Ladies and Gentlemen, I am so very excited to write this particular article. I have just completed a project that satisfies one of the biggest curiosities I have had about the system I created; the "Divi-X" System. That lingering curiosity has been, till now, how would the "Divi-X" System fare with an 'Ugly Duckling' over a twenty year period after experiencing two major market corrections? The reason I'm so curious, is because when you hear experts speak about long-term investing in the stock market for retirement, somewhere in that conversation, they will often add language to the likes of; "Will you still be able to retire if the market crashes?" or "Can you wait for the market to recover before you retire?" I am currently 46 years old. These questions are very relevant to me.
For those of you that haven't read my book, "The Dividend Times," I devoted an entire segment on 'Ugly Ducklings.' An 'Ugly Duckling,' as I define it, is any stock that has decreased significantly below your purchase price but turns into a beautiful swan because of the "Divi-X" System. This will be a two-part article focusing on one such "Ugly Duckling." The first part will go over the results of this "Ugly Duckling" without reinvesting dividends and the second part will focus on reinvesting dividends, both with and without the "Divi-X" System.
The "Ugly Duckling" that I will be focusing on, its share price is down over 40% over the last twenty years. Can you believe it? I, not too long ago, am also personally invested in this "Ugly Duckling." You can read about it here. That "Ugly Duckling" is Gabelli Equity Trust Inc (NYSE:GAB).
The Dividend Times, LLC
Disclosure: I am/we are long GAB.