Revisiting dividend based investing

as we approach the end of year 2024

I talked about it here in my blog in summer 2023. I think I may have consciously thinking about dividends when I buy stocks. I had some failures, such as the Leggett & Platt stock LEG 0.00%↑ which cut dividend this year.

Also, it seems I bet on the wrong horse here too: because in the graph I showed T 0.00%↑ and it was acually the low point of the stock in last 5 years: 07/14/2023, closed at $14.50. It went up a bit more than 50% since then. Note: AT&T did cut dividend starting on April 13, 2022 (see their dividend history). Also, on July I recall the sentiment was most negative, e.g., this July 18, 2023 article AT&T shares hit 30 year low after toxic lead cable report. Hindsight is always 20/20, amid the current market sentiment, personally I feel PII 0.00%↑ is worth to take a look. Also note with 12/18/2024 yesterday’s Fed rate forecast for next year, consumer sentiment is not going to improve in any meaningful way. Last but not least, the consumer and industry sentiment are not that good, per Reddit.

A few days ago: I realized I got $196 dividends from Coca-Cola stocks. I have 400 shares of KO 0.00%↑. And I also know Berkshire has 400 million shares. Thus they would receive $196 million in dividends. If I want to live (retire) on the Coke’s dividends, I would need 40,000 shares. That way, I would have $19,600 in dividends each quarter: or about $6,577 a month.

Reference:

CocaCola - 60 Year Dividend History | KO: Coca-Cola dividends were hovering around 3% in the last 20 years or so.

SPY 0.00%↑ aka S&P 500 index stocks dividend yield is approaching historic low, refer to this chart: it about 1.25% now.

Last but not least, I just realized if I put dollar sign before the stock ticker symbol, I can automatically got the stock link from Substack :-)