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Yeah. Trying to see any args against all VONG all the time; slicing and comparing past subsample periods and all that.LG is where it's at for true growth.
Managed payout funds are explicitly designed to pay steady amounts, like annuities, except that they adjust their payouts periodically, typically annually. It's a nearly hopeless task, especially in a low and declining interest rate environment. Hence their return of capital. At least they are upfront about it.Although it is more common in closed-end funds, return of capital also occurs in open-end ones:
https://investmentnews.com/funds-featuring-managed-payouts-off-to-rocky-start-19815
https://investornews.vanguard/updated-distribution-estimates-for-vanguard-managed-payout-fund-2/
https://investor.vanguard.com/mutual-funds/profile/distributions/vgsix
https://www.theglobeandmail.com/globe-investor/investor-education/learning-to-roll-with-roc-can-pay-off/article24704378/REITs depreciate their assets, which reduces net income. But because depreciation is a non-cash charge (and may not reflect the actual change in value of a REIT's property portfolio), the REIT's cash flow is usually higher than its taxable income. The difference is classified as ROC and is included in the distribution to unitholders.
Thanks for your list @Old_Skeet. A few of your funds are mentioned here (VHYAX (VYM) & VDADX (VIG) seem better tickers than the two mentioned in article):My all equity dividend paying funds that are found in the growth and income area of my portfolio follow. They are for my domestic equity sleeve: FDSAX with a yield of 3.95% ... IDIVX with a yield of 3.96% ... INUTX with a yield of 3.41% ... and, SVAAX with a yield of 4.44%. In my global equity sleeve the funds held are CWGIX with a yield of 1.92% ... DEQAX with a yield of 2.58% ... DWGAX with a yield of 2.18% ... and, EADIX with a yield of 3.76%.
The dividends paid by the above funds, by in large, were coded as qualified dividends on my broker provided 1099.
I have other funds that are good dividend payers but I consider them to be of the hybrid type.
https://saylordotorg.github.io/text_business-law-and-the-legal-environment-v1.0-a/s47-05-dividends.htmlA few states—significantly, Delaware is one of them—permit dividends to be paid out of the net of current earnings and those of the immediately preceding year, both years taken as a single period, even if the balance sheet shows a negative earned surplus. Such dividends are known as nimble dividends.
Fundamentals are more complex than they seem.
One of the simplest, yet most overlooked, stock market fundamentals is the dividend yield. Dividends are actual cash flows being paid out by corporations into the hands of investors.
You can’t fake, manipulate or fudge a dividend payment by hiring a talented CPA.
Dividends also happen to be one of the most resilient features of the stock market over the long-term.
A little bumpy at times but the real growth rate of 2.1% over the rate of inflation over the last 100 years is impressive.
That doesn’t sound like much but the inflation rate over this time frame was just shy of 3%. So nominal dividends have grown at an annual rate of roughly 5% since 1920.
the-best-source-of-investment-income/
how-larry-fink-s-blackrock-is-helping-the-fed-with-bond-buyingWhen the Federal Reserve needed Wall Street’s help with its pandemic rescue mission, it went straight to Larry Fink. The BlackRock Inc. co-founder, chairman, and chief executive officer has become one of the industry’s most important government whisperers. In contrast to other influential financiers who’ve built on ties to President Trump, Fink possesses a power that’s more technocratic. BlackRock, the world’s largest money manager, can do the things governments need right now.
The company’s new assignment is a much bigger version of one it took on after the 2008 financial crisis, when the Federal Reserve enlisted it to dispose of toxic mortgage securities from Bear Stearns & Co. and American International Group Inc. This time it will help the Fed prop up the entire corporate bond market by purchasing, on the central bank’s behalf, what could become a $750 billion portfolio of debt.
One part of the Fed’s plan is to buy bond exchange-traded funds. BlackRock itself runs ETFs under the iShares brand, and could end up buying funds it manages. There are rules in place to avoid conflicts of interest—for example, it won’t charge the Fed management fees on ETF shares. “BlackRock is acting as a fiduciary to the Federal Reserve Bank of New York,” says a spokesman for the company.
“It’s impossible to think of BlackRock without thinking of them as a fourth branch of government,” says William Birdthistle, a professor at the Chicago-Kent College of Law who studies the fund industry.
Why does anyone ever choose SPY over VOO?Oh, another one (@bee): SPY/TLT 50/50 and forget about it.
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