Reality Shares is a credible organization. But its system favors dividend-paying stocks to generate capital gains, not income. Yeah the components of its ETFs pay dividends. But they were chosen for their ability to generate capital gains, not income. They’re best suited for those seeking capital gains, not those seeking yield.
As the numbers I quote show, Reality Shares’ approach has had some success. What bothers me is Barron’s didn’t think it worthwhile to point out that its fundamental investment objectives are very different from those of income investors, and how that affects the suitability of its recommendations. And I wonder how many people will take the 10 minutes I did on Google Search to discover who Reality Shares really is.
Collecting generous, steady and rising income with long-term capital growth is at the center of our approach in Conrad’s Utility Investor. If it’s yours too and you’re not yet a subscriber, please check out my open letter on income investing at:
https://conradsutilityinvestor.com/open-letter-on-income-investing
Even at this late stage of the bull market, there are dozens of essential services companies offering big yields with upside and limited risk. If your objective is income, don’t settle for less.
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