The Lemon Fool

FredBloggs wrote:Look at the bluest of the blue chip income stocks, look how their price has increased.

OK, over 5 years the first 3 blue chip dividend stocks I could think of in 3 different sectors are GSK, BP and HSBC, dividend cuts, none, change in capital values over 5 years +4%, +12% and +25%.

QE has certainly increased many asset prices, but it seems that large blue chip companies are not amongst them.

Andy

City of London Investment Trust. Increased dividends for 50 years including the nightmare 70s, the 80s recession, the 90s recession, the dot com boom and 2008, the worst recession since the Great Depression. It's not an exception.

Dividends and inflation for the s&p500 here

https://seekingalpha.com/article/439171 ... -inflation

Of course an income portfolio may have performed better.

The only asset that washed its bum in the 70s was gold and housing.

For an income stream dividends are hard to to beat, although the harry brown permanent portfolio has done well over the years: simplistically 25% gold, 25% equity, 25% cash, 25% bonds. It's had a few down years but nothing dramatic.

FredBloggs wrote:
I said the "bluest of blue chip's".

If none of the shares I mention, and Shell are blue chip enough; then your argument that the market is reliant on a few blue chips for dividends cannot be true as these are the shares that provide the majority of the dividends paid out.

If you look at another sector that dominates the top of the FTSE-100, , mining, the story is the same, very low capital growth over the last 5 years.

Now I've tried utilities, NG and UU as examples, yep, only 20% capital growth over 5 years and both major dividend payers.

By way of comparison the FTSE itself is up 30% in the same time period. On this quick survey it would seem that large dividend paying shares have become relatively cheaper over recent years rather than more expensive.

Andy