10-11-2016, 07:27 AM
Both....And....
I agree completely. Over at SA there was "yet" another attack of sorts on DGI (being dead?). We create dividend machines that often have a substantial growth aspect (win-win). Never understand the anti-DGI crowd....
Anyway, crunching some numbers I looked at this scenario from a couple of directions.
1. Sell out and reinvest in something undervalued...but then where do I put those funds? Not much undervalued. And CL is a quality company I plan on holding/adding to until they change my mind.
2. Take the profit (skim the top) (12 years of dividends in advance) and let the rest ride. In fact I could do this with 9 companies and squirrel away over $20,0000 in "advanced dividends". But then I have made the DG machine less efficient...temporarily. As CL is a keeper, I would want to get back to a 100% position eventually. And it would take a 25% correction to reinvest those captured dividends at my original price.
3. Keep this component of the DG machine in place and plug along...but I would kick myself if the new administration/Fed screws things up, we have a major correction, and I could have trapped dividends/profits until the bottom.
I am not a "timer" by any means (I usually avoid Vegas layovers....). But we are due....maybe..... (Trust me, landing a 140,000 lbs 737 in a snow storm is way easier).
Some financial know it all once said "you can never be faulted for taking profits". I believe that what we do here contradicts that. Taking your DG machine off the road for a spell can cost you...unless your timing is perfect.
The corollary(?) that "doing nothing" with a well built dividend machine is in fact "doing something".....
As I opened with "Wouldn't it be nice to always have this problem?"
"$100 on the Pass Line" please.....
I agree completely. Over at SA there was "yet" another attack of sorts on DGI (being dead?). We create dividend machines that often have a substantial growth aspect (win-win). Never understand the anti-DGI crowd....
Anyway, crunching some numbers I looked at this scenario from a couple of directions.
1. Sell out and reinvest in something undervalued...but then where do I put those funds? Not much undervalued. And CL is a quality company I plan on holding/adding to until they change my mind.
2. Take the profit (skim the top) (12 years of dividends in advance) and let the rest ride. In fact I could do this with 9 companies and squirrel away over $20,0000 in "advanced dividends". But then I have made the DG machine less efficient...temporarily. As CL is a keeper, I would want to get back to a 100% position eventually. And it would take a 25% correction to reinvest those captured dividends at my original price.
3. Keep this component of the DG machine in place and plug along...but I would kick myself if the new administration/Fed screws things up, we have a major correction, and I could have trapped dividends/profits until the bottom.
I am not a "timer" by any means (I usually avoid Vegas layovers....). But we are due....maybe..... (Trust me, landing a 140,000 lbs 737 in a snow storm is way easier).
Some financial know it all once said "you can never be faulted for taking profits". I believe that what we do here contradicts that. Taking your DG machine off the road for a spell can cost you...unless your timing is perfect.
The corollary(?) that "doing nothing" with a well built dividend machine is in fact "doing something".....
As I opened with "Wouldn't it be nice to always have this problem?"
"$100 on the Pass Line" please.....