Conservative Dividend Investing
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Conservative Dividend Investing
I finally have quite a bit of money in savings and a high savings rate so I am ready to add some significant money to my investment portfolio. My plan is to just keep a wad of cash and a portfolio of safe, conservative dividend stocks. I started investing many years ago after reading the stories of average people like Anne Scheiber, a woman who never made more than $4,000 a year but bought several dividend stocks early in life, never ever sold them and died a multi-millionaire.
http://www.thecompoundinvestor.com/article-archives/
With ultra low interest rates, now might be the time for an old-fashioned investing approach where you buy shares of a company like an owner and hold on to them for years instead of playing with stocks like they are just asset classes via index funds.
I have thought about the uncertainty of the future, the low volatility of the balanced stock/bond/gold portfolios and the all-weather nature of them. However, I feel like volatility is not relevant to me because once I buy a stock, I am in it forever. I pay no mind to the ups and downs in price, only to the dividend payments I receive which actually went up in 2008 and in 2020 when the market itself went down double digits for a time. I feel like I am buying myself (and my heirs) a perpetual annuity which will pay out increasing dividends for the remainder of my life and my family's life. A sample of some of my stocks would be things like Linde, 3M, JNJ, Union Pacific etc. And even if I did care about the gyrations of the portfolio value, stocks put me so far ahead of balanced portfolios that when they do have a -30% bear market I am STILL ahead of where I would have been with a balanced portfolio.
What are your opinions?
http://www.thecompoundinvestor.com/article-archives/
With ultra low interest rates, now might be the time for an old-fashioned investing approach where you buy shares of a company like an owner and hold on to them for years instead of playing with stocks like they are just asset classes via index funds.
I have thought about the uncertainty of the future, the low volatility of the balanced stock/bond/gold portfolios and the all-weather nature of them. However, I feel like volatility is not relevant to me because once I buy a stock, I am in it forever. I pay no mind to the ups and downs in price, only to the dividend payments I receive which actually went up in 2008 and in 2020 when the market itself went down double digits for a time. I feel like I am buying myself (and my heirs) a perpetual annuity which will pay out increasing dividends for the remainder of my life and my family's life. A sample of some of my stocks would be things like Linde, 3M, JNJ, Union Pacific etc. And even if I did care about the gyrations of the portfolio value, stocks put me so far ahead of balanced portfolios that when they do have a -30% bear market I am STILL ahead of where I would have been with a balanced portfolio.
What are your opinions?
Re: Conservative Dividend Investing
I think it is great that you are considering investing in stocks, historically they have done well.
With respect to dividends, I personally think they are great however, studies have show that most "active" managers do not beat their index. You will have to be the exception and pick a portfolio of stocks which will provide you diversification and beat an index. I would suggest reading this site and simply buying an index fund and adding to it over time and holding it forever, much simpler.
Good luck.
With respect to dividends, I personally think they are great however, studies have show that most "active" managers do not beat their index. You will have to be the exception and pick a portfolio of stocks which will provide you diversification and beat an index. I would suggest reading this site and simply buying an index fund and adding to it over time and holding it forever, much simpler.
Good luck.
Re: Conservative Dividend Investing
My inclination would be to choose a good dividend index product like VYM or SCHD.
If you've settled on dividends as a strategy over total return, why invest in a select few companies screened for dividend performance when you can invest in a bunch?
Bear in mind that "conservative" implies, in part, choosing diversification over yield-chasing.
If you've settled on dividends as a strategy over total return, why invest in a select few companies screened for dividend performance when you can invest in a bunch?
Bear in mind that "conservative" implies, in part, choosing diversification over yield-chasing.
Last edited by Mister A on Tue Jul 27, 2021 2:30 pm, edited 1 time in total.
Re: Conservative Dividend Investing
These great American companies also had "safe conservative dividend stocks": Kodak, J.C. Penney, RadioShack, Washington Mutual.jeffreyalan wrote: ↑Tue Jul 27, 2021 2:09 pm I finally have quite a bit of money in savings and a high savings rate so I am ready to add some significant money to my investment portfolio. My plan is to just keep a wad of cash and a portfolio of safe, conservative dividend stocks. I started investing many years ago after reading the stories of average people like Anne Scheiber, a woman who never made more than $4,000 a year but bought several dividend stocks early in life, never ever sold them and died a multi-millionaire.
http://www.thecompoundinvestor.com/article-archives/
With ultra low interest rates, now might be the time for an old-fashioned investing approach where you buy shares of a company like an owner and hold on to them for years instead of playing with stocks like they are just asset classes via index funds.
I have thought about the uncertainty of the future, the low volatility of the balanced stock/bond/gold portfolios and the all-weather nature of them. However, I feel like volatility is not relevant to me because once I buy a stock, I am in it forever. I pay no mind to the ups and downs in price, only to the dividend payments I receive which actually went up in 2008 and in 2020 when the market itself went down double digits for a time. I feel like I am buying myself (and my heirs) a perpetual annuity which will pay out increasing dividends for the remainder of my life and my family's life. A sample of some of my stocks would be things like Linde, 3M, JNJ, Union Pacific etc. And even if I did care about the gyrations of the portfolio value, stocks put me so far ahead of balanced portfolios that when they do have a -30% bear market I am STILL ahead of where I would have been with a balanced portfolio.
What are your opinions?
"The day you die is just like any other, only shorter." |
― Samuel Beckett
Re: Conservative Dividend Investing
HiMister A wrote: ↑Tue Jul 27, 2021 2:28 pm My inclination would be to choose a good dividend index product like VYM or SCHD.
If you've settled on dividends as a strategy over total return, why invest in a select few companies screened for dividend performance when you can invest in a bunch?
Bear in mind that "conservative" implies, in part, choosing diversification over yield-chasing.
Can you please elaborate whY you recommend VYM or SCHD
Thanks
- retired@50
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Re: Conservative Dividend Investing
I've known people who invested this way, but you have to be willing to walk away from a real dud, if you happen to own one. Look at the long term results for GE, which would have been on your list 20 or 30 years ago. The dividend now is a penny per share. It's sad how far some fall...jeffreyalan wrote: ↑Tue Jul 27, 2021 2:09 pm ...
Linde, 3M, JNJ, Union Pacific etc.
...
What are your opinions?
Maybe consider a fund that does the work for you?
Like this one from Vanguard: https://investor.vanguard.com/mutual-fu ... file/VHYAX
Regards,
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
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Re: Conservative Dividend Investing
What happened to your "All Treasury Portfolio" from 2018?
viewtopic.php?f=1&t=252517&p=3989467#p3989467
viewtopic.php?f=1&t=252517&p=3989467#p3989467
Re: Conservative Dividend Investing
I like building an income stream of iron ores, oil & gas and rent. My current holdings include RIO, BSM, EPD, MMP, DMLP, ALX. These are some pretty high yield stuff (6% to 10%+) and might not be very consistent due to commodity price volatilities.
My recommendation is that you should focus on the quality of the company and its pay out ratios. You should always buy companies that has low debt, low payout ratio and growing business.
My recommendation is that you should focus on the quality of the company and its pay out ratios. You should always buy companies that has low debt, low payout ratio and growing business.
The sillier the market’s behavior, the greater the opportunity for the business like investor.
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Re: Conservative Dividend Investing
Dividend stocks are not safer or more conservative than the total stock market. For example, SPYD has had lower return and higher volatility than SPY since 2016. SPYD had a max drawdown of close to 50% in March 2020. It is true that dividends are more stable than prices but that is really not relevant except psychologically.
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Re: Conservative Dividend Investing
The approach may be acceptable to those who plan to never sell and die a multi-millionaire. However, many will sell to maintain a desired standard of living and prefer not to leave a very large amount to beneficiaries, who should be able to provide from themselves.
Along the lines of others who have listed some "safe conservative dividends stocks" of years ago, I suppose some who lived a century or so ago would have proud to have bought and never sold shares of (hypothetical) US Buggy Whip when it was a conservative investment. There would always be a need for buggy whips, right?
Along the lines of others who have listed some "safe conservative dividends stocks" of years ago, I suppose some who lived a century or so ago would have proud to have bought and never sold shares of (hypothetical) US Buggy Whip when it was a conservative investment. There would always be a need for buggy whips, right?
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Re: Conservative Dividend Investing
i was right there with you (was gonna post something similar about GE) until you got to VHYAX. That fund only goes back to 2019 so not a long track record. And if you compare it to how the stock market did since it's inception, not sure why you'd get excited about it (it did worse than the market over the past 2 years).retired@50 wrote: ↑Tue Jul 27, 2021 2:32 pmI've known people who invested this way, but you have to be willing to walk away from a real dud, if you happen to own one. Look at the long term results for GE, which would have been on your list 20 or 30 years ago. The dividend now is a penny per share. It's sad how far some fall...jeffreyalan wrote: ↑Tue Jul 27, 2021 2:09 pm ...
Linde, 3M, JNJ, Union Pacific etc.
...
What are your opinions?
Maybe consider a fund that does the work for you?
Like this one from Vanguard: https://investor.vanguard.com/mutual-fu ... file/VHYAX
Regards,
Portfoliovisualizer suggests going back further using VYM instead, which goes back to Dec 2006, but even then would you have rather owned that or just owned the market as a whole:
source:
https://www.portfoliovisualizer.com/bac ... ion2_2=100
better return with total stock market, better higher risk adjusted return too.
for 10 years VYM kinda hugged the market, but it was less diversified 412 stocks only and costs more (.06%).
It's hard to accept the truth when the lies were exactly what you wanted to hear. Investing is simple, but not easy. Buy, hold & rebalance low cost index funds & manage taxable events. Asking Portfolio Questions |
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Re: Conservative Dividend Investing
I agree with the total market approach. I use it myself.arcticpineapplecorp. wrote: ↑Tue Jul 27, 2021 3:25 pmi was right there with you (was gonna post something similar about GE) until you got to VHYAX. That fund only goes back to 2019 so not a long track record. And if you compare it to how the stock market did since it's inception, not sure why you'd get excited about it (it did worse than the market over the past 2 years).retired@50 wrote: ↑Tue Jul 27, 2021 2:32 pmI've known people who invested this way, but you have to be willing to walk away from a real dud, if you happen to own one. Look at the long term results for GE, which would have been on your list 20 or 30 years ago. The dividend now is a penny per share. It's sad how far some fall...jeffreyalan wrote: ↑Tue Jul 27, 2021 2:09 pm ...
Linde, 3M, JNJ, Union Pacific etc.
...
What are your opinions?
Maybe consider a fund that does the work for you?
Like this one from Vanguard: https://investor.vanguard.com/mutual-fu ... file/VHYAX
Regards,
Portfoliovisualizer suggests going back further using VYM instead, which goes back to Dec 2006, but even then would you have rather owned that or just owned the market as a whole:
source:
https://www.portfoliovisualizer.com/bac ... ion2_2=100
better return with total stock market, better higher risk adjusted return too.
for 10 years VYM kinda hugged the market, but it was less diversified 412 stocks only and costs more (.06%).
I think using VHYAX or VYM is better than selecting individual stocks, which was the direction I was trying to nudge the OP.
Regards,
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
Re: Conservative Dividend Investing
The main reason VYM has underperformed the total stock market is that growth stocks have had a great run recently, whereas dividend-yielding stocks tend to be value stocks. No one knows if that will continue. But this points to one of the problems with chasing dividends - many dividend investors probably don't realize they are actually decreasing diversification and taking on more risk.
Re: Conservative Dividend Investing
That this is a common misspecification of the question. You want to focus on total return and risk.jeffreyalan wrote: ↑Tue Jul 27, 2021 2:09 pm I finally have quite a bit of money in savings and a high savings rate so I am ready to add some significant money to my investment portfolio. My plan is to just keep a wad of cash and a portfolio of safe, conservative dividend stocks....
What are your opinions?
Dividends can be one of the drivers of return. And sometimes not. There are safe companies that pay dividends. There are speculative companies that pay a dividend. There are safe companies that don't pay dividends. Some companies pay constant and increasing dividends - until they stop.
In short, dividends are so simple and intuitive that it is easy to come up with the wrong answers. Like the "fact" that heavy objects fall faster than lighter ones. As a predictor, dividends have historically have a very low power to predict anything.
There are 2 better answers.
The first is to research the factors "Low Volatility" and "Quality". There are issues with these factors but they are far better than the dividend factor.
The second is to start doing fundamental research. Lots of fundamental research. Tear apart balance sheets, income statements, and annual reports. Start reading research papers and stock analysis reports. Brush up on your accounting skills.
Former brokerage operations & mutual fund accountant. I hate risk, which is why I study and embrace it.
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Re: Conservative Dividend Investing
Is that stability in terms of yield (i.e., percentage) or in dollar terms (dollars/share)? A lot of times I see pro-dividend folks saying that the yield of stock X only declined 20% during the GFC etc but they seem to be quoting the percent yield. It doesn't really help to still be getting 4% or whatever when the share price cratered because now it's 4% of a smaller number.aristotelian wrote: ↑Tue Jul 27, 2021 2:45 pm It is true that dividends are more stable than prices but that is really not relevant except psychologically.
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Re: Conservative Dividend Investing
SCHD is a much better alternative. Schwab US Dividend Equity ETF. This way, the Polaroid/Enron/GE/GM dividend stocks of yesterday (who all went to zero, so what good is a 10% quarterly dividend if it's 10% of zero?) can be mimic'd today with other big dividend stocks, some of which are going to go out of business. With the ETF, you have the diversification with the dividends (and forced taxation) you're looking for.
Personally, I invest opposite of what you're looking at. Non-dividend paying stocks like BRK/b don't pay dividends, thus don't force you to pay taxes every single year. I'm slowly moving my investments from these tax inducing funds over to non-dividend paying ones. There are plenty of companies who do this, so do your own research and decide for yourself.
Personally, I invest opposite of what you're looking at. Non-dividend paying stocks like BRK/b don't pay dividends, thus don't force you to pay taxes every single year. I'm slowly moving my investments from these tax inducing funds over to non-dividend paying ones. There are plenty of companies who do this, so do your own research and decide for yourself.
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Re: Conservative Dividend Investing
Oh please! Those were never “great” companies. A better example would be General Electric and Kresege (K-Mart) and Sears (though Sears did create several successful spin-offs - AllState and Dean Witter Discover).Godot wrote: ↑Tue Jul 27, 2021 2:30 pmThese great American companies also had "safe conservative dividend stocks": Kodak, J.C. Penney, RadioShack, Washington Mutual.jeffreyalan wrote: ↑Tue Jul 27, 2021 2:09 pm I finally have quite a bit of money in savings and a high savings rate so I am ready to add some significant money to my investment portfolio. My plan is to just keep a wad of cash and a portfolio of safe, conservative dividend stocks. I started investing many years ago after reading the stories of average people like Anne Scheiber, a woman who never made more than $4,000 a year but bought several dividend stocks early in life, never ever sold them and died a multi-millionaire.
http://www.thecompoundinvestor.com/article-archives/
With ultra low interest rates, now might be the time for an old-fashioned investing approach where you buy shares of a company like an owner and hold on to them for years instead of playing with stocks like they are just asset classes via index funds.
I have thought about the uncertainty of the future, the low volatility of the balanced stock/bond/gold portfolios and the all-weather nature of them. However, I feel like volatility is not relevant to me because once I buy a stock, I am in it forever. I pay no mind to the ups and downs in price, only to the dividend payments I receive which actually went up in 2008 and in 2020 when the market itself went down double digits for a time. I feel like I am buying myself (and my heirs) a perpetual annuity which will pay out increasing dividends for the remainder of my life and my family's life. A sample of some of my stocks would be things like Linde, 3M, JNJ, Union Pacific etc. And even if I did care about the gyrations of the portfolio value, stocks put me so far ahead of balanced portfolios that when they do have a -30% bear market I am STILL ahead of where I would have been with a balanced portfolio.
What are your opinions?
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
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Re: Conservative Dividend Investing
You can be very successful in purchasing quality dividend paying companies IF you are prescient in selecting the baby that gets thrown out with the bath water. Mispricing is common in all out bloodbath sell-offs, resulting in abnormally high yields - one could look back to March 2020 for a number of companies who’s yields went to 8,9,10 percent only to come back to the normal 3-4 percent they were paying in February 2020. The yields didn’t decline because of a dividend cut rather the mispricing was recognized by the marketplace and found its equilibrium based on the earnings capacity of the company.TropikThunder wrote: ↑Tue Jul 27, 2021 7:37 pmIs that stability in terms of yield (i.e., percentage) or in dollar terms (dollars/share)? A lot of times I see pro-dividend folks saying that the yield of stock X only declined 20% during the GFC etc but they seem to be quoting the percent yield. It doesn't really help to still be getting 4% or whatever when the share price cratered because now it's 4% of a smaller number.aristotelian wrote: ↑Tue Jul 27, 2021 2:45 pm It is true that dividends are more stable than prices but that is really not relevant except psychologically.
Dividend investors typically look for total returns but will only spend the distributions. There’s many ways to invest, so long as it works for you and you don’t mind paying taxes. As for the person quoted in the OP’s opening statement-the trick is to find companies in their infancy with similar attributes-good luck with that.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
Re: Conservative Dividend Investing
Yahoo! Finance had this article headline for me this morning,
1. Vanguard Total Stock Market ETF (VTI)
At the top of their list of "seven of the best dividend ETFs to invest"7 Dividend ETFs To Buy And Watch For 2021
"Looking for a steady income stream to provide stability in your portfolio? Here are seven of the best dividend ETFs to invest in the coming year, ranked by assets."
https://finance.yahoo.com/m/04073309-50 ... y-and.html
https://www.investors.com/etfs-and-fund ... src=A00220
1. Vanguard Total Stock Market ETF (VTI)
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
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Re: Conservative Dividend Investing
Try these for individual stocks -
SO utility - only one of 2 utility stocks chosen by most large dividend funds. Completing a nuclear reactor installation for the future.
T ( AT&T) - 7% dividend, little LT debt, large company.
IP Intl Paper - supplies Amazon with shipping boxes. Amazon now twice as big as Walmart.
There's always AAPL, Starbucks, and First Trust internet index.
SO utility - only one of 2 utility stocks chosen by most large dividend funds. Completing a nuclear reactor installation for the future.
T ( AT&T) - 7% dividend, little LT debt, large company.
IP Intl Paper - supplies Amazon with shipping boxes. Amazon now twice as big as Walmart.
There's always AAPL, Starbucks, and First Trust internet index.
age in bonds, buy-and-hold, 10 year business cycle
Re: Conservative Dividend Investing
First, I have to say that I have no idea what this means — “playing with stocks like they are just asset classes via index funds.”
Comparing an all stock portfolio of individual stocks like you planning to implement to a typical Boglehead portfolio that includes both stock and bond indexes is the old “apples vs. oranges” comparison.
There’s two issues here — 1) should you have cash/bonds in your portfolio and 2) should you focus on dividends in your stock holdings rather than total return.
You can create an all stock portfolio with index funds. You can create an all stock portfolio using individual dividend-paying stocks. Pick A or B. The Boglehead recommendation is A.
Except for young investors, most Bogleheads have some bonds/cash in their retirement portfolios. They provide diversification, reduce volatility, and reduce (certain types of) risk. A chunk of cash plus stocks is fine. But a big cash position means that by definition you aren’t truly comfortable going all-in on stock volatility. Just like most Bogleheads.
Also, I find it really hard to believe that your dividends increased during the Great Recession…
Comparing an all stock portfolio of individual stocks like you planning to implement to a typical Boglehead portfolio that includes both stock and bond indexes is the old “apples vs. oranges” comparison.
There’s two issues here — 1) should you have cash/bonds in your portfolio and 2) should you focus on dividends in your stock holdings rather than total return.
You can create an all stock portfolio with index funds. You can create an all stock portfolio using individual dividend-paying stocks. Pick A or B. The Boglehead recommendation is A.
Except for young investors, most Bogleheads have some bonds/cash in their retirement portfolios. They provide diversification, reduce volatility, and reduce (certain types of) risk. A chunk of cash plus stocks is fine. But a big cash position means that by definition you aren’t truly comfortable going all-in on stock volatility. Just like most Bogleheads.
Also, I find it really hard to believe that your dividends increased during the Great Recession…
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
Re: Conservative Dividend Investing
T is cutting it's dividend next year.patrick013 wrote: ↑Wed Jul 28, 2021 9:49 am Try these for individual stocks -
SO utility - only one of 2 utility stocks chosen by most large dividend funds. Completing a nuclear reactor installation for the future.
T ( AT&T) - 7% dividend, little LT debt, large company.
IP Intl Paper - supplies Amazon with shipping boxes. Amazon now twice as big as Walmart.
There's always AAPL, Starbucks, and First Trust internet index.
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Re: Conservative Dividend Investing
T is cutting the dividend. It’s known, don’t buy T.patrick013 wrote: ↑Wed Jul 28, 2021 9:49 am Try these for individual stocks -
SO utility - only one of 2 utility stocks chosen by most large dividend funds. Completing a nuclear reactor installation for the future.
T ( AT&T) - 7% dividend, little LT debt, large company.
IP Intl Paper - supplies Amazon with shipping boxes. Amazon now twice as big as Walmart.
There's always AAPL, Starbucks, and First Trust internet index.
Buy VPU - owns SO and a whole bunch more.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
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Re: Conservative Dividend Investing
It's worth noting that if you own the S&P500 that somewhere around 85% give or take of the component stocks pay a dividend.
These types of posts raise the question of whether the investor is up to speed on his understanding of the total return idea. I have to admit that it seems nice to get cash payments sent to you and still own the same part of the companies, but my largest returns over the years have been from stocks that did not pay a dividend---because they were growing rapidly and had better uses for the cash than to send it to the owners.
The bottom line of this is that if you start thinking of stocks the way you think of CDs or bank accounts you will get pulled into low growth, low return investments.
It's also worth noting for some investors that, with the 0% bracket for capital gains, certain people should prefer not to receive dividends at all, and to simply harvest gains in that 0% space. Of course, your overall income has to be low enough to allow it, and to invest in equities with no dividends you'll have to abandon the broad index fund concept.
These types of posts raise the question of whether the investor is up to speed on his understanding of the total return idea. I have to admit that it seems nice to get cash payments sent to you and still own the same part of the companies, but my largest returns over the years have been from stocks that did not pay a dividend---because they were growing rapidly and had better uses for the cash than to send it to the owners.
The bottom line of this is that if you start thinking of stocks the way you think of CDs or bank accounts you will get pulled into low growth, low return investments.
It's also worth noting for some investors that, with the 0% bracket for capital gains, certain people should prefer not to receive dividends at all, and to simply harvest gains in that 0% space. Of course, your overall income has to be low enough to allow it, and to invest in equities with no dividends you'll have to abandon the broad index fund concept.
Re: Conservative Dividend Investing
The biggest challenge in choosing to go with individual stocks will be recency bias. It is easy to forget about all the great dividend-paying stocks from years past that are either "gone" or mere shadows of their former selves - like GE.
It would seem like a high-dividend ETF would be a better long-term choice.
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Re: Conservative Dividend Investing
This is not a good idea and is frankly a waste of your time. Just invest in a total market fund
Crom laughs at your Four Winds
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Re: Conservative Dividend Investing
Bogle has made comments along the lines of why invest in other factors
including an equal weighted dividend factor, where total returns are
similar to the market portfolio. I can understand that - simplicity.
But when I factor in historical returns, lower portfolio beta, and
variable timing of returns I still think a large cap tilt to Quality
or Dividends has merit and not a bad idea either.
Dividends love bulls and Quality diversifies the portfolio as well in
a good way. The future market is the only way to find out while the
past is encouraging investors.
age in bonds, buy-and-hold, 10 year business cycle
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Re: Conservative Dividend Investing
delete
Last edited by kimura king on Fri Oct 01, 2021 8:21 pm, edited 1 time in total.
Re: Conservative Dividend Investing
dividends is not a fama/French factor though, as far as I’m aware. Value, sure, but for this particular poster I don’t thing either is a good course of action given that dividends themselves are not really useful except to incur taxes.patrick013 wrote: ↑Wed Jul 28, 2021 9:51 pmBogle has made comments along the lines of why invest in other factors
including an equal weighted dividend factor, where total returns are
similar to the market portfolio. I can understand that - simplicity.
But when I factor in historical returns, lower portfolio beta, and
variable timing of returns I still think a large cap tilt to Quality
or Dividends has merit and not a bad idea either.
Dividends love bulls and Quality diversifies the portfolio as well in
a good way. The future market is the only way to find out while the
past is encouraging investors.
Crom laughs at your Four Winds
- patrick013
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Re: Conservative Dividend Investing
Other researchers have studied many factors, 6 or 7 if
I remember right. S&P, Russell and some others.
Some go back 40-50 years. Quality and small dividend
indexes always stand out. Bogle could see them too.
With COVID and the great returns in LC Growth it's hard
to compare anything. The 2 funder has great returns too.
age in bonds, buy-and-hold, 10 year business cycle
Re: Conservative Dividend Investing
If you have two otherwise identical companies one of which does buybacks and one of which does dividends it if odd if they have different factor loadings. I'd imagine the fact that buybacks have outstripped dividends could muddle a dividend factor to the extent that it exists different than value, quality, or low volatility.patrick013 wrote: ↑Thu Jul 29, 2021 8:38 amOther researchers have studied many factors, 6 or 7 if
I remember right. S&P, Russell and some others.
Some go back 40-50 years. Quality and small dividend
indexes always stand out. Bogle could see them too.
With COVID and the great returns in LC Growth it's hard
to compare anything. The 2 funder has great returns too.
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Re: Conservative Dividend Investing
I don't know, I don't believe in factor loadings only factorsDa5id wrote: ↑Thu Jul 29, 2021 8:45 amIf you have two otherwise identical companies one of which does buybacks and one of which does dividends it if odd if they have different factor loadings. I'd imagine the fact that buybacks have outstripped dividends could muddle a dividend factor to the extent that it exists different than value, quality, or low volatility.patrick013 wrote: ↑Thu Jul 29, 2021 8:38 amOther researchers have studied many factors, 6 or 7 if
I remember right. S&P, Russell and some others.
Some go back 40-50 years. Quality and small dividend
indexes always stand out. Bogle could see them too.
With COVID and the great returns in LC Growth it's hard
to compare anything. The 2 funder has great returns too.
within reason. Factor loadings average things out to much.
So I am not a factor person.
age in bonds, buy-and-hold, 10 year business cycle
Re: Conservative Dividend Investing
You raised factors, not me. I think factors seem reasonable/plausible, though I've not gone that way myself. I don't think there is much evidence for dividends as an independent factor.patrick013 wrote: ↑Thu Jul 29, 2021 8:54 amI don't know, I don't believe in factor loadings only factorsDa5id wrote: ↑Thu Jul 29, 2021 8:45 amIf you have two otherwise identical companies one of which does buybacks and one of which does dividends it if odd if they have different factor loadings. I'd imagine the fact that buybacks have outstripped dividends could muddle a dividend factor to the extent that it exists different than value, quality, or low volatility.patrick013 wrote: ↑Thu Jul 29, 2021 8:38 amOther researchers have studied many factors, 6 or 7 if
I remember right. S&P, Russell and some others.
Some go back 40-50 years. Quality and small dividend
indexes always stand out. Bogle could see them too.
With COVID and the great returns in LC Growth it's hard
to compare anything. The 2 funder has great returns too.
within reason. Factor loadings average things out to much.
So I am not a factor person.