Alaric wrote:IanTHughes wrote:]Maybe you are not aware but companies can only pay dividends from Earnings.
I would hope you are aware that Companies use all sorts of accouting tricks to pay dividends. Earnings can be retained earnings so payment of a dividend is no assurance that a company is profitable.
Surely even you must recognise that dividends being paid out of "Retained Earnings" are indeed being paid out of Earnings! Or do you believe that "Retained Earnings" are not in fact "Earnings"!
IanTHughes wrote:Are you perhaps suggesting that an investor needing income, can sell assets without running down their capital! That is truly a neat trick, how do you manage it?.
Alaric wrote:You buy shares where the dividend is paid for by running down the Company's assets. You hold the shares without selling but they gradually reduce in value because it's being returned to shareholders in the form of dividends. I could supect tobacco shares now fall into that category.
Nonsense. my portfolio has provided copious dividends and also significantly increased in value! I told you already: creating a growing income stream will usually lead to a growing Market Value over time. Do try to keep up!
IanTHughes wrote:So stop making such assertions! Seriously, no-one but you makes such assertions so, if you stopped, you would have no more problem!.
Alaric wrote:Aren't you the one who told off people on the HYP board for choosing shares with lower dividend yields when higher yields were available on comparable companies? Is not sorting by dividend yield a fundamental part of what is sometimes called the HYP strategy?
No, never!
I have never made the assertion that:
"an 8% dividend yield is automatically better than 4% one". I leave that sort of Investment chicanery to the Snake Oil Salesmen and conmen that abound, even on boards like The Lemon Fool (TLF). So far you are the only person to have made that assertion on TLF, that I have seen! Own up to it at least!
Seriously, your abject failure to understand Income Investing in general, and the High Yield Portfolio (HYP) in particular, does not mean anyone else is also that ignorant. Unlike you, many investors understand full well the mechanics and the benefits of Income Investing, especially when the Investment Aim is Income Generation. Why can you not leave them be and spend you time more productively. Taking some lessons in Investing would be my recommendation for an investment newcomer like yourself to become more productive.
Enjoy!
Ian