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  • 5 Dividend Stocks for Those that Missed the Rally [View article]
    Greetings DD,

    I think that your insights on GD's method are solid and strike to the core of why dividend investing isn't about giving up growth and capital appreciation. GD's approach sounds similar to Geraldine Weiss' Dividends Don't Lie book. Thanks.


    On Aug 21 05:06 PM Dividend Disciple wrote:

    > In response, I quote another dividend enthusiast. Greg Donaldson
    > writes at risingdividendinvestin... in a March 16th post titled,
    > In the long run, Price Follows Dividends--Part II:
    >
    > "If a company is giving its shareholders their fair cut of the profits,
    > it should show up in the stock price. The stock market is a pricing
    > machine. The more transparent a company is with their dividend policy,
    > the more accurately the market will price their stock."
    >
    > and later..."Dividends not only contribute directly to investment
    > returns because they are real money, but they also have predictive
    > powers for stock price appreciation, as well." See also the Table
    > with Greg's article.
    >
    > So if I understand Greg correctly, if you're doing adequate research
    > and investing in only the best of breed dividend stocks, price appreciation
    > should follow.
    >
    > Thus, if you follow a sound dividend growth strategy...you're already
    > keeping your eye on price appreciation. They are interwined, not
    > separate philosophies. In theory, if I buy a great dividend stock,
    > the price appreciation should be trending higher, and if it dips,
    > then I should buy more.
    >
    > YoYoMa--I think your point is one in the same with David's. In order
    > to be "satisfied with the yield," as David says, then you have to
    > have done your homework on the current and future expectations of
    > the price. No one can call bottoms, so if the price is trending
    > down, but the fundamentals are there, maybe you are initiating a
    > position, will add on dips, and can expect, as Greg says, long term
    > price appreciation to follow expected dividend growth.
    >
    > Enjoy reading each of you and would love to hear thoughts.
    >
    > -DD
    >
    > On Aug 21 08:43 AM YoYoMama wrote:
    Aug 23 02:48 am |Rating: +2 0 |Link to Comment
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