How to beat the market: low-risk dividends and how to find them

[moorfield]

https://www.ii.co.uk/analysis-commentar ... m-ii530048

An interesting read (flogging a book, but interesting nonetheless).

Very high dividend yields are often associated with such situations but can also simply reflect a business in a state of demise.

... we knew that

Perhaps it is time for a LYP Practical (See Group Guidelines) board!

[1nvest]

So you'll relatively outperform if you avoid higher volatility - such as stocks whose share price dived. Easy to find/measure with hindsight. A even better outcome would be if you only held the single stock whose share price rose the most.

[Lootman]

https://www.ii.co.uk/analysis-commentary/how-beat-market-low-risk-dividends-and-how-find-them-ii530048

An interesting read (flogging a book, but interesting nonetheless).

Very high dividend yields are often associated with such situations but can also simply reflect a business in a state of demise.

... we knew that

Perhaps it is time for a LYP Practical (See Group Guidelines) board!

I have advocated for a LYP strategy here in the past. (Not for a LYP board, but for the strategy itself).

It is particularly suitable for a taxable portfolio, especially with the recent freezing or reducing of allowances. And for US shares to mitigate the 15% withholding.

It could include Berkshire Hathaway, which is very tax efficient to hold. Or shares like Apple and MicroSoft, which are of course great growth companies, but both of which pay out dividends that are very secure and are regularly increased. Although only yielding 0.5% or so, their market caps are so large that their dividends still amount to $10-15 billion a year each!

Other prominent non-yielders I hold are Salesforce, Nvidia, Google, Amazon, Crowdstrike and Snowflake. And there are a number of UK ITs that have a low or zero yield.