Post #5245 by rayvt on the Berkshire Hathaway board

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤

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If one were to buy an equally weighted portfolio of only those S&P 500 stocks paying over 1% dividend yield, you'd still have 321 stocks, presumably enough diversification for anybody. The average dividend yield of that portfolio is currently about 2.92%

I have a problem every time I look at investing for dividends. With an investment of $100,000 this will only pay $2,920 a year. That hardly seems worthwhile--that's not exactly a life-changing sum. Especially when these days you can get 4.75% on 20 and 30 year Treasury bonds.

That's about the same you'd get MONTHLY from Social Security, if you are retired.

Well, you do get some capital appreciation I guess. But if you are going to hold forever for the dividends then capital appreciation does not matter.

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