No. of Recommendations: 3
if you are going for Total Return you should be investing in stocks. If you pick the RIGHT stocks/funds at the RIGHT times. But a total return north of 9% WITHOUT stockpicking and timing (as long as interest rates don't spike) is just about as good.
Moreover, it is tax-inefficient since you have the drag of paying income tax on the dividends every yearSurprised at this from you, Ray. No taxes in an IRA. It has never made sense to use high dividend funds in a taxable account.
backtest & chart for PONRX at testfol.ioApparently testfol.io, like most sites, does not adjust for dividends in the base chart. Stockcharts does. Try out this accurate chart instead.
schrts.co: SharpCharts | StockCharts.comTells a much different story. PONRX, for one, gapped up from and then paced the S&P for years until the 2022 (interest-rate driven) bear market brought it back down in line, and has matched it since.
9+% yields from well managed certain types of income funds in a 3% and dropping risk-free rate environment (not BDCs) can be a solid component of a portfolio. But whatever, suit yourself.
