My position in EPB, which I bought in 2009, is up 83% including distributions. I was considering selling part of it when it hits 100%. ... I've decided against it.
EPB is paying me an 8.38% yield on cost, even though anyone buying today may only get a 5% yield.
As those distributions grow, my yield on cost grows.
Since I'm in it for the dividend income, and not the capital gains, as I don't wish to sell anything, I would have to find something that pays a higher yield than I'm now getting with EPB.
My objective is to put myself in a position where I don't have to liquidate anything later in life to live off of. I want to count on the dividends alone.
Every retirement piece I read says you liquidate 4% of your portfolio each year and hope you don't outlive it.
If you have to take your 4% in another crash like we just experienced, you lose a lot of value, not to mention the anxiety of not knowing where share prices will end up.
Most of the stocks I own continued to not only pay their dividends through stressful times, they increased them.
I had to remind myself that dividends are paid based on the number of shares one owns as opposed to share price. Hence, yield on cost, in my opinion, has a great deal of value to me based on my objectives of holding ala Warren Buffett style. |
