The dividend yield on the S&P 500 is small relative to other developed markets. Currently the dividend yield is at 1.74%. For many years the rate has hovered around the 2% mark. Though the yield may seem insignificant over the years due to compounding the total return gets amplified due to dividends’ contribution. For example, …
Continue reading ‘Two Charts on Dividend Contribution to S&P 500 Total Return’ »
The S&P 500 index declined by about 20% in 2022. Though the index is in the positive so far this year it remains to be seen if it will end the year with a decent return. With a recession on the horizon and interest rates expected to rise higher, volatility might still appear its ugly …
Continue reading ‘Significant Intra-Year Declines in S&P 500 Are Normal: Charts’ »
US equities has one of the worst returns in recent years in 2022. Other developed markets did had similar performance as well. However some emerging markets shined. For instance, Latin American equity markets had a good year relative to their US counterparts. The following chart shows the performance of major Latin American indices in 2022 …
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One of the strategies when investing in equities is to identify companies with a moat. This refers to a company’s ability to maintain its competitive edge and maintain profitability in the future by beating competitors. According to Morningstar, there are 5 types of moats as shown in the below chart: Click to enlarge Source: Morningstar …
The simple and easy way to invest in Eurozone blue chips is with an ETF that tracks the The EURO STOXX 50® Index. This index represents the 50 largest companies in the Eurozone countries based on free-float market cap. The companies include the major sectors such as technology, banks, industrial goods, consumer good, chemicals, etc. …
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