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

To: Bocor who wrote (5880)	9/21/2010 1:02:35 PM
From: chowder	Read Replies (1) \| Respond to of 34328

>>> looks like the dividend is going up....CAG warns and is down 11%. <<< One of the things I learned about dividend investing, is that if a company meets all of your requirements for a purchase, or if you already own a high quality company, when they raise the dividend at the same time they announce a warning about future earnings, the sell off is a huge buying signal. A company that raises the dividend knows they must have the cash on hand to pay it! They must know that even if revenue is down, they still must generate enough cash to pay that dividend when due. Dividends tell you the true nature of a company's financial status. Most companies would not raise the dividend 15% at a time they warn, if they didn't think the near term warning was more than a short term adversity. When PG's share price was dropping 40% in 2008 - 2009 and they were increasing dividends at the same rate they had for years, it was a screaming buy signal. I can't yell loud enough, that's how loud that signal was! <lol> You buy that sell off! Thank you Lowell Miller for teaching me that in "The Single Best Investment."