People will take this the wrong way, and I could care how anyone invests, but facts are facts.
"I would like to interject a cautionary word. In some cases both parties can be right even though they
have opposing viewpoints"
If you can show me a DGI portfolio that has kept up with the market over any extended period of time,
I will agree. Otherwise, they could buy more income right now having invested in SPY.
"DGI usually do much better in a correction but still decline."
With the Naz below the S+P they should be, and yet they don't seem to be, other than against tech stocks.
Until someone is willing to show it, I will continue to believe, that taking a little slice of a big market,
and thinking you will do well against it, makes no sense.
Right now, someone is thinking to themselves - but my goal is increasing income. Except for those in
retirement that need the money to live, I covered this above, where buying SPY would have been better.
I'm not stupid, but I am also not the sharpest tool in the shed.
Few will pay attention because they are set in their ways, but I will share a few facts anyway.
David Van Knapp seems to have the longest running DGI portfolio. End of Dec. his YOC was 11.5%.
Even though he has 19 months more time in than I do, end of Dec., because I was willing to buy preferreds
and baby bonds, my YOC was 18.86%. I had way more money coming in to invest than he did, for a good
long while.
A little math shows me that with Ameritrade 3.45% one year CD rate, if I sold everything, and put it in that CD, my YOC would be 20.48%
I think many do DGI because they don't have the time or inclination to want to do better. There is nothing
wrong with that. I also think there are many where that income makes a difference in living. Nothing wrong
with that either. Lastly, I think there are those with the time and inclination, but they are pretty sure they
can't beat the market. I think the market is made for the little guy, and they are selling themselves short.
I never hid anything here. the same people that think this wasn't a mistake:
Dividend investing for retirement Message Board - Msg: 31470008 (siliconinvestor.com)
Now using this for long term S+P return w/dividend reinvest: dqydj.com
S+P 500 Since Jan. 1, 2010 =...... +191%
My IRA $178,517 to $329,707...... +84.7%
It got worse. This is when I had had enough:
Dividend investing for retirement Message Board - Msg: 31910756 (siliconinvestor.com)
Now using this for long term S+P return w/dividend reinvest: dqydj.com
S+P 500 Since Jan. 1, 2010 =...... +205.49% ( site not updated to Nov. end )
My IRA $178,517 to $306,034...... +71.4%
Will think this is just luck:
***Now using this for long term S+P return w/dividend reinvest: etfreplay.com
Updated on time, using start date 12/31/2009
Longer term short term day trades. Message Board - Msg: 33984128 (siliconinvestor.com)
S+P 500 Since Dec. 31, 2009 =....+352.1%
My IRA $178,518 to $1,011,624 = ..+466.6%
Just saying that if this dull tool can do it, so can they.
In the early year market fall, preferreds held up way better than most DGI stocks. When I posted beginning
selling them to invest in growth stocks, the Nasdaq was already down 17.9%. I still had more for the further fall:
Message 33755077
I think my YOC has now fallen a little behind DVK, but I could change that anytime I wanted to, and as of
today, I am up 9.56% for the year.
If the market wants to swoon again, I still have the 2000 TECTP which has traded 3/4% above par ever
since I bought it. Like a sale where you can sell at full price, and buy at a discount.
Full disclosure: I do not need any money from this account, so setting it up for my kids to inherit, buy I had
already got off the more income train in the Dec. 2018 year end swoon. |
