If you had focused
on high dividend payers such as the utility subsector of the S&P 500 or MLP's through the Alerian MLP index, you would be up a whopping 103 % and 824 % respectively!
Not exact matches
Investors like me would just see the average return
on capital, suggest that it's
high, and figure that the business is more efficient as a non
dividend (or low
dividend)
payer.
To provide an example that further exaggerates my statemeent in the 3rd paragraph above, say a
high rate tax
payer (say
on salary of # 50,000) holding LS60 fund in taxable account receives a
dividend of # 4,999.
The
highest third of the
dividend payers are the best companies,
on average.
If you hold foreign equities in a taxable account and you're inclined to invest in
dividend payers, consider ETFs that focus
on dividend growth rather than
high yield.
I think the market will be very volatile in the upcoming weeks and that's why I am now more focus
on having quality asset rather than
high dividend yield
payers.
Among older
dividend exchange - traded funds, the usual strategies are to focus
on high - yield
dividend payers or those companies displaying favorable payout growth trends.
The market has been
on an unrestricted run upward and it has been difficult to really find great deals
on high quality
dividend payers.
Note the inverse relationship, with
higher yields creating a drag
on the excess returns of
dividend payers.
Dividend Beginner -[June / 2016]- Subscribe to RSS feed Dividend Beginner is a 22 year old Canadian dividend growth investor striving for financial independence by focusing on high - yielding monthly
Dividend Beginner -[June / 2016]- Subscribe to RSS feed
Dividend Beginner is a 22 year old Canadian dividend growth investor striving for financial independence by focusing on high - yielding monthly
Dividend Beginner is a 22 year old Canadian
dividend growth investor striving for financial independence by focusing on high - yielding monthly
dividend growth investor striving for financial independence by focusing
on high - yielding monthly
payers.
Investors like me would just see the average return
on capital, suggest that it's
high, and figure that the business is more efficient as a non
dividend (or low
dividend)
payer.