Dividend-News

Daily dividend news for investors in dividend stocks


Can A Dividend Growth Portfolio Beat Index Funds?

Published Mon, 15 Oct 2018 15:29:43 -0400 on Seeking Alpha

If Dividend Growth Investing can beat Index investing, where is the portfolio that shows this? In the various debates about whether or not Dividend Growth Investing is a viable strategy and how it stacks up to Index Investing, one question is often raised by proponents of Index Investing. And that question is, where are all the DG portfolios that beat Index Investing?
While the answer is complex, it is a fair question. I know with my own portfolio ( here is the latest update) is not currently beating the indexes I have compared it to. Part of that is due to the short time frame it has been in existence. Part of that is due to my directing cash flows into sectors and stocks where prices were falling while the indexes are doing the opposite. I bought all good companies and by purchasing them when prices were low I was able to grow dividend income faster. I fully expect this to pay off down the road. But I don’t expect my portfolio to beat the comparison indexes each year in total return. While I don't worry about it very much, I do expect that over the long term dividend growth will result in price growth too.
Understand as well that actual investors who use index funds under-perform their indexes. That may sound counter-intuitive. But actual investors tend to buy more shares of funds that are going up and sell shares of funds that are going down in price. This can and often does lead to investors buying high and selling low. So it’s not just investors who buy... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
AT&T 30.29   5.7 5.29 2.00 6.56
GENERAL ELECTRIC 8.17   0.0 -3.82 0.48 5.57
IBM 121.44   19.5 6.22 6.28 5.20
DOMINION RESOURCES 73.61   14.7 5.01 3.34 4.53
EXXON MOBIL 78.96   14.5 5.44 3.28 4.24
REALTY INCOME 62.68   52.7 1.19 2.65 4.21
WELLS FARGO 52.15   11.9 4.39 1.72 3.24
WISCONSIN ENERGY 70.85   17.4 4.06 2.21 3.16
COCA-COLA 49.86   76.7 0.65 1.56 3.14
PROCTER & GAMBLE 92.41   24.2 3.82 2.87 3.14
JM SMUCKER 112.94   9.5 11.84 3.40 2.99
3M 209.00   27.9 7.48 5.44 2.75
COLGATE PALMOLIVE 63.24   26.1 2.42 1.68 2.69
LOCKHEED MARTIN 305.48   27.9 10.96 8.80 2.62
SPDR S&P DIVIDEND ETF 96.65   0.0 0.00 2.40 2.50
JOHNSON & JOHNSON 144.25   288.5 0.50 3.60 2.48
CLOROX 160.18   25.0 6.42 3.84 2.42
MCDONALDS 183.56   27.8 6.59 4.64 2.20
WAL-MART STORES 103.87   59.7 1.74 2.08 1.97
SPDR S&P 500 ETF 273.02   0.0 0.00 5.02 1.84
MICROSOFT 107.28   44.5 2.41 1.84 1.57
POWERSHARES QQQ TRUST SERIES 1 165.13   0.0 0.00 1.31 0.77
ISHARES BARCLAYS AGGREGATE BOND FUND  

AT&T - T
AT&T - T  


Older articles featuring At&t (T):
3 Reasons Investors Should Expect More From Verizon's 4% Yield
Road To Financial Independence: Growing Dividends, Endless Opportunities But Limited Capital
Bert's October Dividend Income Summary
Is High-Yielding CenturyLink A Good Income Investment?
John And Jane's October Dividend Increases And Income Tracker - Taxable Account
How To Retire With Safe And Quality High Yields
High Yield Dividend Champion Portfolio - November Update
John's September Dividend Increases And Income Tracker - Retirement Accounts
My Dividend Growth Portfolio - 34 Holdings, 2 Buys, 1 Sell
The Most Undervalued And Overvalued Dividend Champions - November 2018

More