Thread: Why Can't Stocks Get On a Run?

DaveM,

I remember back in the mid and late 1970s I had a utility portfolio of about 30 different companies. I made contribution every 2 weeks and just went down the list and eventually started over again - just placing money with no real thought to the risks. I only had one failure and that was GPU which over time eventually rebounded. What is interesting is the fact the Gov. allowed me to reinvest the dividends tax free. They wanted to help the utility industry - and I took advantage of the nice yields. Got my first notice from my dear friends at the IRS wanting to know why I had neglected to claim the dividend income - I was very polite. It was at that point I guess I decided itwas nice to get mail from them - so hence forth when I had a refund due me I would get mail asking when I would like to get my check. I always said please don't worry I will let you know. I was probably just talking to a computer. My wife suggested I was simply stupid - she is very wise. Regards,

Dennis

BT, you make a point about the taxes. I have had to pay them annually. A lousy $90 capital gainhad me going through 24 lines on Schedule D to save $13 one year. From then on it has been simple dividends for me!

And I agree that share prices of the utility are higher than usual -- it is up around 27 when 22-25 is more like it.But the share count is what...counts. From 20 to 106 in 17 years is a 14% annual increase, compounded. By this estimate, it should be up around 1500 shares in 30 years, barring splits and such.

The only point I was making was that it was a nice, safe investment, the kind of thing you set in motion one time, then let it roll on autopilot. Better than a passbook account, something nice to do for your grandkids. And when you get the dividends it makes the monthly electric bill easier to take.

Dave