How far can dividend paying equities drop?

Another area of massive price-delusion the past few years has been dividend paying equities:  preferred and common shares and funds–typically marketed as low risk, blue chip picks for conservative investors.

Unfortunately with interest rates plunging over the past 7 years,  income-paying securities have become some of the most dangerously over-valued assets.  “How much could they drop?”, you ask in disbelief. Previous broker-favorite utility Transalta Corp offers a glimpse–down 63% and counting. Dividends are poor salve for missing chunks of capital.
Transalta Nov 2 2015
Buying over-priced assets for a hoped for income stream has always been a terrible investment plan. Intelligent investing this is not.

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