Investing 102

[68Cuda]

Originally Posted by GregWeld

The reason that I have urged people to buy DIVIDEND paying stocks is because we can not rely on day to day price increases to fund our retirement savings or our retirement income. That takes cash flow. If the stocks you own are paying dividends and they are being re-invested - then if the market takes a dip - you will be buying MORE shares - which is a good thing! The whole point of this long winded thread is to get people to STOP trying to second guess the "market" and just buy the best of the best - that pay dividends - and HOLD ON TO THEM for the long term.

Greg - just occasionally have doubts - I know, hold the course. I don't do much of anything in this arena on a whim. I'll obsess about it for a while before I do anything. In the 90% of my 401k that I can port to a self directed brokerage account I am about 10% MO(since 2012), 6% CAG (since 2010), 8% JNJ (since 2011), 6% KMB (since 2011), 10% MRK (since 2011), 8% NUE (since 2011), 12% VZ (since 2012), and 8% WM (since 2012). I moved about 10% to BP and 10% to GE this past December... my only real recent moves. So, as you see, not a lot of jumping in/out or churning and all of them are big names that pay decent dividends. Of course the account is set up to reinvest on all of them. Of the 10% that I cannot do the brokerage on, about 1/2 is in company stock and the rest is in "growth" funds. I have another little IRA account we set up that has mostly KMB and PG that I have held since 2011. And then there is my wife's 401 which is stuck in some generic Schwab funds, but there are not very many choices for us in that one.