I don’t give a shit about bitcoin.
Capitalizations Index – B ∞/21M
zerohedge.com / by Michael Lebowitz via 720Global.com / Apr 19, 2017 5:50 PM
Passive Negligence Part II
Almost a year ago, we stumbled upon a topic that is currently generating much discussion in the financial media. In , published August 2016, we highlighted the Campbell Soup Company (CPB) and the utility sector to show how yield-starved investors were chasing dividend stocks to dangerously high valuations. The following quote from the article highlights the risk inherent in CPB’s valuation: “This concept of a no-growth company with soaring valuations is alarming. The price of CPB would have to drop 30% to return to its post-recession average P/E. If that were to occur, it would take 16 years’ worth of dividend payments to recoup the price loss, assuming dividends remain stable”.
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