• ABOUT – DICK YOUNG
  • YWMF – ARCHIVES

Young's World Money Forecast

Since 1978 With a 32 Year Vacation

  • DICK YOUNG
    • FROM RICHARD C. YOUNG
    • THE FINAL INTELLIGENCE REPORT
  • INVESTING STRATEGIES
    • RETIREMENT COMPOUNDERS®
    • GOLD & SILVER
  • DIVIDENDS & COMPOUNDING
    • MIRACLE OF COMPOUNDING
    • DIVIDENDS
  • GRAHAM & RUSSELL
    • BEN GRAHAM
    • RICHARD RUSSELL
  • THE DOW AND THE LEADERS
    • DOW vs. S&P 500
    • DOW vs. DOW DIVIDEND PER SHARE
  • WELLINGTON MANAGEMENT COMPANY
  • YOUR SURVIVAL GUY
  • BANK CREDIT & MONEY
  • THE PRUDENT MAN

Now Is the Right Time to Make Dividends Your Ally

October 9, 2020 By Richard Young

For over five decades, the underpinning of everything I have written has been a foundation of dividends. It has served me well, and if you have followed my advice, it has served you well too.

Shortly after the dotcom bust, I wrote a segment titled, “Make Dividends Your Ally.” In it, I said:

Regarding dividends, corporate directors have deluded themselves for many years in two ways. First, they have been too concerned about double taxation. Many investors don’t care about double taxation because they are (1) saving in tax-deferred accounts or (2) need the dividend income in retirement. Second, directors believe that management can reinvest earnings so well that it just does not make good sense to pay out much to shareholders in the form of dividends. Nonsense. The track record of reinvestment just isn’t that strong.

Does that template apply to investors today? Yes. A number of today’s biggest companies don’t pay any dividends at all.

While many investors own equities paying no dividends, the Federal Reserve has lowered interest rates to near-zero levels, again. The 5-year treasury yield you see in the chart below illustrates the dire situation for America’s savers.

Alongside the treasury on the chart is the yield of Procter & Gamble shares. During the last 40 years, P&G has compounded its dividend, on average, 8.5%, and its stock price (not on the chart) by 10.5%. That’s the type of strong record retirees can build a portfolio around when they make dividends their ally.

Make dividends your ally today. For more on the benefits of dividend investing, download Dividend Investing: A Primer from Richard C. Young & Co., Ltd.

Related

Filed Under: Dividends

Compensation was paid to utilize rankings. Click here to read full disclosure.

RSS New From Young Research & Publishing

  • Your Survival Guy: Learning the Rules of Life
  • BIDEN’S AMERICA: Foreign Investment Fell to $151 Billion in 2024
  • U.S. LNG Projects and Market Shifts
  • Canada Faces Major U.S. Tariffs as Trade Disputes Intensify
  • Your Survival Guy: JAWS, Woods Hole and YOU
  • New U.S. Magnet Plant Announced in Multibillion-Dollar Defense Deal
  • Trump Slaps 50% Tariff on Brazil
  • Billionaire Mining Entrepreneur Praises Trump’s Copper Tariff
  • Your Survival Guy’s Boat-Shoes-on-the-Docks View
  • Would the Pat Buchanan Plan Work Today?

RSS New From Your Survival Guy

  • Your Survival Guy: JAWS, Woods Hole and YOU
  • Time Stands Still: Against the Current
  • Are Private Equity’s Excess Returns Disappearing?
  • Your Survival Guy: “You Wouldn’t Have Liked It”
  • ESG Doesn’t Stand Up to Scrutiny
  • WARNING: Your Survival Guy and Gal in the Fog
  • Survival Guy: An All-Weather Balanced Portfolio
  • A Bazooka Fired at Private Equity
  • NYC, Crypto, ESG, the Haves and the Have-Yachts
  • Beware the ‘Democratization’ of Investing

Search Our Site

Richard C. Young & Co., Ltd.

–Client Letter Sign Up–

Sign up to receive email alerts when our latest client letter is posted on our website.

Copyright © 2025 · About Dick Young · Terms & Conditions

 

Loading Comments...