Comments on: Auto Pilot Engaged, Sir! http://dividendsvalue.com/1266/auto-pilot-engaged-sir/ Dividend Investing & Value Investing For A Superior Portfolio Fri, 19 Mar 2010 01:44:04 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: Dividend Growth Investor http://dividendsvalue.com/1266/auto-pilot-engaged-sir/comment-page-1/#comment-2262 Dividend Growth Investor Thu, 24 Apr 2008 13:39:00 +0000 http://dividendsvalue.com/1266/auto-pilot-engaged-sir/#comment-2262 D4L,<br/><br/>Bonds would be helpful to a retiree during a deflationary period like the great depression. I would not consider adding any bonds to my mix untill I have 5-10 years to retirement.<br/>Stocks might cut dividends over time. But at least you could always find new stocks with uninterrupted dividend increases ( XOM hasn't cut its dividend since 1930's, although it did cut it at the end of the depression)<br/>Sometimes I am wondering though, whether dividend achievers/aristocrats are not a byproduct of the booming 1980's and 1990's. <br/>But then research shows clearly that dividend payers almost always outperform non-payers.. D4L,

Bonds would be helpful to a retiree during a deflationary period like the great depression. I would not consider adding any bonds to my mix untill I have 5-10 years to retirement.
Stocks might cut dividends over time. But at least you could always find new stocks with uninterrupted dividend increases ( XOM hasn’t cut its dividend since 1930’s, although it did cut it at the end of the depression)
Sometimes I am wondering though, whether dividend achievers/aristocrats are not a byproduct of the booming 1980’s and 1990’s.
But then research shows clearly that dividend payers almost always outperform non-payers..

]]> By: Dividends4Life http://dividendsvalue.com/1266/auto-pilot-engaged-sir/comment-page-1/#comment-2261 Dividends4Life Thu, 24 Apr 2008 10:58:00 +0000 http://dividendsvalue.com/1266/auto-pilot-engaged-sir/#comment-2261 Brooke: There is no direct liability to a company's customers, but the risk is having to sell all your investments in retirement just to live on. The old "don't outlive your money" problem.<br/><br/>Best Wishes,<br/>D4L Brooke: There is no direct liability to a company’s customers, but the risk is having to sell all your investments in retirement just to live on. The old “don’t outlive your money” problem.

Best Wishes,
D4L

]]> By: Brooke http://dividendsvalue.com/1266/auto-pilot-engaged-sir/comment-page-1/#comment-2260 Brooke Thu, 24 Apr 2008 10:35:00 +0000 http://dividendsvalue.com/1266/auto-pilot-engaged-sir/#comment-2260 This is scary. What sort of liability do the investors hold for the customers? I hope they are paying attention, because I would hate for someone that has been investing their whole life to have to go broke. This is scary. What sort of liability do the investors hold for the customers? I hope they are paying attention, because I would hate for someone that has been investing their whole life to have to go broke.

]]> By: Dividends4Life http://dividendsvalue.com/1266/auto-pilot-engaged-sir/comment-page-1/#comment-2259 Dividends4Life Thu, 24 Apr 2008 02:24:00 +0000 http://dividendsvalue.com/1266/auto-pilot-engaged-sir/#comment-2259 Dividend Growth Investor: I would imagine that bonds would net even be safe in a "Great Depression". <br/><br/>TheLocoMono: There is no set percentage, but for good dividend companies the sum of yield + dividend growth rate nearly always exceeds inflation.<br/><br/>Best Wishes,<br/>D4L Dividend Growth Investor: I would imagine that bonds would net even be safe in a “Great Depression”.

TheLocoMono: There is no set percentage, but for good dividend companies the sum of yield + dividend growth rate nearly always exceeds inflation.

Best Wishes,
D4L

]]> By: TheLocoMono http://dividendsvalue.com/1266/auto-pilot-engaged-sir/comment-page-1/#comment-2258 TheLocoMono Thu, 24 Apr 2008 01:24:00 +0000 http://dividendsvalue.com/1266/auto-pilot-engaged-sir/#comment-2258 How much (in percentage) do they companies pay out dividends above inflation rate?<br/><br/>I am not sure I am wording my question correctly. If that article says the companies raises the dividends above inflation, and let's say inflation is 3%, do the companies generally pay 2% above inflation?<br/><br/>Does that make sense? How much (in percentage) do they companies pay out dividends above inflation rate?

I am not sure I am wording my question correctly. If that article says the companies raises the dividends above inflation, and let’s say inflation is 3%, do the companies generally pay 2% above inflation?

Does that make sense?

]]> By: Dividend Growth Investor http://dividendsvalue.com/1266/auto-pilot-engaged-sir/comment-page-1/#comment-2257 Dividend Growth Investor Wed, 23 Apr 2008 14:09:00 +0000 http://dividendsvalue.com/1266/auto-pilot-engaged-sir/#comment-2257 The scary part about dividends is if we get another "Great Depression" like 1929-1932.<br/>In 1929 the S&P paid $0.97 in dividends. the close for 1929 was $24.86.<br/>In 1933 te S&P paid $0.44 in dividends. The close for 1933 was $7.09. On average you will make 10% from stocks. But year over year fluctuations could definitely deplete your nest egg. That's why some fixed income (at least 20%-25% at retirement) might help you stay diversified.<br/>Untill you reach your desired retirement age though , I would not<br/>recommend investing any money in bonds. The scary part about dividends is if we get another “Great Depression” like 1929-1932.
In 1929 the S&P paid $0.97 in dividends. the close for 1929 was $24.86.
In 1933 te S&P paid $0.44 in dividends. The close for 1933 was $7.09. On average you will make 10% from stocks. But year over year fluctuations could definitely deplete your nest egg. That’s why some fixed income (at least 20%-25% at retirement) might help you stay diversified.
Untill you reach your desired retirement age though , I would not
recommend investing any money in bonds.

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