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

To: upanddown who wrote (3202)	1/4/2010 9:24:15 AM
From: chowder	Read Replies (1) \| Respond to of 34328

>>> one potential problem with this strategy is that a dividend decrease can be preceded by a tsunami of bad news <<< Good point! I agree. That's just one of the criteria I use though. I had owned PFE at the beginning of last year and when they lowered the dividend, I was able to get out at a profit. I then took that money and added to BMY, which I was also holding at the time. When BMY spun off Mead, I sold that immediately as well. I didn't know how it was going to affect the dividend and I panicked. I may have made a mistake, I don't know. I took that money and bought JNJ - yld 3.0%. I liked the certainty of JNJ and it was on my wish list anyway. If something fundamentally changes, I'll get out. If price is dropping on no news and nothing changes fundamentally, I'll hang on. A lot of the Aristocrats had steep price drops on no news. They were merely following the market trend. In situations like that, I will ride it out and get paid while I wait. Thanks for sharing your thoughts.