many investors are frustrated that they can only get a little more than 1% return on safer invetments, this has created a bubble of people investing in stocks with 3 to 5% yields evn though the stock might not be making any money. there is always someone waith to slaughter nieve investors trying to eek out a couple extra percent on investments. NEM is a great example of a yield bubble stock.
That yield bubble isn't going to pop anytime soon. The yield on my 20 dividend paying stocks that I posted a couple of days ago dropped from 4.4% at the end of March to still 4.2% at April 30th.
Now, many have dropped below 4% (10) but some still 4 are over 4.5% and 3 are over 5%.
Treasuries? 10 year 1.66%?
I agree, as soon as bond bubble bursts, (that's the real bubble) these divi stocks will fall and fall fast. Because when bond bubble bursts, it will raise yields fast and furious.
all it will take for nem to pay 7% at this price is $1900 gold. i don't know if you should rule it out.
of course a sibble like you, who makes cracks about history engineers while making your nickels the way you do....you're not the type to consider these things.
besides you'll hide in the bunker and make a new id when it happens anyway. isn't that right, little virtual man?
I don't see the yield changing for an investor that buys at the low. That is why payout history and % payout of profits is important. If you buy NEM at $30 and get 30% of earnings paid pack to you every year, that doesn't change what you paid. Would you really pay 25% more for a stock for 2% more "yeild"
The real danger is if the price goes down after you buy.