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Some Thoughts On Relevancy

Recently, there have been a few articles discussing the "relevancy" of dividends. It would seem that there are a lot of people who love dividends and a lot of people who don't like dividends. Regardless of which side you line up on, or if you perhaps take a middle road, concerning dividends, the simple fact of the matter is that there are companies committed to paying dividends as part of their business model.

Most of the companies that I've been investing in over the last 30 years are dividend paying companies. Not only do these companies in my portfolio pay dividends, but they actually increase their dividends annually.

What I like to do is reinvest the dividends back into additional shares of the underlying company and allow my share balance to increase over time with those reinvested dividends. I even make it a practice to purchase additional shares, with new money, when those stocks in my portfolio present a value, relative to what I consider the intrinsic worth of the company to be.

I've posted my retirement portfolio in articles on Seeking Alpha. As an active investor, I make it a practice to always be looking for "bargain" priced companies and sometimes (Heaven forbid), I will purchase stocks that do not pay dividends. I have even been known to purchase stock in companies that have a yield below 3% (of some other arbitrary yield point that others might have.)

What I like about dividends, from the DGI perspective, is that the dividends will allow me to have a very comfortable retirement. On top of my dividend income, I will have Social Security. My Social Security income will supplement my dividend income and act as a "bonus" as opposed to being the "meat" of my retirement income. Social Security is "lagniappe" (which is something my Cajun friends refer to when you get "something extra" in your purchase.

Now, I have to admit that a lot of the academic discussion regarding dividends is very interesting and thought provoking. I actually enjoy those articles telling me that my DGI strategy doesn't work. I enjoy being called a "zealot." I actually get a big kick out of the argument that some non-DGI folks make when they tell me that "trying to convince a DGI that he is wrong in his investment approach is an impossible task."

In much the same way, I have to acknowledge that telling a non-DGI investor that "DGI works and here's a look at my portfolio to prove it" is also "an impossible task."

Regardless of how you feel about it, perhaps the lack of intellectual curiosity is something that has always concerned me, to an extent. But, now, I've come to realize that what someone else thinks is just fine with me.

At work, we have a lot of people who love to complain about things. They don't like this and they don't like that. They have a real talent for finding out "what's wrong with something," but the people that keep getting promoted are the ones who seem to come up with solutions as to how to fix those things that might be wrong.

Interesting.