Discussion
Which tool perform dividend income backtesting mentioned in the article -> https://pyinvesting.com/insights/5/outperforming-the-market-with-high-dividend-yield-stocks/
Question: if I invested $X into stock Y 10 years ago, how much money would it give me monthly, and how much I will have if I sell it all after 10 years, with a possible extension of reinvesting the dividends.
Comparions of VTI vs MO in case of dividend reinvestement 400% gain vs 1130% gain over 20 years. In other words MO provides 2.5 times better return than VTI when compare over last 20 years. Will be good to confirm same number using adjustement closed price.
Ivann, Thank you for your insights!
I am very new to backtesting and not very familiar with signals. I made a simple graph for "hypothetical" growth of $50 when invested into VTI (broad ETF) vs MO (one of the dividend kings). It is interesting to see that despite stock poor stock performance for MO it still provides better total returns than VTI.
Hi Cody,
The backtest created in that article was done on Quantopian. However that website has shut down recently.
For a similar backtest you can create a "fundamentals backtest" and select highest "dividend yield" as a signal.
Let us know if you have any questions.
Kind Regards,
The PyInvesting Team