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Strategies & Market Trends : Dividend investing for retirement

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To: Steve Felix who wrote (6426)11/15/2010 10:36:31 AM
From: chowder  Read Replies (1) of 34328
 
If all you can do is choose based on the information provided, then #2 would be the logical choice.

I couldn't make a choice unless I knew what the company did.

I'm assuming you're looking to hold for a very long time and company #1 may be the better choice if their business model is geared for the long term.

Most excellent long term hold companies will go through periods where they are expanding, merging, spinning off, introducing a new product or a various number of other things which may slow them down for 2-3 years and this may be their time to do just that.

If that's the case with #1, then I would go with that.

I would want to know who has the better cash flows or potential cash flows.

It sounds like a trick question where #1 would probably be the best choice. ... :o)
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