Dividend Retirement Strategy Update

Discussion in 'Stocks' started by eagle488, Oct 19, 2006.

  1. I have posted previously on my retirement strategy. In addition to my ROTH and 401k, I have decided to donate an extra $1000-2000 a month to dividend paying stocks. I am buying stock through the direct stock purchase program located on the websites of these companies. Here are my positions so far. I decided to make one deviation from the strategy. Most of the stocks come from the www.dividendachievers.com index. I feel its best to stick with this index because its a compilation of companies that have increased their dividend over the last ten years.

    The idea is that I will hold these shares for at least 20 years and then cash them out when I decide to retire. At that time, I will pay 15% capital gains on the cash out.

    The companies I hold positions in so far are:

    McDonalds- $500
    Wells Fargo- $500
    All-State- $500
    Colgate- $500
    Caterpillar- $500
    Verizon- $500
    AIG- 100 shares

    The Verizon buy is not on the dividendachievers list and is an exception. I like the prospects for Verizon, however, and it does have a nice dividend. I believe it will be a nice compliment to my plan. Verizon is diversified in the way of landlines, broadband service, cable service and operates the best wireless service out there. I have tried other services, but Verizon is truely the best. P/E is at 15.72 and a nice 4.4% dividend.

    The large position in AIG is due to the fact that I had these stock certificates laying around my desk. Im going to incorporate them into the program. I believe that when Mr. Greenberg passes away, then we will see a greater appreciation in the share price. Thats why I am hanging on to these. Whenever AIG gets close to 70, Mr Greenberg has instructed his broker to sell shares to keep the price down. He has 43,000,000 shares by the way. Starr International, Mr Greenberg is the chairman, holds 296,000,000 shares.

    I hate to see Mr Greenberg go, but its the only way these 100 shares will take off. Well, I will await the day. Unfortunately, it has to come down to this.

    I plan on entering into Bank of America in the next 2 weeks with $1000. The min. to enter into their plan is a grand.