Quote:
Originally Posted by GregWeld
The OFFSET is the growth in share price -- which is what gives you TOTAL RETURN. Do not discount this fact. Chasing YIELD only will have you being real upset with yourself and your account when we DO - and yes we will - get a correction. 4% dividend is good --- and coupled with growth -- it should be 9 or 10% a year. HUGE in this low interest rate environment.
Some of my core holdings are already UP 8 and 9% this year. Dude -- that's a whole years "growth" expectation in 6 weeks!! Will it last?? I'd love to think so -- but I also know why there are AVERAGES.... and if I hold on to the 8 or 9% to finish up the year - I'll be a happy man. So that means that at some point we're going to look like yo-yo's.... it can't just keep going up up up. Now that's not saying it can't go up 20% - but then my guess is we don't hold on to all of that. Love to.... but don't spend it.  |
Good point. that was in the back of my mind. I was explaining that to my GF last night over dinner, but when i wrote this, i didn't think about that.
The little man on wall street doesn't like me now that I rebalanced my 401k into and handful of diff mutual funds. Those are taking a hit. But he did seem to forget about my Investing 102 stocks, they're doing decent. lol.
And speaking of stock growth and total growth (stock + div), is there a way to calculate that? I'd like to keep track. Or is there a tool/page you use that gives you that basic info?
Edit: after a little further thinking about it.. to calc growth wouldnt you simply take your average purchase price and compare it against the current price? or would it be better to take your purchase cost, compared against the current value? If you do the 2nd option, then it seems you may be able to take your purchase cost and compare it against the current value + dividend payouts to get the total growth? Im not sure if thats right.. its been too long since math class. LOL
Edit 2: i think this explains it:
http://stocks.about.com/od/evaluatin...ormualaeva.htm 