tag:blogger.com,1999:blog-3584696203336871201.post2649933968518802085..comments2011-08-08T15:31:10.862-07:00Dnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3584696203336871201.post-31104611917698401122010-07-26T06:21:59.563-07:002010-07-26T06:21:59.563-07:00Thanks for the comment. WMT was overvalued in 2000. WAG was in the same boat. Utilities could have been a good investment. But overallocating to utilities would not be a good bet. Overallocating to financials ( which also yielded ok in 2000) would also not have been a good bet. Utilities pay high dividends today, but their earnings and dividend growth does not compensate enough against inflation.<br />Being diversified, dollar cost average into positions, don&#39;t overpay for stocks and look for rising dividends coming from strong earnings.Dividend Growth Investorhttp://www.dividendgrowthinvestor.com/noreply@blogger.comtag:blogger.com,1999:blog-3584696203336871201.post-7371428274581630602010-07-25T16:58:54.205-07:002010-07-25T16:58:54.205-07:00I&#39;m not sure I get WMT or WAG from your charts for 2000-2010. The prices are about the same today as they were in 2000. If you actually bought these in 2000 at today&#39;s prices then your yield would have been like .3%<br />It will have taken you a decade of dividend increases to get to your current 2.3% yields and with no appreciation in the stock price I think you will have wasted a decade. Utilities usually have nice yields. It would have been better to have bought a nice utility stock in 2000 with 6% yield as long as the stock price is about the same today.<br />I&#39;m looking into the market and considering investing as long as I can justify beating my highest debt (currently 4.75% mortgage). Dividend growth is interesting to me since I may not have to screen for stocks yielding &gt;=4.76% but can go slightly lower in hopes that the long run (I&#39;m considering 26 years = 4 years sooner than 30 year mortgage) I can eventually make more than I pay the mortgage company. If not, then I may as well as pay down the mortgage and hope housing prices go back up in about 13 years instead of 26. Thanks for your article and enlightening me to dividend growth, now I have to see if I can figure out just how low yield(s) I may consider and what can of growth rate(s) they&#39;ll need to make not paying the mortgage profitable.<br />My head is already starting to hurt, utilities would be sooooo much easier!Anonymousnoreply@blogger.com