Comments on: Dividend Income vs. MMA

By: Dividends4Life

Dividends4Life — Tue, 07 Jul 2009 00:31:07 +0000

Mike: The "share price appreciation is not considered" is not the expected result, but just the most conservative. In my latest D4L-Prescreen.xls model, I run a scenario that assumes share price growth = dividend growth. It produces the highest value. Best Wishes, D4L

By: Mike

Mike — Mon, 06 Jul 2009 22:57:06 +0000

Ignoring share price appreciation seems bizarre. You assume dividends will grow at a certain rate and at the same time you assume the price of the stock will be constant? Surely if the dividend actually increases as you expect, the share price will also increase … otherwise the yield available to a new (future) buyer would be extremely high.

By: Dividends4Life

Dividends4Life — Sat, 17 Jan 2009 18:56:00 +0000

Anon: I use the highest paying rate of the the 4 MMA that I hold (AmTrust, ING, CapitalOne Emigrant Direct).

Thanks for stopping by.
D4L

By: Anonymous

Anonymous — Fri, 16 Jan 2009 05:15:00 +0000

For your MMA rate which AM Trust rate do you use? The 9Month CD rate that they highlight on the page you link to?

Excellent site by the way!

By: Dividends4Life

Dividends4Life — Mon, 20 Oct 2008 00:52:00 +0000

Russ: It is done on a dollar basis looking at the yield and yield growth, where price is irrelevant. If you would like to see the model, click on Tools in the menu bar above and download D4L-Prescreen.xls.

Best Wishes,
D4L

By: Russ Krull

Russ Krull — Sun, 19 Oct 2008 22:13:00 +0000

If I read it correctly, your method ignores share price appreciation, but assumes dividends are reinvested. How do you determine the price for reinvesting dividends?

By: Anonymous

Anonymous — Thu, 10 Jul 2008 17:33:00 +0000

What most of you fail to comprehend is the fact that FDIC is a house of cards. When the Regional Banks begin to fail, FDIC willl go down the tubes. Look at the financial health of the United States and ask yourself the question how can the politicians prevent anything…..our country is broke and doesn’t know it.

By: Dividends4Life

Dividends4Life — Tue, 15 Apr 2008 01:53:00 +0000

TheLocoMono: Mathematically, splits have no effect on the stock (more shares worth less per share). There is usually a small short-term boost in the stocks price once a split is announced. This highlights the fact the share price has grown and management is confident it shouldn't fall below their target price. Most companies have a preferred trading range for liquidity purposes.

Constant dividend increases are a dividend investors best friend. They are the building blocks for a financially secure future.

Best Wishes,
D4L

By: TheLocoMono

TheLocoMono — Mon, 14 Apr 2008 19:44:00 +0000

I admit I don’t know much about dividend stocks but ever since I got several shares of dividend stocks as a gift, I have been learning a little bit here and there about dividend stocks. My experience with my stocks has been two fold, splits and constant dividend increases.

I don’t know how much of a factor splits plays into my observations but with steady dividend increases, it certainly warrants additional investigation into how it can assit me with a long-term strategy.