04-28-2015, 09:57 AM
So here is part of the counterintuitive magic of dividend growth investing:
I bought my first shares of IBM in October 2014 and January 2015, at prices of about $162 and $157, respectively. And I caught myself thinking this morning, as I mentioned before, that I wished I had bought a little more -- with the price over $170 at the moment.
But as a DG investor, it is important to consider the cost that I am paying for the income stream. With today's dividend increase announcement, and a new yield of over 3 percent, IBM is cheaper now than when I bought previously -- relative to the income stream it generates. Those earlier purchases were at yields of 2.7 and 2.8 percent or so.
I bought my first shares of IBM in October 2014 and January 2015, at prices of about $162 and $157, respectively. And I caught myself thinking this morning, as I mentioned before, that I wished I had bought a little more -- with the price over $170 at the moment.
But as a DG investor, it is important to consider the cost that I am paying for the income stream. With today's dividend increase announcement, and a new yield of over 3 percent, IBM is cheaper now than when I bought previously -- relative to the income stream it generates. Those earlier purchases were at yields of 2.7 and 2.8 percent or so.