- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Someone explain the cons of the dividend strategy
Posted on 11/6/14 at 3:56 pm
Posted on 11/6/14 at 3:56 pm
Before I get too far gone into stocks, I'm looking for a devils advocate to argue against the strategy of investing in top companies that have a solid dividend and history of dividend growth- JNJ, Big oil, KMI, KO, PM, etc...
I am not going to be an investor that actively monitors the market daily, so I really like the strategy of buying and holding VERY LONG term. The strategy of big companies with solid dividends and growth is what I am looking at. Reinvesting the dividends until I get to a point where I can start enjoying the yearly income boost from the portfolio I build up (15-20 years I would imagine).
I know there are some against this strategy. I'd like to hear your reasoning.
I am not going to be an investor that actively monitors the market daily, so I really like the strategy of buying and holding VERY LONG term. The strategy of big companies with solid dividends and growth is what I am looking at. Reinvesting the dividends until I get to a point where I can start enjoying the yearly income boost from the portfolio I build up (15-20 years I would imagine).
I know there are some against this strategy. I'd like to hear your reasoning.
1
Posted on 11/6/14 at 4:38 pm to TigerTatorTots
It's a bad risk adjusted return when compared to an index fund.
That's all there is to it.
That's all there is to it.
Posted on 11/6/14 at 4:39 pm to TheHiddenFlask
Not to hijack here, but what is your favorite "set it and forget it" index fund?
I've got vanguard if that matters.
I've got vanguard if that matters.
Posted on 11/6/14 at 4:48 pm to I Love Bama
If I had to pick one to be in for the rest of my life, it would probably be an S&P 500 index fund. The only true set it and forget it funds are target retirement date funds.
I have about 50% of my 401k in the sp5. I hold no index funds in my IRA's, mostly because my risk tolerance exceeds most index funds right now.
I have about 50% of my 401k in the sp5. I hold no index funds in my IRA's, mostly because my risk tolerance exceeds most index funds right now.
Posted on 11/6/14 at 7:26 pm to I Love Bama
quote:
Not to hijack here, but what is your favorite "set it and forget it" index fund? I've got vanguard if that matters.
If I could only choose one vanguard fund forever, for money I never knew when I might need, but surely would never need all at one time, it would be VWELX or VBIAX. For pure retirement I would go with VTSMX or the appropriate Target Date Fund.
Posted on 11/6/14 at 10:42 pm to TheHiddenFlask
quote:
TheHiddenFlask
I knew your signal went off when I read this thread title
Posted on 11/6/14 at 10:55 pm to TheHiddenFlask
What if I'm young and can take the risk for the extra reward?
Hard to imagine there is a lot of risk with the big time blue chippers though
Hard to imagine there is a lot of risk with the big time blue chippers though
Posted on 11/6/14 at 11:58 pm to TigerTatorTots
quote:
What if I'm young and can take the risk for the extra reward?
Maybe dump tons of money into healthcare funds banking on the assumption that baby boomers + Federal medical spending/Obamacare/etc. will push more and more money into the industry over the next 10-15 years
Posted on 11/7/14 at 6:33 am to TigerTatorTots
You aren't getting extra reward. You're just piling on more risk.
When someone goes out and buys small cap growth stocks, that's juicing up their reward. Blue chips are about as boring as it gets for individual stocks.
When someone goes out and buys small cap growth stocks, that's juicing up their reward. Blue chips are about as boring as it gets for individual stocks.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News