Comments on: Managing The Risk Of A Dividend Cut With Allocations * http://dividendsvalue.com/1510/managing-the-risk-of-a-dividend-cut-with-allocations/ Dividend Investing & Value Investing For A Superior Portfolio Mon, 11 Apr 2011 13:45:49 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Derek http://dividendsvalue.com/1510/managing-the-risk-of-a-dividend-cut-with-allocations/comment-page-1/#comment-2969 Derek Fri, 06 Feb 2009 06:15:13 +0000 http://dividendsvalue.com/1510/managing-the-risk-of-a-dividend-cut-with-allocations/#comment-2969 Okay thanks. I just ran a backtest on Folio for 5 years and O was the better performer, O returning 20.02% vs NLY with 11.09%. Based on past 5 year returns, it looks like O is the better performer. I may do some more diligence on O, plus I like that they are returning income monthly, vs NLY which returns quarterly. I think NLY is a quality investment, but am always looking to improve. I also agree about yield chasing, for me, raw yield % isn't the best indicator, and a yield that goes too high to me is an indicator of something that isn't sustainable. Footnotes: 1) Folio says they use the "... Mid-Weighted Dietz Method to calculate returns on a daily basis and a Unit Value Method to calculate the aggregate performance returns over various periods of time." 2) "The performance of your holdings includes the reinvestment of cash distributions (dividends, capital gains, and return of capital)..." Okay thanks. I just ran a backtest on Folio for 5 years and O was the better performer, O returning 20.02% vs NLY with 11.09%. Based on past 5 year returns, it looks like O is the better performer.

I may do some more diligence on O, plus I like that they are returning income monthly, vs NLY which returns quarterly. I think NLY is a quality investment, but am always looking to improve.

I also agree about yield chasing, for me, raw yield % isn’t the best indicator, and a yield that goes too high to me is an indicator of something that isn’t sustainable.

Footnotes:

1) Folio says they use the “… Mid-Weighted Dietz Method to calculate returns on a daily basis and a Unit Value Method to calculate the aggregate performance returns over various periods of time.”

2) “The performance of your holdings includes the reinvestment of cash distributions (dividends, capital gains, and return of capital)…”

]]>