Saturday, May 3, 2014

How to beat VIG and SDY

We are disciplined income investors who follow the problem solving techniques we were taught early in our professional lives.

It gives me great pleasure to measure the Dividend Machine Strategy that uses four simple criteria for stock selection and learn that we can beat even the best ETF's.

The best ETF's for dividend income and dividend growth and low cost are VIG, Vanguard's dividend appreciation fund and SDY, State Street's dividend aristocrat fund.

We beat them on income, we beat them on capital gains and we beat them on total return and cost. 

We have not been tested in a down market.  I started this blog in 2010 about 20 months after the market lows.   My 2014 model portfolio makes me nervous because we are buying high.  But, the results speak for themselves.  

Take a peek at the 2014 Dividend Machine model portfolio year to date and you just might decide that a simple dividend strategy can work for you too.

The Money Madam
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