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| Subject: Re: How Do You Know When to Stop?? | Date: 9/5/2001 4:51 PM | |
| Author: OperaBob | Number: 20467 of 27758 | |
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Mardee, For the record, OB, I'm 46, so I have slightly less than 20 years till retirement. I'm 50 so your 20 years to go looks good to me! ;-) An example of "lump summing" it and just letting the dividends reinvest I've used before: 1982 my parents purchased 500 shares of BCTel at $6 per = $3000 total investment. Over the next 16 years they just let dividends reinvest and made no further OCPs. In 1998 they had 850 shares @ $55 per = $46,750 This equals a 19% annual rate of return. At the same time the 850 shares were paying approx. $1200 /yr. dividend. This is a 40% return yearly on their original $3000 investment. This is all without making a single OCP. That's in 16 years (which is under your 20 yr. time horizon). But as I said you have to stay on top of things. As you know the telecoms have been having a rough go. BCTel merged with Alberta's Telus to form TELUS and TELUS has been active in reinventing itself as Canada's second national carrier. As there is a lot of uncertainty the shares have fallen to about $25. But the dividend is purchasing 48 more shares per year at the moment. As I don't see TELUS going under I'm quite happy at the moment picking up the extra shares in my own account. OB |
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