Quintessential1 wrote: There are some good investng ideas here and everyone has to choose which is right for them and what kind of investor they would like to be.
Obviously entering and exiting positions requires more attention and may not be the way some would like to spend their retirement time. However some may find monitoring the fluctuations of the market not as time consuming as others and maybe even enjoyable. It could even be construed as entertainment much like an evening at the blackjack table or furniture making.
If you bought enbridge at 38 and exited at say 58 to make the numbers easy you would make $20 per share in captial gains. That would amount to almost 6 years in dividend payments exluding the usual 10% bump which was only 3% this year so let's exclude it for easy math.
Surely somewhere in the 6 years moving forward there will be a correction or pullback significant enough to justify taking another position and resuming dividend payments.
Obviously the sooner it happens prior to exiting the better and you could probably have made out well given how volatile the market and the stock has been in the last 5 or 6 years.
You would have to take into account that capital gains would be subject to 50% taxation all in one year where as a dividend would taxed at 67% spread out over the 6 year collection period if they were not earned within a registered tax sheltered account. If they are in a registered tax sheltered account then the tax treatment on both scenerios are the same when you removed the funds and given your age may not be up to you.
There are a lot of variables to consider and no standard right way to invest as a one-size fits all even within the same equity. We have all chosen Enbridge for our own reasons and hopefully it fullfills all of our individual requirements.
For me, that scenerio of 1 million invested with a 6% dividend paying out 60k a year or 5k a month (the math wasn't that hard) with a 10% (usual) inflation bump every year, doesn't sound half bad.
Go Enbridge! ;-)
Scarlada1 wrote: SargeX wrote: Hey Invest
Congrats on doing so well with ENB.
I sure find it interesting on all the different investment strategies. I much prefer to just buy & hold good dividend income/growth TSX listed stocks. Trying to time the market is way too much work for me and I suspect I would get it wrong more than I got it right. As an example. I've been expecting a significant correction for over a year but all the market does it keep going up.
So for us, it's keep a little dough for some short term trading (just for fun) and leave the rest in our 16 main TSX listed dividend payers, sit back, and watch the divys roll in. :-)
Ciao
Sarge
investornot wrote: NissimLevy... A very reasonable strategy and one I have seriously considered. What can be gained in dividends can be offset by fluxuations in share price though. If Enbridge was trading @ $40 right now I honestly wouldn't consider selling, but it is at a good profit point and our household's other retirement investments (that I don't have the worries to manage) have been performing consistently well.
The proceeds here will add funds to an existing funded retirement plan and will not need to be relied upon is a key factor. That doesn't mean it will be put under the mattress for a rainy day. Money needs to work for you. GLTA
Great post Sarge