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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: JohnyP who wrote (70529)	6/22/2022 10:18:05 PM
From: robert b furman	6 Recommendations Recommended By bruwin E_K_S geoffrey Wren gizwick KC16 and 1 more member Read Replies (1) \| Respond to of 78918

Hi JohnnyP. Dividend payers historically do decline less. They have so far been less decimated. That being said every stock does take walk to the wood shed. Often in the past, when the last solid stocks that have resisted the general market decline, often get sold by those who have suffered bigger declines from other more risky growth stocks. They too get hit , because there still is a bid on them as people switch to them because they are safer. In the long run, they are safer, but they are not completely resistant to the general decline, but suffer less. When it comes to buying dividend stocks, you must be satisfied with the yield the dividend offers. In very early 2020 I bought a bunch of XOM as it dropped below 70 because it yielded 5%. I had it in a short term account that only paid less than 3%. The stock dropped to 31 since and then ramped back up to 104.00. All along that huge whiplash the dividend paid what I was satisfied with, and still am. The headlines and mood/sentiment is such that it makes one want to sell for fear pf loss of capital. If you are speculating on capital appreciation, high dividend yielders are not suitable. I you want to invest in a stock that yields 5%-7% on a dividend buy and enjoy getting your maoney back four days a year. Companies that have increased their dividend for more than 25 years have a business that is in demand. In the past years they made enough to continue paying the dividend and that with 90% of all Aristocrats stays true. If you are hunting a double or a multibagger, it's not suitable. Look at fossil fuel corporations. Two years ago EV's were going to make the ICE obsolete because EV's were going to take over the world. Rivian is losing money, several EV makers are going BK and now UK and Europe are starting up Coal fired electricity generating plants, and calling Natural gas and nuclear NOW Green. The Green New Deal is a scam to drive up fossil fuel costs. They are accelerating the transition without proper alternatives that compete with fossil fuels costs of using being available. Invest in great companies that have solid balance sheets with real margins and continuous demand. Speculating on companies that show great growth without profits has dropped out of favor. Inflation and the now rising cost of money, have changed the game. It has not insulated great dividend paying companies from price decline in a general market decline. Invest, do NOT speculate. Recieve your acceptable return and then Hold with confidence. Markets do fluctuate you kn. That being said, a return on your investment compounding over your life, will build your personal wealth. On that I count on! Bob