Tuesday, March 4, 2014

Dividend Machines take on SPDR Dividend ETF symbol (SDY)

This post compares my 2012 Dividend Machine Model Portfolio to SPDR Dividend ETF symbol SDY.   Comparisons presented in the table below include capital gains and dividend income.  





A Simple Metholodgy


During 2012 I used my four Dividend Machine Criteria to select forty eight stocks that qualified as Dividend Machines.

I wanted to compare this group of stocks to the SPDR Dividend  ETF  symbol (SDY.)   So I  recorded the number of shares of SDY I would have bought with each buy of a Dividend Machine.  At the end of 2012, the Dividend Portfolio held 4800 shares of various stocks and  the SPDR portfolio held 3,165.62 share of SDY.


Buy & Hold 
   

During 2013 no stocks in the 2012 Dividend Machine portfolio were sold or bought; although one stock in the Dividend Machine portfolio had a spin off (ABT spin off of ABBV.)  Dividends were not reinvested.   

Similarly, no shares of the 2012 SDY portfolio were bought, sold or reinvested during 2013.   SDY portfolio declared a greater than typical distribution December 2013.

The point is that both portfolios were bought over 2012 and then I followed their performance in 2013.   The results are presented below.






On every level, the 2012 Dividend Machine Portfolio, which incurred no costs during 2013 performed better than a similar investment in SDY. 

I rest my case.

TheMoneyMadam