HOW IMPORTANT are dividends?

"Most investors don't care about yield, but rapidly rising dividends signal a fast-growing company that also looks out for its shareholders." (Money magazine)

"What's better than buying an undervalued stock with consistent double-digit earnings growth? Answer: Snapping up such a stock that also provides a high yield." ( Personal Finance)

Examples of high-yield stocks with percentage yields in parentheses: Alliance Capital Management (6.8), Baltimore Gas and Electric Co. (6.4), Crescent Real Estate Eq. (10.2), Dominion Resources Inc. (6.8), Southern Co. (5.5), PIMCO Advisors Holdings (8.0). All are listed on the New York Stock Exchange.

"Long-term 'value' stock investing makes sense, even though prices are depressed," says adviser David Dreman. "Because a market slide is inevitable, investing in companies with low price-earnings ratios is a smart strategy. Favorites: Borders Group Inc., First Union Corp. and Humana Inc."

"Bull market overconfidence has increased investors' annual turnover to 60 percent, five times what it was 20 years ago. You would have done better buying and holding an index fund." (Steven Thorley, financial analyst)

Pub Date: 4/30/99