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

To: stock bull who wrote (5612)	8/30/2010 7:36:54 PM
From: chowder	Read Replies (1) \| Respond to of 34328

>>> Economical events can greatly alter your equation. <<< I suppose you are correct, but here's how I am looking at it. I am buying companies I don't want to sell. I want companies that have a long history of not only paying dividends, but raise them every year. I don't want to liquidate anything to meet income needs later if life. I want to enjoy holding my positions and allowing the dividends to meet my income needs. With this is mind, companies like PG, KO, ABT and JNJ have already been through the worst of economic times in our generation. They have endured the savings and loan crisis, the tech crash and recession of 2001, Presidential assassination attempts, 9/11, and the financial crash of 2008 and 2009, the worst of economic times since the Great Depression and not only continued paying dividends, but increased them. Share price took a hit in each of those scenarios, but dividends aren't paid based on share price, they are based on the number of shares you own. So even in poor economic times, shares owners got a pay raise. Regardless of the economy, people are going to pay their light bill. They are going to shower, shave, clean and wipe. They are going to eat. And since people are going to continue doing those things, even if they lose their job, these companies are going to continue raising cash and as long as they are raising cash, they have shown a history of sharing that cash with share owners. And as long as a company continues to pay their dividend and raise it, that company will create value and that value will eventually attract new share owners which will make share price rebound. Every economic crisis of our time has shown that. You just have to accept the volatility that comes with that. That's the reason I think it's important to buy high quality companies. Is there a chance it may not happen again? Sure, but I like my odds.

To: stock bull who wrote (5612)	8/30/2010 8:35:49 PM
From: Steve Felix	Read Replies (1) \| Respond to of 34328

Curious if you have ever read The Single Best Investment? Dabum might send you his copy, but I think it is worn out. lol! $6 for the older version including shipping. Stock examples used are about the only changes. The premise doesn't change. amazon.com

To: stock bull who wrote (5612)	8/31/2010 10:35:04 AM
From: deeno	1 Recommendation Read Replies (1) \| Respond to of 34328

"I believe that you should add the "economy" to your equation. Economical events can greatly alter your equation." actually it depends on your "alternatives" I dont beleive most here are interested in market timing. So to the extent that they have decided to allocate a certian percentage of their portfolio to stocks they have chosen dividend paying stocks, rather then other types of stocks. The economy under those guidlines have no bearing. The only question would be if those dividend picks perform better than the averages in both up AND down markets. I think most here would beleive that they do. "High quality + high yield + high dividend growth = high total return " In the equation above high total return does not have to be positive, just better than the averages.