Comments on: Top 10 Reasons For Dividend Investing http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/ A Vancouverite's journey to financial freedom. Fri, 12 Mar 2010 17:27:20 +0000 http://wordpress.org/?v=2.1.2 By: moneygardener (AKA investor99) http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-564 moneygardener (AKA investor99) Tue, 04 Sep 2007 13:05:36 +0000 http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-564 Great post then...great post now..I can't read enought about the strategy because it makes the most sense of anything else that I know of in the investing world... Great post then…great post now..I can’t read enought about the strategy because it makes the most sense of anything else that I know of in the investing world…

]]> By: Rod Payne http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-565 Rod Payne Tue, 04 Sep 2007 22:41:28 +0000 http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-565 Long term math also works in the favour of dividend paying stocks. For example: I bought Fortis (FTS-T) in 2000 for $29.98 per share when its annual dividend was $1.84, i.e 6.13% yield. I bought the stock in a trough purely by accident. Fast forward 7 years. The stock has split 4 to 1 and each of my shares now has an ACB of $7.50 and is trading at a post-split $26.50 or so. Nice. However, the dividend has increased on those shares as well, and now each of those shares with an ACB of $7.50 has an annual dividend of $0.84, i.e 11.2% yield. Damn, I love math! And, as mentioned in the post, those dividends are now tax free and locked up in a DRIP. I can now proudly say that I count myself in the category of "the rich getting richer". Long term math also works in the favour of dividend paying stocks. For example: I bought Fortis (FTS-T) in 2000 for $29.98 per share when its annual dividend was $1.84, i.e 6.13% yield. I bought the stock in a trough purely by accident.

Fast forward 7 years. The stock has split 4 to 1 and each of my shares now has an ACB of $7.50 and is trading at a post-split $26.50 or so. Nice.

However, the dividend has increased on those shares as well, and now each of those shares with an ACB of $7.50 has an annual dividend of $0.84, i.e 11.2% yield. Damn, I love math!

And, as mentioned in the post, those dividends are now tax free and locked up in a DRIP. I can now proudly say that I count myself in the category of “the rich getting richer”.

]]> By: Financial Jungle Guy http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-566 Financial Jungle Guy Tue, 04 Sep 2007 22:47:58 +0000 http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-566 Thank you both for your comments. Rod, what's amazing about your story is that you bought an undervalued dividend paying stock in 2000 while fending off the temptation to buy the tech darlings, such as Nortel and JDS Uniphase. Well done. Thank you both for your comments.

Rod, what’s amazing about your story is that you bought an undervalued dividend paying stock in 2000 while fending off the temptation to buy the tech darlings, such as Nortel and JDS Uniphase. Well done.

]]> By: Rod Payne http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-568 Rod Payne Wed, 05 Sep 2007 01:05:22 +0000 http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-568 Hah! I'd love to take credit for foresight, but it's a function of two things. 1) I've read a lot about Buffett. 2) I'm a dividend investor. The second investing book I bought was titled "Fee Free Investing" and it introduced me to DRIPS. I stayed way from Nortel and JDS and their ilk because I didn't understand the businesses. (Thanks, Warren.) My current holdings include the major banks, a couple income trusts, and Diageo (not an endorsement). Rod Hah! I’d love to take credit for foresight, but it’s a function of two things.

1) I’ve read a lot about Buffett.
2) I’m a dividend investor. The second investing book I bought was titled “Fee Free Investing” and it introduced me to DRIPS.

I stayed way from Nortel and JDS and their ilk because I didn’t understand the businesses. (Thanks, Warren.)

My current holdings include the major banks, a couple income trusts, and Diageo (not an endorsement).

Rod

]]> By: Financial Jungle Guy http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-569 Financial Jungle Guy Wed, 05 Sep 2007 01:08:50 +0000 http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-569 Rod - Don't hold back, man! I don't mind comparing notes with other dividend investors. So, what're the 2 income trusts you own? :) Rod - Don’t hold back, man! I don’t mind comparing notes with other dividend investors.

So, what’re the 2 income trusts you own? :)

]]> By: Rod Payne http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-570 Rod Payne Wed, 05 Sep 2007 04:38:33 +0000 http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-570 I own Cinram and Transforce. The past month has not been nice for me. I own Cinram and Transforce. The past month has not been nice for me.

]]> By: Financial Jungle Guy http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-576 Financial Jungle Guy Thu, 06 Sep 2007 06:50:20 +0000 http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-576 On paper, Cinram's cash-flow statement looks excellent, but I have a couple of concerns: 1. The long-term trend for DVD will likely be less promising. 2. Low barrier to new competitions. I'd invest in something like Inter Pipeline. Long-term outlook is excellent for pipelines and high capital costs will deter new entrants. On paper, Cinram’s cash-flow statement looks excellent, but I have a couple of concerns:

1. The long-term trend for DVD will likely be less promising.
2. Low barrier to new competitions.

I’d invest in something like Inter Pipeline. Long-term outlook is excellent for pipelines and high capital costs will deter new entrants.

]]> By: Rod Payne http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-579 Rod Payne Thu, 06 Sep 2007 14:31:07 +0000 http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-579 Yep, I hear that comment loud and clear. Yep, I hear that comment loud and clear.

]]> By: Cash Money Life - Personal Finance with a Salute to the Military » Weekly Roundup - Popcorn Festival Edition http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-586 Cash Money Life - Personal Finance with a Salute to the Military » Weekly Roundup - Popcorn Festival Edition Sat, 08 Sep 2007 14:17:58 +0000 http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-586 [...] Jungle: Top 10 Reasons for Dividend Investing. I couldn’t have said it better. No seriously, I don’t know much about dividend [...] […] Jungle: Top 10 Reasons for Dividend Investing. I couldn’t have said it better. No seriously, I don’t know much about dividend […]

]]> By: Aaron http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-588 Aaron Mon, 10 Sep 2007 03:35:39 +0000 http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-588 Great post. The tax efficiency is very important and many people do not understand that point. Dividend stocks are generally those with a mature and strong balance sheet, which keeps the risk low. Great post. The tax efficiency is very important and many people do not understand that point. Dividend stocks are generally those with a mature and strong balance sheet, which keeps the risk low.

]]> By: Rod Payne http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-591 Rod Payne Tue, 11 Sep 2007 18:30:43 +0000 http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-591 Coincidentally, this article showed up in one of my news bots today. https://secure.globeadvisor.com/servlet/ArticleNews/story/gam/20070908/STMAIN08 Coincidentally, this article showed up in one of my news bots today.

https://secure.globeadvisor.com/servlet/ArticleNews/story/gam/20070908/STMAIN08

]]> By: Weekly Dividend Investing Roundup - September 21, 2007 http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-606 Weekly Dividend Investing Roundup - September 21, 2007 Fri, 21 Sep 2007 22:20:04 +0000 http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-606 [...] Financial Jungle has written a blog post about what he considers to be the Top 10 Reasons For Dividend Investing. This is similar to a post I did awhile back - it included a number of your suggestions for why [...] […] Financial Jungle has written a blog post about what he considers to be the Top 10 Reasons For Dividend Investing. This is similar to a post I did awhile back - it included a number of your suggestions for why […]

]]> By: pat http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-642 pat Tue, 30 Oct 2007 23:30:46 +0000 http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-642 Wondering does the $66,000 dividend income at no tax apply to every year? Wondering does the $66,000 dividend income at no tax apply to every year?

]]> By: Financial Jungle Guy http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-643 Financial Jungle Guy Tue, 30 Oct 2007 23:32:16 +0000 http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-643 Pat - Yes, it applies to every year. Pat - Yes, it applies to every year.

]]> By: Larry http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-838 Larry Thu, 17 Jan 2008 13:44:03 +0000 http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-838 I have also invested some money in dividends and right now I have started getting benefits from it. And I agree with the reasons for investing in dividends. Really, dividend investment is much cheaper and safer than stock market investment. I have also invested some money in dividends and right now I have started getting benefits from it. And I agree with the reasons for investing in dividends. Really, dividend investment is much cheaper and safer than stock market investment.

]]> By: carvalho http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-1348 carvalho Fri, 18 Apr 2008 18:20:03 +0000 http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-1348 Type your comment here.i`d like to knowthe names of companys that are pay high divident Type your comment here.i`d like to knowthe names of companys that are pay high divident

]]> By: Financial Jungle Guy http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-1349 Financial Jungle Guy Sat, 19 Apr 2008 00:40:31 +0000 http://financialjungle.com/2007/09/04/investing/top-10-reasons-for-dividend-investing-2/#comment-1349 A good place to start is Mergent's Dividend Achievers. http://www.dividendachievers.com/Site/others/constituents.php?id=56&preview= A good place to start is Mergent’s Dividend Achievers.

http://www.dividendachievers.com/Site/others/constituents.php?id=56&preview=

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