Portfolio Management - Rate of Returns
For example:
Let say I want to have portfolio CAGR of 10% over 10 years period and during the market low, I managed to grab a portfolio of 10 dividend yield stocks of 10% each.
Do you think I can achieve portfolio CAGR of 10% over 10 years period with the same portfolio using re-investing all dividends strategy?
When market starts moving forward, its dividend yield may start falling and it becomes harder to re-invest the received dividends for same rate of returns at 10%.
It may take some time for market to come back to 10% dividend yield, and by then I will be nearer to the end of 10 years period. Game over liao. No CAGR of 10%
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