There are basically four types of people who purchase stocks: the trader, the value investor, the long-term buy and hold investor, and the income stock investor. The trader is a guy who is on amphetamines during the day and steroids at night. Traders are tight as an E string, have the personality of a cobra and makes 20-60 transactions during market hours. They can’t have children, make lousy lovers and sometimes stutter. They either burn out, go broke or get lucky. Many are in counseling. ...
The real winner is the income stock investor. These guys are also long-term investors, but only if an issue pays a dividend. They prefer dividends in excess of 4 percent and issues that regularly grow their dividends, and they reinvest every dividend every quarter. These are the smart, canny, patient investors who understand the “Rule of 72” and are wise enough to know they can’t beat the market. When I was working for Merrill Lynch’em in 1959, an income stock investor I knew told me: “Knowledge is knowing that a tomato is a fruit, and wisdom is not putting that tomato in a fruit salad.” Income stock investors sleep well at night and don’t give a freckle if the Dow is up 300 or down 300 points for the quarter. They are fiscal and political conservatives, patient fathers and good husbands. They recognize in the past 20 years that dividends accounted for nearly half of the 394 percent return of the S&P 500 Index.
Source: The Herald-News
Related Articles:
________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
A good dividend stock has more than a high yield. Dividends need to be supported by cash flow, and cash flow depends on the long-term streng...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
When looking for dividend stocks to invest in, it is advisable to choose companies that have strong dividend histories and stable balance sh...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.