Power of Monthly Dividends
Following Owen’s “advice” will lose an investor money. Here’s his pitch for buying VZ for its div (from your link to his website).
Here’s a 5-year chart with monthly bars where the right-hand scale is in percent change.
Anyone who bought VZ before Dec '20 has lost more on price than they’ve gained in divs. If that ain’t “trading elephants for rabbits”, then I don’t know what is.
The huge mistake nearly every divvie “investor” makes is they don’t understand the diff between ‘a stock’ and ‘a bond’, and they want to treat the former as the latter.
Right now --and as it has been the case for a lotta years-, financial markets are over-bought, and the fundamentals that might support further price rises are crumbling. This is no time to be making long-term purchases of stocks whose divs don’t even offer a real rate of return after taxes and inflation, never mind the US Empire is falling apart.
As a Swing Trader, I would be intereted in Buying and Selling per Simon Sez two (2) simple rules at first and then if a divi is isued then it would be a bonus. We make more money Swing Trading then getting a Dividend check every 13 weeks.
Only HODlers are interested in Divi’s. current VZ is paying about $ 0.6650 cents per share quarterly./
The blue dots on the bottom of the StockCharts charts are Ex-Div Dates and the Dividends are paid a month later.
Eight for Eight successful trades with Zero losses for the year 2023.
If dividends are a very seconndary consideration for you, then why mention them all, given that most of the divs are so tiny compared with the gains possible from trading in and out of the underlying?