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second_quarter_2016 [2016/06/05 12:58] tom |
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+ | ==== Second Quarter 2016 ==== | ||
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+ | Recent research on long-duration investing (time-horizon arbitrage - why dividend growth investors hold) is outlined on the front page of the Connolly Report' | ||
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+ | What we do is the opposite of what funds, including ETFs, do. We concentrate in the best dividend growers and, in aggregate, our income grows every year. The Connolly Report regularly produced tables showing year-over-year dividend growth for over two dozen common stocks (year-over-year, | ||
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+ | Here's an example: In 1987 my wife purchased BMO at $6.90 (adjusted for three 2:1 splits). Her yield is now 50% on the 3.44% dividend. My wife's future expected cash flow is happening now: fully half of what was paid for the common stock is now returned each year as a dividend. This is what 'Yield on Cost' measures: the cash flow year after year. And next year, she'll get the other half of her purchase price back. And so on, and so on. And this will happen now even if the dividend does not rise. Her BMO is ' | ||
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