4Mo
Excuse me for asking, but what exactly is more "predictable" about dividends than capital gains?
Dividends are not interest coupon payments like bonds.
That would be predictable
Dividends are not interest coupon payments like bonds.
That would be predictable
••
@Tacticus No problem, I'll be happy to explain what I mean.
Corporate profits and the associated dividends of blue chip companies are much more predictable and therefore easier to plan than the valuation multiples of companies. Especially when it comes to growth companies.
Apart from that, a portfolio with big book profits doesn't help me if I have to pay rent and am hungry. Unless I unload the shares, in which case I could use dividends again.
And again, quite independently of this, the $TDIV performs better than the $VWRL, at least over 5 years, even without dividends and 20%.
And with bonds you have a fixed coupon, but also the currently increased price risk, at least as long as 🍊 is in power.
Corporate profits and the associated dividends of blue chip companies are much more predictable and therefore easier to plan than the valuation multiples of companies. Especially when it comes to growth companies.
Apart from that, a portfolio with big book profits doesn't help me if I have to pay rent and am hungry. Unless I unload the shares, in which case I could use dividends again.
And again, quite independently of this, the $TDIV performs better than the $VWRL, at least over 5 years, even without dividends and 20%.
And with bonds you have a fixed coupon, but also the currently increased price risk, at least as long as 🍊 is in power.
••