From: "Ron Peterson" 
Newsgroups: misc.invest.financial-plan
Subject: Re: Living Off Dividends, Pros & Cons
Date: 1 Jul 2005 05:00:06 GMT
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Elle wrote:
> Can the regulars (or any well-versed newby to the group) share their
> thoughts about asset allocation for a person (1) whose priority with
> investing is income now but (2) has enough at this point in time to live off
> a portfolio of well-diversified value (or core) stock dividends?

I think that many claim that dividend paying stocks do better than the
others on a total return basis.

Companies can't pay out more in dividends than they have in earnings
over the long run.

If a company ceases to make money, it won't pay out dividends.

If the stock price goes very high, it would make sense to sell the
stock.

More money is spent buying back stock than is paid out in dividends.

Selling call options against stock being held is a way to generate
revenue from stocks that don't pay dividends.

-- 
     Ron