Valuations of Dividend Stocks

The investment mantra this year has been to focus on dividend paying stocks. Over the long run, payers have had a tendency to outperform the non payers and this has certainly been the case this year. On the other hand though, valuations do matter and the below chart provides investors with a cautionary view of simply buying "any" investment that has yield.

http://disciplinedinvesting.blogspot.com/2011/12/watching-valuation-of-dividend-payers.html