Replies to post #2514 on ARMOUR Residential REIT Inc (ARR)

[bar1080]

I almost wore out that calculator when I found it recently. Its results are sometimes surprising, and perhaps misleading, especially where a stock was unusually low (or high) exactly ten years ago. But I love how it figures-in splits and reinvested dividends, and comes up with the ten year performance based on a $10,000 investment. Ten years is about my investing horizon.

My activity on the ARR board proved to be remarkably beneficial to me. Like you, I decided that "market rate div payers" were the way to go, and that anything paying in the double digits was a sucker bet.

One of my sensible div payers was a little 100 year old airplane startup called Boeing. Paid a solid 3% with a bit of room for appreciation.

BA was the #1 Dow 30 stock in 2017 and it's going up faster than ever in '18.

Only problem is it sells for $335 a share and all IHUBner know that only pennies rise much. LOLOLOLOLOL! BTW, did you notice that the Dow beat the S&P in '17. That was mainly because of BA's heavy weighting in the Dow. 2017 was a fantastic year for my kind of buy/hold blue chips.

[bar1080]

Just ran the numbers with that calculator on my three Dow component stocks over a ten year period.

- Travelers Insurance: $33,747
- MMM: $40,435
- Boeing: $53,618

SPY: $24,139 (The Dow 30 index)

ARR: $12,178 (to keep things honest for IHUB)

Bizarre how some players argue that ultra high yield stocks like ARR are great investments.

[bar1080]

"Dividend growth with a low yield. That's the secret sauce. And it's just about the opposite of the recipe most REITs seem to follow."

Worked for me for years, Porgie. Several of my moderate-yielding blue chips have smashed thru their highs lately... while upping their payouts... once again.