P/E ratio

Dividend Focused ETFs Don’t Offer a Free Lunch, but They Let You Snack along the Way

September 7, 2012

There is no free lunch in investing! These words ring true, on average, over time for most investors. After all, investing is a trade off between growth and price as well as risk and return. The higher the expected future growth of a stock, the more likely it will be that investors have to pay a higher price (P/E) to get a piece of that future growth.

Consider Amazon (AMZN) with year-over-year revenue growth of about 29%. Clearly, it is a great growth story, and it can be all yours…