Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Re: Dividend Stocks in place of Bonds
Old 05-13-2007, 11:49 PM   #21
Dryer sheet wannabe
 
Join Date: May 2007
Posts: 11
Re: Dividend Stocks in place of Bonds

Quote:
Originally Posted by 3 Yrs to Go
The graph only shows change in price, so yield would be incremental to that. Average annual returns (including distributions) for the Nuveen funds are:

JPZ: 6.04% (from inception 10/2004)
JLA: 6.24% (from inception 5/2005)
JSN: 5.77% (from inception 1/2005)

These returns seem lower than I would have guessed. Not sure why.


I'd think they should outperform in down markets and underperform in up markets. In down markets the portfolio benefits from the premiums on the unexercised calls sold. And in up markets equity returns above the strike price gets called away.
They should also outperform in a flat market or if it is in a tight trading range. I like to write covered calls and naked puts when the premium is interesting although i would consider it more in between investing and gambling
__________________

__________________
Islandboy is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Dividend Stocks in place of Bonds
Old 05-14-2007, 06:54 AM   #22
Thinks s/he gets paid by the post
saluki9's Avatar
 
Join Date: Feb 2005
Posts: 2,032
Re: Dividend Stocks in place of Bonds

Quote:
Originally Posted by Islandboy
They should also outperform in a flat market or if it is in a tight trading range. I like to write covered calls and naked puts when the premium is interesting although i would consider it more in between investing and gambling
yup, a flat market is when the do very well. In falling markets the income from the unexercised calls is not usually enough to offset the losses in the equity portion.

__________________

__________________
saluki9 is offline   Reply With Quote
Re: Dividend Stocks in place of Bonds
Old 05-14-2007, 05:22 PM   #23
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Gone4Good's Avatar
 
Join Date: Sep 2005
Posts: 5,381
Re: Dividend Stocks in place of Bonds

Quote:
Originally Posted by Islandboy
They should also outperform in a flat market or if it is in a tight trading range.
Agreed.
__________________
Retired early, traveling perpetually.
Gone4Good is offline   Reply With Quote
Re: Dividend Stocks in place of Bonds
Old 05-14-2007, 08:30 PM   #24
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Dividend Stocks in place of Bonds

Quote:
Originally Posted by ats5g
I think the author of this intended to create a fairly unpleasant sounding scenario, but I read it as "decide to follow up on a potentially good idea, fail to diversify or understand your investments, then feel woeful when short term issues arise."

I guess theres a handful of things to consider.

1) Producing an income to pay the bills and have a pleasant life
2) Protecting your investments from excessive loss
3) Volatility levels you can live with
4) Producing satisfactory growth of your investments to maintain your lifestyle and offset your personal rate of inflation

To me, bonds just strike out on #4. You're playing to not lose too badly, but lose you will.

I also miss out on the concept of putting 20-25% of your money into TIPS/equiv and calling that inflation protection. You've protected a small portion, no more. And you'll earn crappy rates of return excepting the brief periods of very high inflation. Which a lot of prognosticators (yeah, I know) feel arent in our future.

Stocks suck on #3, unless you're in it for the long haul in which case its almost irrelevant.

IMO, a year or two in cash and cd's, the rest in value stocks that pay a nice dividend, hang on for 20+ years, and you're going to accomplish all four objectives far better in the long run. Especially with the tax treatment that qualified dividends receive at this time.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: Dividend Stocks in place of Bonds
Old 05-14-2007, 08:40 PM   #25
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Gone4Good's Avatar
 
Join Date: Sep 2005
Posts: 5,381
Re: Dividend Stocks in place of Bonds

Quote:
Originally Posted by Cute Fuzzy Bunny
IMO, a year or two in cash and cd's, the rest in value stocks that pay a nice dividend, hang on for 20+ years, and you're going to accomplish all four objectives far better in the long run. Especially with the tax treatment that qualified dividends receive at this time.
This strategy certainly can work, but I think it is the rare individual who will stick with it through a long bear market.
__________________
Retired early, traveling perpetually.
Gone4Good is offline   Reply With Quote
Re: Dividend Stocks in place of Bonds
Old 05-14-2007, 08:46 PM   #26
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Dividend Stocks in place of Bonds

Agreed.

Its also a common individual who socks too much into low return, low volatility investment products and slowly bleeds to death over a period of decades, reducing their lifestyle to suit.

So brass balls or death by a thousand small cuts...its really a basic psychology item...playing to win or playing to avoid losing badly.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: Dividend Stocks in place of Bonds
Old 05-14-2007, 10:38 PM   #27
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,450
Re: Dividend Stocks in place of Bonds

Quote:
Originally Posted by Cute Fuzzy Bunny
IMO, a year or two in cash and cd's, the rest in value stocks that pay a nice dividend, hang on for 20+ years, and you're going to accomplish all four objectives far better in the long run. Especially with the tax treatment that qualified dividends receive at this time.
I am with you CFB. Obviously dividend stocks aren't the same as bond, and behave well like stocks. Frankly, I was surprised that the author showed the high dividend stocks didn't outperform during bear markets. This seems counter intuitive and isn't what Speigel has claimed in the past. So now I am I am not sure what to believe.

I do know that my portfolio of dividend stocks is considerable less volatile than the market as whole. I still own both TIPS bonds in IRA and other bonds in my taxable portfolio. The death of a thousand cuts is certainly an issue with bonds. On the other hand the 10% I had in TIPs bonds with real interest rates close to 4% were darn near the only thing that registered gains during late 2000 through 2002. So pyschologically there is some comfort in that.

Obviously, asset allocation is pretty individual choice, do you sleep better know that regardless of what happens to the stock market your bonds will provide you with some income, or do you worry more that you will have to cut back on future spending as inflation takes it toll on bonds, or do you simply say I can live on 2.5% real return with TIPs.

Now, I have not experienced my first dividend cut, but right now I like the trade off of the security of income, with likelyhood of keeping up with inflation by growing dividends.
__________________
clifp is online now   Reply With Quote
Re: Dividend Stocks in place of Bonds
Old 05-15-2007, 03:14 AM   #28
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 5,414
Re: Dividend Stocks in place of Bonds

dividend paying stocks are no different than any other stocks except in the minds of investors . they are still stocks. basically the dividend that is payed out is a wash. the stock or fund always drops by the amount paid out. all stock prices on the nyse and american exchange are adjusted downward automatically at the open.

the concept of the dividend goes back to the markets early days when after the crash in 29 investors were distrustful of companies holding all the profits in their own pockets and were happier with companies that put some profits in the investors pockets too where it was safe form mis-use .

there are many great companies that dont send away the company assets in the form of a payout ,ala berkshire, microsoft ,apple etc.

non the less the stage was set and people began to look at this payout as a bonus. it really wasnt, it was no different than if you sold 2 or 3% a year of a non dividend paying stock but market mentality always looking for something for nothing put dividend paying stocks on a pedastal and in greater demand so over time they tended to out perform.

if you think about it a company that pays out a dividend is really saying "here we cant find anything better to do with this to grow the company so you take it "..

lets face it great companies are still great companies. ever wonder where altria [MO[ would be priced today if it never paid a dividend?

but it is what it is and investors still put the dividend payors on that pedistal, and the better ones still out perform . go figure
__________________
mathjak107 is offline   Reply With Quote
Re: Dividend Stocks in place of Bonds
Old 05-15-2007, 03:42 AM   #29
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2007
Posts: 5,072
Re: Dividend Stocks in place of Bonds

Some companies take the dividend approach instead of the growth approach. In other words, they are in effect saying we (the company) are making money and do not feel that we can best employ the extra profits as investments that will grow the company over and above what you the owner could do with the money yourself so we (the company) will return the profits to you.

The growth company feels that the prospects of reinvesting the profits in new ventures will grow the share price faster.

I like getting dividends, it enables me to redeploy the money into other areas if I choose (provided there is good tax treatment on divs). This is especially attractive as I look toward retirement.

However, I wold still view equity as an equity investment. It has that basic equity risk profile. Bonds have a different risk profile.
__________________
chinaco is offline   Reply With Quote
Re: Dividend Stocks in place of Bonds
Old 05-15-2007, 09:21 AM   #30
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Dividend Stocks in place of Bonds

Quote:
Originally Posted by clifp
On the other hand the 10% I had in TIPs bonds with real interest rates close to 4% were darn near the only thing that registered gains during late 2000 through 2002. So pyschologically there is some comfort in that.
If I could buy those, I would. If I had them, i'd keep them!

Quote:
or do you simply say I can live on 2.5% real return with TIPs.
Theres enough material that says you cant maintain a survivable scenario at less than 4% after taxes. And then again, since I dont work, own a home vs rent, pay for health care and do all sorts of other things that have no resemlance to the CPI-U scenario, I cant count on CPI-U indexed securities to produce anything 'real' other than perhaps in a hand grenade sense. An old world war II hand grenade thats pretty rusty and was buried in the ground for 20 years.

Quote:
Now, I have not experienced my first dividend cut, but right now I like the trade off of the security of income, with likelyhood of keeping up with inflation by growing dividends.
Which is why you avoid seriously 'dented' companies or buy these equities in a fund such that a bad apple or two doesnt have much effect on you.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: Dividend Stocks in place of Bonds
Old 05-15-2007, 01:44 PM   #31
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,617
Re: Dividend Stocks in place of Bonds

Quote:
Originally Posted by mathjak107
basically the dividend that is payed out is a wash. the stock or fund always drops by the amount paid out. all stock prices on the nyse and american exchange are adjusted downward automatically at the open.
You need to state a reference to back up your opinion.

In the past you've quoted a rule that says open orders are adjusted by the amount of the dividend (which protects people with tight sell stops or limit buy orders) but you've been unable to show a credible source for your speculative statement on how the market works.

I'd be happy to learn about such a rule adjusting ex-dividend prices at the open, but IMO there is no such rule. It's just market-makers matching up the orders. The stock's opening price may coincidentally drop by the dividend amount-- but it could also drop more, drlp less, stay flat, or rise. There's no legislation affecting it, and you're confusing correlation with causality.
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Re: Dividend Stocks in place of Bonds
Old 05-15-2007, 03:43 PM   #32
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Location: Los Angeles area
Posts: 1,432
Re: Dividend Stocks in place of Bonds

Quote:
Originally Posted by Nords
You need to state a reference to back up your opinion.

In the past you've quoted a rule that says open orders are adjusted by the amount of the dividend (which protects people with tight sell stops or limit buy orders) but you've been unable to show a credible source for your speculative statement on how the market works.

I'd be happy to learn about such a rule adjusting ex-dividend prices at the open, but IMO there is no such rule. It's just market-makers matching up the orders. The stock's opening price may coincidentally drop by the dividend amount-- but it could also drop more, drlp less, stay flat, or rise. There's no legislation affecting it, and you're confusing correlation with causality.


http://www.investopedia.com/articles...plications.asp

"Another price that is usually adjusted downward is the purchase price for
limit orders. Because the downward adjustment of the stock price might
trigger the limit order, the exchange also adjusts outstanding limit orders.
The investor can prevent this if his or her broker permits a do not reduce
(DNR) limit order. Note, however, that not all exchanges make this
adjustment. The U.S. exchanges do, but the Toronto Stock Exchange, for
example, does not."


Also, it is the previous days closing price which is adjusted for ex-dividends,
about 1-2 hours before market open (at least in the US), not the open. This
allows for the "net change" to exclude the effect of the dividend when
being calculated.
__________________
learn, work, save, invest, fire
CyclingInvestor is offline   Reply With Quote
Re: Dividend Stocks in place of Bonds
Old 05-15-2007, 03:57 PM   #33
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,617
Re: Dividend Stocks in place of Bonds

Quote:
Originally Posted by CyclingInvestor
http://www.investopedia.com/articles/stocks/07/dividend_implications.asp

"Another price that is usually adjusted downward is the purchase price for
limit orders. Because the downward adjustment of the stock price might
trigger the limit order, the exchange also adjusts outstanding limit orders.
The investor can prevent this if his or her broker permits a do not reduce
(DNR) limit order. Note, however, that not all exchanges make this
adjustment. The U.S. exchanges do, but the Toronto Stock Exchange, for
example, does not."

Also, it is the previous days closing price which is adjusted for ex-dividends,
about 1-2 hours before market open (at least in the US), not the open.
Exactly. Just to be clear on the subject, what mathjak is hypothecating is that a stock's price is dropped at (or, OK, before) the following open after it goes ex-dividend. Mathjak, correct me if I'm not saying this in the manner you intended.

For example Eagle Bulk Shipping (EGLE) would have closed on Wednesday 2 May at $21.80, coughed out a 50-cent/share dividend that night, and opened Thursday at $21.30. However the Thursday open was $22.14... and if the ex-dividend date of 3 May meant the dividend was disbursed after Thursday's close of $22.04, then it should have opened Friday at $21.54. However it opened at $22.34.
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Re: Dividend Stocks in place of Bonds
Old 05-15-2007, 04:03 PM   #34
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,450
Re: Dividend Stocks in place of Bonds

Mathjack couple of comments. First Microsoft pays a dividend currently $.10/qtr which has increased from $.08/quarter in 2005.

"if you think about it a company that pays out a dividend is really saying "here we cant find anything better to do with this to grow the company so you take it "..

That is one interpretation. The other is we are so confident about our business that we want to return some of the profits to our owners.

Remember, over the very long term the only reason to own a shares in any company is the prospect of future cash-flow. These future cash flows come in the form of liquidation (which is often a bad thing) or a dividend payment.

__________________
clifp is online now   Reply With Quote
Re: Dividend Stocks in place of Bonds
Old 05-15-2007, 04:13 PM   #35
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Location: Los Angeles area
Posts: 1,432
Re: Dividend Stocks in place of Bonds

Quote:
Originally Posted by Nords
For example Eagle Bulk Shipping (EGLE) would have closed on Wednesday 2 May at $21.80, coughed out a 50-cent/share dividend that night, and opened Thursday at $21.30. However the Thursday open was $22.14... and if the ex-dividend date of 3 May meant the dividend was disbursed after Thursday's close of $22.04, then it should have opened Friday at $21.54. However it opened at $22.34.
Just to keep confusion down, that dividend payment had an ex- date of April 26.
EGLE closed at 22.74 April 25. EGLE opened at $23.00 on April 26, up $0.76
(23.00 - ($22.74 - $0.50)).
__________________
learn, work, save, invest, fire
CyclingInvestor is offline   Reply With Quote
Re: Dividend Stocks in place of Bonds
Old 05-15-2007, 04:39 PM   #36
Recycles dryer sheets
 
Join Date: May 2006
Posts: 230
Re: Dividend Stocks in place of Bonds

This is issue was already beat to death in this thread:

http://early-retirement.org/forums/i...?topic=9183.75

Mathjak is correct and cited the open order rules there.

And CyclingInvestor is right about it being the ex-dividend date, not the payout date.

All you have to do to confirm this is look at the close and opening prices of a stock around the ex-div date. When I'm buying a stock and I notice it's near the ex-div date I usually just wait and buy it after it goes ex-div since I don't want to pay taxes on what is a non-event in the short term.

An example:
WaMu paid me a dividend today. It went ex-div 4/26. The close on 4/25 was $42.30. The open on 4/26 was $41.65. The dividend was $0.55.
Look at the historical prices:
http://finance.yahoo.com/q/hp?s=WM
__________________
terminator is offline   Reply With Quote
Re: Dividend Stocks in place of Bonds
Old 05-15-2007, 05:37 PM   #37
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Dividend Stocks in place of Bonds

I think what Nords is pointing out is that while the stock price is 'adjusted' to accommodate the reduction in value accorded to the dividend paid, the actual bid/sell prices being used 1.2ms after the market is officially open are set by buyers and sellers and need (and usually do) bear little or no resemblance to the "official" opening price.

Which is the basis of the rift between people who think they can figure out the market and those who know they cant. Short term movements are based on peoples interest and group psychology, not on anything numeric or calculable.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: Dividend Stocks in place of Bonds
Old 05-15-2007, 06:26 PM   #38
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Gone4Good's Avatar
 
Join Date: Sep 2005
Posts: 5,381
Re: Dividend Stocks in place of Bonds

The more relevant point on dividend policy is not how market makers adjust opening prices, but whether paying dividends increases shareholder returns.

There is much corporate finance literature, beginning I think with the "Miller Modigliani Theorem" that dividend policy does not matter. Exceptions include things like differences in tax rates between dividends and capital gains - if any, capital markets financing friction, and the like. Some of these items, like financing costs, may actually work against the dividend paying firm.

There is also a line of thinking that dividend policy "signals" management's confidence in the company and is valuable in a world with asymmetric information. Such a signaling mechanism could be seen as enhancing the valuation of dividend paying firms. I don't think this theory has a wide academic following, but it is a view.

But the bottom line is that absent differences in tax treatment investors should be indifferent to whether a given company pays a dividend or not.

I side with Mathjack on this.


Here is a text book example of why dividend policy is irrelevant
Quote:
A Proof of Dividend Irrelevance
To provide a formal proof of irrelevance, assume that LongLast Corporation, an
unlevered firm manufacturing furniture, has operating income after taxes of $ 100
million, growing at 5% a year, and that its cost of capital is 10%. Further, assume that
this firm has reinvestment needs of $ 50 million, also growing at 5% a year, and that
there are 105 million shares outstanding. Finally, assume that this firm pays out residual
cash flows as dividends each year. The value of LongLast Corporation can be estimated
as follows:

Free Cash Flow to the Firm = EBIT (1- tax rate) Reinvestment needs = $ 100 million - $ 50 million = $ 50 million
Value of the Firm = Free Cash Flow to Firm (1+g) / (WACC - g) = $ 50 (1.05) / (.10 - .05) = $ 1050 million
Price per share = $ 1050 million / 105 million = $ 10.00

Based upon its cash flows, this firm could pay out $ 50 million in dividends.
Dividend per share = $ 50 million/105 million = $ 0.476
Total Value per Share = $ 10.00 + $ 0.48 = $10.476

The total value per share measures what stockholders gets in price and dividends from
their stock holdings.

Scenario 1: LongLast doubles dividends
To examine how the dividend policy affects firm value, assume that LongLast
Corporation is told by an investment banker that its stockholders would gain if the firm
paid out $ 100 million in dividends, instead of $ 50 million. It now has to raise $ 50
million in new financing to cover its reinvestment needs. Assume that LongLast
Corporation can issue new stock with no issuance cost to raise these funds. If it does so,
the firm value will remain unchanged, since the value is determined not by the dividend
paid but by the cash flows generated on the projects. Since the growth rate and the cost of
capital are unaffected, we get:

Value of the Firm = $ 50 (1.05) / (.10 - .05) = $ 1050 million

The existing stockholders will receive a much larger dividend per share, since dividends
have been doubled:

Dividends per share = $ 100 million/105 million shares = $ 0.953

In order to estimate the price per share at which the new stock will be issued, note that
after the new stock issue of $ 50 million, the old stockholders in the firm will own only
$1000 million of the total firm value of $ 1050 million.
Value of the Firm for existing stockholders after dividend payment = $ 1000 million
Price per share = $ 1000 million / 105 million = $ 9.523

The price per share is now lower than it was before the dividend increase, but it is exactly
offset by the increase in dividends.

Value accruing to stockholder = $ 9.523 + $ 0.953 = $ 10.476

Thus, if the operating cash flows are unaffected by dividend policy, we can show
that the firm value will be unaffected by dividend policy and that the average stockholder
will be indifferent to dividend policy, since he or she receives the same total value (price
+ dividends) under any dividend payment.
__________________
Retired early, traveling perpetually.
Gone4Good is offline   Reply With Quote
Re: Dividend Stocks in place of Bonds
Old 05-15-2007, 06:43 PM   #39
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,617
Re: Dividend Stocks in place of Bonds

Quote:
Originally Posted by terminator
This is issue was already beat to death in this thread:

http://early-retirement.org/forums/i...?topic=9183.75

Mathjak is correct and cited the open order rules there.

And CyclingInvestor is right about it being the ex-dividend date, not the payout date.
Yes, I agree that the subject was beaten to death.

And I stand corrected on the ex-div dates.

But all I'm asking for is someone to point me to a rule that clearly states what mathjak is claiming happens. I understand the open-order stuff, but that has to do with open bids to buy at a certain price. I haven't ever seen anything applicable to the ask price, and since as CFB says it changes from one msec to the next, I suspect that there isn't any "rule" for ask prices because it's just unecessary.

Change of subject: The reason I value dividends, especially for international stocks, is because it's difficult to lie about them. If a company's borrowing to cover their dividend then it's pretty darn hard to hide that. And cutting the dividend sends a much clearer signal than insider buying, stock option executions, or any other noise coming from the executive suite.
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Re: Dividend Stocks in place of Bonds
Old 05-15-2007, 06:53 PM   #40
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 5,414
Re: Dividend Stocks in place of Bonds

however adjusting the bids by the amount of the dividend works the bottom line is it works. the open is set just before trading at that reduced level by exactley the amount of the dividend. after that market action takes control and moves the stock lower or higher depending on the days action. point is whatever the exchages do it works.
__________________

__________________
mathjak107 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Bonds vs Dividend stocks wallygator69 FIRE and Money 1 01-27-2006 02:33 PM
Swedroe comments on buying individual stocks. Nords FIRE and Money 27 10-12-2005 10:20 PM
Question on Dividend Stocks or Funds modhatter FIRE and Money 43 10-03-2005 10:11 AM
Dividend Stocks? SteveR FIRE and Money 32 08-27-2005 11:17 AM
The Scoop on High Yield Bonds Ted FIRE and Money 9 12-04-2003 01:03 PM

 

 
All times are GMT -6. The time now is 05:33 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.