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truthisntstupid (96.13)

February 2010



Dividend Growth, Time, And Cherry Picking

February 24, 2010 – Comments (26) | RELATED TICKERS: PEP , CVX , CLX

It was embarassing.  In response to a debate about the value of dividend growth, I used PG as an example of how long-term, persistent dividend growth benefits a long term dividend investor.  I wanted to go back an even 20 years, so I went to Yahoo!Finance and looked up the price of PG at the close of Feb 1990.  Using that share price as a starting point, I then scrolled back up through PG's history and determined there had since Feb 1990 been 3 share splits.  Those 100 shares bought for $6388 had over time become 800 shares paying $1408 in dividends annually today, for a yield on cost of 22%.   [more]



Dividends vs Capital Appreciation and Independence From The Herd

February 21, 2010 – Comments (49)

I'm bored.  So I thought maybe I would try again to explore why some of us prefer income to capital appreciation.   I've tried before.  I think I can do better this time.   First off, why do stock prices fluctuate?  What drives changes in share prices?   Suppose a company takes off and revenues and earnings start trending sharply upward.  Fine.  But the share price doesn't respond directly to that.  The share price starts climbing when enough of the herd finds out and more people want to buy it.  Nothing moves share prices by itself.   Some very large investors can buy or sell enough shares to momentarily affect the price, but by and large the herd determines the share price.    Whether the herd is responding to a great quarter or a disaster, or recent press release, the most direct driver of the share price is the interaction of buyers and sellers in a market folks like us have no control over.  [more]



Here you are, Hypnotoad cult! It's the AIR CLEANER GUY!!!

February 16, 2010 – Comments (0) | RELATED TICKERS: AIR


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