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Strategies & Market Trends : Dividend investing for retirement
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To: JimisJim who wrote (16527)8/8/2013 7:58:42 AM
From: Steve Felix  Read Replies (1) of 34328
 
For me, the best thing that can happen is that a stock that cuts the dividend becomes a hold. Back in "the day" there were lots of them.
I didn't buy CLMT until the best part of two years after their cut, on their first raise.

RNDY cut theirs last November and year end sellers drove the yield to 14%. Couldn't not take the chance.

Then you have stocks like CTL that was never really a dividend increaser to begin with. Not interested.

I don't fool myself that some stocks I hold could cut.

I've never done things the "conventional" way. I have an income and growth goal for 2018. The income is well
ahead, the growth not there yet. I'll take the chance to have the cushion. It also allows me to look at
lower yields/higher dividend growth going forward, that many DGI won't look at. How many DGI have
looked at SPAN and their 31% payout ratio, which recently raised 12%?

I get a kick out of some SA articles and comments. Those that say invest for growth and switch to DGI
later are generally beaten like rabbits in the Dust Bowl. I would have to agree with the DGI side, but I haven't
seen proof since none seem to want to put the proof out there and track it over time.

I don't really see anything doing it my way. Higher yields with some dividend growers, switching to more dividend growers over time.
I always did like "cutting my own track".

On your dilemma, a high yielder for a trade doesn't sound as safe to me as some preferreds out there.
Even something like O-F, BB+ 6.625%, pays .141 monthly, is only .17 over par and not callable until 2017.
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