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

To: straight life who wrote (9703)	8/1/2011 1:15:46 PM
From: chowder	4 Recommendations Read Replies (3) \| Respond to of 34328

People approach dividend investing with different goals and objectives. So, it depends on what you are trying to accomplish, in order that you know what tactics and strategies you need to employ. My priority, my main objective, is to establish an income stream from dividends that is reliable, predictable and increasing. Capital gains is not a priority. The income is. Share price is going to go up and down, that's the nature of the business. I could care less! During the depression of 2008-2009, many of the companies I own saw their share price drop 30%, 40% and more. The dividend didn't drop! In fact the dividend increased! If your focus is the income, you got a pay raise when everyone else was panicking. To me, a dividend paying stock is like owning rental real estate. As long as I have 100% occupancy and the rents come in on schedule, I could care less what the value of the property is. I'm not selling. Just keep those rents coming in and keep raising them every year. I'm cool with that! I saw HCN, a company I own, down 7% today. So what! I'm not selling. They are still collecting their rents. Business goes on as usual. Their growth may stagnate short term, but the business isn't going anywhere. So to me, it's simply market noise. In fact, if Triff didn't mention it, I wouldn't have even noticed. One has to determine what their priorities are. Some of us buy dividend stocks for the income it generates. Others buy companies for capital gains and hope the dividends enhance those gains. I liken it to some people chasing the dream while others build the dream. In the end, everything is based on your own objectives.