Dividend Yield, Explained: Why I'm Holding High-Yield Stocks My Conviction Ratings Flag as "Strong Buys"

The author explains how dividend yield—calculated by dividing annualized dividend by stock price—serves as a key metric for identifying undervalued stocks and quality businesses. By focusing on companies with long dividend increase histories (particularly Dividend Kings with 50+ years of increases), investors can find entry points when yields are historically high. The author highlights three holdings: Procter & Gamble, Federal Realty Investment Trust, and Enbridge, purchased during market downturns when yields were elevated, demonstrating how patience and dividend analysis can build a strong portfolio.