No. of Recommendations: 11
It’s a stretch to call it an analysis. It was curious to simply see if a real-life portfolio of dividend growth stocks beat the market over the last decade; it didn’t.

The “last decade” was pretty anomalous. There have only been a few times in history that the market has gone straight up for a decade. Perhaps it would have been the same if you looked at a 20- or 30-year time frame, and that might have been different, or perhaps not, I don’t know. I note that you also chose specific stocks, which you then compared against a large group of stocks. It may be that the stocks chosen underperformed because they were in bad sectors or were poorly performing companies at that time (GE in the 90’s vs. GE in the 2010’s, for example). Again, I don’t know (and can’t be bothered to run the numbers right now.) This surely changes the risk profile, doesn’t it? (No, not just beta. Actual “risk”.)

I would also simply note that while complaining of survivorship bias, *every* company eventually goes to zero. Some last a very long time (Westinghouse, GE), but nothing lasts forever. The whole capitalist theory is based on the idea that you, as owner, have a claim on the profits of the corporation. If you do not get dividends, you never, and I mean never get those profits. You may make money selling your claim to someone else, but that is a different thing. Dividends are the means by which corporations take the money they earn and distribute it to owners.

I realize most people don’t care about the distinction, but pick a company that has been profitable for a decade or two, never offered a dividend, and then suddenly go upside down and the issue becomes more tangible.
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