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


To: chowder who wrote (3169)12/31/2009 12:56:03 PM
From: JimisJim  Read Replies (1) | Respond to of 34328
 
Dabum: very interesting... thx for posting... I have a question... in the example you posted about CTL (which is on my watch list) you posted that you have a 36.84% unrealized gain in that with a base purchase price of $36.33... I notice that today it is trading around 36.40s and wonder if all of that unrealized gain is from dividend? But that seems high to me... how are you calculating that?

Thanks,
Jim



To: chowder who wrote (3169)12/31/2009 1:09:36 PM
From: Steve Felix  Read Replies (2) | Respond to of 34328
 
"keep in mind that my yields may be higher than what you see today"

That is part of what isn't seen, along with the compounding by reinvesting the dividends. I can't pinpoint what stocks I've bought with the dividends from these two reits, but the return is higher than shown from that reinvesting.

Current yields: O 6.49% LTC 5.71%. My yields: 9.25% and 8.92%.

Symbol   Qty   Purchase Price   Last   Day Gain($)   Day Gain(%)   Gain($)   Gain(%) 
O 1200 18.0476 26.473 39.60 0.12 10,110.48 46.68
LTC 300 17.4699 27.56 78.00 0.95 3,027.03 57.76


Every month a little contribution:

Date/Time    Description   Amount    Net Cash Balance      
12/15/2009 02:20:10 ORDINARY DIVIDEND (O) 171.23
12/30/2009 00:00:01 ORDINARY DIVIDEND (LTC) 39.00


I felt this from one of your other posts:

"I've missed the boat."

Actually we are in the dinghy. lol! A case of better late than never. Though we won't be here to see it, our kids will be thinking of us in the future imho, and they won't have to sit by there computers looking for their next trade.



To: chowder who wrote (3169)12/31/2009 4:46:50 PM
From: Debt Free  Read Replies (3) | Respond to of 34328
 
The annual dividend is $2.80 which gives me a 10.5% yield on my position where if someone bought today, their yield would be 7.7%.


From the perspective of your original investment I am okay with this thinking. I think that it shows that you made a good investment. However it seems to be a misleading way to look at it from a perspective of where you are today. For instance if the yield is currently 5% and your effective yield is 10% (because of your purchase price) the yield you receive is only 5% of your current value. Therefore if you look at it from the perspective that it is yielding 10% then you are potentially overstating what you are receiving.