It has always been interesting to see a dividend paying stock at its crucial long term resistance zones. Big people do not consider it a worth "buy" at higher levels. But why? - Dividend paying stock are not for growth, as major chunk of company's profit goes into dividend payout. - Dividend yield, which become lesser and lesser at higher levels. So why would one invest in a stock which is not likely to grow much and the dividend he is receiving is far lesser than Fix Deposits. ------------------------------------------------ Now it a clash of technical analysis and fundamental analysis. Technical Analysis says buy strength, go with trend buy above resistance level. ************************************************ On other hand fundamental analysis consider company's cash flow, valuations and expected future growth. ----------------------------------------------- Every time I see market it teaches me a new thing a new lesson some are sweet some are bitter. I am open to new ideas and not rigid on past experience and saying. In TA we believe that history repeat itself but believe me if you closely observe enough, you will see every event in itself it is completely unique. ---------------------------------------------- Hope you enjoyed this post thanks for reading.
If you want to dividend stock then wait for the right Opportunity , above I have attached a post of PFC where despite the strong bearish Formation I prefer to buy PFC because of the dividend Yield at that price point.