Dividends4Life: Buying Dividend Growth Stocks Without Looking

Buying Dividend Growth Stocks Without Looking

Posted by D4L | Saturday, August 22, 2015 | 0 comments »

As you may know, equal weighting the S&P 500 has delivered a significant total return outperformance vs. the cap weighted version of the S&P 500. The S&P 500 might be a wonderful selection criterion, but the cap weighting creates an anchor for total return. RSP's total return was 248.2%, outperforming the SPDR S&P 500 ETF's total return of 178.6%. The total return includes stock price appreciation and dividends. Given the outperformance of the Dividend Aristocrats and RSP, we can see that the appropriate benchmark of a stock picker might be a considerable beat of the broader market SPY.

I know that dividend growth history is a divining rod for finding earnings power and financial stability. It can be all the research required in the dividend growth space as the Dividend Aristocrat Index clearly demonstrates. I also believe that the markets are largely efficient. Much more information than you and I could ever collectively accumulate is priced in by professional investors who have much more time and expertise and tools than you and me. I will take the price that they have set for purchasing earnings power in this market. And yes, many write that the overall market is somewhat expensive. That stock market valuation is out of my control. I will stick to what I can control. I can buy and hold and add.

Source: Seeking Alpha

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