tag:blogger.com,1999:blog-2800029095243726187.post6897531915758582862..comments2024-02-10T04:36:02.792-05:00Comments on Dividend Growth Machine: Book Review: Sensible Stock InvestingDividend Growth Machinehttp://www.blogger.com/profile/13304571550687216360noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2800029095243726187.post-59489440237697654622012-02-23T09:28:39.417-05:002012-02-23T09:28:39.417-05:00Hi Stoic,
I have also read suggestions that young...Hi Stoic,<br /><br />I have also read suggestions that young investors should pursue growth more aggressively, but I feel uneasy about doing that because of my personal risk tolerance.<br /><br />I think the biggest advantage of being young is having the opportunity of letting compounding run its course. Time is the most powerful ally of long-term compounding and I think a dividend-growth strategy takes advantage of that. If you look at compounding effects over 10, 20, and 30 years, it is amazing what a difference just a few years can make, especially as the time period gets longer. Thus, the sooner one gets started, the greater the future outcome.<br /><br />That said, I do pursue growth more aggressively in the context of dividend growth. More specifically, I don't mind investing in a stock with a somewhat low current yield (e.g., 2%) if there are good prospects for strong dividend growth (e.g., a double-digit growth rate for the next several years). <br /><br />That's one difference I see between young and old investors. Old investors are more interested in high current yield (even if it comes with low dividend growth) because they often need that income now, whereas young investors can entertain a broader range of yield+growth combinations because they won't need to tap that income stream until later. I think a mix of fast and slow dividend growers can work pretty well.<br /><br />Cheers,<br /><br />DeedubsDividend Growth Machinehttps://www.blogger.com/profile/13304571550687216360noreply@blogger.comtag:blogger.com,1999:blog-2800029095243726187.post-25790649304982336232012-02-23T07:00:56.845-05:002012-02-23T07:00:56.845-05:00I think it would be interesting to read that persp...I think it would be interesting to read that perspective. I read seeking alpha daily and although I know it is maid up of both young and old contributors it seems like many have come to investing for income after years of asset accumulation. I often wonder if I'm not giving up a lot buy not tackling the growth side of the equations a little more aggressively. Any thought?The Stoichttp://www.thestoicinvestor.comnoreply@blogger.comtag:blogger.com,1999:blog-2800029095243726187.post-27661174055312272912012-02-21T23:25:24.907-05:002012-02-21T23:25:24.907-05:00Hi Stoic,
I have also read many of his articles a...Hi Stoic,<br /><br />I have also read many of his articles at Seeking Alpha. Based on those articles, I think his investing strategy has evolved since the time this book was written. For example, although he discusses the importance of dividends in this book, he does not focus on dividend-growth investing like he does now. Thus, this book provides some insight into the history of his thinking about investing. <br /><br />Best wishes,<br /><br />DeedubsDividend Growth Machinehttps://www.blogger.com/profile/13304571550687216360noreply@blogger.comtag:blogger.com,1999:blog-2800029095243726187.post-25322725586816056242012-02-21T22:34:56.674-05:002012-02-21T22:34:56.674-05:00I've read several of DVK's articles at see...I've read several of DVK's articles at seeking alpha. I'll have to check out his book. Thanks for the review.The Stoichttp://www.thestoicinvestor.comnoreply@blogger.com