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Investment Analysis Clubs / The BMW Method


Subject:  Re: A learning curve Date:  9/14/2012  9:01 PM
Author:  RHinCT Number:  40715 of 42233

If you start with a stock with a 5% dividend, and the stock price rises 25%, and you sell the stock and use all the proceeds to buy a different stock with a 5% dividend, that new 5% dividend is based on a 25% larger base number.

You need to look at it both ways.
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