casey00001

Dividends Get No Respect

Unfortunately the young is a credit card debt society not a savings society. A friend of mine with teenage sons described it best as the "remote control generation". I want it, I want it now (I'm entitled) and if I don't like what's on/happening I will change the the channel.


On Sep 21 09:20 AM whisperonthewind wrote:

> One other point that bears repeating - when I was young, banks had
> savings accounts that gave 4% interest. This was explained to us
> as the way to make our hard earned lawn mowing money grow, and it
> was a terrific idea. Kids everywhere put their money into those savings
> accounts, and were successful at earning quite a bit of money.<br/>
>
> Now, your typical savings account for the common person bears somewhere
> around 1/2% and for some reason everyone thinks this is a good interest
> rate. I know CDs have better interest rates, but with those you have
> to have a minimum deposit, which doesn't help the young kids. If
> we really want to encourage our children to learn to save, we need
> to give them a healthy reason why. We need to begin to increase the
> interest rates on ordinary savings accounts. It would encourage more
> people to save money, which benefits all of us in the long run. Spending
> has its place, but saving has a future built in.

ADP: Dividend Stock Analysis

I am aware of the information you reference, thank you. However even if the dividend gets cut by 50% which recently happened, the yield is still higher. Also over the course of time which of these two is more likely to go up? The price of oil or the price/volume of outsourced payroll processing (ADP's primary business) during times of a recession?


On Sep 12 03:01 PM Dividend Growth Investor wrote:

> Of course I listed the yield on the stock - read carefully.
>
> I think that you are the one missing the point here - you are buying
> a stock which has a high current yield, but you have no idea whether
> this yield is sustainable or not.
>
> ADP's yield is sustainable, its dividend payment is growing, and
> thus there's a big chance your yield on cost would increase over
> time, well ahead of the rate of inflation.
>
> Oh yeah, and read this on Canroy's:
>
> www.dividendgrowthinve...
>
>
> www.dividendgrowthinve...
>

ADP: Dividend Stock Analysis

You list yourself as Dividend Growth Investor, yet each time you post you go through a complicated analysis and always fail to tell what the current yield is on the stock. In this case ADP pays a crummy dividend of 3.44% based on the current stock price of $38.40. The Canadian Royalty Trusts (PVX,PGH,PWE) pay four times this dividend and do it on monthly basis. This is a much better investment.