News: IFL IOOF says as at Dec 31, 2015, funds under management, administration, advice and..., page-25

If the higher the dividend yield the better the investment is your investment strategy, then you should surely be loaded up to the gills with stocks like CSR (9% DY), QAN (12%), MND (14%) MRM (15%), NEC (8%), PRG (8%), SWM (9%), WOR (12%), BHP (8%), RIO (8%) and the banks (>7%).

IFL's DY of 6% is lame compared to those.

Or don't you think that the market is smart enough to recognise that when DYs get unusually high, then that's because there's s a damn good reason for it?

If simply buying stocks on as high a DY as possible is a sure way to make money, given how readily observable this sort of investment opportunity is, why do you think the market could possibly be so inefficient as not to notice it, and to quickly arbitrage it out?



"...so I'll leave the subject of causation for another time."

You really shouldn't; you should really try too understand it, because it's one of the market's least understood phenomena... and yet it is very important.

Hint: Start of by reading Nicholas Taleb's "Fooled by Randomness - The Hidden Role of Chance in Life and in the Markets" Of all the hundreds of texts that I have read on investing, none carries more weight for private investors like ourselves, as this one.