I recently did some backtesting of 2 popular dividend ETF’s and 2 popular dividend stocks (REITs) over the time period of 2024 to now. So approximately 1,5 years.
Emile this is a limited timeframe, most backtesting is done over much longer timeframes, I find the results very interesting and perhaps they might also give some good for thought for the getquin community 🙂
I created 3 fictional portfolio;
Portfolio 1: 100% $TDIV (+0,2%) (VanEck Dividend ETF)
Portfolio 2: 100% $JEGP (-0,55%) (JPMorgan Global Equity Premium Income Active ETF)
Portfolio 3: A combination of 50% $NNN (-0,05%) (NNN REIT) and 50% $O (-0,08%) (Realty Income)
As said the time period is 2024 to now, a fixed investment at the start and all dividends reinvested.
The CAGR (Compound Annual Growth Rate) between these 3 portfolios was 15,70% for $TDIV (+0,2%) vs 13,23%
$JEGP (-0,55%) vs 4,25% for the REIT portfolio with $O (-0,08%) and $NNN (-0,05%) .
The clear winner here is $TDIV (+0,2%) with $JEGP (-0,55%) as a close second 💰
I fully understand and support diversification, although I’m not sure it’ll benefit the portfolio enough if you also want growth next to cashflow.
All have their individual merits. What would you choose?
