Comments on: Dividend Stocks Role In The Future Recovery

By: Dividends4Life

Dividends4Life — Sat, 24 Jan 2009 00:57:00 +0000

VC: I am not convinced that GE’s dividend will survive. By rule, when a company freezes it dividend, put it “on the shelf” until its dividend policy is clear.

Best Wishes,
D4L

By: VC

VC — Fri, 23 Jan 2009 22:09:28 +0000

What do you think about investing in companies that usually are cyclical but just have been beaten down so much they have high yields. For example GE, has over a 10 percent yield. This stock has already been beaten down so much it probably will not go much lower. This way you get the nice high dividend stock with low risk. But at the same time, when the economy picks up, GE is cyclical so it will go up more than a “defensive” stock. This stock won’t work against you in a bull market. Best of both worlds?

By: Dividends4Life

Dividends4Life — Thu, 22 Jan 2009 04:03:14 +0000

the weakonomist: If all traditional dividend companies take their dividend to zero, we have bigger problems than worrying about dividend income.

Best Wishes,
D4L

By: the weakonomist

the weakonomist — Thu, 22 Jan 2009 04:02:26 +0000

Question for the dividend lovers, what is the back-up plan if the economy worsens and the traditional dividend stocks cut it to 0 in order to save capital?

I’m not hating as I do believe in dividends, but y’all are the experts and I wanted to get your thoughts.

By: Dividends4Life

Dividends4Life — Fri, 16 Jan 2009 04:21:00 +0000

Crawdaddy: Here are several Dividend blogs run by Canadians:

http://www.thedividendguyblog.com/
http://themoneygardener.blogspot.com/
http://www.nurseb911.com/
http://dividendmoney.com/
http://www.traderscorner.ca/blog/2

Chris: I had the same question. Here is a link to the answer:

Canadian Connection

Best Wishes,
D4L

By: Chris

Chris — Thu, 15 Jan 2009 23:47:00 +0000

I have a question. Why does it seem Canadians love dividends so much? I love them too, but there seems to be many Canadian dividend sites, and many readers are Canadian. Is there a large difference in taxation north of the border?

By: crawdaddy

crawdaddy — Thu, 15 Jan 2009 20:14:00 +0000

First off, I want to say that I love your site! dividends4life is such a great resource. Thank you for sharing all your great knowledge and analysis. I was wondering if you knew of any good Dividend investing sites/blogs that focus on Canadian dividend stocks. Thanks again

By: Dividends4Life

Dividends4Life — Thu, 15 Jan 2009 14:19:00 +0000

Niklas: You are correct that dividend reinvestment is paramount in achieving superior long-term returns. When I said “significant bull markets”, I had the DotCom bubble in mind.

Best Wishes,
D4L

By: Niklas Smith

Niklas Smith — Wed, 14 Jan 2009 17:53:00 +0000

If most of stockmarket returns come from reinvesting dividends rather than capital growth of shares (Barclays Equity-Gilt Study – true of the UK at least) then surely dividend shares are likely to beat the market except in bubbles (e.g. Dotcom boom), assuming dividends are reinvested?

By: Dividend Growth Investor

Dividend Growth Investor — Wed, 14 Jan 2009 17:42:00 +0000

I am not a big believer of dividend etfs versus investing in dividend growth stocks on your own. The reason is that many etf’s focusing on dividends could hold on to high yielding stocks which have cut dividends; or just chase highr yields and sell covered calls, or participate in complex dividend arbitrage strategies.
Other reasons why I don’t like dividend etfs is that they are not very diversified sectorwise and most of them are structured to chase high current yield by overweighting higher yielders at the expense of lower yielders.
Last but not least, not all stocks in an etf are bargains at all times.