Capital Or Dividend Growth? A Mid-Life Stock-Strategy Crisis [View article]
Interesting post Dave, and point well taken. DG is a big initial screen.
But I pose the question to you. Do you think a middle aged individual who is NOT in need of income, and feels way behind in savings goals for retirement or whatever, should be utilizing DG as opposed to some other generic growth strategy?
Capital Or Dividend Growth? A Mid-Life Stock-Strategy Crisis [View article]
RAS, beef was a poorly chosen word.... as someone else, i believe mbk noted in this thread.... he considers the limitation a positive because it is a focused strategy....and that certainly makes sense.... I, however want more flexibility, and capital growth potential in my portfolio. In my view, DG poses a limitation in that respect.
If current income is not a current goal, why invest for it and suffer tax consequence and potentially limit yourself on hitting the occasional "home run." Capital growth is universally flexible, I can trade, value invest, or invest in dividend payers that I view as undervalued. I also choose my course of taxation, short or long-term gains, which as I mention could become much more favorable to capital growth v. income next year.
Capital Or Dividend Growth? A Mid-Life Stock-Strategy Crisis [View article]
Dave... thanks for the comments. Mid-lifers, with two kids such as myself, have to think about college funding, potential expenses related to aging parents, and perhaps other unforseen events. And while I have retirement in my eye as well, I have to think about whether my daughter and son end up going to Penn State (my alma mater and a cheaper ticket) or somewhere private and much more expensive first. And that's a big difference in expenditure.
I feel that focusing on capital growth rather than income is more important, because I'm clueless as to how much college will set my wife and I back over the next 15 years, perhaps more if they go on to graduate studies. Income, while a part of my overall investment strategy won't be a focal point to me until college is over.
By focusing on earnings and stock price movement from a variety of methods, I feel I have a better chance of growing capital rather than by focusing on income generation or growth.
Capital Or Dividend Growth? A Mid-Life Stock-Strategy Crisis [View article]
Big, you're right. I do, assume, incorrectly at times that all DGers only invest in dividend payers. I think there are some of that ilk, and I shouldn't make a post based on that which I don't know.
A Constructive Critique Of Dividend Growth Investing [View article]
fins... I think the ensuing discussion on this article was a thought provoking exercise for everyone. I think it proves DG investors are a bright bunch who have specific investment goals that they feel they can achieve with this strategy. It also showed me, personally, that there's more than one thoughtful way to look at stock price action, whether I invest by that process or not.
Capital Or Dividend Growth? A Mid-Life Stock-Strategy Crisis [View article]
Bob, I track and own a little bit of everything, David Fish's list, dividends, growth, MLPs, REITs,bonds, CEFs, you name it. This article was two fold: to help middle lifers who haven't done so assess their personal situation and two: aid in a strategy decision.
One of my beefs with DG is the limitation on the types of stocks you can consider. Some consider that a positive, I consider it a negative. Utmost important is investing comfort... you won't succeed if you aren't comfortable with what you are doing.
Capital Or Dividend Growth? A Mid-Life Stock-Strategy Crisis [View article]
Counter.. for now, I would agree with your assessment. They don't have pricing power and revenue growth has been anemic. Their product line is good, but they appear to be being flanked by CL in oral care, and there's nothing new, product wise, to stimulate growth. I don't track it closely, but the payout ratio I believe is 60%, which is well above historic norms.
Capital Or Dividend Growth? A Mid-Life Stock-Strategy Crisis [View article]
Ag, I think you make salient points. But, I think you are assuming that because some people choose to take on risk, they fail. Sometimes it's true, sometimes it's not. I think savvy growth investors who employ a variety of strategies to grow capital can do much better long-term than sticking with a small sampling of companies that might inhibit performance.
And high growth, I suppose, is in the eye of the beholder.
Capital Or Dividend Growth? A Mid-Life Stock-Strategy Crisis [View article]
SDS,thanks for reading... I think every investor needs to assess the variables in paragraph 3 of this article. I'm not overly keen on rules of thumb or tying people down to a template.
But I think, in general, you offer a good look at the average person's life phase investment picture.
Capital Or Dividend Growth? A Mid-Life Stock-Strategy Crisis [View article]
But I pose the question to you. Do you think a middle aged individual who is NOT in need of income, and feels way behind in savings goals for retirement or whatever, should be utilizing DG as opposed to some other generic growth strategy?
Capital Or Dividend Growth? A Mid-Life Stock-Strategy Crisis [View article]
If current income is not a current goal, why invest for it and suffer tax consequence and potentially limit yourself on hitting the occasional "home run." Capital growth is universally flexible, I can trade, value invest, or invest in dividend payers that I view as undervalued. I also choose my course of taxation, short or long-term gains, which as I mention could become much more favorable to capital growth v. income next year.
Capital Or Dividend Growth? A Mid-Life Stock-Strategy Crisis [View article]
I feel that focusing on capital growth rather than income is more important, because I'm clueless as to how much college will set my wife and I back over the next 15 years, perhaps more if they go on to graduate studies. Income, while a part of my overall investment strategy won't be a focal point to me until college is over.
By focusing on earnings and stock price movement from a variety of methods, I feel I have a better chance of growing capital rather than by focusing on income generation or growth.
Capital Or Dividend Growth? A Mid-Life Stock-Strategy Crisis [View article]
Regards, AA
Capital Or Dividend Growth? A Mid-Life Stock-Strategy Crisis [View article]
Capital Or Dividend Growth? A Mid-Life Stock-Strategy Crisis [View article]
Capital Or Dividend Growth? A Mid-Life Stock-Strategy Crisis [View article]
And since it's idiot proof, my wife and kids would probably urge me to adopt it sooner rather than later!
Regards, AA
Capital Or Dividend Growth? A Mid-Life Stock-Strategy Crisis [View article]
Capital Or Dividend Growth? A Mid-Life Stock-Strategy Crisis [View article]
Have been reading your work.... continued success in your search...
Regards, AA
Capital Or Dividend Growth? A Mid-Life Stock-Strategy Crisis [View article]
A Constructive Critique Of Dividend Growth Investing [View article]
Capital Or Dividend Growth? A Mid-Life Stock-Strategy Crisis [View article]
One of my beefs with DG is the limitation on the types of stocks you can consider. Some consider that a positive, I consider it a negative. Utmost important is investing comfort... you won't succeed if you aren't comfortable with what you are doing.
Capital Or Dividend Growth? A Mid-Life Stock-Strategy Crisis [View article]
Capital Or Dividend Growth? A Mid-Life Stock-Strategy Crisis [View article]
And high growth, I suppose, is in the eye of the beholder.
Capital Or Dividend Growth? A Mid-Life Stock-Strategy Crisis [View article]
But I think, in general, you offer a good look at the average person's life phase investment picture.