To screen ETFs by asset class, performance, yield and more, check out the
View as an RSS Feed
A Cautionary Tale For Dividend Growth Investors
Thanks for an informative article. What it reinforces to me is the extreme importance of purchase price in dividend investing. In July of 1998 with KO at $44.47 and a dividend of $.08 per quarter according to Dividata.com, the stock would have been far out of my requirements for purchase. I simply do not buy a stock unless it yields a minimum of 3%. I consider the most ironclad rules of my investing plan to be the refusal to buy any stock that is overvalued. Starting at such a disadvantage by paying too much for the stock, as stated in the article, means a long holding period to simply break even.
Why would a dividend investor buy Coca Cola or any other stock, no matter how prestigious, at that kind of price? Unless you believe that there is benefit in dollar cost averaging in a DRIP, buying this at such a overvalued level simply seems extremely unwise. I like to buy stocks “on sale”. That is the reason that I do not automatically re-invest dividends in the stock that generated them. Often times there are much better places to re-invest the money. Indeed a cautionary article to those who would buy high only to sell low.
Feb 13, 2015. 03:59 AM
Link to Comment
A Safe And A Shotgun, Or Public Sector Banks? The Battle Of Cyprus
What is the difference between taking a 10% "scalp" off the top as in Cyprus, or the hundreds of little "scalps" we endure as long as interest rates for bank savings are kept artificially low, below the rate of inflation? One or a thousand cuts it is still the same result.
Mar 22, 2013. 03:33 PM
Link to Comment
Xignite quote data
© 2015 Seeking Alpha