A new article of mine has been published on the investing website Seeking Alpha. The article is entitled Investigating How Stock Price Variability Can Benefit Dividend Growth Investors and it presents the results of random walk simulations of stock price changes over time and their implications for the long-term compounding of a dividend income stream.
Note that my articles appear under the username "Dividend Growth Machine."
Awesome article. You need to continue writing pieces like this, you're talented. It pretty much confirms what I've always thought: buy more when prices are low, a prolonged undervalued market is an advantage in the end. The hard part is staying the course during times of distress and uncertainty.
ReplyDeleteHi Compounding Income,
DeleteThanks! I appreciate your feedback on my writing. I've thought the same thing about the advantage of prolonged undervaluation; it was interesting to see the effects at a quantitative level. As you point out, the challenge is that depressed market levels tend to be associated with uncertainty, so an investor needs to be disciplined enough to benefit from the situation. Personally, I find that I'm getting better at staying level-headed when the market takes its wild swings.
Cheers,
Deedubs