06-05-2014, 05:05 PM
(This post was last modified: 06-05-2014, 05:07 PM by Dividend Watcher.)
The comparison was cute but he only talked about wealth. Sure, the COP grew larger because of the lack of ongoing management fees but what about the income stream?
I went and looked up their prospectus. The distributions are in the red box.
Since 2009, there has been only one dividend distribution of 2 cents. 2013 was a banner year for capital gains distributions but, at $3.40/share, that only works out to 1.5% at end of year pricing. In 2012, the only thing you got was share appreciation.
According to Mr. McAleenan, COP would be paying you over $16,000 per year in dividends. ( That made my eyes pop.
) Now that I can take to the bank and pay some bills.
Sequoia Fund has been an incredible wealth builder but when I retire I'm not so keen on selling portions of my investment "seed corn" just to pay the bills unless I have to. Let's face it, some of us may have to, including me, but I'll hold out as long as possible relying on the dividends first.
That, to me, is the essence of dividend growth investing.
I went and looked up their prospectus. The distributions are in the red box.
Since 2009, there has been only one dividend distribution of 2 cents. 2013 was a banner year for capital gains distributions but, at $3.40/share, that only works out to 1.5% at end of year pricing. In 2012, the only thing you got was share appreciation.
According to Mr. McAleenan, COP would be paying you over $16,000 per year in dividends. ( That made my eyes pop.
Sequoia Fund has been an incredible wealth builder but when I retire I'm not so keen on selling portions of my investment "seed corn" just to pay the bills unless I have to. Let's face it, some of us may have to, including me, but I'll hold out as long as possible relying on the dividends first.
That, to me, is the essence of dividend growth investing.
=====
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan