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


To: Kip S who wrote (11226)2/29/2012 9:05:26 AM
From: Triffin  Read Replies (1) | Respond to of 34328
 
Hi Kip ..

Maybe not ignore .. but rather benign neglect ??
Actually, I pay close attention to a couple of metrics ..

1) The company must be EARNING the dividends they pay ..
2) Is the company following their established dividend increase policy ??

I sell immediately if a company is no longer EARNING their payout ..
See ALL, LEG, T, VZ ..

I also sell if a company fails to increase their dividend "on schedule" ..
The maximum I'll go with no dividend increase is 10 quarters at the same rate ..
See PGN ..

I've found that most long term consistent dividend increasers ( ? ) are loath
to cut their dividends .. If you wait until they do cut or eliminate their
dividend prior to taking action, that the stock has already experienced a significant
price decline .. In fact, as long as the reason for the dividend cut was a "one off event",
I've found the announcement of the dividend cut to provide an excellent price point to
establish a new position on the theory that the company will want to re-establish itself
as a consistent dividend growth company going forward ..
See AVY, GE, PFE, WFC ..

FWIW, I don't think there is a "right" or "wrong" way to implement/manage a
growth of dividends portfolio .. As my Uncle Ralph used to say .. "You've got
to kill your own snakes" ..

Triff ..