I have not rebalanced, I have mostly let the stocks run. In the above analysis/chart the stocks are rebalanced annually. They began to outperform during the market stress of 2020 and beyond, that is a good sign. That said, the Dividend Growth Stocks have delivered slightly better risk-adjusted returns. The Dividend Growth stocks and the market (S&P 500) have both delivered at 10.7% annually from 2015. Here's the performance of the 14 Dividend Growth Stocks vs the S&P 500.ĭividend Growth vs the S&P 500 (Portfolio Visualizer / Author ) On that front, I will be back with an article that offers 25 dividend growth stocks for consideration. If I was building the dividend growth portfolio today, I would concentrate on those 3 indices and funds. The Dividend Aristocrats ( NOBL) focus on a very long-term dividend growth record (25 years or more) and that approach can certainly find that quality factor. The Dividend Achievers Index included a proprietary financial health screen, the Dividend Growth Index does not.įor investors interested in combining a dividend growth history with financial screens, you can look to Schwab's U.S. They made a move to the Dividend Growth Index. I will then also address the (wonderful) performance of the United Technology spinoff group.Īlso of note, Vanguard's Dividend Growth Index ETF ( VIG) initially replicated the Dividend Achievers Index. Given that the United Technology stocks are not available for evaluation from 2015, I have run the performance update with the remaining 14 dividend achievers. In fact, from the time of the spin-off, the 3 stocks have greatly outperformed the market ( IVV) and the dividend achievers. We continue to hold all three and they have been wonderful additions to the portfolio. United Technologies merged with Raytheon ( RTX) and then spun off Carrier Global Corporation ( CARR) and Otis Worldwide ( OTIS). For the record, these stocks are held in my wife's accounts and my own accounts. stock picks by way of Apple ( AAPL), Berkshire Hathaway ( BRK.B), and BlackRock ( BLK). The 15 companies that I added are 3M ( MMM ), Pepsi ( PEP ), CVS Health Corporation ( CVS ), Walmart ( WMT ), Johnson & Johnson ( JNJ ), Qualcomm ( QCOM ), United Technologies ( UTX ), Lowe's ( LOW ), Walgreens Boots Alliance ( WBA ), Medtronic ( MDT ), Nike ( NKE ), Abbott Labs ( ABT ), Colgate-Palmolive ( CL ), Texas Instruments ( TXN ) and Microsoft ( MSFT ). ![]() I did no evaluation other than reading that list. I pulled the trigger and sold my VIG, and purchased 15 individual holdings from the top 20-25 of the index. This article looks at the early days of the portfolio. The 3 picks take the portfolio over the top. The dividend growth mix has matched the performance of the S&P 500 while delivering better risk-adjusted returns. The investment thesis was based on many years of research - observing the performance of the largest companies with quality and wide moat characteristics. dollar amount was moved into these 18 companies. The experiment was with real money - in fact, our entire U.S. ![]() I purchased 15 of the largest cap dividend achievers. In early 2015 I started an "experiment" on behalf of Seeking Alpha readers.
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