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/foru...-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]

Quote:

Originally Posted by DblDoc Recently polled here: http://www.early-retirement.org/foru...-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]

Quote:

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!]

Quote:

Originally Posted by 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.

[Dawg52]

Quote:

Originally Posted by IndependentlyPoor 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.