Today's video benchmarks my dividend stock portfolio versus the S&P 500 (Standard & Poor's Index). At a high level, I am (slightly) beating the S&P 500 with my lower risk and higher income dividend stock strategy. To be precise, my annual growth rate (top 15 stocks, tranche 1 only, capital appreciation CAGR + current dividend yield) is 11.99% as compared to the S&P's 11.68% during the same time period using the same methodology.
Today's investing video is quite analytical and you will want to make sure to download my analysis spreadsheet to follow along! If you have already downloaded my stock portfolio previously, you will receive an email with today's investing analysis. If you are new to PPC Ian (or have not signed up for my portfolio yet), you can download my portfolio and today's analysis here: http://www.ppcian.com/my-complete-dividend-stock-portfolio/
In this analysis, you will learn:
* The precise date I made my tranche 1 purchases (for my top 15 favorite stocks).
* The value of the S&P 500 on the exact same date.
* The capital appreciation for my stocks vs. the S&P 500 during the comparable period.
* The total return (capital appreciation and dividends) for my stocks vs. S&P 500 during the comparable period.
* All of the assumptions I made in my model.
At the end of the day, I love investing for dividend stocks because they provide me with superior cash flow, while keeping my risk manageable, and getting me closer to FIRE (financial independence retire early). That being said, other investing strategies such as index fund investing (in the S&P 500) or growth investing may make a ton of sense for others.
I am not here to say my investing strategy is any better than another. Ultimately, investors need to find what works best for them. I simply love dividend investing and am happy to know my total returns are doing just fine. That said, I'm really not a total return investor and honestly don't care too much about how I'm doing vs. the S&P 500. I just want to maximize my dividend cash flow so I can use that cash to pay the bills.
Here's my recent dividend investing video that shares my total returns. This is a great investing video to watch before this one (it provides a lot of background on my returns): https://www.youtube.com/watch?v=fEx2i8Z6c_c
Here's an older video that shares how I'm crushing the S&P 500 with my Altria (MO) stock: https://www.youtube.com/watch?v=6rhvz8-0TDY
DISCLOSURE: I am long JNJ, PEP, MCD, UTX, CLX, DUK, O, PG, KO, MMM, SBUX, FUN, MO, KMB, SO, AAPL, and BTI. I own these stocks in my stock portfolio.
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Because the information herein is based on my personal opinion and experience, it should not be considered professional financial investment advice or tax advice. The ideas and strategies that I provide should never be used without first assessing your own personal/financial situation, or without consulting a financial and/or tax professional. My thoughts and opinions may also change from time to time as I acquire more knowledge. These are, as discussed above, solely my thoughts and opinions. I reserve the right to delete any comments for any reason (abusive in nature, contain profanity, etc.). Your continued reading/use of my YouTube Channel, blog, email newsletters, whitepapers, Excel files, and other materials constitutes your agreement with and acceptance of this disclaimer.
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