Thread: Investing 102
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Old 12-25-2011, 08:18 AM
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GregWeld GregWeld is offline
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Here's a good look at what DIVIDENDS look like! $4000 invested in two similar companies --- same industry (aka Sector) -- but one pays a higher dividend than the other. This is showing DIVIDENDS ONLY not the capital growth (or loss) if any. I just cut and pasted this chart because I thought it was very interesting to actually SEE the money trail.


http://static.seekingalpha.com/uploa...nan_origin.jpg


The above is just the chart showing the difference in the COMPOUNDED rate of return of the dividends paid. Below is a link to the actual article I stole it from. The discussion points in the article are "in a nut shell" to look for DIVIDEND INCREASES over time - when looking at all comparisons. Both of these companies are "best of breed" - but Chevron increased it's dividend payout % MORE than EXXON -- and over time that made a $1000 difference!

Interesting is all -- you'll learn nothing from it really because it's a HISTORICAL look and is only meant to help you PERHAPS make another investing decision --- the company that historically increased it's dividend or the one that pays higher NOW but hasn't raised the dividend much over time. EITHER ONE IS A WINNER IN MY BOOK BECAUSE YOU WOULDN HAVE AT LEAST BEEN INVESTED IN SOMETHING RATHER THAN NOTHING...

http://seekingalpha.com/article/3159...g_income&ifp=0
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