To: spindr00 who wrote (30453 ) 1/20/2019 10:29:32 PM From: JimisJim 4 RecommendationsRecommended By Graustus maverick61 rnsmth robert b furman
Respond to of 34328 I don't care if you call it profit, cap gain, dividend or distribution... If a stock pays me monthly or quarterly divvy/distribution for 20-30 years -- I'd bet a million bucks, I was paid more than I put into the position -- now maybe that is not an exact definition of profit, but if put, say $10,000 in a stock paying just 4% (and I have many paying significantly more, but let's use 4% since that number is used a lot for different things for retirees or near retirees), after 25 years, I will have collected $10,000 on my original $10,000 and any future dividends from that position will mean I have been paid more money than I paid for the stock -- that, IMO, is what I will define as a profit since I got more back than I paid for it -- maybe that's not a real official definition of profit, but I don't care what you call it -- I got more money than I paid and sure feels like profit... Oh, and then there's the part where I still have my original position -- I'd wager another $10,000 that based on the stocks I invest in, that original $10,000 will have doubled or tripled or more because I didn't sell any of it along the way.... if I were still in accumulation years, that $10K in divvies would have compounded quite a bit such that I will have more shares in general and those shares tend to increase in value over time.... And... there's the bit that on average, each of my stocks increase an average of 5% a year, not even including the compounding of DRIPing, after 25 years, I'd have collected a min. of $28.000 - %30,000 just in dividends and not even including the 5%/yr. increased divvy paid. Call it whatever you want... I call it a sure way to generate a very nice income (replacing working paycheck income) AND I still get to keep the stock that, as with most divvy Aristocrats, will have doubled or tripled in value over that time, too. I'll take that any time, every time and I don't care what anyone (a pedant?) calls it.