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sagitarius84 (42.64)

Sixteen Dividend Companies focusing on the big picture

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May 11, 2010 – Comments (1) | RELATED TICKERS: CAH , RLI , TAP

As a dividend investor, I purchase quality companies with solid competitive advantages, which can afford to raise dividends for many consecutive years. My holding period is theoretically forever, as long as the companies I own do not cut or eliminate their distributions. As a result my fortunes are closely linked with the underlying fundamentals of the business. If the business does well, I would keep getting paid. If my investments throw off enough income, there is no need to worry about short-term fluctuations in the stock price. Last Thursday’s action in the market, where stock indices fell by 10% in a matter of a few minutes, only to recover most of it a few minutes later, was a strong cause against relying on price returns for living off your portfolio. Focusing on market movements every few seconds is something that should be left to the sophisticated computer trading algorithms operated by investments banks on Wall Street. Dividend investing is more than relevant today, as it is one of the few strategies for main street investors to help them focus on the big picture and build wealth in the process.

During what was a turbulent week in the markets, several companies expressed enough confidence in their long-term prospects to boost distributions: Continue Reading...

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1 Comments – Post Your Own

#1) On May 11, 2010 at 11:56 AM, sagitarius84 (42.64) wrote:

Are you buying dividend stocks on the dip, or do you think we would be seeing lower prices and thus its better to sit on the sidelines?

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