Dividend funds have had a very good year and more investors are looking at them. However, the price-to-earnings ratio for traditionally strong dividend stocks are higher than the S&P average. The price for dividend stocks presents the question whether they are too expensive.
See Paul J. Lim, "Yes, They Pay a Dividend, But Can You Afford Them?" nytimes.com (Jan. 07, 2012).
Posted by Shahzeb Gaziani, Senior Associate Editor, Wealth Strategies Journal.
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