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

To: JimisJim who wrote (13437)	12/14/2012 5:10:34 PM
From: Triffin	1 Recommendation Read Replies (3) \| Respond to of 34328

Hi Jim .. I've gone back and forth on the buybacks vs increased dividends scenario .. I look at it this way .. When GE pays out it's dividend, what do I do with it ?? I buy more stock .. When GE does a share buyback, it amounts to the same thing provided they buyback more shares than they issue via stock grants/options ie as long as they're reducing the float .. It makes my tiny % ownership stake incrementally more valuable over time .. And more power to them ( and me ) if they can do a bit of both .. GE is an odd duck anyway .. I've never been able to figure out their business plan ,. Closest thing I can come up with is that they are a "tax advantaged over leveraged hedge fund" disguised as a "conglomerate" in street speak .. I bought it in 2009 ( as an experiment ) just below $10.00 when they announced they were cutting their dividend .. I'll stay with them as long as they continue to raise the dividend on an annual basis .. I've found ( via backtesting ) that when a current consistent dividend increaser announces a dividend cut or elimination that that "event" makes for a good long term entry .. I'm presupposing, of course, that a former dividend aristocrat, champion or king will want to resume their prior consistent dividend payouts as soon as the business cycle will allow .. GE and PFE were both bought on that basis in 2009 .. STRA was a recent buy @ 47 in November on the day they announced the elimination of their dividend .. I'm monitoring D, CLF, and EXC for potential dividend cuts in 2013 .. As long as this approach is working .. I'll stick with it .. Triff ..