05-08-2014, 10:15 AM
And this thought (I think it was chowder or RAS that espoused it in one of the first articles I read after signing up for SA) was the impetus for me to switch to a dividend growth strategy versus whatever the method I used was called:
"On the other hand, dividend income has remained more stable than capital gains. Since 1977, the dividend income for S&P 500 has experienced declines in only 4 out of 34 years. As a result, it is no surprise that the predictable nature of dividend payment amounts is appealing to investors in retirement."
I further posit that it is appealing to investors not in retirement but planning for it. Those dividends are a valuable source of capital when Mr. Market is being fickle allowing you to buy when you should be buying -- low.
I don't know a consistently successful market timer.
"On the other hand, dividend income has remained more stable than capital gains. Since 1977, the dividend income for S&P 500 has experienced declines in only 4 out of 34 years. As a result, it is no surprise that the predictable nature of dividend payment amounts is appealing to investors in retirement."
I further posit that it is appealing to investors not in retirement but planning for it. Those dividends are a valuable source of capital when Mr. Market is being fickle allowing you to buy when you should be buying -- low.
I don't know a consistently successful market timer.