And he wanted dividends. Why dividends? Because 70 percent of the returns in the stock market over the past decade or so have come from dividends, he says.
But O'Leary did not just want to buy a basket of the highest-yielding ETFs. You can get that already with Vanguard High Dividend Yield, and you can get variations, like the iShares Select Dividend, that screen by dividend-per-share growth rate, or the Vanguard Dividend Appreciation ETF, which focuses on companies that have steadily increased dividends.
O'Leary was looking for more specific criteria. He wanted:
- A total yield close to 3 percent
- with 20 percent less volatility than the market
- with stocks that all had strong balance sheets.
Why less volatility? He wants to avoid stocks that have experienced large price declines, which has occurred with some dividend-investing strategies. We are talking about energy stocks here, folks.
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