All right one last post in case people needed to see another one to understand the trend.  Here is $NVDY  vs $NVDA SCENARIO A (orange and green tables) - $NVDY : Spend all money from distribution and keep all shares vs - $NVDA : sell shares to generate same income as $NVDY's distributions each month. RESULTS : As seen on Excel tables below, if you started with $100K in each you would have had 5,022 shares of $NVDY and 3,499 shares of $NVDA . First distribution of $NVDY would have paid $0.75/shr so $3,747. You keep your 5,022 shares of NVDY. To generate $3,747 on June 7th 2023, you would have had to sell 100 shares of NVDA. You are down to 3,399 shares. Repeat that 24 more months with exact data (see table), you end up: - Both generated $155, 731 that you spent - You are left with 5,022 shares of $NVDY that are worth $75,590 - You are left with 1,666 shares of $NVDA that are worth $229,486 So both strategies provided you with $155.7K of income over the period but investing in $NVDA and selling shares would have left you with 3 times more value at the end or $154K more ! SCENARIO B: (blue and purple tables) - $NVDY : Spend no cash and reinvest all distribution into new shares - $NVDA : Just hold Results : - $NVDY : You end up being able to buy 13,856 more shares The end value of these 8,879 shares is $256,387 - $NVDA : Your 3,499 shares are now worth $464,766 So you would have ended up $208.3K richer just holding $NVDA vs buying $NVDY and reinvesting everything. Or made $364K total gains vs $156K gains. SCENARIO C (grey / blue): - $NVDY : You keep $4,000 each month and reinvest the rest - $NVDA : You sell shares to generate $4,000/mo RESULTS: - For both, you spend $100K - $NVDY : after 25 months and extracted $100K, you end up with 9,136 shares worth $127K - $NVDA : after 25 months and extracted $100K, you now have 2,270 shares left worth $305K You extracted $100K from both and are left with $305K in value from $NVDA vs $127K for $NVDY. Once more, total returns don't lie. Make sure to not accept less return for same risk. I also made 2 similar posts covering $TSLY vs $TSLA and $CONY vs $COIN : https://link.blossomsocial.com/7uYa/2fez41wz https://link.blossomsocial.com/7uYa/n1o97wxn
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55 Comments
Michael Noël@therev · 1yr
This is great information. You are providing a valuable service, especially to new investors.
Jacob B@jacobb · 1yr
Facts don’t lie.
Joey M@ninjaturtle · 1yr
Bless you for the effort you have put in and the patience of dealing with people that refuse to accept any fact that might change their opinion.
Su @buzzingcanada · 1yr
As a newbie who has fallen for the income investing trap, you’re my hero! I have HHIS as the majority of my portfolio and this whole time it’s been underperforming the holdings, I couldn’t figure out why. The dividend is great but looking at the total return I’m barely breaking even. I bought it at the highest and now still waiting for it to grow back to exit
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