UnThreaded | Threaded | Whole Thread (50) | Ignore Thread Prev | Next
Author: JWR1945a One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75793  
Subject: Re: They Got It Wrong Date: 6/20/2008 3:21 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
It should be. Logically.

No, there is absolutely no reason why it would be best in all time periods. Logic says otherwise. Just as different groups of stocks (large cap, small cap, international, etc.) do better in different time periods, dividends do better or worse at different times.

Clearly, you do not understand the Safe Withdrawal Rate problem.

Dividends are traceable to earnings, which have grown consistently (after smoothing) over a very long time frame.

Capital appreciation depends on investor whims. It is extremely volatile.

Selling when prices are low is what kills retirement strategies that liquidate shares.

Dividend strategies avoid this problem.

However, if you vary allocations slowly in accordance with valuations (as Benjamin Graham recommended), you can come very close to matching dividend strategies.

Have fun.

John Walter Russell
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (50) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Smuggling Rice and Garlic
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement