SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Paul Senior who wrote (44709)9/30/2011 9:22:07 PM
From: E_K_S1 Recommendation  Read Replies (5) of 78661
 
Hi Paul -

So are you selling some of your dividend paying stocks (w/ good capital appreciation) for those other value stocks that pay little or no dividends?

Conclusion form the Seeking Alpha article posted:

Conclusion
The clear message that should be derived from this exercise is that dividend investors should not be indifferent regarding the capital appreciation prospects of that “piece of paper in someone’s vault.” In the end, unless holding periods are extremely high, the majority of the value from an investment in a stock will tend to come from the capital appreciation. Most dividend investors recognize that capital appreciation is important. However, I think that many do not appreciate just how big of a role capital appreciation plays in the total picture.

-------------------------------------------------------------------------------------------------------

Grudgingly, I have been peeling off shares from some of my good dividend payers (even some shares from my dividend aristocrats) to buy some of the truly beaten down value plays. I have parked a chunk of money in some preferred shares that pay a nice dividend AND offer some "potential" capital appreciation. My blended dividend return remains the same but I now have a better capital appreciation "growth" profile in the portfolio. This is an incremental move I have been making.

The group I am peeling shares from are those utilities making new highs and some KMB also near all time highs. I hate to do it, but I agree with the author that longer term the real money is made from capital appreciation.

FWIW, many of my utility sales were still a bit too early but my new buys are holding steady too. That's why it's an ongoing process and not an all or nothing move.

EKS
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News