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

To: stock bull who wrote (5592)	8/29/2010 7:11:04 PM
From: chowder	2 Recommendations Read Replies (2) \| Respond to of 34328

I don't know if this is what you are talking about or not, but here are some ETF's based on dividends: SDY - yld 3.44%, IDV - yld 4.43%, DVY - yld 3.67%, PFF - yld 6.92% and all have underperformed the SPY over a 10 year period. To benefit Total Return with dividend investing one must use the reinvesting feature and then allow it to compound and compounding takes time. There's a very simple formula to make it work. High quality + high yield + high dividend growth = high total return. High quality is a financially sound company. I use a 1 or 2 safety rating with Value Line. Or, I'll use a B+ or higher rating with S&P, preferably a rating in the A's though. 1. KMP is a high quality company. 2.It has a high yield (I consider anything 1.5 times the S&P average as high yield). The yield is 6.3%. 3.It has high dividend growth rate with a 5 year compounded rate of growth of 7.28%. 4. Total return for last 10 years equals +225%. S&P down 26% ..... a 5 year period shows KMP up 32%. S&P down 12%. It's the compounding effect that brings the high total return and to earn the high reward, one must have the mind set of being an owner in a high quality company, not a trader or short term holder.

To: stock bull who wrote (5592)	8/29/2010 8:34:18 PM
From: chowder	Respond to of 34328

This article, which was posted today, may be of interest to you. Profiting with Preferred ETFs ..... seekingalpha.com