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Strategies & Market Trends : Dividend investing for retirement

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To: chowder who wrote (3280)1/7/2010 11:26:49 AM
From: Triffin  Read Replies (3) of 34328
 
Great Thread !!

I've been following the discussion between
yourself, Grommit and E_K_S concerning 'timing'
issues for acquiring initial positions in the
various candidate companies ..

One counter-intuitive approach that maybe worth further
study would be to consider acquiring positions in
the Dividend Aristocrats "Drop" list on the assumption that
the reason for the dividend reduction was a "one off"
event and that dividend growth and potential capital gains
would resume from the new lower base ..

You can't have infinite growth ( of dividends ) in a
finite world, so it would be logical to assume that
eventually the longer running Dividend Aristocrats will
experience that "one off" event and have to ( temporarily )
reduce their payout ..

I found some info on the dynamism of the list at
www.istockanalyst.com as follows ..

========

The changes in the Dividend Aristocrat index should be expected and they are a natural process that occurs even in normal years. In 1989, the number of companies in the index was only 26. Only 7 of the original companies still remain in the index. The companies are: DOV, EMR, JNJ, KO, LOW, MMM and PG. The percentage of companies that remain in the index after 10 years is about 35%. There have been about 116 companies that have gone through the index for the 15-year period form 1989 to 2004. The average company stayed 6.5 years in the S&P Dividend Aristocrats index from the time of its addition. So as a dividend investor, you should expect year over year changes in the index.

=========

Looking at the 2009 Dividend Aristocrats "Drops"
we see the following price ranges ..



AVY 17 - 40
BBT 13 - 30
GCI 2 - 17
GE 6 - 17
JCI 8 - 30
LM 10 - 34
MTB 30 - 71
PFE 12 - 19
STT 15 - 56
USB 8 - 25

Just an idea ..

Triff ..
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