Comments on Dividends4Life: What To Do With A Dividend Freeze?

Mark: As a dividend investor I am looking for stea...

2008-11-06T07:02:00.000-06:00

Mark: As a dividend investor I am looking for steady performers - stocks that create an ever increasing dividend stream. Valuation only plays in on the buy side (I want to buy cheap stocks).

Yield is not the main focus, growing dividends is. Over time growing dividends beats out current yield.

Best Wishes,
D4L

I don't understand why you put a stock like Home D...

2008-11-06T01:40:00.000-06:00

I don't understand why you put a stock like Home Depot on the shelf and even sell it at depressed prices just bc of a flat or decreased payout. I guess I don't see stocks as dividends first though. If your looking for dividend income from stocks your return in the stock seems as important to me. I mean Home Depot will no doubt bounce back when housing recovers and if you take the long-term view

Assetologist: Excellent points. Thanks for sharing...

2008-11-04T19:25:00.000-06:00

Assetologist: Excellent points. Thanks for sharing your thoughts!

Best Wishes,
D4L

Excellent discussion.

In a pure and disci...

2008-11-03T19:02:00.000-06:00

Excellent discussion.

In a pure and disciplined dividend-growth portfolio like you describe, I think you are correct in cutting loose the stock after one year of dividend stagnation. The only caveats in my mind are whether there are better competing opportunities for your dollars and whether holding the dividend is part of a responsible plan that will allow the company to emerge much

Dividend Tree: There is definitely more than one p...

2008-11-03T18:35:00.000-06:00

Dividend Tree: There is definitely more than one path to a winning portfolio! :)

Best Wishes,
D4L

While making such a decision, one of the issue tha...

2008-11-03T15:03:00.000-06:00

While making such a decision, one of the issue that I always struggle with (and continue to do so) is how to balance dividend growth with capital loss/appreciation. I maintain two portfolios viz., dividend portfolio (for cash flow) and value portfolio (for capital appreciation). Dividend cutters are absolutely “no” in dividend portfolio (same as many of us dividend investors). But to sell them (

Anon: Yes, I would consider a stock that held its ...

2008-11-03T07:03:00.000-06:00

Anon: Yes, I would consider a stock that held its dividend flat for one year once it showed that was a one-off event. It is hard to make money trading stocks, so if a stock can earn a hold and improve its situation, then I am better off not selling it.

Each of your points are valid and something I have wrestled with. Experience may change my mind in the future.

Best Wishes,

Would you buy a stock with a dividend that does no...

2008-11-03T02:29:00.000-06:00

Would you buy a stock with a dividend that does not increase? Probably not if you are looking for dividend growth. If that's the case, why would you not sell a stock which has ceased increasing its dividend? A freeze doesn't mean that a cut is coming but it's definitely not good news. Waiting for a dividend cut will often cost you a great deal of money. I think that holding a stock that has

Nurseb911: Agreed, putting the stock on the does p...

2008-10-28T12:38:00.000-05:00

Nurseb911: Agreed, putting the stock on the does present a downside if the the stock survives. To answer your quest, I would put PG on the shelf if it froze its dividend. I must not lose focus on the goal of my income portfolio. Some of these might be a candidate for my capital appreciate portfolio.

Jae Jun: It didn't make it through my pre-screen. It has only increased its dividend 4

D4L,

Have you ever done an analysis on Amer...

2008-10-28T11:14:00.000-05:00

D4L,

Have you ever done an analysis on American Express? I tried searching but nothing came up.

I believe it's finally come down to value territory and the yield is currently at 3% which could make for a nice dividend.

I can see the downside though of not adding to tho...

2008-10-28T08:51:00.000-05:00

I can see the downside though of not adding to those positions on weakness if you view the company as a superior dividend growth stocks over the long-term. HD, GE and RY obviously have some pressure on them currently due to the markets they operate in or because of one or more of their functioning units, but if PG were to freeze due to a large acquisition, would you put it on the shelf too?