Should you buy Dividend Machines or a low cost dividend ETF like SDY or VIG?
Like you, I would like to have a solid way to determine which is better. My strategy is perfect for comparison.
As we go along in 2014, I am keeping track of three portfolios: (1) a portfolio made up of Dividend Machines, (2) a portfolio of SDY shares and (3) a portfolio of VIG shares. All portfolios have the same basis. Dividends are not reinvested.
Here is how these three portfolios compare so far.
What do you think? Do you need the nearly 4% yield from Dividend Machines or would you rather have the extra capital gain from SDY. As of today VIG is the laggard, but that could change over time.
Very interesting.
TheMoneyMadam