Wall Street analysts are bullish on dividend stocks. Revolutionary stuff. These guys cracked the code that income-generating equities might generate income.
The premise here is that tracking top analysts helps you shortlist attractive stocks because they provide useful insights. Useful insights like "this stock pays dividends" and "dividends are money." These are the same geniuses who recommended Bear Stearns at $62 and change.
Retail traders will read this headline and think they've stumbled onto secret information. They haven't. They've found a listicle telling them that three unnamed companies pay dividends, which is information you could get from literally any stock screener built after 1997. But that would require opening a second browser tab.
The analysts are bullish. That's the key word. Not neutral. Not cautiously optimistic. Bullish. Which means they've looked at three companies that pay regular cash distributions and determined those companies will continue to exist long enough to mail checks to shareholders. Brave call.
Passive income is the carrot here. The dream. You buy shares, you collect dividends, you retire to a beach somewhere and let the checks roll in. Except the passive income from three dividend stocks wouldn't cover your Netflix subscription unless you're working with eight figures, and if you're working with eight figures you're not reading analyst recommendations on dividend stocks.
The article doesn't name the three stocks. It just promises that analysts like them. So you're supposed to click through to find out which three companies made the cut this week, as if the list won't be completely different next month when the same analysts rotate their bullish opinions to three other tickers that also pay dividends.
Tracking top analysts is like tracking horoscopes written by people who charge commission.
Photo by Larry Nalzaro on Unsplash
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