Continued from page 1
Sometimes I pay too much for one of my companies; sometimes I receive a great bargain. But no matter which, bargain or expensive, my income from those companies always continues to grow and grow and grow and grow and grow.
Sometimes,
dividend yield of one stock may be 5.15%, and following year or two (even with two dividend increases during those two years) dividend yield would drop to less than 3%. This, for example, may mean stock price would have risen from 30 dollar range to 60 dollar range. I have found that when that 5.15% dividend yield drops to around 1%, company’s stock in question becomes so high that company usually has a stock split, as well as a dividend increase.
Right now, DOW seems to be having trouble breaking that 11,000 barrier. And, right now, I can’t help thinking back, way, way, back.
For those of you who don’t remember late 1960’s, early 70’s, DOW barrier was 1,000.
Oh, what a tough time that DOW 1,000 barrier was! I remember thinking – it’s going to break it this time. Back in 1966 was first attempt (rose to 985) and it kept on trying to break 1,000 for next 6 years. When it finally broke 1,000 (it reached 1,050 or so in 1972), it immediately fell back. It took another 10 years before DOW broke 1,100 barrier. Six years for DOW at 985 to break 1,000. Another 10 years to break 1,100. A total of 16 years to add a mere 115 points on DOW.
So, is 11,000 barrier in DOW today similar to 1100 barrier of times-gone-by? Will 11,000 on DOW become a 16 year barrier? Could be! Then again, maybe not! I don’t know! “He, who could foresee events etc.”
In meantime, I will continue watching my dividend income continue to grow and grow and grow and grow and grow!
To find LINK for complete financial interview visit: http://www.thestockopolyplan.com
Charles M. O’Melia is an individual investor with almost 40 years of experience and passion for the stock market. The author of the book ‘The Stockopoly Plan – Investing for Retirement;' published by American-Book Publishing. The book can be purchased at http://www.pdbookstore.com/comfiles/pages/CharlesMOMelia.shtml
