Lets look at what this doesn't show.
My portfolios 115.10, 101.52
TRRGX 113.73, 121.40
FFVTX 110.12, 117.86
VTXVX 111.42, 119.83.
Starting 2006
12/31/06 Current portfolio = $269,236
12/31/06 Current portfolio = $143,613
Total was $412,849
Dividends collected $18509.37 = 4.48%.
TRRGX yield 1.71% X $412,849 = $7059.71
FFVTX yield 1.55% X $412,849 = $6399.15
VTXVX yield 2.30% X $412,849 = 9495.55
To collect $18509.37 as I did, would have had to sell:
TRRGX 2.77%
FFVTX 2.93%
VTXVX 2.18%
If the same held true for 05, using TRRGX as an example:
End of 2006. Sell 2.77% = $11,435. Start 2006 with $401,313.
$412,849 X -2.77% = $401,313.
'07 Return = 6.75% X 401,413 = $27,095 = total $428,508.
Yield 1.71% on original $401,413 = $6864.
Sell to cover dividend shortfall = -$11,645.
Acct. value end of '07 = $416,863, which comes out to a .97%
return for this year.
Just wanted to point out, that when investing to live off of dividends, never touching the principal, total return numbers can be misleading.
I still believe I overtake the retirement funds over time on a total return basis.
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