IndependentInvestor Newsletter 084C of 14 02 2010 

Today's quote:The notion that a shaman’s prowness waxes and wanes allows the society to witness repeated failure without questioning the overarching idea of sharmanic power. Its eerily like the modern stock market: when a famous stock analyst places a series of bad bets, we say he’s lost his touch and look for an analyst who hasn’t, rather than question the notion that his touch was ever anything other than a series of lucky guesses. In modern secular societies, as in primitive religious ones, faith in expertise is sustained by the timely disposal of experts.Robin Wright

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This is our eighty-fourth newsletter on current events and new developments, always from the viewpoint of the independent investor. If you are a new member, click here for general information about our newsletters.

TWITTER

This week we activated our Twitter account under the name DIYInvestor (to view it, click Twitter / DIYInvestor ). Now we send notices on Twitter (called tweets) to indicate we have sent out our weekly infociourriel to members but also to report other news we think may interest you. For example, this week we send out tweets annoucing two articles in the Toronto Star that quoted our site.Click here if you wish to receive our tweets in RSS. 

This week we discuss how to practice dividend investing.

We hope you enjoy it.

Dividend investing: directly, using dividend funds or in a dividend reinvestment plan

Dividend investing is a much-spoken about investment approach. Less discussed are what are the best ways to practice it? In this commentary we compare: buying and holding dividend-paying shares directly, investing in mutual funds or exchange-traded funds specialized in dividend investing, or participating (directly or through a broker) in dividend reinvestment plans. We conclude by asking if any of these methods is superior to a classical indexing approach

To read the balance of this commentary, please click here to access the full text on our site.