Retirement Compounders

Richard C. Young & Co., Ltd.'s Retirement Compounders Portfolio comprises 32 dividend- and income-paying securities from around the world. A well-diversified, 32-stock portfolio can give you over 90% of the diversification of owning every stock, for example on the NYSE.

Richard C. Young & Co., Ltd.'s Retirement Compounders Portfolio is for investors uncomfortable relying solely on price appreciation from stocks. The foundation of our Retirement Compounders Portfolio is the construction of a diversified portfolio of dividend- and income-paying securities. History shows that companies that steadily increase dividends are usually durable businesses. A dividend requires cold, hard cash. When a company pays a dividend, there is good probability that real earnings exist. The payout an investor receives in the form of a dividend is "real money." Retained earnings (by a company) may or may not be reinvested successfully to the benefit of investors. Savvy investors also recognize that dividends cushion downside risk in bear markets.

Richard C. Young & Co., Ltd. follows a track of rigid discipline and patience. Here's why. If you hold one stock in a portfolio, you can double your diversification by going to two stocks -- a great move. Diversification doubles again by moving to a four-stock mix and once again by jumping to an eight-stock portfolio. We can all agree that such moves are practical for most investors. But how about another doubling to 16 stocks? Sensible, but tough for many investors. Finally, an advance to a 32-stock portfolio doubles diversification, but following 32 stocks is well beyond the scope of most investors. Thirty-two, however, is the number we believe makes most sense if financial resources and competent research are no object.