By Jim Pyke:Frontier Communications Corporation (FTR), having just closed at $4.04 this past Friday, continues to find new lows. While its performance is disappointing shareholders and delighting short sellers, it at least provides a great opportunity to make a couple points about dividend reinvesting. I've written previous articles about transforming small amounts of money into million dollar sums through dividend reinvestment. The clear caveat is that you have to pick the right stock or, more broadly, the right securities. FTR's track record is currently disqualifying it from consideration. Dividend reinvesting is not an automatic path to greater wealth, it simply compounds the existing stock return, which includes both dividends and share appreciation. The first point is about return which includes dividends and share appreciation. For a dividend investor to ignore capital appreciation, or more importantly, depreciation is dangerous. I have yet to see a stock that trades at zero pay a dividend,Complete Story ?
Source: http://www.bullfax.com/?q=node-frontier-communications-dividend-reinvesting-gone-bad
caleb hanie nascar bcs standings 2011 rhodes scholarship rhodes scholarship ufc 139 results lee corso
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.