I am an LT investor. I am curious of the overall sentitment of other LT investors regarding adding new money into D.
I understand the concept of dollar cost averaging so please do not go there. I am more interested in those who have been LT investors of D for 10+ years if you continue to invest or if you are holding for a pullback?
Also if you are willing to share what other utilities are you actively investing in for LT.
Held D since '99 and DUK since '06. D amount has nearly doubled. Started reinvesting the dividends in D about three years ago, so I could had done even better. Utilities are not a bad investment, IMO. Might be a little pricey right now though.
I too am a long term investor. D is a great company. Over the years, I've been able to accumulate a significant position in this utility stock. Since 1984, I've consistently (never missed a month) contributed monthly to my Dominion Resources stock purchase plan and have invested 100% of the dividends each quarter. Today, I am retired and fortunate enough to be able to continue this investment strategy. Trust me, it works!
I trust you, plus from first hand experience I also know it works.
It is interesting how the magic of compounding, compounding, compounding, works. Nothing like it! Everyone should learn the rule of 72 and the concept of compounding.
Just as an example if you saved 1 penny and doubled it every day you would have
$ 1 Million dollars in 30 days. Now I understand that is not realistic, but it shows the power of compounding over time.
Best of luck,
I too am in for the long run, using diveys for buying more stock. I am 65 and am starting to take some diveys to pay my tax's. I bought POM starting back into the late 70's. I am taking about 70% in cash every 3 months, reinvesting the other 30%.If i had not done this I would be still working, if my company had a job for me.
Glad to hear you investments have been doing so well. I beleive POM has been paying dividends since the mid 80's. Solid investment.
I am a bit surprised to continue to hear people who say buy and hold just does not work anymore. Seems to have been working for a long time for us.
Best of luck, enjoy those divis.
Jim, I was at a seminar in N. Raleigh on Thursday and the presenter - a financial advisor from an affiliation with Schwab - stated their philosophy is identical to what you are doing, Buy quality dividend paying stocks and you can't go wrong.
His favorite stocks are Dominion and NextEra Energy.
My next "new" money will likely be in one or the other, as I have a portion of my portfolio in Duke and am looking to diversify.
Might want to look into Atlantic Power (AT) if you aren't familiar with it.
I've been in D since March of 1992 and started in their DRIP in October 1993. I have been contributing twice a month, as the plan allows, and also adding on pullbacks. I don't think I have ever made a better LT investment decision. You only have to look at the chart (http://finance.yahoo.com/q/ta?s=D+Basic+Tech.+Analysis&t=my) to see the great return over the past 19 years. As I prepare to go into retirement D has outperformed my 401K and IRA combined in accumulated wealth and I have about 3 to 5 more years to go. I will continue my monthly allotment for at least another 3 years and contribute what I can on pullbacks. I also recently started a DRIP with DUK and SO using the same strategy.
I also dabble in D covered calls which has increased my return considerably and I'll probably continue in my retirement years. With just the D dividends and option trades I fully expect to live rather comfortably in retirement and leave one great start in life to my grand kids. Actually my oldest grand child is 3 and I have already started him in the D DRIP (UGTM).
Best of luck,
Wally thanks for the note. I really appreciate it. I am very conservative in my investments. I hold for the LT usually 20+ years. Seems to work, I really do not worry about pull backs in market even if they last a couple of years or more. I keep getting those dividends and keep buying. Have 22 stocks this way. All the big names, JNJ, D, SO, GIS, PG, JPM, KO, etc. Started small and just kept plowing back in. You and other LT investors know the list of names by heart. I wish I had another 20 years to invest. All these young people talk about buy and sell, doom and gloom, heck, I recall when mortage fixed interest rates back in the 70s were 16%+ yep those were the days!
Thanks again Wally and best of luck I hope you enjoy those nice dividends for years to come.
Last week, I sold 25% of my D stock, on the advice of my broker. She said D's quake and Irene expenses are likely to be greater than anticipated such that the and Q4 earnings will suffer. D has had a good run this year and she felt I should take some profits and buy back this winter at a lower price. I have heard that D is spending $2M/day in replacement power due to North Anna outage. D's fundamentals are good and company is solid but next 2 quarters may show earnings and price per share impacts.
Well Jim, let me give you one piece of advise with all due respect. I do not wish to criticize you but to help you. At sometime in the future all the shareholders of utility stocks will be taken out of their wealth. I cannot tell you how it will happen, but whenever there are huge pools of monies on one side seeking refuge, you can be sure that those
that are in a position to manipulate control of the markets and political process will engineer a scheme to screw the owners of thoes assets. So, it might not happen for 20 more years, but at some point you will be taken out of your ownership.