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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: GraceZ who wrote (6004)10/11/2002 9:25:23 PM
From: TradeliteRead Replies (1) | Respond to of 306849
 
Grace, can't agree with your views on principal vs. yield.

A relative of mine has held shares in MAS for decades, while the stock has rocked and rolled up and down....but he's collecting thousands of dollars per year in dividends and couldn't care less what the share price amounts to at any particular time. Meanwhile the stock has split multiple times, creating even more shares on which to earn dividends.

I feel the same way about the REIT I'm holding....I've sold the shares for a good profit while also getting the dividend. Then bought some shares back at a higher price than my original purchase, which is still going higher....meanwhile, I probably shouldn't trade it at all....just sit back and collect the dividends.

The concept of "breaking even" doesn't occur to people who hold dividend-producing stocks when they never intend to sell them. If the dividend-producing stocks go belly-up, that's another story, but so far after many years of compiling a track record, the stocks I'm thinking about haven't done so.

It must depend on the quality of the stock or REIT one is investing in????