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  • Dividend Growth Investing: It's Not The Number Of Shares, But The Invested Capital That Matters [View article]
    Pendragon, but the price you paid (per share) determines the yield you get.

    You know what? I think we're kinda talking about the same thing here. We are just looking in different perspectives.

    - number of shares you hold determines how much dividend income you receive
    - the amount of invested capital (and the price you paid per share) determines the yield you get. Investing the same amount of capital, the lower price you paid, the higher yield you get, and voila, the more the shares you get as well too

    We ARE talking about the same thing. Again, just different perspective. And I still think it matters to view investments in terms of how much capital is invested and not just how many shares one holds.
    Aug 26, 2014. 01:54 AM | Likes Like |Link to Comment
  • Dividend Growth Investing: It's Not The Number Of Shares, But The Invested Capital That Matters [View article]
    SDS, I almost want to say that no matter what the more you invest, the more income you get. :p That is always true because...
    e.g. Invest $1000 in a 3% yield company. You get $30 income.
    Invest $10000 in the same company. You get $300 income.

    But...as I mentioned in previous comments. I really wanted to say that it could be misleading if an investor focused on the number of shares they obtain and not thinking about the price/valuation they paid.
    Aug 26, 2014. 01:49 AM | Likes Like |Link to Comment
  • Dividend Growth Investing: It's Not The Number Of Shares, But The Invested Capital That Matters [View article]
    Dave, you're right. In this article, I seemed to have glazed over an essential point: the valuation one paid at for his/her shares. I mentioned it so briefly in the article with a link to a previous article about valuation for those who want to explore more: "More important than the cost is buying quality stocks that you're comfortable with at the right valuation (price)."

    Pendragon also made the point about buying at cheaper price. Please see my response to him above.

    You bring up an interesting concept "equal-weight a portfolio by income". I look forward to your new article!

    Thanks,
    Canadian
    Aug 26, 2014. 01:45 AM | Likes Like |Link to Comment
  • Dividend Growth Investing: It's Not The Number Of Shares, But The Invested Capital That Matters [View article]
    elkario, yea. It's surprising for some when they hear that it's the valuation that matters; not the price. ...and then they ask what's valuation? Actually, that was my question when I first saw the word. :p
    Aug 26, 2014. 01:37 AM | Likes Like |Link to Comment
  • Dividend Growth Investing: It's Not The Number Of Shares, But The Invested Capital That Matters [View article]
    SDS, thanks for sharing your thoughts.
    Aug 26, 2014. 01:32 AM | Likes Like |Link to Comment
  • Dividend Growth Investing: It's Not The Number Of Shares, But The Invested Capital That Matters [View article]
    wmimis, but if you were a shareholder before the split, you have doubled your shares. Thus, although the EPS is divided by 2, you still own the same percentage of the company as before given all else equal.
    Aug 26, 2014. 01:30 AM | 2 Likes Like |Link to Comment
  • Dividend Growth Investing: It's Not The Number Of Shares, But The Invested Capital That Matters [View article]
    Sir Duke, I'm guilty of something similar when I first experienced a stock split. I thought I would get double the dividend afterward. Somehow it didn't make logical or mathematical sense. :p
    Aug 26, 2014. 01:28 AM | Likes Like |Link to Comment
  • Dividend Growth Investing: It's Not The Number Of Shares, But The Invested Capital That Matters [View article]
    omcdac, thanks for reading and following me. I hope to continue to put out helpful and or thought-provoking articles.

    Cheerios,
    Canadian
    Aug 26, 2014. 01:26 AM | Likes Like |Link to Comment
  • Dividend Growth Investing: It's Not The Number Of Shares, But The Invested Capital That Matters [View article]
    Timmies, GILD is currently about 3% of my portfolio with average cost per share of ~$97.

    With the news of Burger King and Tim Hortons coming together, it's an exciting time to be a THI shareholder. (...I almost started a position when THI almost hit P/E 18...oh well ) What are you going to do with your THI shares with today's run up?
    Aug 26, 2014. 01:25 AM | Likes Like |Link to Comment
  • Dividend Growth Investing: It's Not The Number Of Shares, But The Invested Capital That Matters [View article]
    Craig, good comment. Thanks, Canadian
    Aug 26, 2014. 01:22 AM | Likes Like |Link to Comment
  • Dividend Growth Investing: It's Not The Number Of Shares, But The Invested Capital That Matters [View article]
    Buyandhold, thank you! That means a lot. I entirely agree with your comment, although that wasn't quite what I was getting at in the article. :p

    I was trying to say what was said in the article PLUS what I replied to Pendragon above.

    Cheers,
    Canadian
    Aug 26, 2014. 01:21 AM | Likes Like |Link to Comment
  • Dividend Growth Investing: It's Not The Number Of Shares, But The Invested Capital That Matters [View article]
    Nice analogy. It's good exercise for the brain to view the same thing in different perspectives...and then there maybe an enlightening moment. :D
    Aug 26, 2014. 01:19 AM | Likes Like |Link to Comment
  • Dividend Growth Investing: It's Not The Number Of Shares, But The Invested Capital That Matters [View article]
    L9, indeed a copy and paste error. Thank you for catching that! I've sent in for a correction. :)

    Canadian
    Aug 26, 2014. 01:18 AM | Likes Like |Link to Comment
  • Dividend Growth Investing: It's Not The Number Of Shares, But The Invested Capital That Matters [View article]
    Pendragon, you know what, I thought something was missing, but I couldn't figure out what...brain malfunctions 2am in the morning lol (once I start writing, I want to finish it, and send it off).

    Thank you for your comment. I believe I'm missing the point about the valuation you pay for your shares...obviously the lower the price, the higher the yield (and income). I've sent in for an update to add a 4th bullet point regarding this. The title of the article should really be "Dividend Growth Investing: It's Not The Number Of Shares, But The Invested Capital and the Valuation You Paid That Matter"... but it's long as it is

    "if I spend $5K buying shares in KO when it was recently at $38 a share I get way more dividends than if I ended up buying KO at $42 a share. Dividends are paid PER SHARE, not based on how much I paid for the shares!"

    Ok ok, the title is properly a point for argument. I actually agree with you say. However, it would be misleading to just say "Dividends are paid per share, not based on how much I paid for the shares" and end right there. Rather, it should continue on with "Given the same invested capital of $5k, buying KO at $38 yields more income than buying KO at $42."

    So the price you paid AND the amount of invested capital is what matter. So now, the title becomes "Dividend Growth Investing: It's Not Only The Number Of Shares, But The Invested Capital and the Valuation You Paid That Matter" ...now that's getting long.

    Tell me I'm making more sense this time as it's getting late again.

    Thanks,
    Canadian
    Aug 26, 2014. 01:17 AM | Likes Like |Link to Comment
  • Dividend Growth Investing: It's Not The Number Of Shares, But The Invested Capital That Matters [View article]
    alalala, even if you're only concerned about dividend growth, the amount of capital invested and the valuation you bought the shares at will determine your income. The cheaper you bought at, the higher your income with the same amount of invested capital.

    Thanks, I sent in for a correction to change "Book Value" to "Invested Capital". That is indeed clearer.

    Cheers,
    Canadian
    Aug 26, 2014. 01:06 AM | Likes Like |Link to Comment
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