Rational Risk uses rules-based selection for a consistent and disciplined approach to equity income opportunity selection. The rules identify stocks with a continuous history of dividend payments and dividend increases, above average yield, trading liquidity, financial health and minimum market-capitalization and price, and which are also recommended by one or more recognized research firms.
Standard and Poor's says this about dividends in their write up of the Dividend Aristocrats:
Special Report: Rational Risk Subjective List Criteria [69.88 kB]
Special Report: Rational Risk Performance List Criteria [70.95 kB]
Should You Subscribe To Any Investment Letter? To This One?
Money you spend on an investment letter is money not invested in your portfolio; therefore you need a good cost/benefit reason to incur the expense of the letter.
Not all investment letters are suitable for your particular needs, goals and investment style. All letters are not created equal. There are many different kinds of investment letters, and you must judge which, if any, are best for you.
Keep in mind that information has value. Information can help you avoid mistakes and losses. Information can help you find opportunities and profit. Information that is well developed and relevant to your investment pursuits saves you the time, effort and data source expense required to develop the same information yourself.
Keep in mind also that investment letters should not be your only source of information. You should still do some final fact checking about any security before entering into a purchase or sale transaction.
In deciding to purchase any investment letter, ask yourself these questions before spending any money:
- Does the investment letter lead me in a direction that I want to go?
- Does the letter provide me samples of prior letters so, I can judge the focus and quality of the letter?
- Is the letter based on a clearly disclosed and easy to understand methodology?
- Does the letter contain information that helps me judge the effectiveness of the information?
- Is the research time I save worth more than the subscription price of the letter?
- Is the cost of the letter much less than the gain I would make or loss I would avoid with only one good idea?
So, don't subscribe to this or any other investment letter unless you have satisfactory answers to at least those questions. Read sample letters, think about whether and how they might be helpful to you, and make sure you have the right to obtain a refund on remaining issues if you change your mind about the letter after subscribing.
What We Do Not Claim:
- We do not claim that our letter will cause you to "beat" the market -- we claim it will help you find and continually update the better high quality dividend income investment opportunities.
- We do not claim that our letter contains any secret or proprietary method -- we fully disclose every step of our method and claim that it takes a lot of work to put the information together, so you can have thinking time, instead of data gathering and manipulation time -- you could come up with the same information if you wanted to spend the time and effort yourself, but you would be better served by leaving the crunching to us to preserve thinking time for yourself.
- We do not claim that you can blindly follow our letter to the exclusion of other information -- we advise you that no investment letter should be used that way -- letters can point you in the right direction, effectively narrow the universe you evaluate to those securities that make the most sense within the purpose of the letter, and save you 90+% of the time that you would otherwise have to spend to get to a final investment transaction decision.
You could create the same information for yourself, if you had several days per month to dedicate to gathering source data, and processing it into the refined lists and security attributes contained in this letter, but your time is worth much more than the cost of the subscription.
After you have considered theses issues and reviewed sample letters, we invite you to subscribe to Rational Risk Equity Income Investor.
Rational Risk Equity Income Investor is a monthly publication of a rule-based selection of dividend income stocks. In addition to the monthly updated stock selection, we publish a performance tracking report on each month list. On an occasional basis, we also provide supplemental reports on the lists and other special reports related to dividend investing.
"Rational Risk" is a publication of QVM Group LLC