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


To: geoffrey Wren who wrote (9981)9/7/2011 5:33:11 PM
From: chowder1 Recommendation  Respond to of 34328
 
>>> My sense now is that O and NNN may be relatively overvalued simply because they are conservative and most investors consider the dividend secure. <<<

Your message makes sense.

Yet, that secure dividend works for me.

I know everyone has different objectives, but from my point of view, not every dividend payer can be a dividend growth company, if one is holding quite a few positions.

I'm more than happy to lock in a secure 6% dividend which is why I own quite a few utility companies. When I combine these overvalued, yet safe dividend companies, with my perennial dividend growers, it adds up to a nice package. Sort of like in sports. You can't have a team of all stars. It takes a good supporting cast to get the winning result.



To: geoffrey Wren who wrote (9981)9/7/2011 7:22:13 PM
From: Bocor1 Recommendation  Read Replies (1) | Respond to of 34328
 
My sense now is that O and NNN may be relatively overvalued simply because they are conservative and most investors consider the dividend secure.

Frankly, that is a reason, at least for me, to "pay up" for a company with an above par yield, yet one that I don't expect to blow up in the next five years.

If you are a trader, or looking for something short term, then I agree, these are not the companies to own. If you want a business that is solid, long lasting, and likely to succeed longer term, then I at least am happy to reinvest the dividends at various prices over the years, and hopefully end up with a decent YOC when I begin to collect instead of reinvest.