Some of you might have noticed in the most recent updates of the USDP (Ultimate Sustainable Dividend Portfolio) that while its performance has been incredibly solid, it does lag the total return of a broad market index such as the S&P500. I do compare the two every month because it does help me in evaluating the returns of the USDP. That being said, there seems to be a big debate about the over or underperformance of dividend portfolios when compared with traditional long market portfolios, which are now easy to replicate thanks to ETF’s (more on that later). That is nonsense. I’ve been testing my theory with a few hundred members from our dividend focused newsletter. Today, I wanted to explain why I don’t it makes sense to compare for most dividend investors.