02-15-2014, 09:00 PM
Alex,
I thought my current yield at 6.4% and YOC at 7.2% was pushing it. You are more ambitious that I can imagine myself being. That aside, I think you are correct in wanting to maximize current yield. As a retiree who depends to a certain extent on dividend income, I have developed spreadsheets that model comparative dividend dollars: high yield + low DGR vs medium-to-low yield + high DGR. In the number of years I can reasonably expect to live, the total dividends paid by the former are invariable greater than the latter.
This is a discussion that by necessity is not of immediate interest to pre-retirees. My first impression from the posts on this web site is that most are in the accumulation phase. I was not a DGI before I retired (see my profile on Seeking Alpha) so I cannot offer first hand experience, but I can discuss the psychology of investing with anyone, and I would like to discuss my immediate interest - dividend income now - with those who are facing the tradeoffs that mortality eventually forces us all to face.
I thought my current yield at 6.4% and YOC at 7.2% was pushing it. You are more ambitious that I can imagine myself being. That aside, I think you are correct in wanting to maximize current yield. As a retiree who depends to a certain extent on dividend income, I have developed spreadsheets that model comparative dividend dollars: high yield + low DGR vs medium-to-low yield + high DGR. In the number of years I can reasonably expect to live, the total dividends paid by the former are invariable greater than the latter.
This is a discussion that by necessity is not of immediate interest to pre-retirees. My first impression from the posts on this web site is that most are in the accumulation phase. I was not a DGI before I retired (see my profile on Seeking Alpha) so I cannot offer first hand experience, but I can discuss the psychology of investing with anyone, and I would like to discuss my immediate interest - dividend income now - with those who are facing the tradeoffs that mortality eventually forces us all to face.