Thread: Investing 102
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Old 12-26-2013, 06:32 AM
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GregWeld GregWeld is offline
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An interesting article - remember - articles are just opinions and should be used for information and "thought process" -- as the writer is no fortune teller.. in SeekingAlpha today about how Dividends help in a good market or bad. This has been the realization that took me about 23 years to come to grips with.... but the point of the article is that in a down market the dividends keep paying you something -- whereas the "growth only" strategy of investing pays you ZERO. They included a chart showing the past 8 DECADES for the S&P (a basket of stocks) showing that of the last 8 decades in 4 of them the dividend contributed more than the growth... think about that --- 4 decades --- decades are TEN YEAR periods. That's a long time. Now --- if you happen to hit retirement age during a down market (bear market) period -- some of these bear markets can carry of for quite some time! And in the meantime -- you're still depending on the cash flow from your investments to pay your bills. Thus -- I L O V E the dividend wether it's "trendy" investing or not.


OBVIOUSLY WHAT WE WANT IS TOTAL RETURN -- GROWTH and the INCOME (Dividend) -- that's a WINNING strategy!!






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