John D. Rockefeller once said “Do you know the only thing that gives me pleasure? It’s to see my dividends coming in”. Rockefeller was once the richest man in the world, and according to some, the richest man who ever lived. Hopefully dividends being his only source of pleasure wasn’t a commentary on how happy the rest of his life was, but most investors would agree there is a pleasure in seeing their dividends coming in.
In times of trouble, that pleasure from seeing dividends coming in would be multiplied for many investors. In recent years we’ve seen some trouble, and we’re repeatedly told something darker is just around the corner. Whether Australia or anywhere else slides into recession, who knows. As no one can see the future we’ll just have to wait and see what emerges.
However, talk of trouble is generally followed by talk of how investors should reposition their portfolios. The sensible thing, as we’ll always argue, is change nothing. Have a portfolio that aims to grow and protect on the downside. If an investor isn’t prepared for all weather, they’ll be permanently fiddling with every predicted change of the wind.
Read the full “Are Dividends the Remedy?” Post
This represents general information only. Before making any financial or investment decisions, I suggest you consult a financial adviser to take into account your personal investment objectives, financial situation and individual needs. Are you looking looking to build a simple low cost portfolio? If you’re not interested in seeking financial advice, you should better understand the implications of using a VAS/VGS split portfolio so you can fully understand historic performance and have a full grasp of diversification and how asset allocation can affect performance. If you are a high net worth investor looking financial advice then you should consider a financial adviser with high net worth experience, they can help you identify your goals and put in place a reliable strategy to pursue them.
