Dividend Connection

Library Journal

Geraldine Weiss, the doyenne of dividend enhancement, has popularized the theory that there is an inescapable relationship between the corporation's ability to pay consistent dividends over time and its price performance in the stock market. Her respected newsletter, Investment Quality Trends, employs this theoretical basis, and her classic Dividends Don't Lie (LJ 1/89) is a primer on her theory. Using numerous thumbnail company sketches, the authors illustrates how to select stocks from a detailed study of the dividend history of a corporation. Her advice includes how to spot possible dividend cuts, examine utility stocks, and develop an investment strategy. While not as important as her first book, this offers excellent advice for long-term investing. Recommended.-Joseph Barth, U.S. Military Acad. Lib., West Point, N.Y.

Booknews

Presents an investment strategy that takes advantage of the link between dividends and stock market values. Working on the assumption that established blue chip companies offer the best potential for increasing shareholder value, the book shows how to recognize blue chips, and offers advice on when to buy and sell and how to spot value in the stock market. Features 75 company profiles illustrating concepts such as undervalued stock, dollar cost averaging, and using the Dow Jones average to spot value. No bibliography. Annotation c. Book News, Inc., Portland, OR (booknews.com)

David Rouse

Geraldine Weiss' dividend yield investment model espoused in "Dividends Don't Lie" (1988) is basically reiterated and confirmed. This relatively simple, straightforward strategy, limited here to 350 select blue-chip stocks, has regularly outperformed the market (as documented by Mark Hulbert, who tracks investment advisers in his "Hulbert Financial Digest"). Weiss and her husband show how to use her dividend yield theory to achieve current income, short-term growth, or long-term growth in both up and down markets. More than 100 charts and figures accompany the Weisses' clearly presented advice. Novice investors looking for relatively low-risk investment strategies should consider the "dividend connection."