AAII

1. You would use a dividend-yield strategy to locate what type of stocks?

Undervalued stocks

Volatile stocks

High-growth stocks

Cash flow stocks

2. Which sector tends to dominate lists of high dividend stocks?

Services

Utilities

Health Care

3. Why do many analysts prefer using dividends to value a stock?

The regular dividend is a concrete figure

Dividend payout tends to be stable

Dividend yield is important

4. One measure that can indicate a secure dividend is a:

High dividend yield

Low payout ratio

Low price-earnings ratio

5. It’s a good idea to try different dividend estimates and dividend yields in the valuation formula.

True

False

QUIZ: How to Judge a Stock