RE:Sargex ;Hey Rock
Thanks for the opinion and I think it is very valid for a total return investor. I actually don't really care about total return, it's all about the income.
As I mentioned in the previous post, my wife and I are retirees living off dividend income. Our plan is to never touch our capital so we will only sell or trim when something big changes with any of the companies we own.
Our dividend income is over 2.5x what we need to cover all our expenses so we could handle a 50% cut in all our dividends (which of course is never going to happen).
As an aside, I never made huge dough while I was working and my wife was stay at home. We just have a simple lifestyle (lots of family and outdoor stuff) and were very fortunate in our housing timing (although we did have a 20% mortgage rate for the 1st couple years). We actually paid off our house in 1991 and are still in the same place so have been rent free for over 29 years.
We also decided to really commit to dividend income/growth investing in 2013 whe I retired. It turned out to be great timing as that was one of those interest rate tantrums where everyone was dumping dividend stocks as we were buying.
Anyway, as I said, thanks for weighing in and it is something for others to think about.
Sarge
1rockit wrote: Be very careful investing everything you have in dividend stocks. When these markets get hit or go down in so many words, all stocks will go down together. Dividend or not . The trick is to sell all your stocks at what you think is the top and try and buy in lower. If you take a look back in time you get this chance 2 a year . Be frugal , good luck