Speaking of AT&T (T).... it was mentioned above. Here's another reason I love dividend paying investments. They announced a 2.2% dividend increase again this year. Okay -- it's a ONE PENNY raise... to .47 per quarter. Hardly earth shattering. I don't think I'll order a new LSA motor because of it... but these raises - over several years - are what increase your YIELD ON COST (as your cost stays stagnant and the dividend rises) --- and more importantly they help with INFLATION.
The above is NOT about "buy AT&T"!! It's about dividend investing... and companies that increase their dividend over time. Don't discount the importance of these. Inflation - even benign inflation (meaning it's really low) - over time eats away at your ability to live life as you desire if you're not keeping even or better yet - getting ahead of it.
The reason you want your home paid for by the time you retire -- is to keep that cost off the debit side of the cash flow... We all know that we'll most likely be buying less car stuff as we age... Our kids should be well out of college... but property taxes and upkeep - food - insurance - travel expense - these costs rise steadily and you need to be able to keep up. A company like AT&T has demonstrated that it's willing to share with it's owners (yes! That is what you are when you own the shares!) and 2% dividend increases year after year starts to add up 10 years down the road!! In 2010 - the dividend was .42 a share --- now it's .47 per share! WTF is wrong with that?? Nothing!!
In full disclosure, own 20,000 shares of T --- quick math says --- in 2010 I was getting $8,400 per quarter or $33,600 annually. Now just 4 short years later -- I'm collecting $9,400 per quarter or $37,600 annually. That's $4,000 per year MORE for doing nothing excepting holding on. That's a coupe sets of Hoosiers that I didn't used to get. LOL
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