With the 3rd quarter in the rear-view mirror, here’s what stands out on the stock market front: Dividends dominated. Young Research’s Retirement Compounders which forms the foundation of Richard C. Young & Co., Ltd.‘s dividend stock program (sign up for our client letter, free even for non-clients by clicking here) was up 12% year-to-date. Every single stock in the program pays income in the form of a dividend, and as a group the portfolio yields about 3.5%. That’s good income in an income starved world.
Living in this uncertain world, it’s useful to look back over an entire investment cycle to get some perspective. What were you doing back in 2006 when the real estate market was going up, up, up? And how about during the crash? It’s hard living. It was hard to hang in the stock market, especially when not getting paid. Dividends certainly helped. It helps to get paid to stay in the market. Looking back over the past 10-years, the dividend paying RCs returned an average of 7.8% per year—that’s worth repeating—7.8% per year.
What will the rest of this year look like? What will the next 10-years bring? Will there be another tech crash? Or another real estate debacle? The next one won’t be the same. But what we do know is that the probability of something drastic tearing through the market at some point over the next 10-years is highly probable. For my money I want to make sure I’m investing in companies that have been through the ups and downs over the last 10-years as we prepare for the next ten. And I’d like to help you be prepared. You can email me at email@example.com.