148 Years Of Dividend Growth Investing

[airahcaz]

Hi - has anyone seen this and analyzed any truth to it, pros and cons, etc.? States a div reinvestor will handily beat the best market timer

https://seekingalpha.com/article/427560 ... -investing

[FoolMeOnce]

"So clearly, the expression about "time in" the market verses "timing the market" is flat out wrong. What matters is not how long you are in the market but how many dividends you reinvest."

This is so dumb. Reinvesting dividends is how you calculate a total return. Dividends take money out of the market unless you reinvest, same as selling shares. Reinvesting dividends is part of time in the market. This article basically says staying in the market beats taking money out of the market at regular intervals. What a groundbreaking idea! And then it even beats taking money out and waiting to reinvest at seven historical dips, whose bottoms night still be higher than when you took the money out.

[Sconie]

Decades ago----long before Vanguard, index funds and the like became dominant----I used to purchase (and follow) Geraldine Weiss' "Investment Quality Trends newsletter, the same which focused on dividend (and to lesser extent, dividend growth) investing. Back in those days, it worked out "okay" for me, with results which were probably equal to about what the overall market was doing, albeit, at a significantly higher transaction costs.

I would be prone to be somewhat leery of the "goods" which Seeking Alpha is "selling." As per the old saw, there is always someone out there with a new, "can't miss," angle.

[FoolMeOnce]

Also, your title makes it seem like this is about dividend growth stocks, though it is not.

[airahcaz]

not my title, it's the title of the article, but I hear you

[Portfolio7]

"So clearly, the expression about "time in" the market verses "timing the market" is flat out wrong. What matters is not how long you are in the market but how many dividends you reinvest."

This is so dumb. Reinvesting dividends is how you calculate a total return. Dividends take money out of the market unless you reinvest, same as selling shares. Reinvesting dividends is part of time in the market. This article basically says staying in the market beats taking money out of the market at regular intervals. What a groundbreaking idea! And then it even beats taking money out and waiting to reinvest at seven historical dips, whose bottoms night still be higher than when you took the money out.

+1

I think he may have even compared real to nominal returns, but got tired of trying to follow his scattered writing style. This article is either written in ignorance or in furtherance of selling his services.