Search found 7 matches

by TheDuker
Mon Jul 17, 2017 4:03 pm
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 21838

Re: Dividend Misunderstandings & Only Spend Return

The problem with articles like that is they contribute to the belief that a dividend is some kind of bonus or reward you get just for holding the stock. There's no mention that the value of your holdings is reduced by the amount of the dividend. A dividend is nothing more than a slice of your equity...
by TheDuker
Mon Jul 17, 2017 12:01 pm
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 21838

Re: Dividend Misunderstandings & Only Spend Return

Yes, dividend enthusiasts are more concerned with the number of shares than the value of those shares. During accumulation, they love to reinvest their dividends and see the number of shares climb. Then during distribution, they love to cash their dividend checks and see the number of shares remain...
by TheDuker
Wed Jul 12, 2017 11:14 am
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 21838

Re: Dividend Misunderstandings & Only Spend Return

Dividend lovers seem to be completely obsessed with the word INCOME, almost like it is a drug to them. Yes, dividend enthusiasts are more concerned with the number of shares than the value of those shares. During accumulation, they love to reinvest their dividends and see the number of shares climb...
by TheDuker
Sat Jul 30, 2016 9:01 pm
Forum: Investing - Theory, News & General
Topic: Investing at stock market highs
Replies: 52
Views: 5617

Re: Investing at stock market highs

Would hate to see a great buying opportunity right after I put my money in. Sure, but this risk is offset by the opportunity cost of sitting on the sidelines. The highs are only called highs because we're looking backwards. A year from now you may kick yourself for not having waited for that big di...
by TheDuker
Tue Jun 14, 2016 3:01 pm
Forum: Investing - Theory, News & General
Topic: The 2.5% yield on the S&P500: a reason to celebrate?
Replies: 22
Views: 3591

Re: The 2.5% yield on the S&P500: a reason to celebrate?

The easiest way to convince yourself that dividends aren't free money is to watch what happens to a company that issues a large special (i.e., one-time) dividend for some reason. This happened over the weekend with MCFT. Yahoo historical price tables helpfully include a column for "adjusted close": ...
by TheDuker
Mon May 23, 2016 7:37 pm
Forum: Investing - Theory, News & General
Topic: What was your first investment?
Replies: 117
Views: 8043

Re: What was your first investment?

It was 1999. A good friend told me technology stocks were printing money and I was a fool not to invest. I opened an ETrade account and bought $2500 of Janus Global Technology (JAGTX). It kept going up and I kept buying more. Many valuable lessons were learned over the next couple of years. :happy
by TheDuker
Sun May 08, 2016 2:00 pm
Forum: Investing - Theory, News & General
Topic: Outrageous Index Funds
Replies: 12
Views: 2540

Re: Outrageous Index Funds

I think part of the "secret" is that some of these funds get bought because they are the only available choices in a 401(k) plan. Exactly right. When my wife started a new job, the 401k plan included PEOPX, an SP500 index fund with a 0.5 ER. She complained, nothing happened. There's no way funds li...