Anyone Else Only Buying Dividend Stocks?

[Retired To Win]

Glad you were able to find something that worked for you. For me, I just invest in a diversified portfolio of low cost mutual funds and ETFs. I invest on a monthly basis and ignore what the market is doing on a day-to-day basis since it has little effect on me. I am of the belief that you buy and hold for the long term.

So far, it's been working great for me.

Good for you. There's more than one way to skin a cat. (Poor cat! )

[bigdaddybus]

Recently, after a discussion with my father regarding my parents income streams in retirement I have become more interested in dividend investing. Basically they have his social security, her social security, her pension, dividend income of $7500 per qtr, along with savings and retirement accounts (my dad took a lump sum buyout for his pension).

Right now I own 2 dividend paying funds in my non retirement brokerage account. My plan is to add approx 10-15K to this account each year for the next several years. I currently hold PHK and IXP. I plan to accumulate 6-9 dividend paying stocks, ETFs, or closed end funds in this account to build a decent income stream. (currently $1000 per yr)

[97guns]

Recently, after a discussion with my father regarding my parents income streams in retirement I have become more interested in dividend investing. Basically they have his social security, her social security, her pension, dividend income of $7500 per qtr, along with savings and retirement accounts (my dad took a lump sum buyout for his pension).

Right now I own 2 dividend paying funds in my non retirement brokerage account. My plan is to add approx 10-15K to this account each year for the next several years. I currently hold PHK and IXP. I plan to accumulate 6-9 dividend paying stocks, ETFs, or closed end funds in this account to build a decent income stream. (currently $1000 per yr)

my dad bought nothing but dividend stocks, mostly hawaiian electric. lived fully retired for 40 years off dividends along with his $800 SS and measly $200 pension

[bjl584]

As part of a well balanced breakfast, I like dividend stocks. I opened an IRA for my wife and I and just buy dividend stocks in them. So far I just have O which returns a nice 4.5% dividend and has also gone up 7% in stock price. So that's a win, win. Plan to add some more later this year. Maybe some PG, KO, JNJ, XOM, MCD or PEP. All long term solid dividend payers. Not in the 10% class (more like 2.5% to 4%), but still better than any savings or CD rates. And since these are long term investments, then time should allow them the stock price to rise as well. We'll see.

I'm a lot more comfortable doing this than investing in bond funds. Bond funds scare me for some reason. Maybe I don't understand the real risk and how to analyze how much risk a particular bond fund is carrying. That scares me.

Tom

If interest rates go up, which they will eventually, some of these dividend payers will get hurt as investors shift out of riskier assets. (Why take a chance with a stock paying 2.5% when you can get the same interest rate in a bank account?)

When rates rise the smart money will be in bonds. Keep an eye on the bond market in the next year or so.

[bigdaddybus]

If interest rates go up, which they will eventually, some of these dividend payers will get hurt as investors shift out of riskier assets. (Why take a chance with a stock paying 2.5% when you can get the same interest rate in a bank account?)

When rates rise the smart money will be in bonds. Keep an eye on the bond market in the next year or so.

humm, buying "O" (which I had never heard of before reading it here) has paid its monthly dividend 44 years in a row, has increasing revenue growth for the past 5 years, and its all over the news that more people and companies are renting vs buying. Sounds like a much, much, better choice than a savings account to me.

[bjl584]

humm, buying "O" (which I had never heard of before reading it here) has paid its monthly dividend 44 years in a row, has increasing revenue growth for the past 5 years, and its all over the news that more people and companies are renting vs buying. Sounds like a much, much, better choice than a savings account to me.

I said some dividend paying stocks, not all. Re read my post.

Beyond that, any stock is subject to having its share price drop due or macro or micro factors. Even if it is paying a nice dividend you might lose enough of your initial investment that you'll never be able to DCA your way out of it.

[bigdaddybus]

I said some dividend paying stocks, not all. Re read my post.

Beyond that, any stock is subject to having its share price drop due or macro or micro factors. Even if it is paying a nice dividend you might lose enough of your initial investment that you'll never be able to DCA your way out of it.

true, my response was based on the OP stating O was the only one he held.

[bjl584]

true, my response was based on the OP stating O was the only one he held.

Understood.

[corn18]

true, my response was based on the OP stating O was the only one he held.

Diversification takes time. This is the first year I have an IRA. A portfolio of O, PG, KO, JNJ, XOM, MCD and PEP would be a nice addition to my portfolio. Might take a few years to get all of those.

Tom

[feh]

Article on this subject folks might be interested in:

http://www.caniretireyet.com/dividend-stock-investor/