2021 Portfolio Income Performance

[fenders53]

(12-09-2021, 08:48 AM)ken-do-nim Wrote:

(12-09-2021, 07:31 AM)fenders53 Wrote: 10% is very good IMO.  Until this year I would have called 5% a small win.  Suddenly it's a small loss and any stock incapable of growth gets a critical look.

Generally speaking, any stock with a yield <= 1.25% that can't keep up with VOO I don't hold onto.  The trick is figuring out what length of time is a big enough sample to make the comparison valid, and I'm still working on perfecting that.  For stocks with yield above that up to about 3% they have to at least compare favorably with SCHD.  Otherwise I'm better off buying the ETFs.

Agree, and I look at this from several angles.  At this time I am not worried we are doomed to 6%+ inflation forever, but it could sure stay above 4% for quite some time and we lose ground if we knowingly don't address it in our investments.  You know how I preach revenue/earnings growth potential.  Even in my UTES, I find ZERO comfort in a 4% yield if the revenues are forecast to be stuck at no growth for years.  At some point you are going to own a company that freezes their dividend, or sacrifices company health to pay their div.  Some revenue and earnings growth makes good things possible eventually.