A fundamental look at S&P 500 Dividend Aristocrats

Categories: Industry/Sector Analysis, General Market Analysis, Investment Management, Investor Education, Equity Investments

Country or region: Asia Pacific (Overall)

The S&P 500 Dividend Aristocrats measures the performance of high-quality companies that have increased their dividends for 25 consecutive years. The index has delivered higher returns and lower volatility than the broad-based, large-cap equity market. This article qualifies for 0.5 CE under the guidelines of the CFA Institute Continuing Education Program.  We ......

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chris reed
Jun 02 2019
I disagree with the Compounding Effect charted on pages 3 and 4. The point is to convince readers of the 'critical importance of dividends within the total return", that without dividends you end up with nothing. But that is NOT what the first chart shows. The chart comes from Jeremy Siegel who charted a normal portfolio vs one where each year the dividend income was removed. At http://www.retailinvestor.org/truths.html#dividendreturn you can see the same chart showing the same thing except that now each year capital gains are removed.

The difference in outcomes is even MORE extreme than when dividends are removed.... proving that capital gains are more important than dividends. And proving ONLY the generic advice to always reinvest all your profits of all types.


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