Beauchamp: What are your ten favorite stocks for income? Thank you, Stan Kolker
Answer I do not recommend buying stocks on income or dividend basis. I found that credit analysis is one of the best ways to select stocks. Stocks that pay a high dividend usually distribute too much of their profit, and likewise, do not build retained earning or equity of shareholder values. We are fundamental research analysts, and publish on 2000 companies over the last two decades. We have never found that the "total return" works with this method of high dividend stocks.
We pay closer attention to the sales per total assets and the total debt to shareholder values. I would recommend that you seek more information on the actual performance long term of this method, and determine yourself the actual performance of high yield stocks.