jjc7477

Diana Shipping: Prime Rebound Candidate

To Marol:

Perhaps it would help to create a spreadsheet similar to one I've been using to give a historical perspective of dividend influence. I use Yahoo Finance's historical pricing and dividend data and download the info to an Excel spreadsheet. Then I use the history to perform a study based on a ten year period. I start with a $100 investment and then follow the stock to determine what the valuation would be if I didn't touch it again. A great example (not specifically related to this article) is ticker BPT. It's amazing how much value you can gain by having high yield stocks. In a bear market when stocks depreciate, you gain value by being able to purchase more shares as long as the dividend stays consistent (dollar wise) or growing. In the case of BPT, the dividend does fluctuate, but the dollars are so high you still gain a decent return. An important note: dividends are taxable and this of course affects the annual return. By the way, exclusive of taxation, $100 of BPT bought April 15th, 1998 would be worth $2600 as of January 14th, 2008 (AND the stock has increased since then!).