05-03-2014, 06:42 PM
(05-02-2014, 12:50 AM)Dividend Watcher Wrote: Sell immediately if:
- It suspends or eliminates the dividend.
There is some confusion here. 'Suspend' means 'temporarily prevent from continuing or being in force or effect'. The only difference between suspension and elimination is the stated intent to rescind the suspension. In this context is does not mean 'freeze the dividend' as some commenters have interpreted it.
In the context of the 2008-09 crash, I view a dividend freeze as an allowable event for a dividend growth investor, but not a dividend suspension or elimination.
(05-02-2014, 12:50 AM)Dividend Watcher Wrote: Notable Quotes
These are quotes I've taken from several sources that I will use to help keep me from straying from my goals.
- “I have a few general rules I live by. First, diversify, but do not go crazy. Stick with your good ideas. Second, never panic. Third, watch the business fundamentals and let someone else watch the technical aspects. Fourth, seek to hear or read good advice. Fifth, hold some cash so you can buy from panicked sellers as I did in 2008, 2009, and in the first quarter of 2014. And last, but not least, always take advantage of dividend reinvestment for low cost compounding.”; Kevin Arledge on Seeking Alpha, April 2014
- “Markets can remain irrational a lot longer than you and I can remain solvent.”; Attributed to John Maynard Keynes by some, researchers also point to A. Gary Shilling
I have a business plan that has many elements of yours. Mine starts with notable quotes, including your second. I do not have your first but it is in many ways my guiding light. Here are some of my favorites:
- “Change is the only constant in life.” - Heraclitus
- “Exploit folly, don't participate in it." - Chuck Carnevale
- "An investment portfolio is like a bar of soap; the more you touch it, the smaller it gets." - anonymous
- "Only those who will be sellers of equities in the near future should be happy at seeing stocks rise. Prospective purchasers should much prefer sinking prices." - Warren Buffett