Last Update: 31 August 2020

The Paul Merriman Ultimate Buy and Hold Strategy Portfolio granted a 3.30% dividend yield in 2019.

It's a Very High Risk portfolio and it can be replicated with 10 ETFs.

Portfolio Dividend Yield

The Dividend Yield of Paul Merriman Ultimate Buy and Hold Strategy Portfolio is the result of the following asset allocation:

PAUL MERRIMAN ULTIMATE BUY AND HOLD STRATEGY PORTFOLIO
DIVIDEND YIELDS (%)
Period: January 2019 - August 2020
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2020(*) 2019
Paul Merriman Ultimate Buy and Hold Strategy Portfolio 0.94% 3.30%
Weight Components Dividend Yield (%)
10.00% DLS - WisdomTree International SmallCp Div 1.32% 4.02%
10.00% SPY - SPDR S&P 500 0.86% 2.26%
10.00% EEM - iShares MSCI Emerging Markets 0.51% 3.19%
10.00% IJR - iShares Core S&P Small-Cap 0.58% 1.75%
10.00% IJS - iShares S&P Small-Cap 600 Value 0.66% 2.04%
10.00% VT - Vanguard Total World Stock 0.72% 2.90%
10.00% VTV - Vanguard Value 1.29% 3.10%
10.00% SCZ - iShares MSCI EAFE Small-Cap 0.88% 4.26%
10.00% EFV - iShares MSCI EAFE Value 1.01% 5.16%
10.00% VNQ - Vanguard Real Estate 1.52% 4.27%
(*) Dividend Yield is calculated only for a portion of the year

Capital Growth and Dividends

In the following table, Capital Growth details (with and without dividend reinvestment) are represented.

If you are not interested in a periodic income and you need a strategy with a dividend reinvestment, please refer to the Paul Merriman Ultimate Buy and Hold Strategy Portfolio: ETF allocation and returns page.

PAUL MERRIMAN ULTIMATE BUY AND HOLD STRATEGY PORTFOLIO
CAPITAL GROWTH with or without dividend reinvestment
1000$ invested from January 2008 to August 2020
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Year
Dividend
Cumulative
Dividend
Cashflow
Portfolio
Value
EOY Capital
Amount Yield Effective
Ptf + Cashflow
Total Return
Div. reinvestment
1000.00
2008 21.10 2.11% 21.10 624.87 645.97 645.97
2009 18.86 2.92% 39.96 815.64 855.60 862.04
2010 21.93 2.54% 61.89 945.13 1007.02 1020.83
2011 25.20 2.47% 87.10 869.39 956.49 964.23
2012 29.78 3.09% 116.88 1002.26 1119.14 1141.38
2013 32.69 2.86% 149.57 1218.56 1368.13 1420.39
2014 37.71 2.66% 187.28 1245.04 1432.32 1488.96
2015 36.05 2.42% 223.33 1197.92 1421.25 1468.67
2016 40.34 2.75% 263.67 1320.06 1583.73 1658.75
2017 46.56 2.81% 310.24 1567.92 1878.16 2016.77
2018 49.92 2.48% 360.15 1350.95 1711.10 1787.60
2019 58.90 3.30% 419.05 1631.15 2050.20 2217.26
Aug 2020(*) 20.73 0.94% 439.78 1505.60 1945.38 2067.34
(*) Dividend Yield is calculated only for a portion of the year WITHOUT
dividend
reinvestment
WITH
dividend
reinvestment

Column meaning:

  • Dividend -> Amount: Income returned over the year (or portion of the year)
  • Dividend -> Yield: Dividend Yield calculated on the starting price of the year
  • Cumulative Dividend Cashflow: Sum of all the dividends received
  • Portfolio Value: Investment Value, excluding dividends, at the end of year
  • EOY Capital -> Effective: Investment Value plus cumulative dividends
  • EOY Capital -> Total Return: Investment Value, with dividend reinvestment

Which are the global returns of the last periods? In the following table, the Effective Return considers the received (and not reinvested) dividends. Total Return is calculated assuming dividend reinvestment.

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Period Portfolio
Return
Effective
Return
Total
Return
Jan 2019 - Aug 2020 +11.45% +13.69% +15.65%
Jan 2017 - Aug 2020 +14.06% +22.84% +24.63%
Jan 2015 - Aug 2020 +20.93% +35.82% +38.84%
Jan 2013 - Aug 2020 +50.22% +73.83% +81.13%
Jan 2010 - Aug 2020 +84.59% +127.37% +139.82%
WITHOUT
dividend
reinvestment
WITH
dividend
reinvestment

Yearly Returns and Dividend Yield

Dividends are essential for the investor who needs additional periodic income. When dividends are not reinvested, how much is the real portfolio return over the years?

PAUL MERRIMAN ULTIMATE BUY AND HOLD STRATEGY PORTFOLIO
HISTORICAL RETURNS AND DIVIDEND YIELDS
Period: January 2008 - August 2020
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Year Total Return Dividend Yield Return
Without Dividends
2008 -35.40% 2.11% -37.51%
2009 +33.45% 2.92% +30.53%
2010 +18.42% 2.54% +15.88%
2011 -5.55% 2.47% -8.01%
2012 +18.37% 3.09% +15.28%
2013 +24.44% 2.86% +21.58%
2014 +4.83% 2.66% +2.17%
2015 -1.36% 2.42% -3.78%
2016 +12.94% 2.75% +10.20%
2017 +21.58% 2.81% +18.78%
2018 -11.36% 2.48% -13.84%
2019 +24.04% 3.30% +20.74%
Aug 2020(*) -6.76% 0.94% -7.70%
(*) Dividend Yield is calculated only for a portion of the year

Actual Dividend Yield for long term investors

What would have been the annual Dividend Yield received by investors if they had implemented the Paul Merriman Ultimate Buy and Hold Strategy Portfolio allocation over the past years?

E.g. If you had implemented it 3 years ago, how much would be your actual dividend yield today?

PAUL MERRIMAN ULTIMATE BUY AND HOLD STRATEGY PORTFOLIO
ACTUAL DIVIDEND YIELD for long-term investors
Period: January 2008 - August 2020
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Starting Period
of the
Investment
Actual Dividend Yield over years
2014 2015 2016 2017 2018 2019 2020(*)
Jan 2008 3.77% 3.61% 4.03% 4.66% 4.99% 5.89% 2.07%
Jan 2009 5.84% 5.58% 6.24% 7.21% 7.73% 9.12% 3.21%
Jan 2010 4.37% 4.18% 4.68% 5.40% 5.79% 6.83% 2.40%
Jan 2011 3.69% 3.53% 3.95% 4.56% 4.89% 5.77% 2.03%
Jan 2012 3.91% 3.74% 4.18% 4.83% 5.18% 6.11% 2.15%
Jan 2013 3.30% 3.16% 3.53% 4.08% 4.37% 5.16% 1.82%
Jan 2014 2.65% 2.54% 2.84% 3.28% 3.51% 4.15% 1.46%
Jan 2015 2.42% 2.71% 3.13% 3.35% 3.96% 1.39%
Jan 2016 2.75% 3.17% 3.40% 4.01% 1.41%
Jan 2017 2.81% 3.01% 3.55% 1.25%
Jan 2018 2.48% 2.92% 1.03%
Jan 2019 3.29% 1.16%
(*) Dividend Yield is calculated only for a portion of the year

Collecting dividends is useful to obtain an additional income. Obtaining a large amount of income is the first step to financial freedom. However, if your need is to increase your capital as much as possible with dividend reinvestment, please refer to the Paul Merriman Ultimate Buy and Hold Strategy Portfolio: ETF allocation and returns page.

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