Full Picture

Article analysis:

The article titled "5 Relatively Safe And Cheap Dividend Stocks To Invest In - August 2023" published on Seeking Alpha provides a list of dividend stocks that the author believes are relatively safe and cheap to invest in. While the article offers some useful information, there are several potential biases and shortcomings that need to be considered.

Firstly, the article states that the market has been steadily moving up despite challenges in the macroeconomic environment. However, it fails to provide any evidence or analysis to support this claim. It is important to consider other factors such as global economic conditions, geopolitical risks, and market volatility when assessing the stability of the market.

Secondly, the article mentions that the top seven tech stocks constitute nearly 28% of the S&P500 and suggests that some of these gains have been built on AI hype. However, it does not provide any evidence or analysis to support this claim. It is important to consider other factors such as company fundamentals, earnings growth, and market trends when evaluating the performance of tech stocks.

Thirdly, while the article provides a selection process for shortlisting dividend stocks, it does not provide any information on how these criteria were determined or their effectiveness in identifying safe and cheap stocks. Without this information, it is difficult to assess the validity of the selection process.

Additionally, the article highlights three groups of dividend stocks with different average dividend yields but fails to provide any analysis or explanation for why these specific groups were chosen or what makes them relatively safe or cheap compared to other stocks. This lack of analysis undermines the credibility of the recommendations.

Furthermore, while the article acknowledges that nothing is absolutely safe in investing and recommends diversification with a minimum of 15-20 stocks in a portfolio, it does not provide any guidance on how investors should allocate their investments among these five recommended stocks or whether they should consider other factors such as sector diversification or risk tolerance.

Overall, while the article provides a list of dividend stocks that the author believes are relatively safe and cheap, it lacks in-depth analysis, evidence, and explanation for its recommendations. Investors should conduct their own research and consider multiple factors before making any investment decisions based on this article.