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| * **Wealth manager’s fatal error** → Observe the first word in the paragraph just above: dividend. It’s not dividends that build your portfolio. It’s dividend growth. You want your income in retirement to grow. Right? Grow your yields. High yields are a false start. Capital growth is driven by increasing cash flow. Think. If the cash flow from a company grows over time, the company is worth more. Therefore the stock price rises. It’s as simple as that. Price growth tracks income growth (many scores of examples inside). ♣ But it takes time, my friend. Most folks don’t have the patience. ♦ Believe that, in the long run, return on equities track their initial yield and its growth. Learn more about this inside dividendgrowth.ca ♦ Most of our own yields (Louise and the sister and I) are double digit now. One, BNS bought in 1990, is over 100% (triple digit). We get our initial investment back every year. I do not own bonds. Never did. Never will. Good stocks, with time, become safer. Indeed: safer than bonds. | * **Wealth manager’s fatal error** → Observe the first word in the paragraph just above: dividend. It’s not dividends that build your portfolio. It’s dividend growth. You want your income in retirement to grow. Right? Grow your yields. High yields are a false start. Capital growth is driven by increasing cash flow. Think. If the cash flow from a company grows over time, the company is worth more. Therefore the stock price rises. It’s as simple as that. Price growth tracks income growth (many scores of examples inside). ♣ But it takes time, my friend. Most folks don’t have the patience. ♦ Believe that, in the long run, return on equities track their initial yield and its growth. Learn more about this inside dividendgrowth.ca ♦ Most of our own yields (Louise and the sister and I) are double digit now. One, BNS bought in 1990, is over 100% (triple digit). We get our initial investment back every year. I do not own bonds. Never did. Never will. Good stocks, with time, become safer. Indeed: safer than bonds. | ||
| - | Bonds exhibit inhibitory activity on portfolio growth. | + | Bonds exhibit inhibitory activity on portfolio growth. Inside the September 2022 blog highlights research on how predictable equity returns are. Very, over a decade, give or take. Connolly Report data is decades long. We have the evidence. |
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