Thursday, April 10, 2008
Harvest the Fruit
Dividend investing is similar to planting a mango tree. Things start very slowly at first. It appears as if all your efforts are in vain, but ever so surely the process begins to produce fruit (dividends). In about 8-10 years most good dividend companies' yield on cost (YOC) reaches a level that equals a money market account, and continues to grow from there.
Just as picking fruit from a mango tree does not harm it, living off dividends does not damage the investment's ability to produce future results. A mango tree's life will easily span an entire generation. Similarly, well-chosen dividend investments will not only provide income in retirement, but can be passed to your children who can continue to reap the benefits.
If you want to enjoy tomorrows dividend fruits, you will need to plant and nurture the tree today.
Full Disclosure: No position in the aforementioned securities. See a list of all my dividend growth holdings here.
- Dividend Stocks vs. a Safe Distribution Rate
- Best Stocks for 2011
- The 2011 Dividend Aristocrats
- 13 Dividend Stocks With A Good Yield/Growth Mix
- 11 Higher-Quality, High-Yield Dividend Stocks
Popular Posts - Last 7 days
Monday, October 31, 2011 will mark my fourth full year of writing as Dividends4Life . It is hard to believe another year has passed. Like th...
Like many that came before me, I am on a journey to construct a portfolio that will provide me... Dividends 4 Life
The S&P 500 Index is owned and maintained by Standard & Poor's, a division of McGraw-Hill. The index was first published in 195...
Linked here is a detailed quantitative analysis of Colgate-Palmolive (CL). Below are some highlights from the above linked analysis: Comp...
Each Sunday I highlight any notable articles that I came across over the past week. Though I may not always agree with each of the articles ...
Linked here is a detailed quantitative analysis of Pepsico, Inc. (PEP). Below are some highlights from the above linked analysis: Company...
A stock dividend , also known as a "scrip dividend", is a dividend payment made with stock instead of cash. Sometimes when compani...
Presented below are my dividend stock and ETF/CEF holdings. This is not a recommendation to buy these securities. I have classified some of...
Just as picking fruit from a mango tree does not harm it, living off dividends does not damage the investment’s ability to produce future r...
When looking for value-priced stocks , the Price-To-Book (P/B) ratio is one that I like to consider. P/B is calculated as share price divide...