I am intrigued by the risk management technique of dividend extraction–buying high yielders with slow dividend growth or medium yielders with medium dividend growth–in which you receive a large percentage of your purchase price back in the form of dividends as a reward for sticking around for awhile.
I have made no secret of the fact that I think quite highly of Royal Dutch Shell, despite the fact that it is frequently maligned in the popular media. I think it is because Wall Street will never truly get behind supporting something with a middling growth rate. People are attuned to desire growth, growth, growth.
If you’re well off, and you ever find yourself … Read the rest of this article!