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

To: E_K_S who wrote (9855)	8/14/2011 8:31:41 PM
From: Jacob Snyder	Respond to of 34328

<What do you do w/ your dividend stream?> Paid off our mortgage, years ago (actually, that was mainly cap gains). Since then, accumulate until a significant dividend stock opportunity presents itself (could be years). Truthfully, most of my portfolio has not been dividend stocks, in my 11 years of investing. I've been edging into it, slowly (I do everything slowly, in increments, after studying it for a year or three or longer). <Long Term DEBT < 3 x Annual NET Earnings> Good rule, thanks. <My dividend yield threshold will go as low as 3%> Yes. An example is XOM (3.6% DY) vs. RDSB (5.1%). RDSB's share count is flat, while XOM has a LT track record of cutting share count by 2-3%/year. To me, that makes them about equal: they are both paying investors 5-6%/y to hold their stock. Given the fact that XOM is on everyone's list of best-managed companies in the world, and has an AAA credit rating (along with JNJ, MSFT, and nobody else), I prefer XOM over RDSB. <do an "ALL OUT" sell if there is a company specific issue> Unfortunately, that happens, even with companies with very longterm, very good, track records. I sold all my PFE, right after they chopped their dividend in half. Should have seen it coming. I kept relying on their history, and ignoring the warning signs. Took my losses and moved on.