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  • The Dumbest Argument Against Dividend-Paying Stocks [View article]
    Thanks for comment Geekette. Your comment reminded me of a quote by Warren Buffett where he said this

    "It’s very important,” said Mr. Buffett, “always to live your life by an inner scorecard, not an outer scorecard.”

    Mr. Buffett illustrated this by asking: “Would you prefer to be considered the best lover in the world and know privately that you’re the worst—or would you prefer to know privately that you’re the best lover in the world, but be considered the worst?”
    Jul 31, 2015. 03:31 PM | 2 Likes Like |Link to Comment
  • The Dumbest Argument Against Dividend-Paying Stocks [View article]
    What about this:

    http://seekingalpha.co...

    or

    http://tinyurl.com/o5q...
    Jul 31, 2015. 03:06 PM | 1 Like Like |Link to Comment
  • The Dumbest Argument Against Dividend-Paying Stocks [View article]
    Conkjc,

    Yep, the important thing is to buy something you understand at a reasonable price, and then sit back and collect those dividends for years.

    It is so simple, and makes living off a portfolio so simple and easy. Yet, I am surprised that so many people do not get simplicity.

    Good luck in your dividend investing journey!

    DGI
    Jul 31, 2015. 09:15 AM | 6 Likes Like |Link to Comment
  • The Dumbest Argument Against Dividend-Paying Stocks [View article]
    B&H,

    I was sick and tired of the argument against DGI strategies, which used EK, GM etc, when in fact they never were DGI stocks. I wanted to debunk that once and for all. Unfortunately, I am certain this will come up again and again - ignorance is difficult to remove.

    Your story is certainly inspiring, and something to look up to on my own end for the next decades!

    DGI
    Jul 31, 2015. 09:13 AM | 7 Likes Like |Link to Comment
  • The Dumbest Argument Against Dividend-Paying Stocks [View article]
    Upstate Believer,

    The issue I have with ETFs is that holding composition and weights could be changed at a whim. Even the strategy could be changed, which could impact results going forward. For example, the S&P 500 used to include companies like Unilever through 2002, when they decided they were "foreign". Yet they include PM, which is US domiciled but does all business abroad.

    Plus many of the dividend ETF's make no sense to me - like SDY kicking out MO in 2007 after the Kraft spin-off. It seems like the index committee was blindly focusing on data, without understanding that the dividend was not cut.

    You might like this article:

    http://tinyurl.com/nt9...

    DGI
    Jul 31, 2015. 09:11 AM | 6 Likes Like |Link to Comment
  • The Dumbest Argument Against Dividend-Paying Stocks [View article]
    Sheepdip,

    Your comment makes no logical sense. So on one hand you claim that "all dividend stocks are overvalued today" but your solution is to buy a dividend etf. If you think dividend stocks to be overvalued as a group, buying a dividend etf that owns dividend stocks doesn't seem like a smart idea.

    Dividend investors do look at valuation, quality when they build diversified portfolios one stock at a time. In the 8 years I have been a DGI, I have always found attractively valued companies to purchase.

    As for compounding? I have patience - my holding period is the next 25 - 30 years. If I am particularly lucky, it could end up being the next 45 - 50 years... Anything less than 5 years to a decade is pure noise..
    Jul 31, 2015. 09:08 AM | 10 Likes Like |Link to Comment
  • The Dumbest Argument Against Dividend-Paying Stocks [View article]
    At the end of 2007, Citigroup was 1.14% of S&P 500. This is a list of top 25 holdings at 12/31/2007 from Blackrock:

    http://tinyurl.com/nl9...

    Ticker Name Weight (%) Sector Asset Class Notional Value
    XOM EXXON MOBIL CORP 3.9692 Energy Equity -
    GEC GENERAL ELECTRIC CO. 2.9051 Industrials Equity -
    MSFT MICROSOFT CORP 2.2212 Information Technology Equity -
    T AT&T INC 1.9547 Telecommunication Services Equity -
    PG PROCTER & GAMBLE 1.7684 Consumer Staples Equity -
    CVX CHEVRON CORP 1.5284 Energy Equity -
    JNJ JOHNSON & JOHNSON 1.4804 Health Care Equity -
    BAC BANK OF AMERICA CORP 1.4203 Financials Equity -
    AAPL* APPLE INC 1.3451 Information Technology Equity -
    CSCO CISCO SYSTEMS INC 1.2738 Information Technology Equity -
    GOOGL GOOGLE INC CLASS A 1.2416 Information Technology Equity -
    MO ALTRIA GROUP INC 1.2348 Consumer Staples Equity -
    INCO INTEL CORPORATION CORP 1.2091 Information Technology Equity -
    PFE PFIZER INC 1.2041 Health Care Equity -
    IBM INTERNATIONAL BUSINESS MACHINES CO 1.1554 Information Technology Equity -
    AIG* AMERICAN INTERNATIONAL GROUP INC 1.1470 Financials Equity -
    0R01 CITIGROUP INC 1.1400 Financials Equity -
    JPM JPMORGAN CHASE ORD 1.1373 Financials Equity -
    COP CONOCOPHILLIPS 1.0956 Energy Equity -
    HPQ HEWLETT PACKARD 1.0094 Information Technology Equity -
    MRK MERCK & CO INC 0.9812 Health Care Equity -
    VZ VERIZON COMMUNICATIONS INC 0.9796 Telecommunication Services Equity -
    PEP PEPSICO INC 0.9478 Consumer Staples Equity -
    KO COCA-COLA 0.9460 Consumer Staples Equity -
    SLBA SCHLUMBERGER LTD. 0.9119 Energy Equity
    Jul 31, 2015. 09:04 AM | Likes Like |Link to Comment
  • The Dumbest Argument Against Dividend-Paying Stocks [View article]
    Plus, as Rincon's example shows, investors in those companies didn't really lose everything, since they received spin-offs, and a stream of dividends that they could have reinvested selectively into other companies..

    With dividend growth stocks I receive a return of investment and a return on investment.
    Jul 31, 2015. 09:01 AM | 1 Like Like |Link to Comment
  • The Dumbest Argument Against Dividend-Paying Stocks [View article]
    I looked at a portfolio invested in the worst types of companies a long time ago:

    http://tinyurl.com/oml...

    I found that investors in EK would have done ok, since they received shares in Eastman Chemicals, along with a stream of dividends for several decades. The company didn't just implode overnight, though it couldn't really grow earnings for quite some time..
    Jul 31, 2015. 09:00 AM | 1 Like Like |Link to Comment
  • The Dumbest Argument Against Dividend-Paying Stocks [View article]
    Hi David,

    If you require quality in a dividend blue chip, chances of a company going belly up overnight is low. I agree with you that a well diversified portfolio of carefully selected dividend stocks can provide both income growth and would likely also increase its intrinsic value over time. Not all will succeed, but overall portfolio will do well.

    Good luck in your dividend journey!

    DGI
    Jul 31, 2015. 08:58 AM | Likes Like |Link to Comment
  • How To Never Run Out Of Money In Retirement [View article]
    Oh wow there has been over 100 comments. Thank you everyone for commenting, and having a lively discussion.
    Jul 30, 2015. 01:36 PM | 2 Likes Like |Link to Comment
  • Rising Earnings - The Source Of Future Dividend Growth [View article]
    Yes, I only started maxing those out in 2012 - 2013 ( i know my own fault)... Now all I think about is pre-tax 401 (k), Sep IRA, HSA and Roth Conversion ladders ( save on taxes today and legally not pay any taxes after that)..

    http://tinyurl.com/q6y...

    At least I always obtained the employer match.
    Jul 29, 2015. 09:32 AM | 1 Like Like |Link to Comment
  • Rising Earnings - The Source Of Future Dividend Growth [View article]
    We care about EPS growth. A company can double revenues or net income by buying another company. If it doubles number of shares in the process, you as a shareholder are not richer. If a company sells more items that do not bring incremental profit, then you are not doing better.

    Earnings per share is what drives future dividend growth and intrinsic value growth.
    Jul 29, 2015. 09:07 AM | 1 Like Like |Link to Comment
  • Rising Earnings - The Source Of Future Dividend Growth [View article]
    I am long dividend growth stocks, which will hopefully pay for my expenses by the end of the decade. If only I had used tax-deferred accounts, I would have been there faster.
    Jul 29, 2015. 09:05 AM | 1 Like Like |Link to Comment
  • Rising Earnings - The Source Of Future Dividend Growth [View article]
    I am shocked as well. In all fairness, when most dividend growth investors talk about a 5% growth in dividends however, they usually assume a corresponding 5% growth in earnings per share. The fact is they do not specifically spell it out, but that doesn't mean that they blindly chase dividend growth while ignoring EPS.
    Jul 29, 2015. 09:05 AM | Likes Like |Link to Comment
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677 Comments
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