I designed the Retirement Compounders (RCs) using the dividend and interest model explained in Ben Graham’s books while still a student at Babson College. The RCs went on to form the basis of my two decades long Young’s World Money Forecast and Richard C. Young’s Intelligence Report. Using my research, I spoke around the country at investment management conferences. In 1978, in Newport, RI, I started what became the award-winning Richard C. Young & Co. Ltd. (Barron’s (2012-2022) and CNBC (2019-2022) Disclosure). My son Matt has now run our family business for nearly three decades, and Debbie’s and my daughter, Becky, is CFO.
Our son-in-law, E.J. Smith, has become known in the investment community as Your Survival Guy and has staked out a position as our face with investing families and small business organizations around America. Debbie and I still research and write seven days a week for our clients and multiple websites, and this June, as I headed above, we will be concentrating on the dividends and interest-centric Retirement Compounders.
Young Research’s Retirement Compounders® Investment Program
When we developed Young Research’s Retirement Compounders® investment program, our goal was to help investors like you achieve investment success especially during bad times. Our strategy was to accept underperformance during speculative market runs, with the potential trade-off of better results during down markets.
The idea was never to beat the market over time or on a consistent basis. Rather, we fully expected the Retirement Compounders® program (both price risk and business risk) to trail the major market averages.
Why would we design a program to underperform?
The ugly reality of investing that nobody likes to talk about is that the average equity investor vastly underperforms the market and the funds he invests in. This is true even for investors who own market-beating mutual funds.
Dalbar, an investment analytics firm, is the authority here. Dalbar’s data shows that the average equity investor regularly underperforms the S&P 500 by 3-5% over long periods of time.
Volatility and Emotionalism
High volatility and emotionalism are to blame. When stock market volatility rises, many investors panic and sell near the lows, only to add to their stock positions once again in the dying days of a bull market.
Young Research’s Retirement Compounders® program is comprised of dividend paying common stocks selected from the over 40,000 global publicly traded companies. The Retirement Compounders® program favors high dividend payers, those with a history of dividend payments, and companies with a long record of consecutive dividend increases.
Some of the companies included in Young Research’s Retirement Compounders® program have paid a dividend every year for over a century. Others can boast a more than five decade record of annual dividend increases. The combination of high dividend payments today and dividend growth tomorrow can help you become a more confident, comfortable, successful long-term investor.
Retirement Compounders® Investment Program Helps You Stay the Course
Young Research’s Retirement Compounders® seeks to help investors avoid the emotionally charged investment decisions that can sabotage returns. Investing in high-quality businesses with long records of regular dividend payments may offer the comfort necessary to stay the course when financial and economic stress arise.
For investors looking to pass on the burden of daily portfolio management, Richard C. Young & Co., Ltd. crafts dividend-focused common stock portfolios that are based on Young Research’s Retirement Compounders® program. You can sign up for Richard C. Young & Co., Ltd.’s monthly client letter (free, even for non-clients) here.