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comments:arnold_bernhard_ii [2011/03/21 17:52] tom |
comments:arnold_bernhard_ii [2021/02/04 21:29] (current) tom |
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- | ====== Arnold Bernhard II ====== | + | Our most recent comments |
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- | "What is an investment, anyhow, but a body of capital that produces income. The income may be current income, or it may be prospective income, but it is the magnitude of the income, current or prospective, | + | |
- | Arnold Bernhard' | + | |
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- | Dividend stocks provide income and the magnitude of that income grows with dividend growth. I take into account prospective income by adding yield and dividend growth to obtain total return. And as the dividend grows, so does the capital. Bernhard has many charts in his book to illustrate this with pairs of charts plotting price and dividends from 1946 to 1958. He compares, for instance, General Telephone whose dividend went from $1.50 to $2.00 over this period, and whose price rose from $15 to $50 to AT&T whose dividend was flat from 1946 to 1958 and whose price was likewise flat. Arnold Bernhard also compares General Electric to Singer, Federated Departments Stores (dividend from .50 to $1.75) to Macy's ($2.50 to $2.00) and IBM to Underwood. It is fascinating material. Too bad the book is out of print. | + | |
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- | If your capital is in a mutual fund, most likely it is not producing much income. Funds are not noted for producing income. If you own a fund, check how much income it produces. Do not count capital appreciation as income: gains are not income. Gains disappeared with the market drop in 2008. In contrast, the income produced by the dividend stocks I follow actually went up by 9% in 2008. In 2009 our dividend income went up by 6.16%. There was one reduction: MFC. The most recent increase was Empire...up another four cents per share, per year. That's the game plan with dividend growth investing. We do not have to depend | + | |
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- | Bernhard talks about the value of your capital. That our common stocks produce income makes our capital valuable. This is the ultimate backstop for dividend investors. Regardless of what happens, investors will be drawn to stocks that produce income. Investigate dividend growth investing. It could be your cup of tea. (According to //Foods That Fight Cancer// on page 129, Japanese __Gyokuro green tea__ and Japanese Sencha green tea contain the most anti-cancer compounds...catechins...about one third by weight of the tea leaf. It's the EGCG (epigallocatechin gallate) you are after. " | + | |
- | The eleventh is red wine. | + | |
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