148 Years Of Dividend Growth Investing

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airahcaz
Posts: 1506
Joined: Sat Oct 31, 2009 3:37 pm

148 Years Of Dividend Growth Investing

Post by airahcaz » Thu Aug 15, 2019 10:46 am

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
1) Invest you must 2) Time is your friend 3) Impulse is your enemy 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course. (Plagiarized, but worth stealing)

FoolMeOnce
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Joined: Mon Apr 24, 2017 11:16 am

Re: 148 Years Of Dividend Growth Investing

Post by FoolMeOnce » Thu Aug 15, 2019 11:01 am

"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
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Re: 148 Years Of Dividend Growth Investing

Post by Sconie » Thu Aug 15, 2019 11:04 am

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.
I know you think you understand what you thought I said but I'm not sure you realize that what you heard is not what I meant. - Alan Greenspan

FoolMeOnce
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Re: 148 Years Of Dividend Growth Investing

Post by FoolMeOnce » Thu Aug 15, 2019 11:17 am

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

Topic Author
airahcaz
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Joined: Sat Oct 31, 2009 3:37 pm

Re: 148 Years Of Dividend Growth Investing

Post by airahcaz » Thu Aug 15, 2019 11:58 am

not my title, it's the title of the article, but I hear you
1) Invest you must 2) Time is your friend 3) Impulse is your enemy 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course. (Plagiarized, but worth stealing)

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Portfolio7
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Re: 148 Years Of Dividend Growth Investing

Post by Portfolio7 » Thu Aug 15, 2019 5:15 pm

FoolMeOnce wrote:
Thu Aug 15, 2019 11:01 am
"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.
"An investment in knowledge pays the best interest" - Benjamin Franklin

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