10Mon
In principle, I would also be interested in this. The only problem with such back tests is that they are often only accepted if the results fit. In other cases, general statements are made about the sense and nonsense of backtests. For example, backtests are useless because they only look into the past (is that what their backtests say?), or: nobody can look into the future (nevertheless they buy shares).
Dividend investors in particular don't have the reputation of being the most rational co-investors here on GQ. Quite emotional about dividends.
In short: a backtest on the div strategy is almost certainly a waste of time.
Dividend investors in particular don't have the reputation of being the most rational co-investors here on GQ. Quite emotional about dividends.
In short: a backtest on the div strategy is almost certainly a waste of time.
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@Epi To your knowledge, has there ever been a longer period of time in which a dividend strategy (I'll define it here as distributions of >3%) outperformed the market? I can hardly imagine.
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10Mon
@randomdude I'm not interested in beating the market. I would like to see how the capital develops overall.
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@randomdude You are already aware that dividend yields are part of the total return. Dividends are not on top
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@TCS Well, how should it develop? While an MSCI World makes the famous 8% per annum, dividend ETFs - depending on the concept - are at the same level or a few percentage points lower. Part of this is the payout. If you invest in absolute figures, you would have to convert it.
Or did we not understand the question?
Or did we not understand the question?
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10Mon
@randomdude This article tests the strategy and comes up with an outperformance 2002-12. https://seekingalpha.com/article/1031581-backtesting-dividend-growth-vs-dividend-yield It probably boils down to the fact that High Yield performs better than other strategies in difficult markets.
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•10Mon
@randomdude I'm talking more about the "snowball principle" in real numbers...
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@TCS You see the snowball principle in therausierende ETFs.
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@randomdude SPDR US Dividend Aristocrats has outperformed the MSCI World. 10Y dividend increase of 10%pa. After some time you can even achieve double-digit distributions
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Well, the two have run at different speeds in different phases and are currently on a par:
https://extraetf.com/de/etf-comparison?products=IE00B6YX5D40-etf,IE00B4L5Y983-etf
https://extraetf.com/de/etf-comparison?products=IE00B6YX5D40-etf,IE00B4L5Y983-etf
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@Maximilian01 Double-digit distributions? Maybe, you can do a lot of math. In the end, it's the total return that counts, not the dividends. The right benchmark for the US Dividend Aristocrats would be the S&P 500, which was far more successful:
https://extraetf.com/de/etf-comparison?products=IE00B6YX5D40-etf,IE00B5BMR087-etf
https://extraetf.com/de/etf-comparison?products=IE00B6YX5D40-etf,IE00B5BMR087-etf
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