FIRE (Financial Independence, Retire Early) Movement

Dividends Warrior

Dividends Warrior

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Half year has passed. Another small step towards FIRE. :giggle:

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BBCWatcher

BBCWatcher

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sglandscape said:
What's the money weighted rate of return of the portfolio?
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Dividends Warrior said:
YTD XIRR -3.7%
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“Dividends just don’t matter in isolation. Long-term net total returns do.”

I’m still upset one of my fund holdings (my biggest one as it happens — still biggest) had a ~14% dividend distribution (a.k.a. forced withdrawal) a couple years ago. Dividend distributions are often taxable events somewhere (source or recipient), and that one sure was.😬 Would y’all be impressed if I charted that distribution? You shouldn’t be.

Guess what also happens simultaneously with a ~14% distribution? The share price falls! ”Duh.”
 
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fr33d0m

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BBCWatcher said:
“Dividends just don’t matter in isolation. Long-term net total returns do.”

I’m still upset one of my fund holdings (my biggest one as it happens — still biggest) had a ~14% dividend distribution (a.k.a. forced withdrawal) a couple years ago. Dividend distributions are often taxable events somewhere (source or recipient), and that one sure was.😬 Would y’all be impressed if I charted that distribution? You shouldn’t be.

Guess what also happens simultaneously with a ~14% distribution? The share price falls! ”Duh.”
Click to expand...

read the context, please.

This is mostly a Singapore portfolio for a Singaporean.

There is no tax for such....
 
BBCWatcher

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fr33d0m said:
read the context, please.
This is mostly a Singapore portfolio for a Singaporean.
There is no tax for such....
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Yes, there (usually) is, at source. There are also typically costs to reinvest dividends, for example broker commissions. The reinvestment costs are less common or lower in larger financial markets outside Singapore.
limster said:
As I said many times it's good that bloggers like dw and others share their portfolio and strategy and so reader can DYODD. There are always some that attack dividends but never share their portfolio so that a comparison can be done of their performance
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Charting dividend distributions tells you very little about net total returns.(*) As it happens, I periodically post total return data (1/3/5/10 year) FWIW and for those who are interested. Along with caveats since there are always some caveats.

(*) An upward trending dividend chart gives you a clue — only that — that an investment portfolio is probably increasing in total size. Not guaranteed, though. That could be due to dividend reinvestment, solely or predominantly. It doesn’t tell you the portfolio’s rate(s) of growth (or shrinkage), and it doesn’t tell you about savings rates (especially from other income).

Would y’all be interested in total investment portfolio growth? I could probably go back, say, 10 years, look at year end balances (inclusive of dividend reinvestments and new savings), and report growth rates. I already reported one such data point: even through the Global Financial Crisis my year end (December 31) balances never declined year to year. Which surprised me.
 
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hwmook

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limster said:
As I said many times it's good that bloggers like dw and others share their portfolio and strategy and so reader can DYODD. There are always some that attack dividends but never share their portfolio so that a comparison can be done of their performance
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Ok share my portfolio for comparison with DW then.
 
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limster

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hwmook said:


Ok share my portfolio for comparison with DW then.
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Thats good, let the reader DYODD and decide which portfolio to follow. I find it most helpful if investors share their portfolio construction strategies/stock purchases as I may incorporate some aspects into my own portfolio.

If your portfolio is good, then I'm sure readers will follow.

My view is that there are many ways to reach financial independence. 😅 don't be like those who seem to think only one way to invest, everyone else is wrong.
 
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waxqube

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BBCWatcher said:
Yes, there (usually) is, at source. There are also typically costs to reinvest dividends, for example broker commissions. The reinvestment costs are less common or lower in larger financial markets outside Singapore.

Charting dividend distributions tells you very little about net total returns.(*) As it happens, I periodically post total return data (1/3/5/10 year) FWIW and for those who are interested. Along with caveats since there are always some caveats.

(*) An upward trending dividend chart gives you a clue — only that — that an investment portfolio is probably increasing in total size. Not guaranteed, though. That could be due to dividend reinvestment, solely or predominantly. It doesn’t tell you the portfolio’s rate(s) of growth (or shrinkage), and it doesn’t tell you about savings rates (especially from other income).

Would y’all be interested in total investment portfolio growth? I could probably go back, say, 10 years, look at year end balances (inclusive of dividend reinvestments and new savings), and report growth rates. I already reported one such data point: even through the Global Financial Crisis my year end (December 31) balances never declined year to year. Which surprised me.
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It's ok, DW's portfolio mostly REITs right now so it's mostly tax free at source. And for retirees, they will probably be using most of the dividends for income instead so no need for broker costs which is (probably) better than selling part of stocks for income. That said I do agree that total return is important. Don't go blindly chasing yield :cool:
 
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