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 buying thousands and thousands of shares of Royal Dutch Shell, you really need to get your hands on the four-volume set “The History of Royal Dutch Shell” by Stephen Howarth, Joost Jonker, Keetie Sluyterman, and Jan Luiten … Read the rest of this article!