03-27-2015, 10:33 AM
(This post was last modified: 03-27-2015, 10:47 AM by earthtodan.)
About half my portfolio is in stocks yielding less than 2%. I've learned to think of dividends as just one way a company makes money for shareholders. I still chase yield in my Roth IRA to capture the tax advantage, but I'll take total shareholder yield (dividends plus buybacks) and growth in my taxable account, even though that makes my total returns subject to market whims in the short to medium term.
Edit: The weighted average yield of my taxable account is 1.3%. The needle may move up a tick when GILD starts paying dividends.
Edit: The weighted average yield of my taxable account is 1.3%. The needle may move up a tick when GILD starts paying dividends.