Q: Which would you recommend as would provide the largest % total yield, dividend+capital appreciation, for the first year of ownership? What is your reasoning please?
5i Research Answer:
It is a tough call as PPLN is a specific sector-focused fund (pipelines and energy services) and DGRO is more diverse. DGRO has a far superior long term record. But in one year, if the pipeline/energy sector surged then PPLN could do very well. But the fund is small, and we would still side with DGRO as the 'better' fund, with the caveat that one year is too short of a holding period for us.