(02-04-2022, 10:05 AM)rnsmth Wrote: It is a sympton of a share price focus on the markets, something that seems pandemic here despite the name of the forum.
Dividend and dividend growth, high quality companies with very safe dividends and don't worry so freaking much about share prices.
That is my view. I have been surprised at the amount of the discussion here that has to do with share prices and non-dividend paying so-called growth companies like Facebook.
With regards to Total Return/Dividends -
That's the wonderful thing about viewpoints. Each have their own.
Where you and I differ "greatly" is Total Return and Dividend Growth Both played key roles throughout my investment career. Dividend reinvestment is a wonderful thing, Concentrating on Increasing share count in quality companies (that also continue to provide an increase in Total Return is also a wonderful thing)...and when all come together in a little thing we call a portfolio - Magic.!!!.
- Where as you are in your later years (as myself), place more emphasis on dividends with slightly higher yields so they may provide us consistent income.
- Younger folks may place more emphasis on Total Return (yet may also understand the value of a dividend perhaps at lower or even no Yield).
- I'm of the mind set - Investors with long-term horizons who plan on holding individual investments over along period of time, it makes complete sense to exploit both.
In "My" View - it is not a binary decision. To exclude one, for the sake of the other is just sheer nonsense (to me). It's the combination of both - An investment that provides positive total returns, and a growing dividend is the best of both worlds and creates the magic (That's my view)
With regards to price -
In "My" View There are Two (or three) instances when price matters (whether that be with the stock market, or anything else in life) When you purchase, when you sell, and with regards to investments - when you want to opportunistically increase share count .
Ben Graham and John Bogle state it best for me.
"Price fluctuations have only one significant meaning for the true investor. They provide him with an opportunity to buy wisely when prices fall sharply and to sell wisely when they advance a great deal. At other times he will do better if he forgets about the stock market and pays attention to his dividend returns and to the operating results of his companies".- Benjamin Graham, The Intelligent Investor
"Don’t pay too much heed to the daily ebb and flow of the markets. In the short run, people get excited and stocks get way overpriced. Then a sell-off happens, the stock price goes down, and that sends [price-earnings ratios] lower. The long-term investor should pay no attention to that. The stock market is a distraction to the business of investing".- John Bogle
Enjoy your day Ron.