What Does Your Portfolio Yield These Days?

[CaseInPoint]

I'm sure that this has been discussed before, but as the economy changes, it's probably worth revisiting.

For many of us, one of the main answers to the "How much money do I need to be able to retire" question is dependent on the annual percentage of return one's portfolio yields. Obviously, it takes a lot less money to be accumulated if one can count on a 5% return after tax, than if that yield is only 2%.

I would be very interested to know how much people here are actually getting on their portfolio (regardless of one's AA).

If anyone feels it's too personal, please answer this question: "What annual percentage of return can one reasonably count on for retirement, with a generally conservative portfolio?"

 

[DblDoc]

Recently polled here: http://www.early-retirement.org/forums/f28/what-real-return-are-you-planning-on-49895.html

DD

 

[audreyh1]

My portfolio yield?

I don't know and I don't care. I don't invest for yield, I invest for total return.

I know that historically, my portfolio allocation (55% stocks, 45% fixed income) can support a 3.5% draw (including taxes) for maybe 5 decades. That more than meets my needs.

Audrey

 

[CaseInPoint]

Recently polled here: http://www.early-retirement.org/forums/f28/what-real-return-are-you-planning-on-49895.html

DD

Ahhh... Perfect! Thanks, DD.

 

[charlie]

I have finally settled (I hope) on Intermediate Term Bond Index in my IRA and Wellesley (with a touch of FTSE all world ex US) in my taxable. Each
has about 1/2 of my overall portfolio. The yield is about 4%.

I have been retired (well almost) since 1989.

Cheers,

charlie

 

[FIREd]

My portfolio currently yields about 2.7% overall. I would love to keep it above 3% but I find it difficult without taking substantially higher risks. My REITs currently yield roughly 2.7% on average, my "high yield" equity fund yields only about 2.6%, most of my equities yield about 2% and my fixed income portfolio (high credit quality, 4-year average duration) yields only slightly above 3% (though I own a fair amount of munis). And I think the yield quoted for my international equity funds is probably too high given the Euro's recent slide.

 

[FUEGO]

100% stocks, globally diversified. 2.25% dividend yield. 0.25% expense ratio.

 

[Spanky]

If anyone feels it's too personal, please answer this question: "What annual percentage of return can one reasonably count on for retirement, with a generally conservative portfolio?"

I am [-]counting on[/-] hoping for a 4% real return.

 

[ESRwannabe]

In my taxable brokerage account, which is 100% stock fund etfs and individual stocks, I have an over all dividend yield of 3.33% based on my cost basis and last year's total payouts.

 

[Bikerdude]

Pretty miserable these days, around 2.7%. CD's at .035% hurt.

 

[NW-Bound]

Same as Audrey, I invest more for total returns. I own quite a bit of tech stocks, which pay peanuts. So, my guess is an average dividend yield around 1.5%.

 

[W2R]

My 2009 dividends from my taxable account came to 3.1% of its wretched 1/2/2009 value.

I did not count cash due to LTCG (didn't get any) or growth in share prices when figuring this percentage. If I include everything then I think my total yield in 2009 was around 15.5%. Some years the market soars and some years it plummets, so that doesn't mean much to me.

I am planning a 35 year retirement and I am cautious by nature with a conservative portfolio. I will tentatively withdraw 3.5% until I claim SS in 2014, and 3% after that.

 

[IndependentlyPoor]

I'm with biker dude. Yield (not return) is a pitiful 2.8%.

A little too much cash now. Portfolio is about 45/45/10.

However, our drawdown is still less than the yield.

OTOH, drawdown will skyrocket if we buy a condo.

 

[LOL!]

A Morningstar portfolio X-ray analysis gives the yield of your portfolio based on the bond, stock, and fund yields. For our portfolio it reports a yield of about 2.6%. The portfolio is about 65% equities and 35% fixed income.

 

[kumquat]

If you define yield, I'll come up with an answer.

 

[Rambler]

Tough to say. Depends on the capture date(s) of the denominator. If I count my fixed income at face value (heavy in longish coupon munis, a bit too short on corporates), plus equities at today's market value, then I am looking at around 3.6%, a little less if I am looking at current market values of the fixed income. I am at 55/45. While I am looking for total return, I am also hoping to create sufficient cash flow from yields to cover my targeted SWR of around 2.75% as well as to help with the rebalancing as well.

R

 

[CyclingInvestor]

Retired, 51yo, 100% individual stock portfolio.

Current dividend yield = 3.2%

 

[scrabbler1]

Retired since November, 2008 at age 45.

Dividend yield in taxable account is about 5%, mostly from a high-yield (not junk bonds, just at or slightly below investment grade) bond fund, some muni bond funds, and a dividend-yielding stock mutual fund. The stock mutual fund is about 1/3 of the total assets within my taxable accounts. It more than pays the bills.

The IRA's return (55/45 stock/bond) is mostly from growth, not dividends.

 

[LOL!]

If you define yield, I'll come up with an answer.

OK ...
Yield: The number reported by a Morningstar X-ray analysis as the yield for your portfolio.

 

[Dawg52]

I'm with biker dude. Yield (not return) is a pitiful 2.8%.


However, our drawdown is still less than the yield.

Same here. But as my CD portion of my portfolio matures, my overall yield will be continue to drop. When I retired 3 years ago, my yield was over 3+%.

Brewer, find me another STON stock. I dumped it when it reached my target. I miss the old good yield.

 

[Nords]

I don't know and I don't care. I don't invest for yield, I invest for total return.

Yeah, Berkshire Hathaway's yield sucks, and it may be decades before that changes.

Buying the Dow Dividend ETF (DVY) in early 2009 would have achieved nearly a 6% yield. One small problem-- that was based on the trailing 12 months. Another small problem-- the ETF was heavily loaded with financials. I don't think there was a better indicator than TTM back then, but there were certainly a lot of dividend cuts during that period.

 

[HFWR]

OK ...
Yield: The number reported by a Morningstar X-ray analysis as the yield for your portfolio.

3.59%

40% stock, 40% bonds, 10% cash eq, 5% ccf, 5% reit

 

[FUEGO]

Buying the Dow Dividend ETF (DVY) in early 2009 would have achieved nearly a 6% yield. One small problem-- that was based on the trailing 12 months. Another small problem-- the ETF was heavily loaded with financials. I don't think there was a better indicator than TTM back then, but there were certainly a lot of dividend cuts during that period.

I did even better in terms of chasing yield. I bought the KBE bank ETF when I was looking at 6+% trailing 12 months yield. And it was selling at a huge discount to what it traded at a year earlier. Now the yield is probably closer to 0.6%. At least it has slightly outperformed the SP 500 while I have owned it (but what a wild ride down and back up it was).

 

[kyounge1956]

OK ...
Yield: The number reported by a Morningstar X-ray analysis as the yield for your portfolio.

I did two Xrays, because withdrawals from one account will be taxed and the other won't.
In my Roth IRA:
72.8% VGSIX
27.2% TIP
3.27% Yield

In my 457
PTTRX 4.3%
VTINX 95.7%
Yield 2.64% (1.98% after tax?)

I am still in the accumulation phase. The 457 account has about 4 times as much in it as the Roth.

 

[kumquat]

If you define yield, I'll come up with an answer.

OK ...
Yield: The number reported by a Morningstar X-ray analysis as the yield for your portfolio.

M* misses too much of my portfolio to be meaningful. Less than 5% of my portfolio is in US stocks, bonds or cash.