tag:blogger.com,1999:blog-2371295367923834063.post6639876878483693720..comments2008-05-06T21:20:05.702-05:00D4Lnoreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2371295367923834063.post-44017214856983270942008-05-06T21:20:00.000-05:002008-05-06T21:20:00.000-05:00

Dividend Tree: Yes, my assumption is always that dividends are reinvested. <BR/><BR/>Dividend Tree and Carolus Rex: You are both correct in that the risk is on both sides. That's why I said a "good" dividend company. :)<BR/><BR/>Best Wishes,<BR/>D4L

Dividends4Lifehttp://www.dividends4life.comnoreply@blogger.comtag:blogger.com,1999:blog-2371295367923834063.post-66945244265598242008-05-06T10:10:00.000-05:002008-05-06T10:10:00.000-05:00

D4L,<BR/><BR/>I am assuming dividend compounding includes dividend reinvestment. You brought out a very good point that stock price will appreciate to keep yield constant. Although the risk is on both sides (+/-), but is on lower side and worth taking it. <BR/><BR/>Excellent post!<BR/><BR/>DT

Dividend Treehttp://www.blogger.com/profile/01158365117506993948noreply@blogger.comtag:blogger.com,1999:blog-2371295367923834063.post-87062655142150099222008-05-06T08:23:00.000-05:002008-05-06T08:23:00.000-05:00

Nice post!<BR/><BR/>The trick, of course, is to stay clear of dividend cuts. By the same logic a dividend cut will force the price of the stock down... :-(<BR/><BR/>Best,<BR/><BR/>Carolus

Carolus Rexnoreply@blogger.com