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Originally Posted by ErikLS2
Great article Greg, I'm curious how much you pay attention to valuations of the dividend stocks you buy? Do you just look at the chart or do you get into P/E ratios and the other ways to determine value and if so what are your prefered tools to use to determine that value?
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Erik -- I really don't pay much attention to P/E's etc.... but that doesn't mean they're not important.
I have a rather loose version of how I invest. I look for best of breed companies that I know and understand what they do - I check their charts - I look for a balance of growth and dividend - I look to see if the dividend has increased over time - etc.
There's tons of info and criteria etc -- but I really don't get caught up in that stuff much... it can steer you into an investment based on numbers rather than investments you love to own... and I have to like the company FIRST and then the other stuff kinda takes care of itself.
Since I'm an investor rather than a trader... the stuff I own pretty much has normal P/E's etc. So I guess that's why I don't use that as a criteria. I just want to invest in stuff that has a HISTORY of going up in value over time - and that's going to give me income.
One of the things I've preached on here is to keep it simple. It really isn't rocket science although a guy can make it that way.