07-17-2014, 08:43 AM
(This post was last modified: 07-17-2014, 08:44 AM by Dividend Watcher.)
I don't look at payment schedule. What matters to me is the ability of the company to grow and the ability and commitment to pay an increasing dividend.
Monthly vs. quarterly payments only nets you a small increase in compounded return and that's only if you reinvest the proceeds. Without reinvestment, you're left with company performance and the dividend yield.
That being said, if you're using the income to fund current expenses such as during retirement, it helps with budgeting and levels the cash flow stream but you can do that in other ways. I do own Realty Income (O) but not for its dividend schedule.
Monthly vs. quarterly payments only nets you a small increase in compounded return and that's only if you reinvest the proceeds. Without reinvestment, you're left with company performance and the dividend yield.
That being said, if you're using the income to fund current expenses such as during retirement, it helps with budgeting and levels the cash flow stream but you can do that in other ways. I do own Realty Income (O) but not for its dividend schedule.
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“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