The Elephant (SPY) Did Stand

Introduction

“What I found is that since 1973, a hypothetical S&P 500 portfolio (including reinvested dividends) delivered 6.47% dividend growth per year on average, with an average dividend yield of 2.78% per year.”

Contents

IntroductionA Dividend Growth StrategyThe Elephant (SPY) Stood Up Firmly Today (Jun. 30th, Friday)Three months old Uptrend has been footing still solidlyWhy do we keep watching Uptrend?The Concluding RemarksTABLE

(From “How Much Money Do I Actually Need To Retire Early?”, May 31, 2023, By “Investment Pancake [IP]), the italics are my emphases.) The “IP” is “Individual value investor with strong penchant for dividend growth. A former tax and estates attorney who retired in his early 40s and expatriated to Lisbon, Portugal with his family. Now writes about tax law, portfolio strategy and life in sunny Portugal and tutors students in personal financial planning” (From his profile.)

Today I woke up and clicked “Portfolio Strategy”: An Article appeared right after mine, entitled, “Can The Elephant Stand, Walk, Run, Jump, and Fly?”. The Article intrigued me to read. I read his, titled, “How I’m Implementing My Dividend Growth Strategy Today”, Jun 29, 2023, By “Investment Pancake”.

This Article is absolutely a Jewel in the current dry field, so, I checked his prior publications. As a consequence, I did read the above quoted Article. The two words (“1973″ and “S&P 500”) popped into my eye.

I came in the U.S. to study further with my family in 1973. The S&P 500 (SPY) was my most successful Article recently.

Today I decided to “invest” $1K every month at the end of month in the online savings account. which was suggested in my article, “The 5-Year-Investment-Plan Is A Template: How To Actually Invest It?”, Jun 15, 2023.

My new Goldman Sachs Bank’s online savings account is a proxy of the “5YIP”. Table 1, 2, 3, 4, and 5 are actual “5YIP” so, readers can reconcile your proxy accounts with these Tables.

To parallel the approach of “investment Pancake”, the new “5YIP” numerical illustration made the dividend reinvested. The annual interest rates are assumed to be anywhere between 4% and 2%. The investment period is 5 years, and would extend 5 years several times after the initial 5 years.

The dividend annual yield is 1.58%, according to the Touch #3: “Top S&P 500 Index Funs”, by Matthew Johnston, updated on Feb. 15, 2023 in Investopedia (From “The S&P 500 Index: Are We All The Blind?”, Jun 26, 2023).

The Focus

A brief summary of the quoted article.

Updating Uptrend as of Jun. 30th, 2023.

The Elephant (SPY) will stand this week?

The numerical illustration of “5YIP”, dividend re-invested, with 5 Tables are the next installment duo to space limitation.

A Dividend Growth Strategy

The article is no doubt a first-class well-written paper which must be very influential on the highly successful young professionals like the author.

“According to Google Finance, the five year performance of my portfolio against the Vanguard Total Stock Market Index ETF (VTI) is 58.62% compared to 55.01%, with a dividend yield of 2.61% compared to 1.54% for VTI.

Most of the outperformance is due to just three lucky investments – Apple (AAPL), Hermes (OTCPK:HESAY) and LVMH (OTCPK:LVMUY) – and my decision to never rebalance.

The higher yield is based on the fact that most of the stocks I own today pay dividends, and such cannot be said of the underlying portfolio for VTI.”

(From ““How I’m Implementing My Dividend Growth Strategy Today”, Jun 29, 2023, By “Investment Pancake”.

The Elephant (SPY) Stood Up Firmly Today (Jun. 30th, Friday)

As shown in Table 2, the S&P 500 Index (SPY) was closed at $4,450.38, gaining 1.23% on Jun 30. On Tuesday (Jun 27) the index surged 1.15%.

The total gain of the two days (Tue & Fri) was a whopping +2.38%, paving a highway for the Elephant who is ready to do a fast walk or a run next week. Investors, however, must be in their defensive positions in this triumphant moment.

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Take your deep contemplation on the signals of Table 2 (The June SPY record): It’s a very rare, eccentric, and vehement maneuvers both from bears and bulls:

Bulls defeated bears, capturing some bear camps, in 6 consecutive advances from Jun 8 to Jun 15.

Bears won battle by battle, demonstrating 6 straight victories between Jun 16 through Jun 28.

It’s surely remarkable that the two extremely unusual battle record for 12 days was more than half of the total sessions (21 days).

Three months old Uptrend has been footing still solidly

The popularity of tracking Uptrend is abating now, but please continue to update yourself, using Table 1 (Apr. May, and Jun.) or Table 2. (Jun. only). Table 1 is too long, so it is placed in TABLE after the text.

Please refer to the May update, “Monthly Update Of The Current 2-Months-Old Uptrend As Of May 31”, Jun 01, 2023).

Why do we keep watching Uptrend?

Uptrend actions are much like rocket launches. In 2016, the Uptrend shot up once after the election. It’s an exception. Normally Uptrend moves upward, taking several ratchets before getting the upward direction. Hence, we have to monitor the trajectory of the Uptrend continuously.

The Concluding Remarks

The 4th of July, Independence Day, is a very special day for me. Therefore, I wish to publish a good article. I searched for a topic all day of Yesterday without success. In June I published 14 articles. The topics ran out.

I napped to relieve exhaustion. After waking up, I tried to check my article in “Portfolio Strategy”. Right next to mine I found the article, written by “Investment Pancake”. Although the author’s name was funny, the title was attractive. That’s how I started this article.

Politics, economies, and investment are mutually interreacted in one to the other. That’s why economics started political economics or political economy.

The top news of Today (Jun 30, 2023) is the NATO (North Atlantic Treaty Organization) meeting, the invitation of Ukraine, and Russia’s internal problem. The stability of each country and world peace is the requirement for a sound economy and investment.

TABLE

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