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Canadian Dividend Growth Investor

 
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  • 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 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 01:06 AM | Likes Like |Link to Comment
  • Dividend Growth Investing: It's Not The Number Of Shares, But The Invested Capital That Matters [View article]
    EDGI, he's actually mostly doing options...so it could go up or down a few hundred percents in a few days. I don't understand how he's able to cope with that. I don't think I'll be able to cope with the emotional roller coaster ride. Thus, I think he'll find index investing to be of too little volatility for him to get a good gain.
    Aug 26 01:03 AM | Likes Like |Link to Comment
  • How Do I Stick To The Slow, But Sure Process Of Dividend Growth Investing? [View article]
    zed337v, good to know you are diversified in other things amongst your army of utilities. Saving a portion of each pay check and investing intelligently and as emotionless as possible is the way to go!
    Aug 20 10:30 PM | Likes Like |Link to Comment
  • How Do I Stick To The Slow, But Sure Process Of Dividend Growth Investing? [View article]
    Thanks for the elaboration and the OANDA site, 3WallPaul.
    Aug 20 10:28 PM | Likes Like |Link to Comment
  • How Do I Stick To The Slow, But Sure Process Of Dividend Growth Investing? [View article]
    Water Buffalo, thanks! I currently hold a couple REITs. One US one and one Canadian one. I bought the US one in my RRSP (retirement account)...waiting for its first distribution. I'm keeping my fingers crossed hoping there's no tax withholding on the distribution. I can't be sure because it's a REIT. Well, we'll see soon enough.

    O is on my watch list. I missed it when it went below $40. Thanks for your suggestions!
    Aug 20 02:25 AM | Likes Like |Link to Comment
  • How Do I Stick To The Slow, But Sure Process Of Dividend Growth Investing? [View article]
    duster, it's not boring when I receive the dividends in my account and count them up at the end of the month. :) I agree that regular contributions and investing for the long-term sets for a financially secure retirement.

    To avoid buying at too high a price on stocks, the retail investor can check the company valuation levels via Morningstar.com, Value Line at the local library, and F.A.S.T. Graphs (requires basic subscription) but well worth it in my opinion.

    Cheers,
    Canadian
    Aug 20 02:22 AM | 1 Like Like |Link to Comment
  • How Do I Stick To The Slow, But Sure Process Of Dividend Growth Investing? [View article]
    Dividend Junkie1, thanks. You're well on your way by reinvesting your dividends and keeping track of their growth. Best of luck in your investing journey!
    Aug 20 02:18 AM | Likes Like |Link to Comment
  • How Do I Stick To The Slow, But Sure Process Of Dividend Growth Investing? [View article]
    Silverbug, thanks for sharing the link. Looks like a great article. I will bookmark it for a closer read. Currently, I have a mix of high yield (~5%), moderate yield (~3%) and low (<2%) to no yield. lol Wait, that almost covers the whole spectrum. Most of my core is in the moderate yield category.
    Aug 20 02:17 AM | Likes Like |Link to Comment
  • How Do I Stick To The Slow, But Sure Process Of Dividend Growth Investing? [View article]
    johnch, I suppose it depends on the preference of each investor. Some like to start by buying ETFs so they're diversified right away. Others like to buy shares in companies one at a time so they know exactly what they're holding.

    - Dale Roberts writes about ETFs: http://bit.ly/1Ax4aR8
    - Regarded Solutions writes a series of articles which compares a portfolio of dividend ETFs to a portfolio of blue chip dividend growth stocks. His last update of the comparison is here: http://bit.ly/1kTK8MX
    Aug 20 02:09 AM | Likes Like |Link to Comment
  • How Do I Stick To The Slow, But Sure Process Of Dividend Growth Investing? [View article]
    SDS, thanks for your suggestion. As I mentioned above to 3WallPaul, I used "10 shares" as a simple example. My portfolio's allocation is more based on capital allocated versus the number of shares.

    Cheers,
    CDGI
    Aug 20 02:03 AM | Likes Like |Link to Comment
  • How Do I Stick To The Slow, But Sure Process Of Dividend Growth Investing? [View article]
    go-4-it, excellent real life example! Thank you for sharing it. In terms of convincing your nephew...I think it'll be very difficult to convert him completely. You maybe able to persuade him to use a portion of his funds to buy dividend growth stocks, while he makes a killing on the "next" big stock.
    Aug 20 02:01 AM | Likes Like |Link to Comment
  • How Do I Stick To The Slow, But Sure Process Of Dividend Growth Investing? [View article]
    zed337v, thank you for sharing your life example. I'm amazed you were able to stick to utilities all the way. I don't have any in my portfolio yet because I feel like they're growing so slowly...but I might just pick some up in the next huge market drop (20%+?) But hey, we all do what works for us, right? ;)

    Congratulations on retiring and enjoy your financial independence!
    Aug 20 01:56 AM | Likes Like |Link to Comment
  • How Do I Stick To The Slow, But Sure Process Of Dividend Growth Investing? [View article]
    MoneyMadam, thanks for sharing your post. I like your goals of annual increasing income, and capital preservation.
    Aug 20 01:51 AM | Likes Like |Link to Comment
  • How Do I Stick To The Slow, But Sure Process Of Dividend Growth Investing? [View article]
    Thank you Veritas!
    Aug 20 01:46 AM | Likes Like |Link to Comment
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