A Redditor posted a portfolio that generated over $11,800 in annual dividend income. He was quite pleased that the port, through three years ending some time in 2023 had beaten the S&P 500. Among his dividend stocks Arbor Realty (ABR), Altria (MO), Petrobras (PBR), United Parcel Service (UPS), etc.
Beating the S&P 500 in performance and income three years in a row is impressive. I suspect the income side will not be a major hurdle in year 4. But, will the Redditor beat the Index in 2024?
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Started a small UPS position last month. Also have a decent Apple (AAPL) stake
These days headlines are rarely other than click-bait. I would say that whoever wrote the headline - probably not the author - must receive much of the blame, but the author should have introduced that bit of information at the same time as the annual $ return. I would not be surprised if the headline writer wasn’t also an editor. And I wouldn’t be surprised if the author was clueless.
Of course the strategy would work the same regardless of the amount. But wouldn’t we want to know how well it is working right up front?
From the headline: Earning $11,800 Per Year. Once we finally see the amount invested, $200k, we can calculate that as a 6% (actually 5.9%) return. Until we see that $200k, and do the calculation, we have no idea if the return is 6% ($200k), or 0.6% ($2MM), or 0.06% ($20MM). That is why the $200k is important, because until we have both the headline amount and the invested amount we know nothing.
Discussion evolves into meaningfulness of the title of original article
I will say this - if one is making this a generational argument, “get used to it” – there are more of them, and they have greatly evolved the use of technology
Shaking head back-and-forth, and smiling, as I think of Walt Kelly’s “We have met the enemy, …”