The Lam Research dominance here is both impressive and a little worrying tbh. When one stock delivers 211% while your average yield is sub-1%, you're basically betting on capital appreciation over income—which is fine but definately not what most people think of when they hear 'dividend portfolio.' Curious how this would look if semiconductors hit a rough patch. Still, 36% total return speaks for itself i guess.
True, but we are in it for the longer term and the (revenue and earnings) growth outlook voor Lam and many others looks really good for the next 4/5 years. The low yield is not something we care about, dividend growth investing is all about price appreciation early on, later the dividend will be a bigger contributor for total return. And all stocks in the portfolio are capable of growing the dividend for many many more years to come so DG and stock price movements will catch up/come together over time. The good thing is that dividends can be reinvested 4 times every year, so if Lam drops, we buy more new shares so even better longer term for total return.
The Lam Research dominance here is both impressive and a little worrying tbh. When one stock delivers 211% while your average yield is sub-1%, you're basically betting on capital appreciation over income—which is fine but definately not what most people think of when they hear 'dividend portfolio.' Curious how this would look if semiconductors hit a rough patch. Still, 36% total return speaks for itself i guess.
True, but we are in it for the longer term and the (revenue and earnings) growth outlook voor Lam and many others looks really good for the next 4/5 years. The low yield is not something we care about, dividend growth investing is all about price appreciation early on, later the dividend will be a bigger contributor for total return. And all stocks in the portfolio are capable of growing the dividend for many many more years to come so DG and stock price movements will catch up/come together over time. The good thing is that dividends can be reinvested 4 times every year, so if Lam drops, we buy more new shares so even better longer term for total return.