The Other Side of the Dividend Bubble

A year ago, I wrote an article about a possible dividend bubble.

Dividend yields were falling, I wrote, as low interest rates on bonds pushed investors into dividend-paying stocks. That set up a dangerous environment of lofty valuations. 

In some cases, that's still true. But there's more to the dividend story than I once thought.

In this video, Fool analyst Matt Koppenheffer and I discuss the dilemma, which has been a long-running debate between the two of us.

If you're an investor who prefers returns to rhetoric, you'll want to read The Motley Fool's new free report, "5 Dividend Myths ... Busted!" In it, you'll learn which stocks provide premium growth and whether bigger dividends are better. Click here to keep reading. 

The article The Other Side of the Dividend Bubble originally appeared on

Fool contributor Morgan Housel owns shares of ExxonMobil. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story