SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?


To: Paul Senior who wrote (5580)8/28/2010 3:37:39 PM
From: stock bull  Read Replies (1) | Respond to of 34328
 
I appreciate you detailed analysis of the dividend/investment pros and cons. I guess that it all comes down to risk management.

Have you ever tried to time the ex-dividend date? That is buy into the stock just prior to ex-dividend, then sell after that date? This is tricky as I believe the stocks price drops as needed to compensate for the payment of the dividend. But, as the stock recovers, sell it off and keep the dividend. Maybe even make a little profit on the capital appreciation. Of course, this assumes that the stock's price recovers after it drops.

Stock Bull



To: Paul Senior who wrote (5580)8/28/2010 3:59:51 PM
From: Steve Felix  Read Replies (1) | Respond to of 34328
 
Very well put.

"People here who have relatively long-term goals or outlooks should welcome such a decline in these stocks though."
___________________

VFIIX vs. PG - bonds/fixed income + time vs. Aristocrat + time = no contest imho.

From a living off of dividends point of view, say we started in 2006:

First half of 2006 dividend per share: VFIIX .257, PG .59

First half 2010: VFIIX .209 or -18.6%, PG .924 or +56.6%

If we needed to start living off dividends in 2000:

First half 2000 dividends: VFIIX .342 PG .32

Compared to first half 2010: VFIIX -38% PG +188%

If PG halves their dividend tomorrow:

Ten year growth of dividend VFIIX -38% PG +44%

What contest?