With SPY’s average ~5% return rate, does it make sense to invest in companies like SJT, MPW, PXD, etc that have over 10% dividends? Companies like ORC which have like 18% dividend, but the underlying stock price continues to fall more that 18% are traps sure, but SJT, MPW, PXD and others that have a decent track record of not losing much (or even gaining) value seem like good investments.
Am I missing something?
Unless you just meant absolute return in which case I would say diversification of VOO vs. those other names is the benefit. A single company is much riskier to invest in. The return is higher until it isn’t.