bear market is over, page-20

"companies rarely cut divis
so divis don't drop that much
in fact in most cases I think you will find they grow
so even if you didn't get any capital gain you would be able to live off the divis
a lot of people live that way...at least I do"


My personal experience is similar.
My dividend income is now higher than ever.
In fact my dividend income has grown each year. The 1987 crash, the early 1990's recession, the early 2000's bear market ... all non-events.

Provided that you are in the right stocks (and the world does not end .. I like the odds) the following will happen :

1) Your notional wealth (as measured by the market value of your net assets) is now lower than last year, but still way ahead of your cost price.

2) Your wealth has decreased at a slower rate than those who have invested in the wrong stocks. Perversely, a bear market rewards good assets, your relative wealth actually increases. A bear market savages bad investments. Those who invested in 'Hotcopper' stocks and have seen 80-90% of their value evaporate, will never see a recovery. There is no coming back for the toxic speccies, and there is no coming back for the bull market glamour and froth such as the Babcocls, Centros, Allcos etc. Just as there was no revovery for the Qintexs, Elders, Bells, Bonds, Adelaide Steamships, Ariadnes etc in 1987. There was nothing there in the first place.

3) You dividend income will generally withstand bear markets.

4) In the event of a protracted bear market (no guarantees) those with any brains will continue to accumulate good stocks.

5) You will not need an XJO recovery to 6800 to restore your 'notional' wealth. If/when the market recovers, I expect you will be 'richer' than ever way before the XJO hits 6000.

And life goes on.


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