Saturday, 26 January 2019

3-4% yield - Easily achievable or No way!


These are the current dividend yields of various ETFs that I hold based on the data on the ETF's website as of Jan 2019:



Vanguard FTSE100 4.65%
STI ETF 3.47%
Vanguard Pacific  3.69%
Vanguard Asia ex Jpn High Yield 3.76%
ASX200 ETF 4.31%
HKSE Tracker fund 3.48%

Proxy for Euro Stoxx 50 which does not declare dividends: Vanguard Europe ex UK 3.21%

Someone in HWZ mentioned that a $1m portfolio yielding 3-4%  for retirement would be a good option for annuities but there are still keyboard warriors/worriers claiming that such a yield is not guaranteed. 

My view is that 3-4% yield is a conservative target and easily achievable using an asset allocation strategy for any 'normal' risk profile. Chasing higher yields like 5%+ might lead to a mismatch between risk profile and portfolio risk. 


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