"DEO, BEEM which were mentioned above. STZ (constellation brands) which has a wine tilt and Concha Toro (VCO), a Chilean wine company are all probably worthwhile looks. DEO might even show up on the radar of DG investors."
Long DEO. DEO's yield is 2.2%. Beam's yield is 1.4%, which is too low for me. VCO's yield is 0.8%. STZ doesn't pay a dividend.
"In terms of addictiveness and destructiveness, I personally have watched far more lives destroyed by alcohol than smoking, although they are commonly used together. Smoking just kills you, but doesn't lead to as much destructive behavior. I have no problem owning both. People are going to do both."
One government agency sends a memo to another government agency, asking for a breakdown by sex. The memo comes back: "Our problem is alcohol". :-)
The Beginning Days Of Dividend Growth Investing [View article]
"Perhaps I am not using the term compounding correctly, but if a stock's price goes up 8% per year (on average, obviously will jump all over the place), from a practical standpoint, the growth is the same. That is what matters to me."
I appreciate that price appreciation is what matters to you. Income (e.g. dividends) is what matters to me.
"It all comes back to whether you prefer total returns to dividends (I prefer both). But saying that only dividends compound, when the stock market's growth has been shown to compound annually strikes me as a false argument."
Prices do not compound. See my post above about temperatures.
"The secretaries at microsoft in the 80's that became millionaire's would probably believe that capital gains are, in fact, real."
Only if you sell and realize the capital gain. I'm sure we all know many examples of folks who rode a stock all the way up, then all the way down, never selling, and never realizing the gain, until the gain disappears.
The Beginning Days Of Dividend Growth Investing [View article]
"If you have a dividend company that pays 4% and gains 4% annually in stock price. Does this company make you more money than a company that pays no dividend but the stock price increases 8% annually? If it does than I am missing something really important here, because I don't understand how that's possible."
You and I are using the phrase "make you more money" in completely different ways. You use "total return", which is partly comprised of price appreciation. However, this is a "paper" gain, until and unless you sell, at which point you "realize" the gain.
A company that pays me a dividend, puts cash in my pocket.
A company whose stock goes up in price, does not put cash in my pocket.
"I am just looking at the total return in this argument."
That's why this "debate" is happening - you are looking at "total return", and I am not.
"I just wanted to show that it does not matter one bit if the company gives you some of the profits as dividends or you just sell a part of your holdings to generate income. The DGI crowd seems to be very afraid of this idea of 'asset sale' to generate income."
Varan, it might not matter to you, but it does matter to me.
You are mistaken each and every time that you claim that "just sell a few shares" is the same as a dividend.
No one in the DGI community is "afraid" of your "idea", because your "idea" is mistaken. I've pointed this out to you on several occasions, and you never respond to me, you just keep repeating the same old thing all over again.
Why Abbott Labs Is Only Good For Dividends [View article]
"I think the new Abbvie will be penalized because such a large percentage of its revenue will come from Humira, and that has definitely hurt Abbott in the past."
Perhaps I will take my proceeds from selling ABT, wait until after the split, and use it all to buy only the ABT shares, and not the AbbVie shares.
My Substitute For Tobacco Stocks [View article]
Long DEO.
DEO's yield is 2.2%.
Beam's yield is 1.4%, which is too low for me.
VCO's yield is 0.8%.
STZ doesn't pay a dividend.
My Substitute For Tobacco Stocks [View article]
One government agency sends a memo to another government agency, asking for a breakdown by sex. The memo comes back: "Our problem is alcohol". :-)
My Substitute For Tobacco Stocks [View article]
Retirement Portfolio For Do It Yourselfers: A Winning Combination Of DG Stocks [View article]
Alzbeta, your "sleep well at night" metric must be showing lots of improvement! :-)
The Beginning Days Of Dividend Growth Investing [View article]
I appreciate that price appreciation is what matters to you. Income (e.g. dividends) is what matters to me.
"It all comes back to whether you prefer total returns to dividends (I prefer both). But saying that only dividends compound, when the stock market's growth has been shown to compound annually strikes me as a false argument."
Prices do not compound. See my post above about temperatures.
"The secretaries at microsoft in the 80's that became millionaire's would probably believe that capital gains are, in fact, real."
Only if you sell and realize the capital gain. I'm sure we all know many examples of folks who rode a stock all the way up, then all the way down, never selling, and never realizing the gain, until the gain disappears.
The Beginning Days Of Dividend Growth Investing [View article]
You and I are using the phrase "make you more money" in completely different ways. You use "total return", which is partly comprised of price appreciation. However, this is a "paper" gain, until and unless you sell, at which point you "realize" the gain.
A company that pays me a dividend, puts cash in my pocket.
A company whose stock goes up in price, does not put cash in my pocket.
"I am just looking at the total return in this argument."
That's why this "debate" is happening - you are looking at "total return", and I am not.
The Beginning Days Of Dividend Growth Investing [View article]
No. Just because a sequence of numbers appears to grow, does not mean it compounds.
Here's an example. I looked up the temperature at Boston's Logan Airport from 3/1/11 to 3/7/11. The data points are:
34.5
35.5
20.5
28.5
42.0
53.5
43.0
I then computed the CAGR of this sequence. It is 3.1963%.
Does that mean that the temperature "grew" by 3.1963% each day?
No.
Does that mean that the temperature "compounded"?
No.
You simply cannot say that any sequence of numbers "grows" or "compounds".
The Beginning Days Of Dividend Growth Investing [View article]
It doesn't compound annually.
When Dividend Investors Get Rich Too Late In Life [View article]
Permanent Portfolio Smack-Down [View article]
Varan, it might not matter to you, but it does matter to me.
You are mistaken each and every time that you claim that "just sell a few shares" is the same as a dividend.
No one in the DGI community is "afraid" of your "idea", because your "idea" is mistaken. I've pointed this out to you on several occasions, and you never respond to me, you just keep repeating the same old thing all over again.
I think I will stop responding to your posts.
Robert
How Stock Certificates Can Make You A Better Investor [View article]
Why Abbott Labs Is Only Good For Dividends [View article]
Perhaps I will take my proceeds from selling ABT, wait until after the split, and use it all to buy only the ABT shares, and not the AbbVie shares.
The Beginning Days Of Dividend Growth Investing [View article]
I am not aware of any stock that just grows, and grows, and grows, into infinity, the way this makes it appear.
"Simple compounding."
That's not how it looks to me.
"This is just not debatable."
Sure it is.
UMH Properties - Diversify Your Portfolio With This Attractive Amenity Package [View article]
Do you mean that its dividend payments exceed its FFO?
The Beginning Days Of Dividend Growth Investing [View article]
No. The statistic you quote is the *average* of all the annual returns, not the *compound* return. Those are not the same thing.