Dividend Growth Investing

Discussion of the Stock portion of the Permanent Portfolio

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mathjak107
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Re: Dividend Growth Investing

Post by mathjak107 » Tue Dec 31, 2019 8:15 am

in the end of the day it is only about appreciation . in theory if the stocks flat and is just reset by the dividend each time you got nothing.

so like i said a 4% dividend and a 4% draw from a non div payer would equal the same cash flow and same balance as long as the total returns are the same . the draw from the non div payers would have a better tax situation since only the gain portion is taxed
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Re: Dividend Growth Investing

Post by dualstow » Tue Dec 31, 2019 8:38 am

I know, i’ve seen that argument a thousand times on bogleheads and elsewhere, and it’s why I don’t just buy some random stock or mutual fund that pays a massive 6% (on current value) dividend.

But that’s a single point that fails to paint the entire picture.


When I bought Lockheed, it was paying maybe 1%. Not only is the share value up over 430%, but it’s now paying over 13% on cost.
It’s not some sideways-moving stock with an unhealthy outsized payout ratio. It’s a dividend raiser.
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Re: Dividend Growth Investing

Post by mathjak107 » Tue Dec 31, 2019 8:46 am

a good stock is a good stock no matter how it's total return is made up .
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Re: Dividend Growth Investing

Post by dualstow » Tue Dec 31, 2019 9:29 am

No argument there.
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Re: Dividend Growth Investing

Post by dualstow » Fri Jan 10, 2020 7:51 am

Dividend Payouts Are Poised to Top $500 Billion for the First Time This Year
https://www.wsj.com/articles/dividend-p ... 1578599555
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Re: Dividend Growth Investing

Post by mathjak107 » Fri Jan 10, 2020 10:00 am

stock buy backs likely would have compounded investors capital better
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Re: Dividend Growth Investing

Post by mathjak107 » Sat Jan 11, 2020 3:00 am

zenith is a perfect example of why stock buy backs not only compound investors money better than dividends but it is better for employees too .

all those now ex employees at zenith only wish zenith had bought back more of their stock .

a hostle take over by a foreign company ended up having american operations shut down , the name kept and all operations moved off shore with a massive layoff here ..

had the company owned the majority of it's stock that would not have happened . this is a story that repeats over and over .
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