Home Register FAQ Members List Calendar New Posts Search

Go Back   Forums > Trading systems, newsletters and coaching

Thread Tools Display Modes
Old 12-24-2017,
aaaapolon aaaapolon is offline
Join Date: Dec 2014
Posts: 0
Default *Building a long-term portfolio?

If the start of the New Year has you thinking about investing for the first time, scrapping your old portfolio and starting from scratch, or simply rebalancing your holdings and filling some gaps the Dividend Aristocrats could be a valuable place to look for candidates to identify longer-term holdings.

The Dividend Aristocrats is a list of companies that have increased their dividend payout for at least 25 consecutive years.

According to S&P, over the last 80 years the dividend component accounts for 44% of the total return of the S&P500 Index. For long-term investors, if you're ignoring dividends then you're leaving nearly half of all potential returns on the table. This should emphasize the importance of identifying and owning solid dividend paying management teams. Not only is it critical to your total return to find companies currently paying a dividend but you want to ensure that dividend is safe, and better yet, will continue to grow. While not a full proof system, frankly the only thing we have to go off of in identifying future dividend growth is a solid track record of past dividend growth. We assume past is prologue.
Reply With Quote
Old 12-25-2017,
AdrianneSu AdrianneSu is offline
Join Date: Feb 2017
Posts: 0

This is where the Dividend Aristocrats list comes in handy. Think about the tall order that is specified by this list. These are 51 companies that not just maintained their dividend but increased their respective payouts every year dating back to at least 1986 (assuming 2011 was the last year of record for the 2012 list). These companies have honored their dividend policy through the Gulf War, the October 1987 Stockmarket Crash, the Dot-com bubble, September 11th and concomitant recession, and the greatest test since the Great Depression - the 2008/09 Financial Crisis. I would say this is a pretty selective group of companies that takes their dividend policies very seriously.

The way I like to use this list is in building a diversified portfolio. For example, if I want to equal weight the S&P500 I would pick a few stocks to represent each sector. The S&P is weighted as follows (borrowed from S&P website*):
Reply With Quote

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

All times are GMT. The time now is .