#302~ Did My Magic Dividend Formula Beat The Market?

#302~ Did My Magic Dividend Formula Beat The Market?

From Dapper Dividends by Dapper Dividends

May 23, 2026 · 9 min · Episode 302

About this episode

Russ evaluates the performance of his Dividend Magic Formula against the S&P 500 after two years.

Two years ago, I built my own twist on Joel Greenblatt's Magic Formula investing strategy. I called it the Dividend Magic Formula — I screened MagicFormulaInvesting.com for dividend-paying stocks, ranked them by 5-year Return on Capital Employed (ROCE), and bought the top 10. Did it beat the S&P 500 again in year two? In this video, I share the full results of my $1,000 hypothetical portfolio test, the three big downsides of running this strategy (taxes, fighting compounding, and how close year two really was), and whether I'm about to put real money into it. If you're into dividend investing, value investing, or just curious whether a simple formula can beat VOO, this one's for you. [⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Link to YouTube Video⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ] ⁠⁠⁠Dividend Channel DRIP Returns Calculator⁠⁠⁠ : ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Dapper Dividends Recommendation Tracker Spreadsheet⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Check out my current portfolio on 📱→Blossom: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://getblossom.onelink.me/SOfu/russ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ (affiliate) Email Russ: 👉 Russ@DapperDividends.com 🔔 Follow along with my dividend journey: →…

People in this episode

Host: Russ

Topics covered

  • dividend investing
  • value investing
  • investment strategy
  • portfolio performance
  • market comparison

Keywords

  • dividend investing
  • Magic Formula
  • S&P 500
  • portfolio test
  • investment strategy

Mentioned in this episode

Organizations: MagicFormulaInvesting.com, S&P 500, VOO, Blossom, Dapper Dividends

Books & works: Dividend Magic Formula

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