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mostserene1

mostserene1
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  • Will The Allure Of Dividend Growth Continue? [View article]
    I disagree Mr. Melman.

    I started investing in dividend stocks 25 years ago and never had Total Return as a concept. My goal was, and is, an increasing stream of dividend income. I don not care what the price of my portfolio is on any given day, only the income I receive each month from dividends. Back then, I would buy 100 shares of HNZ or GE, and add to it as we could afford to. All stocks were DRIPed until slightly before retirement.
    Feb 15, 2014. 04:48 PM | 10 Likes Like |Link to Comment
  • Will The Allure Of Dividend Growth Continue? [View article]
    DVK, you are right, it has been around, in some form, for generations.

    I read a lot as a kid in the 1950's-60s, and one of the Adult authors I read was John O'Hara, who is largely forgotten now. I never forgot his characters, frequently either the very wealthy Old Money or guys aspiring to be wealthy. And their mantra "Never Touch the Principal." Over generations of market turmoil and varying interest rates, the wealthy lived off of dividends and interest from their portfolios.

    At some point that mantra was forgotten as well, and the nascent financial industry promoted selling off 8% (this was a while ago) of your portfolio every year.

    Dividend and DG investing would have been right at home 50 years ago or longer. Now it is some controversial new-fangled strategy that "can't outperform the benchmarks."

    I think those Old Money rich families were on to something.
    Feb 14, 2014. 06:44 PM | 8 Likes Like |Link to Comment
  • Will The Allure Of Dividend Growth Continue? [View article]
    Thanks for the article.

    As someone who has invested for over 30 years, and bought dividend stocks for the past 25 years, I have observed that your personality type will dictate what investing style works best. It is not only risk tolerance, but aspects like Are you more a big picture or detail oriented person? How much do you rely on the opinion of your peers? Do you obtain most of your information by asking trusted friends, seeking out an expert, reading, etc.?

    Dividend and DG stock investing is not for everyone. It is a bit counterintuitive. It requires patience. And the ability NOT to care that all the latest mutual funds are outperforming some benchmark.

    If you perform best within a structured hierarchy and tend to be a conventional-thinking sort of guy (most of the population), and you care about high performance and out-performing the market, you are probably best served by a financial advisor schooled in Modern Portfolio Theory, or if you can't afford an advisor, you would be better off in index funds and bond funds. Like Warren Buffett say, for the average investor, index funds are the way to go.

    As to Will the Allure Continue? Probably not if interest rates rise sufficiently. In that case, I may start putting some of my new money into CDs that pay 10% or whatever, just to park my cash. But I will retain my dividend stock portfolio. Why not, it will continue to provide me a good, increasing income stream? I'll just supplement it with some high yielding fixed assets.
    Feb 14, 2014. 04:10 PM | 13 Likes Like |Link to Comment
  • What Harvard Can Teach Us About Portfolio Management [View article]
    For generations, the wealthy, before the development of the financial advisor industry, lived off of dividends and interest, and rarely touched the principal. These portfolios, largely blue chip stocks and bonds, grew in value over the decades, but in the meantime spewed out regular dividends and interest. No reason Harvard can't do the same.
    Feb 14, 2014. 02:54 PM | 5 Likes Like |Link to Comment
  • It May Be Time To Sell Out Of High-Yielding AT&T [View article]
    I doubt that it hits 30. Buyer will plunge in, thus pushing the price higher. The dividend yield at $30 would be too high to resist for us income investors.
    Feb 14, 2014. 01:26 PM | Likes Like |Link to Comment
  • What Harvard Can Teach Us About Portfolio Management [View article]
    I would suggest a portfolio of large cap blue chip dividend and dividend growth stocks, paying out circa 3 - 5% annually in dividends. They could have a bond fund as well, since those seem obligatory. But the stock fund would not have to be touched (just monitored and stocks added during corrections).

    The income would be from the increasing dividend stream (increasing because blue chip companies generally increase their dividends each year). And the principal would remain intact.

    You would think someone at Hahhvad would have the intelligence to construct a safe, productive investment portfolio. If they have but the courage to eschew the tenets of the inexplicably omnipresent MPT and the now-refuted EMT. They could consult with Warren Buffett, who has openly and vigorously critiqued the EMT.
    Feb 14, 2014. 01:14 PM | 1 Like Like |Link to Comment
  • Angie's List Is Melting Down To $0 [View article]
    When I was single I lived in Huntington, in one of those high rises on Route 1, I forgot the name of the building, maybe Huntington towers. Small world.
    Feb 14, 2014. 12:42 PM | Likes Like |Link to Comment
  • It May Be Time To Sell Out Of High-Yielding AT&T [View article]
    gmansour, there are simply people on SA who hate high yielding dividend stocks. Don't let them bother you. I'll just keep making money off of T, MO, and the others cash cows.
    Feb 13, 2014. 05:15 PM | 6 Likes Like |Link to Comment
  • Altria - Dividend, SAB And Cost Cuts Can't Make Up For Troubled Core Business [View article]
    Cha ching!
    Feb 13, 2014. 05:12 PM | Likes Like |Link to Comment
  • Angie's List Is Melting Down To $0 [View article]
    J Minzmyer: I live in Alexandria, too. In old town.
    Feb 13, 2014. 05:07 PM | Likes Like |Link to Comment
  • Angie's List Is Melting Down To $0 [View article]
    Older people who watch late night TV and are not experienced with the internet are their prime victims. They are drawn in by the ads, and their having been burned by service people in the past. Once the WWII generation dies off, Angies will have no target demographic.
    Feb 13, 2014. 04:12 PM | Likes Like |Link to Comment
  • Angie's List Is Melting Down To $0 [View article]
    One of my neighbors used them, until I started critiquing the business model without realizing he was a client. He is in his 70's, and AL is appealing to older people who don't know their way around the internet and like the warm, appealing TV ads.
    Feb 13, 2014. 04:09 PM | Likes Like |Link to Comment
  • It May Be Time To Sell Out Of High-Yielding AT&T [View article]
    Great investing story. I like to treat my blue chip investments like a bar of soap: the more I touch it the smaller it gets. Therefore, i seldom sell.
    Feb 13, 2014. 03:53 PM | 6 Likes Like |Link to Comment
  • It May Be Time To Sell Out Of High-Yielding AT&T [View article]
    That is the right attitude, Andy. Get rich owning boring dividend stocks. They are great for income investors.

    Long T, strictly for the dividends.
    Feb 13, 2014. 03:49 PM | 7 Likes Like |Link to Comment
  • S&P 500 Best Dividend Stocks According To A Winning Ranking System [View article]
    Like a lot of ranking systems, they were probably using dated data, and the info likely was put to bed prior to PBI's dividend cut.
    Feb 12, 2014. 03:45 PM | Likes Like |Link to Comment
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