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

To: E_K_S who wrote (3522)	1/27/2010 9:04:06 PM
From: chowder	Read Replies (1) \| Respond to of 34328

Thanks for your insights EKS. I appreciate it. I'm trying to follow through with buying and selling decisions that reflect my business model. I've been happy with PWE from a performance viewpoint. I have a profitable position. I just don't think the fluctuating distributions are conducive to my "overall" investing strategy. I'm using dividends/distributions to reinvest or buy other dividend paying stocks. I own KMR. They use their distributions to buy more shares, they don't pay in cash. I think I would rather go that route. If one is going to reinvest, then I am assuming it is best to have a steady or increasing amount to invest, regardless of market conditions. PWE may outperform over the long run, distribution wise. I don't know. I do know that I'm very comfortable with slow and steady. PWE has clearly outperformed KMR on a capital gains basis, in the time frame I have held PWE. However, I'm not as concerned about capital gains going forward as I am about a steady and increasing flow of income. stockcharts.com A steady and increasing flow of income has priority with me going forward. Capital appreciation is a secondary goal. I know this is counter to what most people think, but I'm looking for income replacement later in life and I don't want to look for it at a time when the markets may not be conducive to offering that type of security. I would prefer to have an income to draw on without liquidating something later and then have to find a way to provide that income. ..... I see it everywhere on these message boards ... people jumping to cash to preserve capital, chasing yield and putting up with the stress of the daily market moves because they didn't start buying dividend stocks earlier in life. There is nothing wrong with PWE as a holding. It just doesn't meet my investment goals and everyone's goals are different. I'm with Steve. Pay me and let me pass the equities on to my children. People who have PM'd me about this, and have had the benefit of having their parents pass on their stocks they bought 40 years ago, are very happy with the income being provided by said stocks because the yields are based on cost. They don't have to liquidate, just continue to receive the dividends. And to me, I need to know the dividends are steady and increasing as opposed to fluctuating. I own HGT as well. I will replace that as well for something more steady and I might find it in MLP's. If not, I'll look elsewhere. Again, thanks for sharing your thoughts.