Goldman Says 7.7% Returns. I Think You Can Do Better

Recently, Goldman Sachs released its forecast for global stock market returns for the next decade. After reviewing their projections, I am confident my Dividend Hunter strategy will outperform Goldman’s expectations for stocks over the next 10 years.

The Goldman forecast for global stocks is a 7.7% annual return over the upcoming decade. The report notes that the 7.7% forecast is below the 9.3% long-term average since 1985.

For many investors, 7.7% a year over the next 10 years won’t be enough to meet their goals. This is even more true because stock market volatility and regular downturns can mess up the timing of an investor’s life plan.

This chart shows the rolling 10-year returns for the last 40 years.

My Dividend Hunter newsletter service employs a different strategy that offers greater return stability, and those returns will be greater than 7.7% for sure.

The Dividend Hunter strategy involves investing in high-yield securities to build a stable, growing income stream. I tell subscribers that if they invest in high-yield stocks, their focus should be on the dividends they are earning.

I divide the investments in my Dividend Hunter recommended portfolio into two categories. They are Stable Dividend investments and Variable Dividend investments. 

The Stable Dividends category has a current yield of 9.0%. The Variable Dividends average is 13.0%. Those yields look a lot better than 7.7%.

The power of investing for high-yield dividends is that the cash returns are constant. You earn dividends quarter after quarter, and earn those cash yields year after year. If you reinvest your dividend income (or even a portion of the income), your income stream will steadily grow.

Bottom line: Investing for income will let you earn more than Goldman Sachs thinks you should, and the returns will be steady through the ups and downs of the stock market.