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Strategies & Market Trends : Dividend investing for retirement

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To: Elroy who wrote (6059)10/12/2010 1:59:03 PM
From: gregor  Read Replies (2) of 34328
 
But isn't the theme of Steve's thread about yield on cost since his main objective is to buy stocks that have a solid history of raising the dividends every year? If that premise holds then the current price of the security is immaterial since your objective is about income stream.

You were right on in emphasizing that unless you have a better alternative why would you want to sell. I also would adhere to I think what this discussion is about. If at some point because of capital gains, the current benefit of taking profits gets you ahead of the projected dividend stream it's best to take the capital gain and redeploy the capital elsewhere. How you do this is the question? I am sure the mathematical formula would be quite complicated however there would have to be some rules of thumb that could simplify the dilemma for us.
Gregor
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