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Swedroe has some interesting data today re. dvd-focused strategies and what contributes to their success. It looks like it has less to do with the dvd. yield (sometimes actually a negative detractor to performance) and more to do with "value" aspects of the investments. http://www.etf.com/sections/features/22243-swedroe-are-dividends-a-value-strategy-.html
Sooo, what does a MF investor do with this information?
@heezsafe: Just remember, Larry Swedroe is a PR man for Buckingham Asset Management out of St. Louis, and has never managed anyone's money. It would be nice to see him put his money where his mouth is. Regards, Ted
For every investment approach/strategy you will find a naysayer or, at least, someone questioning the validity. I have many of Swedroe's books and they have been helpful for my understanding. It would be interesting to get an update on the investment returns he projects in his books for certain asset classes since the publications. BAM promotes DFA and DFA is, essentially, a load fund because you pay an advisor to access them. I know there are all of the alleged attributes to be provided by an advisor; this argument is similar to the basis for the 12b-1 fee that mutual funds hoisted on investors. I think for each investor you need to determine your comfort zone with investing. For me it is a dividend approach with individual blue chip stocks. Sometimes they go up sometimes they go down, that happens every day.
OK, OK, OK. You guys have been playing in this particular space far longer than I have, so this post what intended to elicit comments to confirm my pedestrian instincts (which were telling me the same thing). If you don't see anything actionable here, as Pope whatchamacall him recently said, "then who am I to judge?" Thanks.
@varmint: but since I have you here.....:)....... are there ways of assessing individual preferred stocks for their (potential) interest rate sensitivity, or is that endeavor fraught with peril for the uninitiated?
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Regards,
Ted