The approach is really very interesting. But what is not yet so clear to me:
It looks to me as if the increase in value (price) of the ETF is growing faster than the absolute distributions. Therefore, the relative payout ratio should fluctuate over time...
Or am I making a mistake? @Epi @DonkeyInvestor
It looks to me as if the increase in value (price) of the ETF is growing faster than the absolute distributions. Therefore, the relative payout ratio should fluctuate over time...
Or am I making a mistake? @Epi @DonkeyInvestor
••
@Sebastian85 Ultimately, of course, this depends on the share price growth and dividend growth of the companies included in the ETF. And nobody can predict that in advance. But yes, if the absolute increase in value is permanently higher than the absolute dividend growth, the relative payout will fall. But you have that everywhere in principle. No ETF guarantees price growth X and dividend growth Y. What you should ask yourself: What potential do you see in the composition of an ETF?
•
22
•@DonkeyInvestor well, but the calculation will probably turn out quite differently, especially in the FTSE AW, the magic 7 make up an ever larger share of ETF growth, but they pay out almost no dividends... so the calculation doesn't fit for me if I still assume a 2% dividend yield on the ETF price in 25 years. If you lower the yield to 1.5 or 1%, the world looks different
••
@Sebastian85 What if Mag7 pays out more dividends at some point? Or there are completely different top players? Or the weighting is balanced out again? Or or or or? If your crystal ball says otherwise, you should listen to it.
The fact is: I stick to historical data. Everything else is speculation. I can also be wrong. But there is no better indicator.
The fact is: I stick to historical data. Everything else is speculation. I can also be wrong. But there is no better indicator.
•
11
•