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Strategies & Market Trends : Dividend investing for retirement
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robert b furman
To: reflection88 who wrote ()10/25/2020 10:41:14 AM
From: E_K_S1 Recommendation   of 34328
 
The backtest results show that the high dividend yield strategy has an annualized return of 10% and volatility of 20.7%. The strategy has cumulative return of 255%, outperforming the S&P 500 benchmark by almost 55% since 2006.


This got me thinking. How do the Aristocrat Dividend payers do vs (1) high dividend basket, (2) an REIT basket or (3) a basket of utility stocks (remember we are at historically low interest rates).

Then what does the back test machine yield when we expand our time period say for the 90's then after the dot.com crash from 2001 to 2009 and then the credit/housing crash of 2009 and finally the historical interest rate drop from 2018 to 2020.

I suspect it will be the Dividend Aristocrat stocks that generate the best overall dividend returns in the long run and best capital gain returns. I suspect it would yield lower volatility and close to the higher yield in all periods (but not the highest).

The final test I would want to run is w/ the Vanguard Mutual Fund probably their fund that focuses on dividends.

If you held these dividend payers (especially the Aristocrats) in a taxable account, I suspect your best results from capital gains and dividend earnings would be holding a basket of Aristocrat dividend payers for 25 year (or more) and not trading out/in over time... just hold and maybe reinvesting those dividends back into more shares.

EKS
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