If Dividends Were Included

I’ve often wondered what the impact of including dividends would be to the results of the GoldBondStocks results.  This weekend I have done a study calculating that impact.  Below are the statistics related to my weekend study.

GoldBondSPRE 

                   YieldHiYr%         YieldLoYr%          YieldAvgYr%        Avg%Invested     ExtraTotalYield  

TLT                4.3%                     2.5%                     3.5%                       40.3%                      1.4%

VNQ              6.9%                     3.5%                     4.6%                       20.1%                        .9%

SPY              2.5%                      1.8%                     2.1%                       19.4%                        .4%

Total Extra Yearly Yield                                                                                                        2.7%

GoldBondStocks

TLT               4.3%                      .5%                      3.5%                        40.3%                       1.4%

SPY              2.5%                      .8%                      2.1%                        19.4%                         .4% 

Total Extra Yearly Yield                                                                                                         1.8%

The difference in yield makes the two programs almost even in total return.  Most investors will probably be more comfortable with the Vanguard Real Estate EFT(VNQ)  rather than the Gold EFT(GLD).  The current return on VNQ of 2.9% compares to a zero return on GLD.

 

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