Category Archives: Dividend Growth Investing

The Fourth Scenario For When Should I Transition From Capital Gain Investing To Dividend Growth Investing? – Seeking Alpha

The Fourth Scenario For When Should I Transition From Capital Gain Investing To Dividend Growth Investing? – Seeking Alpha: Introduction

An author, whom I consider a friend, Robert Allan Schwartz, recently penned an article describing his views on when young investors should transition from growth to dividend growth investing. In this article found here, he created a series of three scenarios and created a set of parameters from which to run them on. Although I felt that his parameters were reasonable, and his scenarios plausible, I also felt that they grossly underestimated the true power of what I would call a pure growth strategy. Frankly, I felt he inadvertently shortchanged the powerful performance capabilities that true growth stocks are capable of achieving.

Can Dividend Growth Investing Be Reconciled With Modern Portfolio Theory? – Seeking Alpha

Can Dividend Growth Investing Be Reconciled With Modern Portfolio Theory? – Seeking Alpha: For the past couple of years, an active discussion or debate has been going on between proponents of dividend growth investing [DGI] and proponents of modern portfolio theory [MPT]. I have been in the middle of some of those debates. I often wonder whether the two strategies for portfolio construction can be reconciled. I will state my preference up front: My primary investing strategy is a DGI strategy. I recognize that many readers will see this as biasing this article. I am sure that any mistakes, stereotypes, or misconceptions can be rectified in the comments section.

5 Myths About Dividend Growth Investing – Seeking Alpha

5 Myths About Dividend Growth Investing – Seeking Alpha: A pretty cool community has emerged on SA over the past couple of years. It’s the community of dividend growth investors. Through articles and comments, sharing ideas, and talking about “what’s up,” an active cohort of investors who use this strategy has formed. New participants are always welcomed. It’s a friendly place, as no one seems to see dividend growth investing as a zero-sum game. Tips and suggestions are freely shared. There are no secret handshakes, no hazing.

With so many participants and contributions, it is inevitable that some misconceptions about dividend growth investing have sprung up. Here are five prominent “myths” about dividend growth investing, along with my point of view about each one.

Wikio

The Rational Case For Dividend Growth Investing (Part 1) – Seeking Alpha

The Rational Case For Dividend Growth Investing (Part 1) – Seeking Alpha: David Van Knapp is anything but an entrenched financial professional. Starting in 2007, his affinity for value investing gradually gave way to developing his own unique approach to dividend growth investing. The author of five annual eBooks on the subject, Van Knapp has allowed individual investors approaching retirement to take their financial destinies into their own hands by carefully constructing and managing a portfolio of dividend growth stocks. Dave has been analyzing and writing about stocks since 2001, both on his own site SensibleStocks.com and here at Seeking Alpha.

Seeking Alpha’s Jonathan Liss recently caught up with Van Knapp to discuss the rapid growth in popularity of dividend growth investing. His most recent e-book, Top 40 Dividend Growth Stocks For 2012: How to Create and Maintain a Dividend Growth Portfolio provides the basis for the interview that follows.

The Rational Case For Dividend Growth Investing (Part 2) – Seeking Alpha

The Rational Case For Dividend Growth Investing (Part 2) – Seeking Alpha: Jonathan Liss (JL): Let’s drill down into some of the nitty gritty of what you are proposing. How much portfolio turnover can the typical Div. Growth investor expect?

David Van Knapp (DVK): Typically, the dividend growth investor purchases stocks with the intention of holding them for a long time. That’s because he or she selects companies that are expected to succeed for long periods of time, and then focuses on the increasing income stream generated by those companies. So stock price movements have less impact than they probably do on the average investor. In fact, contrary to some behavioral finance theories about investor panic, a price increase may be more likely to induce a sale than a price decrease, while a price decrease may be more likely to induce a purchase.

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