Those looking for something to read might do well to check out The Little Book of Big Dividends. Here's a review.
One of the rather interesting ideas in the book is how it views dividend yield:
"Given the role of dividends in the total returns of a stock, investors may consider the highest yielding dividend stocks as the best investments. He does not buy this view, for he thinks that “dividend yield is a pretty good proxy for investment risk”. Carlson’s explanation is that a high yield
might be a precursor for a dividend cut or omission. Since the dividend yield is calculated as the percentage of dividend per share over share price, a stock’s yield can rise if dividends increase, or the share price falls. Thus, if the yield is extraordinarily high, it is likely to be from a plummeting share price as opposed to a massive dividend hike. Considering that markets are generally efficient in pricing an asset, yields considerably higher than its long run average should be seen as a red flag and not an enticement to buy."
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