Quantcast
Are you getting the best rate from your broker?
Compare your broker's rates now to find out if you can save money

Choose your broker below
Welcome to Dividend.com. Please help us personalize your experience.

Select the one that best describes you
ALERT

E-Commerce Boom Powers Best Dividend Stock Closer to Dividend Aristocracy

Dividend logo

Financial academics define risk as volatility. But while a stock or a mutual fund that bounces around in price may give investors heartburn, most normal people really don’t think of fluctuating prices as risk – especially when prices dance around but mainly rise. For them, real risk is the chance that their portfolio will go down in value and they’ll lose money.

To me, that’s a common sense view of risk, so I’m glad that Haywood Kelly, the head of global research at Morningstar, shares my thinking.

More to Risk Than Volatility

Writing in the recent edition of his company’s magazine for financial professionals, Kelly says that he followed the orthodox line about risk equaling volatility when he started as an analyst many years ago. His first job was following Japanese stocks during what we later realized was a bubble in that market. At the time, of course, not many people considered the Japanese equity market risky because it had great historical returns and very low volatility.

To read the Full Story, Go Premium or Log In

Popular Articles

German Elections

Chancellor Merkel Secures Hollow Victory in German Election as AfD Makes Gains

Angela Merkel retained her post as Chancellor of Europe’s largest economy on Sunday, but the...

News

Mondelez International Inc Increases Dividend by 15%

Each day, companies across the globe announce upcoming dividend payouts. In our Dividend Payout...

News

Philip Morris International Inc. Leads 120 Stocks Going Ex-Dividend This Week

There are 120 stocks going ex-dividend this week starting Monday, Sep 25. For income investors...