Dividend reinvesting the S&P 500 is ~ a 50% beat on the S&P 500 without reinvesting. After adjusting for inflation, ~6% vs 3%. I DO NOT FOLLOW THE PREMISE AND WANT TO KNOW WHAT IM MISSING NOT JUST LISTEN TO ME BECAUES I"M OLD
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KO worst day in years
- Thread starter Clubber Lang
- Start date
Ummmmmmm what?
The S&P 500 is the same S&P 500 index no matter who is swapped in and out over the years
You really aren’t making sense
The components of the index change which is obviously what I would be referring to.
Listen here sonny. No reason to shout. My hearing aids work just fine.I DO NOT FOLLOW THE PREMISE AND WANT TO KNOW WHAT IM MISSING NOT JUST LISTEN TO ME BECAUES I"M OLD
Just take two minutes to look at a 10 or 20 year chart overlay of the S&P and one of the “blue chip dividend” stocks I listed in the original post.
Off the top of my head I would bet 8 out of 10 probably even 9 of 10 underperformed the index
That logic doesn't fly old man. You can do the same thing with a random stock from the S&P index from 1989. It's likely to be gone by now. So similarly, you'd rebalance your dividend basket.
1- I’m not old. But I’ve been doing this for 20 yearsThat logic doesn't fly old man. You can do the same thing with a random stock from the S&P index from 1989. It's likely to be gone by now. So similarly, you'd rebalance your dividend basket.
2- you clearly don’t understand the thread so let’s just leave it be
Down $4.17
Investors lost more than 2 1/2 years of dividend income today ($1.56/yr payout).
Another great example why investing for dividends is a horrible strategy.
Cherry picked example. I was given 1 share of Disney on the day that I was born as a gift. 36 years later, that 1 share with continuous dividend reinvesting and some stock splits has grown to 94.xx shares of stock. Not a bad return.
Surprised that KO dropped as much as it did. I sold a few of the 51 calls expiring tomorrow before earnings. Didn't love the trade given the low IV, but wanted to do something. Glad I didn't sell puts.
I named 16 of the Bluest of the Blue Chips.Cherry picked example. I was given 1 share of Disney on the day that I was born as a gift. 36 years later, that 1 share with continuous dividend reinvesting and some stock splits has grown to 94.xx shares of stock. Not a bad return.
Surprised that KO dropped as much as it did. I sold a few of the 51 calls expiring tomorrow before earnings. Didn't love the trade given the low IV, but wanted to do something. Glad I didn't sell puts.
You named Disney.
Which one of us is cherry picking?
Also, I said “5,10,15,20 years” to show that since the Dividend investing strategy became a widely followed “thing” it has underperformed miserably.
Congrats on your DIS stock.
Good to hear stories like that.
Simply reinvesting SPY dividends gives you a better return...
K
krugman25
I am not sure what the premise of the thread is here. Is it supposed to be that high dividend stocks shouldn't tumble?
Anyways, it looks to me like high dividend stocks outperform the SP500, in just about every case, over the long term. Here are a few different back tests with various high div. yield portfolio's compositions vs SP500.
https://seekingalpha.com/article/634901-40-dividend-champions-vs-the-s-and-p-500-30-year-backtest
http://www.youngdividend.com/2015/01/aristocrat-backtest.html
https://seekingalpha.com/article/1031581-backtesting-dividend-growth-vs-dividend-yield
https://www.spindices.com/documents...sp-500-low-volatility-high-dividend-index.pdf
Anyways, it looks to me like high dividend stocks outperform the SP500, in just about every case, over the long term. Here are a few different back tests with various high div. yield portfolio's compositions vs SP500.
https://seekingalpha.com/article/634901-40-dividend-champions-vs-the-s-and-p-500-30-year-backtest
http://www.youngdividend.com/2015/01/aristocrat-backtest.html
https://seekingalpha.com/article/1031581-backtesting-dividend-growth-vs-dividend-yield
https://www.spindices.com/documents...sp-500-low-volatility-high-dividend-index.pdf
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Using this tool you can test different dividend portfolio strategies vs S&P by jumping back in time and screening for stocks that meet your strategy criteria (can test since 2008). Like anything in investing, some strategies out perform the broader markets, others underperform. However, based on my testing with this tool - dividend portfolios generally out perform more often than not.
Https://www.smarterdividends.com
Https://www.smarterdividends.com