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Don’t Stop Believing

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Imagine sitting on the board of your favorite company, attending the next meeting, clearing your throat, and asking “How much are we going to increase the dividend this quarter?”

Welcome to the company! Because that’s what it’s like to be an investor in a stock that cherishes its shareholders, its owners if you will, showing appreciation through regular dividends and dividend increases.

It’s nice to be appreciated, especially when stocks are a little shaky. Getting paid to be in them helps. A lot.

Which is why dividends are so important to every investor no matter their age or net worth.

Because imagine if this is the way it is for the stock market for the next sixteen years. It can happen, as it did from 1965 to 1981—a period of rising interest rates and inflation. And a good chunk of a retirement for many.

 

Quick side note. I was talking with a prospective client yesterday. He has followed Dick Young’s dividend-centric approach for a long, long, time. How long? He’s a Harley guy and a member of the NRA. Need I say more? This gentleman retired 30 years ago with $75,000 in his profit sharing plan and is living comfortably off of it today.

Don’t wring your hands over stock prices. It’s a waste of time. As you can see above, you can do a lot of good by being patient.

My goal, in my mid-40s, is to do what my prospective client has done, and compound money for 30-years, reinvesting dividends, and smile like he did yesterday explaining how I do it. It’s not easy. As Jack Bogle has said “Don’t just do something, stand there,” is hard to do.

Steve Perry, formerly of the band Journey, was interviewed this week. He co-wrote the band’s hit song “Don’t Stop Believin’” in 1981. David Chase used it in the last scene of the 2007 series finale of “The Sopranos” and it remains popular today. This month, Mr. Perry released his first album in nearly a quarter of a century, Traces. It is his first Top 10 solo debut, entering the Billboard 200 albums chart at No. 6.

As a dividend investor don’t waste your voice. Believe in what you’re doing whether it’s singing to the suits on the board, or a song on the charts.

Journey- Don’t Stop Believing

and from new album Traces- No More Cryin’

Originally posted on Yoursurvivalguy.com.

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E.J. Smith

Editor-in-Chief
E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@youngresearch.com.