Teak

Dividend Investing: When to Break Your Rules

Well said, notsosmart (misnomer). Price can go up or down, but I prefer down a bit. Reinvesting those dividends works! One just needs to pick solid companies, not those wack-o internet concepts.

On Dec 09 04:58 PM notsosmart wrote:

> the entry point is very important.since the yield shifts even as
> the div remains the same.example:i bought olin @ 9 9/10 in the old
> days.the div has stayed the same so my yield has been 8% for many
> years.i have a few winners like that & the stock price means
> nothing to me.its a way an uneducated outsider can get a few crumbs
> from the wall st ponzi/casino operation.

Getting Ready for Retirement

The S&P may have been flat over the past 10-11 years, but someone holding blue-chip dividend paying stocks over that time period would have achieved an annualised growth of +5.4%. Not everyone owns a S&P 500 index fund.

On Sep 22 06:24 PM SeekingTruth wrote:

> D4L, Thanks for some solid and useful data and suggestions. MadHFT

> It is worth recognizing that the S&P 500 is at a level first
> seen in Feb. 1998, more than 11 years ago. i.e. Flat for over 11
> years on a growth basis for buy and hold investors.
> Message : Don't buy and hold mindlessly, even better dividend paying
> stocks should be let go when overvalued, but only with great caution
> and care with the mind and strategy to buy them back along the way,
> or to improve and update your selections..
> Again thanks for a good and useful article , you do us an excellent
> service, also MadMFT.

Dividends Get No Respect

Charles Schwab also allows one to reinvest dividends. You make the choice at the time of purchase, but also have the option to change it later.


On Sep 21 11:38 AM dick black wrote:

> The biggest problem I see is that discount brokers DO NOT REINVEST
> dividends.

Fully Invested, but Defensively So

Is this real money that you are spending to build the portfolio (including broker fees), or is this a Play Portfolio. I don't trust players, I only want to see what people with "skin in the game" are doing.

Buy and Hold Is Alive and Well

Buy and Hold makes sense if you buy solid dividend-paying companies that will be around and paying dividends in the future. When their prices go down (and stay down), the dollar-cost averaging of a growing dividend payment, reinvested, works in your favor.

If you plan on trying to live off the dividend stream, then there is no point in worrying about the price going up; in fact, you don't want to the price to race up. My hope (plan) is that my children will inherit my shares after I use the dividend stream for retirement income. Isn't this what investing in companies is supposed to be about?

If I started my own company, I wouldn't sell it, buy it back, sell it, buy it back, etc. ad nauseum. I would own the business long-term and trust that it would give me an income stream long-term. It is this craziness surrounding day-trading, week-trading, month-trading that makes for the silly up-and-down price movements. The price of xxx goes up Monday 1%; it falls 1% on Tuesday; it goes up on Wednesday, falls on Thursday; retraces on Friday. Back to square one. Did the business really change that much in one week??

Looking Forward to More Dividend Increases Like Johnson & Johnson's

Yes, companies cut dividends to conserve cash. But they could also cut CEO pay, and bonus, and perqs, and etc. The shareholders of some companies are certainly taking a back seat to the empty suits that are NOT building shareholder value, rather draining shareholder value into their own bank accounts.

Time for major restructuring. CEOs should not be appointing members of the Board of Directors.

People Still Have To Spend: Eleven Dividends for Even Conservative Investors

On Oct 25 06:03 PM Emerald wrote:

> MLP's should hold up well. I don't see activity in shipments of gas
> and oil declining to a point where pricing deteriorates. Most firms
> have multi year contracts. They need access to capital to expand
> but can hold the line for the near future in a weak economy. Long:
> EPD, TPP, KMP, LINE, BBEP, NGLS.

What would be better: investing in a MLP (such as Enbridge Energy Partners, EEP) or in a company which is a major shareholder in the MLP (e.g., Enbridge, ENB, with a 27% stake). The financials on EEP don't look all that good right now, but those of the major shareholder (ENB) look much better.

Don't MLPs basically have to sell off parts of themselves to keep up the dividend payments? EEP has a dividend payout ratio of 125% now, which doesn't look good to my conservative eyes.

Is Buy-and-Hold Dead? Hardly

Okay, how about this? I bought the shares of dividend-paying companies across a range of industries. Most have gone down in price, but the dividends are still being paid. (Only 2 of the 21 have cut their dividends or stopped paying.) So, yeah, my portfolio looks underwater if I was depending on the buy-low, sell-high brand of Buy-and-Hold.

What if I want to live off my dividend yield come that day that I retire? The stock price doesn't matter then, in fact, if the price goes down during my period of reinvesting the dividends, I buy more shares than if the price were to race back up. So I pay more attention to dividend announcements than I do the daily up and down of the share prices.

Paper losses = paper gains; they mean nothing until or unless realised.

Boot Macke off Fast Money. Terranova, Seymour, Karabell each would make a better replacement. It is obvious that Macke has a massive ego and loves to hear himself talk. He is always interrupting the others and it is easy to see that they bite their tongues to tolerate him. I don't care if he has an Ivy League degree and can make obtuse references to books and movies that I may or may not have seen. His attempts to be cute and witty and etc. are downright annoying.