Several members have asked for an update on those chip titans and after carefully examining both companies most recent fundamentals I have come to a surprising conclusion.Īt the moment, Nvidia is the far better chip dividend stock to buy, for anyone looking to maximize long-term income. You want your standard of living to keep rising in retirement, no matter how long you live.Īnd that's where growth stocks like QCOM and NVDA can help. Not just to keep up with inflation (2.3% long-term according to the bond market). Income growth over time tends to track total returns, so you want to make sure that you're dividend portfolio is likely to generate strong returns. Had you bought both AMZN and MO back in 1997, reinvested dividends, and rebalanced annually, today you've received 33X more inflation-adjusted income over the last 24 years.Ģ8% annual income growth means a 208X higher inflation-adjusted yield on cost. (Source: Portfolio Visualizer Premium) MO's dividend growth is low because of the 20 spin-offs. MO + AMZN Cumulative Dividends Since 1998 Per $1,000 Initial Investment Metric You can enjoy 100X your initial investment in inflation-adjusted income and achieve truly mind boggling income by combining ultra-yield with hyper-dividend growth.Īnd guess what? Combining yield + hyper-growth, even without dividends can be even more powerful. Today's Inflation-Adjusted Annual Dividend Return On Your Starting Investment (Inflation-Adjusted Yield On Cost) More Inflation-Adjusted Income Than Altria MO + LOW Cumulative Dividends Since 1985 Per $1,000 Initial Investment Metric How powerful is hyper-dividend compounding over 35 years? In other words, even if you're already retired chances are very good that you have a 10+ year, or even 30 to 40 year time horizon.Īnd that's where the power of fast dividend compounding really shines. men can expect to live to 90 and 34% of woman. Unless you expect to drop dead in 10 years let's not forget that retirements last a long time.Ģ2% of U.S. Ok, so that's fine for those with 10+ years to invest, but surely retirees should stick to high-yield only right? WRONG! SCHD investors are getting $0.1 in annual income per $1 investment.They've gotten back 90% of their initial investment in inflation-adjusted dividends, and enjoyed 2.5X more income than the S&P 500 and 50% more income than SCHD alone.Īnd for every $1 invested in 2011 they are now getting $.24 in annual inflation-adjusted dividends, and that's growing exponentially each year. Dividend Equity ETF ( SCHD), and 3X better than the S&P 500 ( SP500). Today's Annual Dividend Return On Your Starting Investment (Yield On Cost)Ģ022 Inflation-Adjusted Annual Dividend Return On Your Starting Investment (Inflation-Adjusted Yield On Cost)īy combining yield and growth over the last 10 year income investors have enjoyed 28% annual income growth, 2X better than Schwab U.S. Inflation-Adjusted Income/Initial Investment % Portfolio Visualizer Premium Cumulative Dividends Since 2012: Per $1,000 Initial Investment Metric Income Growth Rich Retirement Dreams Are Made Of Historical Total Returns Since 2011Ĭombining the world's best high-yield and growth exchange-traded funds ("ETFs") with the growth and ultra-yield blue-chips created a far better performing portfolio over the last 11 years.īut more importantly for income investors, it also delivered superior income over time. Let's see what happens when we combine high-yield with fast-growth. Why? Let's consider the examples of two fast-growing dividend chip stocks, QUALCOMM Incorporated ( NASDAQ: QCOM ) and NVIDIA Corporation ( NASDAQ: NVDA ). When you hear "dividend investing" you probably think of boring, mature, and stable businesses like Altria ( MO), Verizon ( VZ) or Pepsi ( PEP).Īnd while those are indeed wonderful ways to earn generous, very safe, and steadily growing income today, if you want to maximize long-term retirement income there is no better way than combining high-yield and fast-growth. Well then blue-chip dividend investing might be just what you're looking for. Do you dream of retiring in comfort or even splendor? Who doesn't?!ĭo you wish your retirement standard of living could be 100% free from the market's crazy gyrations? I know I do.ĭoes the idea of being able to count on steadily growing income in all market, economic, inflation, and interest rate conditions, sound appealing? It does to me.
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