Though past performance is no guarantee of future returns, we often look to the past for guidance as the future often rhymes with the past. What are the lessons of past market bubbles, for instance, or what has been the performance of certain sectors and industries during rising interest rate environments or economic recessions?
As research-focused managers, our examination of the historical performance of high-income-producing equities and how they compared to broad market indexes was instrumental in our decision to make dividend-paying equities a firm focus.
Everyone seems to understand the idea of rental property. You get income today. Hopefully, more income tomorrow—and hopefully a more valuable property in the future. A stock portfolio can be like this too.