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Strategies & Market Trends : Dividend investing for retirement

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To: CusterInvestor who wrote (3554)1/30/2010 3:20:40 PM
From: Debt Free4 Recommendations  Read Replies (2) of 34328
 
the whole concept of comparing the current yield to your cost basis seems to only make sense if you are never planning on selling your initial investment. If you plan on someday selling then the concept becomes interesting at best. More than likely this line of thinking becomes extremely dangerous to your portfolio.

The problem that I see is that that are ignoring what your value of the initial investment is. If there is the potential for a better return of that capital in the future that you may be blinded to that opportunity if you look at the yield based on your original cost and not what the current yield is.
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