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+--- Thread: 7 Myths about Dividends -Refuted- (/showthread.php?tid=519)
7 Myths about Dividends -Refuted- - Robandcindy2 - 04-30-2014
Excellent article...
7 Myths
Cheers,
Rob
RE: 7 Myths about Dividends -Refuted- - Kerim - 04-30-2014
That is a great read, thanks! I'd like to see some support for the assertion that 57 percent of dividend payers cut or eliminated in 2009. It was a severe event, but still that sounds high to me.
RE: 7 Myths about Dividends -Refuted- - Robandcindy2 - 05-01-2014
I just focus on how many stocks are Champions or Contenders in David Fish's Spreadsheet. All preserved and increased their dividends ( for those unfamiliar) throughout the 2008 Recession(Depression?).
334 total as of April 30th update. Champions Spreadsheet
RE: 7 Myths about Dividends -Refuted- - cannew - 05-02-2014
Will read the article, but from a Canadian who invests 100% in DG stocks, only one of the twenty DG stocks I held cut their dividend during the financial crisis. Maybe if one included all companies who pay dividends then maybe 57% cut the dividend. As Rob says if they are Champions or good companies it's unlikely they would cut, but rather they may hold off on the increases.
A couple of points:
- Investment funds should be just that and not money one should need to rely on if you need money. Keep savings or backup money separate from investment. Certainly there may be a situation where you must sell investments for personal needs, but it should be a last resort.
- His use of sticking with "Perpetual Dividend Raisers", ones that raise their dividend every year. Yes we want the companies to raise their dividends as often as possible, but I would not sell my holdings of a good company if they had to hold off raising their dividend for good reason. Even the best of companies cannot foresee or plan for every disaster. But good companies may need to suspend or even cut their dividend to cover short term needs. Don't think short term, you bought the stock, hopefully, after researching the companies long term history.