http://www.retirement-income.net/blog/2008/09/09/sources-of-retirement-income-you-control/ Retirement Income, Retirement Investing and Retirement Planning Done Right Thu, 09 Sep 2010 02:05:13 +0000 http://wordpress.org/?v=2.6 http://www.retirement-income.net/blog/2008/09/09/sources-of-retirement-income-you-control/#comment-2993 Amy Fri, 02 Oct 2009 23:39:56 +0000 http://www.retirement-income.net/blog/?p=151#comment-2993 Dividends have little or nothing to do with whether a stock is a good buy. If a dividend is extremely high, it is probably not sustainable. Dividends can always be cut. The most important thing is the over-all market trend. The other main thing is earnings growth. If a company keeps increasing its earnings 25% every quarter, that stock will go up even if it pays no dividend, whereas a high-dividend stock that decreases its earnings every quarter is going to go down even in a good market. Dividends have little or nothing to do with whether a stock is a good buy. If a dividend is extremely high, it is probably not sustainable. Dividends can always be cut. The most important thing is the over-all market trend. The other main thing is earnings growth. If a company keeps increasing its earnings 25% every quarter, that stock will go up even if it pays no dividend, whereas a high-dividend stock that decreases its earnings every quarter is going to go down even in a good market.

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