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.....
There are people who use up their entire lives making money so they can enjoy the lives they have entirely used up
Frederick Buechner
Frederick Buechner