Paul Merriman Ultimate Buy and Hold Strategy Portfolio: Dividend Yield (2024)

FAQs

Paul Merriman Ultimate Buy and Hold Strategy Portfolio: Dividend Yield? ›

The Paul Merriman Ultimate Buy and Hold Strategy Portfolio granted a 3.05% dividend yield in 2023. It's a Very High Risk portfolio and it can be implemented with 10 ETFs.

As of June 2024, in the previous 30 Years, the Paul Merriman Ultimate Buy and Hold Strategy Portfolio obtained a 8.35% compound annual return, with a 15.74% standard deviation. It suffered a maximum drawdown of -57.21% that required 63 months to be recovered.

The Paul Merriman 4 Fund Portfolio is a simple investment strategy designed by Paul Merriman. It consists of four low-cost index funds, equally weighted, with exposure to large caps, small caps, and small-cap value.

The Buy and Hold strategy is preferred for its potential to yield significant long-term returns, lower transaction costs due to fewer trades, reduced tax liabilities on long-term capital gains, and the benefit of compound interest. It's also less time-consuming and requires less market expertise than active trading.

It's no wonder why investors closely monitor Warren Buffett's portfolio. He is arguably the greatest investor of all time, and he has doled out some of the best investment advice over the years.

Buy and hold is also favorable for investors without a lot of time to spend researching the market. The biggest disadvantage of the buy and hold strategy is that it will tie up large amounts of capital. Like all investors, buy and holders should use diversification to sufficiently protect themselves from risk.

"Buy and hold can result in significant long-term capital gains, which are often taxed at a lower rate than short-term gains," says Collins. On the other hand, he adds, it may take longer for buy-and-hold investors to see returns, compared with using a more active trading strategy.

Buy and hold is a long-term passive strategy where investors keep a relatively stable portfolio over time, regardless of short-term fluctuations. Buy and hold investors tend to outperform active management, on average, over longer time horizons and after fees, and they can typically defer capital gains taxes.

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Three-fund lazy portfolios

These usually consist of three equal parts of bonds (total bond market or TIPS), total US market and total international market.

Your investment will grow with compound interest

A buy-and-hold strategy can also help you take advantage of compound interest. While past performance is not a guarantee of future returns, the S&P 500's inflation-adjusted annual average return on investment is about 7%.

1. Bull Call Spread. A bull call spread strategy is driven by a bullish outlook. It involves purchasing a call option with a lower strike price while concurrently selling one with a higher strike price, positioning you to profit from an anticipated gradual increase in the stock's value.

a) Preferred stock.

A preferred stock pays constant and non growing dividends and hence the common stock can be valued as a preferred stock.

PepsiCo has an impressive track record of increasing its dividend for 50 consecutive years. This consistent dividend growth, combined with the company's stable business model and strong cash flow from operations makes PepsiCo a top pick for a “safe” dividend stock.