Quote:
Originally Posted by GregWeld
Stuart ---
I've read everything they posted to their website... here's the gist. Invest in select dividend paying stocks that pay above average dividends and have shown to increase their dividends over time.
I'll "select" one... or two.
AT&T..... In 1988 they paid .15 per quarter - 10 years ago they paid .31 per quarter - Now they pay .46 per quarter. So 10 years ago they paid $1.24 per year... and the share price was $24.... Today they pay $1.84 per year. Using the $24 starting price -- and collecting just a $1.24 per year... you've gotten half your money back already. Imagine if that dividend was buying extra shares each year for 10 years...
LO....Lorillard -- using this instead of MO because MO split off some companies along the way and makes it a tougher example..... LO was $8 - 10 years ago and didn't pay a dividend... today it closed at $49.78 and pays a .55 per quarter dividend... and had a 3 for 1 split along the way --- meaning that those $8 shares you bought 100 of --- you now have 300 of. (split adjusted cost basis would have been $24 initial per share) But here's the deal --- the 300 shares -- are paying .55 per share per quarter --- $2.20 per year on a cost basis of $8.00 (split adjusted).
JNJ... 10 years ago the share price was $50 and they paid .24 per quarter... today they closed at $90.10 and they pay .66 per quarter. Let's do some simple interest calculations. $2.93 (annual dividend) divided by $50 (what you paid) equals 5.86% dividend on your cost basis. So you've doubled your money in 10 years and you're getting 5.86% spending money.
How complicated is all that?? LOL
There's not a single name there that you'd lose sleep owning...
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I have two of those no brainers. Your advise is always great. Slow and steady is a good motto I go by..
How much time a day on average do you spend on investments?