EOM Q&A: Garden Growing and 2017 Q3 DIV. Report Q&A III 10.05.17
Yesterday I detailed my Garden Growing strategy. Today I explain the inside story on why I developed the strategy then begin to answer your questions…
Someone’s sitting in the shade today because someone planted a tree a long time ago. Warren Buffett
Question—Why did you develop the Garden Growing strategy?
DOE–At the time, the SPX had ten years of (real-adjusted with inflation) decline-see chart below. My goal; develop a system that if we had another ten-years of a sideways market, we would continue to build financial wealth.
While many Financial Planner discount Dividends and Dividend Reinvestment, the chart below from Doug Short shows otherwise. Dividend reinvestment grossly outperforms non-dividend reinvestment using this S&P 500 data.
Per the chart, the SPX has averaged a 2% return. Image the potential returns when using a 6% or higher reinvested dividend, and hence the development of my Playbook and DIV. Reports to find quality candidates.
Garden Growing Strategy
Comment–Since I would really like to invest in a high-dividend fund, hoping that the combination of fund volatility (ups and downs) plus dividends would beat the S&P 500, I was really looking forward to this update.
DOE—thank you. A tremendous amount of resources (time and money) go into each report. Many EOM subscribers are currently building financial wealth with the candidates/data.
Comment–What I found, though, was that this was not a continued study of the original (2017) Dividend All-Stars, but a new list, with very few of the same funds included.
DOE—I will explain how my proprietary report is formulated. It begins with my Playbook 2016-2017, 70+ groups and 575+ securities-located in the Members Vault. The purpose of the Playbook; identify quality trading and Garden growing groups and candidates, listed by type and category.
Each Quarterly DIV Report is a collection of the best Dividend Fund Categories from the Playbook. Each group is audited for return/risk to qualify for the report.
Group candidates are ranked by total performance (price and dividend). The top performer in each group is then ranked 1-9 and placed in the All-Star group. Please note; for simplification, the All-Star A and B list has been consolidated into the All-Star Group-B A1.
In addition to the All-Star group, I have another list of High-Dividend Monthly Closed-End Funds file B A3, for those wanting an additional group of Garden Growing candidates.
No funds are buy recommendations, only quality watch candidates. After the SPX has a pullback and recovery, use the Simple Simon Buy System for buy signals. Key point-pullback and recovery. This keeps us from buying what is called a “falling knife.”
Tomorrow, I continue with my answers on Garden Growing and the Q3 High Dividend candidates.
Questions-send them to me at Eyeonthemarket@outlook.com
Enjoy your week!
David O. England