“Many people are gullible and we can expect this to continue.”
~ P.T. Barnum
Written by Bryan Lutz, Editor at Dollarcollapse.com:
Two weeks ago, I wrote to you about the ‘Lindy Effect.’
I don’t expect you to remember, but you can check it out if you are raring and daring to get the full story on why some stocks become portfolio “lifers,” and others do not.
Otherwise, here’s the ‘Lindy Effect’ in short:
“The term “Lindy” actually comes from Broadway.
Yes, New York’s Broadway show culture.
The idea was that the longer a show keeps selling tickets, the longer it will stick around.
So, if you want to reduce risk in your portfolio then look at how companies(or assets) have been performing over their long history…
See if they’re “Lindy.”
For example, a company like CAT, which sells construction equipment, has been consistently dishing out(and increasing) their dividends for over 100 years.”
Now, if you look at the S&P 500 Dividend Yield over the past thirty years, you see quite the opposite of the “Lindy Effect.”
There is a clear downward trend in dividend yield from 1990 to 2024.
More so, dividend yields from the S&P are now back to where they were before interest rates were raised in 2022.
And now appear to be trending downward into year 2000 levels.
So…
If the world’s biggest index fund keeps hitting all-time highs, yet its dividend yield keeps lowering something’s wrong with the valuation.
(S&P 500 hit a new ATH again, yesterday)
Maybe there’s an end to the US dollar show.
This is definitely NOT, the Lindy Effect.
This is the opposite.
Instead, what you may want to look into…
Especially in the gold market, are royalty companies.
These companies mine no gold. Instead, they own interest in a mining operation, or have lent money to a mining operation. Also, they pay dividends.
Some of these companies have been increasing their dividend yield for over 20 years.
Others are just getting started.
Yes, on some of the charts you would be able to identify the Lindy Effect.
So they’re great for portfolio income and stability. If you like gold…
One gold royalty company I like, and have mentioned before is Sandstorm Gold (NYSE: SAND, TSX.V: SSL).
In the past year, the stock has increased over two dollars and the company has been raising its dividend yields since the pandemic.
And if you would like more information on the stock, plus several more stocks and another two royalty recommendations to preserve your wealth…
Then check out dollarhedgeinsider.com
Once, inside you’ll see other royalty company recommendations, and receive 3 Gold Stocks to Buy Right Now (VIDEO).
Take care.
