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Martin Rice

 
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  • Why Selling A Few Shares Is Not The Same As Getting A Dividend [View article]
    In a way I think this comment by Robert Allan Schwartz says it all about this endless back and forth between dividend (growth) investors and non-DGI investors over so many articles and endless comments.

    To a huge degree it's a matter of WHAT MATTERS to the writer. There are loads of reasons that what matters is different for you or for me, things like, just two examples, investing horizon and personal goals.

    I really think that there is no right or wrong on this issue. The only thing that matters is what matters to a given individual.
    Sep 24 09:32 AM | 3 Likes Like |Link to Comment
  • Why Selling A Few Shares Is Not The Same As Getting A Dividend [View article]
    In the hundreds and hundreds of SA articles I've read about dividend investing, I've never seen anyone say that the price doesn't drop when the dividend day arrives.

    What people say and what my experience has taught me is that there's no way to tell after that instant, momentaneous drop what the price will do. Sometimes it drops more, sometimes in increases; sometimes these things happen on that day, sometimes it takes a couple of weeks.

    All the best DI and DGI investors I know and read state all the time that dividend capture strategies are a fool's game.

    And, the fact is, that there are some folks who play the dividend capture game, but they're not what generally on SA are referred to as dividend investors.
    Jul 11 03:19 PM | 2 Likes Like |Link to Comment
  • How One Retiree Is Muddling Through Dividend Investing: Part IX - My Dividend Investment Business Plan [View article]
    Gerry and DJ I decided this was a good time for averaging down so I just increased my position with another 150 shares. Hated to see that dip go to waste.
    Jul 9 10:12 AM | Likes Like |Link to Comment
  • How One Retiree Is Muddling Through Dividend Investing: Part IX - My Dividend Investment Business Plan [View article]
    Thanks for reading and the comment, Gerry. Buying yesterday was a better move than buying when I did (down 5.79%). But I still think it was a good buy and am not worrying at all.
    Jul 9 09:14 AM | Likes Like |Link to Comment
  • How One Retiree Is Muddling Through Dividend Investing: Part IX - My Dividend Investment Business Plan [View article]
    I agree that some degree of sector balancing is important in overall portfolio management. It's part of a portfolio's overall diversification strategy.

    At the same time, however, I think the investor's time horizon also bears on the strategy.
    Jul 9 09:11 AM | Likes Like |Link to Comment
  • How One Retiree Is Muddling Through Dividend Investing: Part IX - My Dividend Investment Business Plan [View article]
    Thanks for the information about how you deal with this question, 7491. It makes a lot of sense to me.
    Jul 9 09:06 AM | Likes Like |Link to Comment
  • These REITs Should Weather The Storm [View article]
    Some people think there's a headache, but I, as do others, use a CPA to do my taxes so it's no problem for me.
    Jun 17 11:35 AM | Likes Like |Link to Comment
  • These REITs Should Weather The Storm [View article]
    Thanks, alschroed. I'm approximately those in MLPs and utilities. Light on tobacco. Have a bit of MO, but my wife won't go with more tobacco. Given that I've been smoking a pack a day for 62 years, I like the idea of getting some money back through the stocks appreciation and dividends, but she won't hear of it :-)
    Jun 17 11:34 AM | Likes Like |Link to Comment
  • These REITs Should Weather The Storm [View article]
    Brad, thanks for another great article about REITs. I've been following you for as long as I've been investing -- about 2 years or so -- and have learned a great deal from your articles and have enjoyed some nice income from my REIT investments that are based on your recommendations and articles.

    One question that invariably pops into my mind when reading your articles is the percentage of my portfolio I can reasonably invest in solid net lease REITs, the ones, for example, that you recommend?

    I realize that there are many different circumstances that individuals have to consider for making a decision like this. In our case, we are retired, 100% invested in stocks, all of which are dividend payers. We use our dividends to supplement our SS and pensions and the dividends are what make the difference between getting by comfortably and getting by very comfortably.

    Currently we own 4 net lease REITs that comprise 6.54% of our portfolio (in terms of current value). It seems to me that we could safely increase our REIT sector holdings to 10% - 15% of our portfolio's value assuming that we bought only high-quality REITs with a solid, longer history of dividend payments (and at value or under value).

    We'd love to know whether you think that 10%- 15% is a reasonable figure.

    Thanks again.
    Jun 17 07:50 AM | 5 Likes Like |Link to Comment
  • How One Retiree Is Muddling Through Dividend Investing: Part X - My Investment Plan Vs. Reality [View article]
    DS, thanks for reading and the kind remarks. Yes, I'm learning more and more that it's never finished. There've already been several more changes that I'll detail in my next piece at the end of this quarter.

    I find that many of the changes I'm making are a result of my defining our (my wife's and my) particular position as investors, that is, where we are in our life's spectrum.

    I'm learning that one size does not fit all in investing, something I should have realized a lot sooner.
    Jun 3 09:28 AM | 1 Like Like |Link to Comment
  • Retirees Please Don't Index, You Deserve Better Than Average [View article]
    Right on, Gary. It was an unworthy, snide comment. Additionally, hanson's remark,

    "I will state that for most people, they would be better off using index funds. It takes a rare individual to build his/her own portfolio. Sometimes we talk on SA like this reading sample is a reflection of the population. Well, our experience should tell us otherwise"

    neglects the fact that we contributors to SA are writing precisely for the readers of SA and not a broad, general audience.
    May 31 01:49 PM | 3 Likes Like |Link to Comment
  • Dividend Growth Investing: Retiring On Dividend Income (Part 2) [View article]
    Very interesting overview of you holdings and their proportion/relationship to the entire portfolio. Thanks for sharing, Bob. What you're doing makes a lot of sense.
    May 30 08:36 AM | Likes Like |Link to Comment
  • Why Selling A Few Shares Is Not The Same As Getting A Dividend [View article]
    satan, you wrote:

    "*btw: If the stock falls 1% due to a dividend (or any other reason for that matter) technically it takes a 1.01% gain to reach it's previous price."

    After I posted my response I realized that I should have taken into account what you've said here but I was too lazy to edit. Thanks.
    May 26 11:07 AM | Likes Like |Link to Comment
  • Why Selling A Few Shares Is Not The Same As Getting A Dividend [View article]
    satan, I can't answer for conkjc, but because I, too, feel that the dividend doesn't result in a price loss -- more about that below -- I thought I'd respond to your question, which was:

    "If the dividend is 1% and the price drops 1% ex-dividend then recovers: are you implying without the dividend the price wasn't going to rise 1% anyway?"

    I'm speaking here from my particular situation, that is not in the accumulation stage but in the stage where I live from my pensions, social security, and dividend income; and from the additional situational circumstance that my horizon is relatively short, perhaps 5 to 10 years -- I'm currently 76.

    As an aside, I'd also add that I think that many readers who participate in these comment discussions neglect to state/consider the particular situation that the commenter is writing from.

    Anyway, lets say, because I think it's right and agree with you here, that the price -- using your example -- would have risen 1% anyway. From my perspective, I got the 1% dividend and the price value of the dividend-paying stock in a couple of days is the same as it was when the dividend was paid. So for me personally, I got 1% and the value of my stock is the same -- the value of my portfolio hasn't increased.

    I do understand that if the dividend wasn't paid and the price didn't drop 1% ex-dividend, and then rose 1% in value, the value of that holding in my portfolio would be 1% higher.

    But I don't care about that -- again, from the point of view of my situation. For me what happened is I got 1% in cash and the value of my holding is the same as it was (when the price recovers). And I and others in this particular situation I described are quite satisfied and don't really miss the extra 1% in value that we'd have if we hadn't got the dividend because it's the income we want -- and the recovery leaves us where we were except we also got the cash to buy some groceries.

    So if that happened every quarter for let's say 10 more years until I die, the bottom line would be instead of the value of my holding being 40% higher, it would be only 20% higher and I would have bought 20% of the value in groceries over the 10 years. Why would I care? I'm dead now anyway.

    It all has to do with perspective.
    May 26 09:54 AM | 1 Like Like |Link to Comment
  • Should I Have Followed My Advisor's Advice? [View article]
    Great article, Bob, as usual. New investors will learn a lot about how to get started and what taking responsibility means.

    Regarding your question about DG in taxable accounts: All the investing I've ever done has been in taxable accounts. Consequently I have to pay taxes on my DG stocks. I don't give it a thought because there's not too much one can do about it (leaving out income from things like MLPs). When I set my income targets from dividends the figure includes taxes.
    May 24 02:30 PM | 1 Like Like |Link to Comment
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