Aug 14, 2015

Reinvesting dividends in quality stocks is a proven path to long term accumulation, but the demand for the most popular dividend paying stocks has pushed their valuations to high levels.  According to the Wall Street Journal’s Dan Strumpf, interest-rate jitters are taking their toll on high-dividend stocks. Double digit losses in 2015 have now replaced double-digit gains seen in recent years. Investors plowed $48.4 billion into mutual and exchange-traded funds tracking utilities and REITs from 2010 through 2014, according to Morningstar Inc., but now, many large institutions are moving away. You may not want to be sitting in some of these positions as the tide goes out.  In the Q & A segment, Neil MacNeal, whose stock split strategy has been recognized by Mark Hulbert at MarketWatch, and has doubled the Wilshire 5000 since 2000, returns to Mastering Money to talk splits with the A-Team.