| Dear Reader, Think high-yielding income stocks are your best bet at financial security? Think again. Search online and you’ll turn up dozens of financial articles plugging dividend stocks right now, titled things like… ‘Best Dividend Stocks on the ASX’ — Forbes ‘Top 10 ASX Dividend Stocks to Watch’ — IG ‘Ultra-High-Yielding Dividend Stocks on the ASX’ — The Motley Fool These articles are full of companies you’ve probably heard of, touting some impressive yields, but what many fail to consider is this… Yield is just one component of total return…the other being capital appreciation. If you focus solely on chasing yield, you may end up with a serious shortfall in your capital down the line. Sure, a 12% yield sounds great, but when the stock price slides 20% over 12 months, it’s like one step forward, two steps back. You can’t just pin your hopes on the highest-paying dividend stock today, and hope it stays that way over the next year or two, or more… You need to get into the weeds and dig into financials and, occasionally, you may just find a gem of a company that’s trading at a significant discount to its intrinsic value…AND paying healthy dividends. Over the past few months, I’ve done exactly that. And I’ve found six of these stocks I want to share with you today. Regards, Greg Canavan,
Editorial Director, Fat Tail Investment Research | 