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

To: Max Fletcher who wrote (9853)	8/14/2011 7:31:15 PM
From: Jacob Snyder	1 Recommendation Respond to of 34328

<...in the middle of a long-term bear-market. And that should be regarded as an advantage if your goal is to build an income stream..." Makes perfect sense to me. Quality dividend stocks were thin on the ground, in 1999. We are now 11 years into a Secular Bear (adjusted for inflation, the S&P500 top in 2007 was below the 2000 top; the 2009 low was below the 2002 low in absolute terms). A PE10 of 5-10 implies a dividend yield much higher than today's, for the overall market. Which means more choices, better choices, and higher yields, for dividend investors. And better buy-prices in the future, than anything we've seen in the last 11 years. It isn't good enough to buy a good company; you have to get it at a good price. For instance: Intel is an excellent company, and is now an excellent dividend stock. But if you bought it at $75/share in 2000, you'd still be underwater today, dividends and all. And probably not break even for another 10 years or more. For total returns, buy-price is crucial. It may be heresy on this board, but I think it is necessary to sell, not just BuyAndHold, in a Secular Bear. I will change this opinion, when events change it for me. That is, I will be steadily more willing to hold for longer and longer periods, the lower stock valuations get. Following my Sell rule, doesn't require looking at stocks daily. I've made a short protocol (on one side of one sheet of paper), for my wife to manage our stock portfolio, to use in case she outlives me. It only requires her to look at the portfolio once a year, make a few simple calculations, and enter limit orders based on those calculations.