tag:blogger.com,1999:blog-32639162.post6988949907250628780..comments2023-12-07T01:00:56.264-05:00Comments on My Wealth Builder: Dividends Aren't ForeverSuper Saverhttp://www.blogger.com/profile/11172939501208456194noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-32639162.post-11615006431273691442012-05-20T00:10:07.676-04:002012-05-20T00:10:07.676-04:00Great point. I acknowledged the risk of a dividen...Great point. I acknowledged the risk of a dividend cut in the post. Many of the stocks you mentioned were financial stocks, which were particularly hard hit and cut their dividends. Other industries, such as autos, also had dividend cuts. However, many other stocks, e.g. KMB, JNJ, CL, DD, VZ, T, XOM, continued to pay the same dividends. To me, diversification of industry will be one way to reduce the risk of a significant dividend cut.Super Saverhttps://www.blogger.com/profile/11172939501208456194noreply@blogger.comtag:blogger.com,1999:blog-32639162.post-47856658604525599012012-05-17T07:54:48.952-04:002012-05-17T07:54:48.952-04:00I am skeptical of the Dividend Aristocrats approac...I am skeptical of the Dividend Aristocrats approach. In 2007, there were many names in the list such as GE, BAC, BBT, PFE, NUE, FITB, CMA, SLM, KEY, SVU, USB, and others, that all subsequently cut dividends badly over the next year or two. I would like to think I am smart enough to have avoided those names back in 2007, but I doubt it. These stocks were looking really good back then.<br /><br />I don't have a reference to a formal study on this, but anecdotally there were a LOT of names on the list that subsequently cut dividends during the recession. I wonder if the dividend cuts on the aristocrats were not actually worse than the cuts on the general equity indexes.S. B.https://www.blogger.com/profile/07569215803905590898noreply@blogger.com