These 3 Stocks Might Be Getting a Little Too Expensive
A high dividend yield can indicate a stock that is out of favor. Conversely, a low yield can indicate a stock that is, perhaps, selling at a premium. When you examine Eaton (NYSE: ETN), W.W. Grainger (NYSE: GWW), and Caterpillar (NYSE: CAT), you see that the latter is the case as all three have historically low yields today.
The low yield doesn't mean these three are bad companies, it just means that investors buying now could be pricing in a whole lot of good news already. Here's a quick look at each and why they are probably best left on the wish list for a pullback.
Industrial company Eaton has been around for more than a century, starting its life selling products to the automotive industry. It has shifted and changed with the times, and today its core business is centered around helping companies manage power, particularly electricity.
Source Fool.com
