Your feedback is appreciated. My goal was to give a general intro to the topic and then let other’s contribute so I’ll consider it a success on that. I certainly am no expert. Several other people have posted more information on the topic that hopefully helped. Again the article I linked to showed 8 stock’s that had continually paid out for 125+ years.
I keep waiting for 30-yr mortgages to hit a record low. Not quite there yet…
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Does anyone have the GoogleFu to find links for this list from 1989, 1999, and 2009?
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Survivorship bias should be mentioned… I’m not going to look it up, but I suspect there are many aristocrats of the past that are now either out of business or no longer aristocrats. These would not be shown on today’s list.
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Yes. I don’t know of any free, public financial database that actually includes deletions.
Seems to me current, relentless, ubiquitous, interest rate reductions should be rather constructive going forward for most any stock market strategy.
People with money, who customarily do not invest in the stock market, the way things might go could be left with no attractive alternatives.
Of course I suppose there is always commodities.
on the CD forum , you said that “. Any extra funds outside the “emergency fund” will be allocated to the 10 dividend stocks I purchased (currently up 5% from purchase price which is nice to look at but is mostly irrelevant since the dividend was the important aspect).”
Can you share the dividend stocks?
thanks
I’m pretty sure I and another user already did in earlier posts. I would instead encourage you to monitor the motley fool blog posts where they regularly list stocks they think are a good buy at THAT time. The other list would be the list of dividend aristocrats here: S&P 500 Dividend Aristocrats - Wikipedia
While it’s doubtful you will find those on sale pretty much EVER the steadiness of the dividend tends to overcome that.
A month ago these were my picks: Low Risk Income Alternatives to CD's (stocks, p2p lending etc) - #21 by famewolf
Yet for all that steadiness, 20 of the 52 Aristocrats a decade ago are no longer part of the club. That’s pretty substantial turnover for something being sold based on it’s consistency.
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You keep bringing that up…over and over…we get the idea…it’s not iron clad, that’s why the title says “low risk” and not “no risk”. Pick the ones that have paid for the last 75+ years. I was asked and I answered.
I’m sorry, I guess making two posts in a thread is excessive? Especially when the first post was defending the merit of your strategy?
I was genuinely surprised to see that 40% removal rate when I clicked on your link this afternoon.
I apologize. The other post in the cd thread and here were other people but the topic of the 2008 crash and how the dividend aristocrat’s were impacted has been mentioned a few times by various posters which is why the only ones I recommended were the initial post which were ones that had paid for 125+ years.
Personally I don’t see an alternative when money sitting in the bank is losing value and not earning interest. Any normal retirement scenario is going to have a substantial amount invested in the market. The alternative is to invest in some of the dividend appreciation ETF’s or managed funds. If you have alternative suggestions I’d love to hear them.
According to S&P 500 Dividend Aristocrats - Wikipedia several of the 20 mentioned were removed after being bought out/merged with other companies so as Argyll mentioned it’s not that all crashed and burned.
Oh dear God!! I am, according to the above, only a whisker shy of having reached thirty-five years of abnormal retirement. I have throughout invested nary a farthing in the stock market casino . . . or any other casino for that matter.
It is noteworthy, in my view, that the principal promulgators of the above meme are persons who earn their livings, or otherwise benefit, when equities are bought and sold. Such individuals exist in many venues nationwide, but there is a noteworthy concentration of them in Manhattan.
I remain unimpressed and unpersuaded. And after almost thirty-five years out of harness, I am doing quite nicely thank you very much with no involvement whatsoever in the stock market.
It’s fantastic that you’ve achieved that! You generate your income at normal income tax rates vs the reduced amount dividends and long term stock sales allow. You do what works for you and the rest of us will do what works for us. I have a hard time seeing how 3-5% cd’s over the next 4 years or so are going to provide enough to live off of AND have growth to cover MORE than inflation.
Indeed.
Allow me to share a couple of investing tips I picked up back in the 1980’s:
First, it is not the rate of return on one’s nest egg that matters. It is instead the risk adjusted rate of return that is important.
Second, it is never a good idea to lose money. Why? Because when one loses money the remaining portion of the nest egg must be placed at greater risk than before in order to recoups the loss.
This thinking has brought me through almost thirty-five years of retirement in rather good shape. I do concede no stock brokers or stock mutual fund operators have been enriched by my approach.
Given I became financially independent 13 years ago along with a paid for house and 2 vehicles I think I’ve found a method that works for me so I’ll pass on the tips. As I said…you do what works for you and we will do what works for us. Since I know you don’t have any fondness for this topic why are you preaching here?
…and for the record there have been a plethora of methods to avoid making brokers rich in the process. Drip plans off the top of my head for the “old days”…now there are multiple free trade brokers or roboadvisors available some of which won’t cost you a dime to use for all the basics (robinhood, firsttrade, wisebanyan, m1finance etc)
Me? Preaching? Wow, that is pretty strong stuff for a person who states without equivocation or reservation what is “normal”.
Also, I have rather a large interest in your topic. I simply do not share your approaches. For this I am criticized! Must everyone here agree with you in order to be welcomed?
If you wish to limit this topic to STOCK alternatives only, my suggestion is for you to change your title in order to so indicate. There are many safe alternatives to CDs, not only stocks. But that is merely my opinion. I am not asking you to agree.
No if I made it stock alternatives only it would be just like your cd thread but I don’t see you contributing any SOLUTIONS, only trash talking the suggestions. The part you seem to be missing is “Low Risk alternatives to CD’s”. Feel free to contribute some other than stocks. Real estate hasn’t been covered but you’d probably argue how your money COULD be lost. Annuities hasn’t been covered. Perhaps those would satisfy you.