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


To: JimisJim who wrote (30403)1/20/2019 6:53:03 PM
From: spindr001 Recommendation

Recommended By
berniel

  Read Replies (4) | Respond to of 34328
 
"Yes, but to bank that profit, you have to sell the good shares in a good company that made those profits available... almost all of my divvy paying stocks also make "profit" from cap gains on top of the dividends paid... with DGI stocks, I get cap gains AND dividends that go up, almost guaranteed every year -- at least the ones I have do."

It's rather obvious that in order to realize a gain then you have to sell the shares. Otherwise, it's just an unrealized gain.

What you fail to grasp is that your profit comes from share price appreciation, not dividends. If share price does not appreciate, you would have zero Total Return. I realize that it's a tough concept to grasp for a lot of people.

Nothing is guaranteed in the market. Look at how your stocks performed in 2000 and 2008 when the market lost over 50% in each period. Did you get your 'almost guaranteed cap gains AND dividends' in those years or was that before you began investing?