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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Steve Felix who wrote (907)	1/6/2008 12:12:56 PM
From: Steve Felix	Respond to of 34328

Lets look at what this doesn't show. My portfolios 115.10, 101.52 TRRGX 113.73, 121.40 FFVTX 110.12, 117.86 VTXVX 111.42, 119.83. Starting 2006 12/31/06 Current portfolio = $269,236 12/31/06 Current portfolio = $143,613 Total was $412,849 Dividends collected $18509.37 = 4.48%. TRRGX yield 1.71% X $412,849 = $7059.71 FFVTX yield 1.55% X $412,849 = $6399.15 VTXVX yield 2.30% X $412,849 = 9495.55 To collect $18509.37 as I did, would have had to sell: TRRGX 2.77% FFVTX 2.93% VTXVX 2.18% If the same held true for 05, using TRRGX as an example: End of 2006. Sell 2.77% = $11,435. Start 2006 with $401,313. $412,849 X -2.77% = $401,313. '07 Return = 6.75% X 401,413 = $27,095 = total $428,508. Yield 1.71% on original $401,413 = $6864. Sell to cover dividend shortfall = -$11,645. Acct. value end of '07 = $416,863, which comes out to a .97% return for this year. Just wanted to point out, that when investing to live off of dividends, never touching the principal, total return numbers can be misleading. I still believe I overtake the retirement funds over time on a total return basis.