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  • Investing in Dividend Paying Companies [View article]
    A couple of comments:
    1. Mr Okie - I believe your math is a little off this morining. Generating a 430% gain over ten years is NOT equal to 4% annually. If you got 4% annually on $100 for 10 years you would have $40, assuming no compounding. Using a HP17B calculator to compute the future value of $100 compounding annually at 4% you would have a future value of $148. (n=10, i=4%,pv=-100, pmt=0).

    To get a FV of 430% of your initial investment, your IRR would be 15.7%, not 4%. That is a very good return, especially considering that it is exclusive of dividend reinvestment. (n=10, pv=-100, pmt=0, fv=430)

    2. GM should be deleted from the list. They just announced a suspension of their dividend.

    It is getting bad out there!
    Jul 15 10:44 am |Rating: 0 0 |Link to Comment
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