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Strategies & Market Trends : Dividend investing for retirement

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To: Rangle who wrote (9814)8/11/2011 9:21:39 AM
From: chowder  Read Replies (1) of 34328
 
Re: FTR ... My only thoughts are that I own it, I don't expect a dividend increase for at least another year and I don't have any plans to sell it. I continue to think the best plan of action for me is to continue reinvesting the dividend back into FTR.

I can't say this is the correct strategy for everyone because people have different goals and objectives, different time tables and different levels of risk.

So, the strategy and tactics one uses at this time, with regard to FTR, would depend on what your objective was when you purchased it.

I purchased after the dividend decrease from $1.00 to .75 and the CEO stated they wouldn't raise the dividend for at least two years, but that their long term objective was to continue a high dividend pay out. That meant I had to show some patience and that means I think the above strategy is best for me.

When companies merge or spin off, I never assume they are going to have a decent quarter following those actions. In reality, it's the best time for them to take charges, disappoint and get the negatives out of the way. Kind of getting the dust to settle, sort to speak.

I could be wrong though, I don't know. I simply know I'm willing to be patient here.
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