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.
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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