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The vast majority of the actively managed funds (which we have a lot.. even more than stocks) in my country are consistently beaten by the market. So, it is not a surprise this is the same in US. It looks that, for some reason, when managing third party money, the "experts" are not so good.

Indexed ETFs have all the winers and losers. So, by definition, statistically, it cant be optimized. It is going to perform the average, and never on the wining tail of a curve. I am sure ETF portfolios arent optimized. Thats all I m saying.

My english makes expressing myself harder. I was agreeing with you on total return vs dividend optimization being very different, and that some people are not aware of this. I do my portfolio the following way: - I get as much as dividend oriented stocks, reits, and treasure bonds to fund my...

I fully agree optimizing for dividends is different from optimizing for total return. But using etfs is optimized just for peace of mind and management easyness. Another issue to discuss: Most, if not all studies I have read, comparing diferent asset management methodologies, or withdraw...

“vs the rest” isnt “vs the optimized for total return”. But as a data scientist myself, I totally agree you can beat and present numbers to “prove” any statement you want.

This is true. Although using ETF is far from optimized for total return. Its optimized for easy management, but not total return, not dividends.

Maybe living on dividends isnt compatible to investing only in index funds, and only in US market. Since the majority of FIRE community uses just indexed ETFs, with very low dividends, it might sound too "expensive" to live on dividends.

Take a graph of dividends and stock price. They have very low correlation. Dividends have less volatility,. If one can afford living on dividends it is way better than having to stay your whole retirement worrying about SWR, bear marketing, risk of sequence of loss and so on. The latest SWR...

Havent seen your question before. I am talking about Brazil. You can buy ADRs from Brazil. Their dividends are even considered qualified dividends for the IRS, since they are negotiated here in USA.

Never said they are not connected. Actually, I even said they correlate in some level. Extremes, like bankrupcy would be a case where price = equity (book value) = dividends.

Equity is not the same as market price. If we talking extremes, a company could sell half his assets, making his equity value becomes half the original. But the market could still prices it the same as before. You can certainly say dividends are part of the equity, but not the price (except...

Market volatility "corrects" the ex-date discount quickly.

Dividends and stock price can fluctuate less dependently. Dividends are related to company profit. Stock prices are defined by market using a lot of variables. So, the “dividends come from principal” argument is essentially insufficient.

In my former country (where my income comes from), you can easily build a consistent dividend portfolio (stocks, reits and tresury bonds) which will give you 5-6% of dividend yield, when you go to the conservative side. If you wanna get more DY and less growth, increase reits, electrical and...

Hi all, I am 47, married, 3 kids (20, 12, 6). Retired on 42, after selling my small tech company in Brazil. I have been living on my investments since 2014. I have an NDA and taking care of investments became my "job". I am a computer programmer, specialized in data analysis, machine...