Comments on Dividend Growth Investor: Busy week for dividend increases

I have heard of the concept of allowing the stock ...

2010-02-11T07:24:41.759-08:00

I have heard of the concept of allowing the stock to double, selling enough to get your initial investment back, and playing with house money. This concept is discussed in depth in Rich Dad, Poor Dad's book. I love the idea of playing with someone else's money. ;)
Source(s): Some basic info on investing for beginners: http://www.cesidebtsolutions.org/planning_and_savings/#investing

I still do not understand the concept of divident ...

2010-02-11T07:20:26.964-08:00

I still do not understand the concept of divident payback. I am very very new to the stock market. I have heard about selling half the stock once it doubles, and playing with house money. I read about that in Rich Dad, Poor Dad. Great idea...playing with someone else's money. lol

Great information. I like the concept of "pay...

2010-01-24T21:30:39.376-08:00

Great information. I like the concept of "payback" being brought up. Interesting post.

Great list, thanks. I'll be returning to this...

2010-01-24T14:13:36.169-08:00

Great list, thanks. I'll be returning to this later this weekend to review the stocks you highlight! GREAT job. By the way, any idea what's been going on with Family Dollar - I haven't been following this stock.

I just ran across a concept that I've never he...

2010-01-22T08:53:08.583-08:00

I just ran across a concept that I've never heard articulated before--dividend "payback." Chuck Carlson of the DRIP Investor features 7 stocks in their 10/10 club, and notes that an investor can recoup his invesment in under 20 years if these companies sustain their pace of dividend increases. The article is at thestockadvisors.com.

The stocks themselves aren't surprising, but the concept stumped me for a minute. I'm not even sure what to think about the 20 year hurdle. I guess it's analogous to a growth stock that doubles and an investor sells half to recoup his investment and play with house money.

Comments from anyone? Thanks!