Tech mania fanned by the dawning of the internet age inflated the dotcom bubble to maximum extent, on this day in 2000.
By Chris Carter
last updated 10 March 2020
(Image credit: Chris Hondros/Getty Images)
It only takes a pin to burst a bubble. And on Friday, 10 March 2000, that’s exactly what we got. On that day, the tech-heavy Nasdaq Composite index reached its pinnacle at 5,132.52, ending the day at 5,048.62. The dotcom bubble that had been inflating since 1997 finally popped. When traders returned to their desks after the weekend, it was to months of misery.
It’s not hard to see what had got them so excited in the first place. The dawning of the internet age during the 1990s seemed like a genuine revolution of the way we live our lives, from doing our shopping online to emailing and research. In many ways, it was a revolution.But in the frenzy to grab a piece of the pie, investors piled in to whatever happened to end in .com. Between 19 October 1999 and 10 March 2000, the index rose by an astonishing 87.8% in less than six months.
Out went the tried and trusted valuation metrics all the ones that we at MoneyWeek are such fans of. All that mattered was that a hot, young tech company had enough cash to expand its customer base beyond the reach of its peers, measured by its “burn rate” ie, the amount of cash a company could burn through before it went bust.Article continues below
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Some companies did survive the bursting of the bubble, such as Amazon and Google. But many didn’t, or were sufficiently hobbled by the fallout to be terminal cases. Anybody remember GeoCities?
By December 2000, nine months after hitting its peak, the Nasdaq Composite had more than halved. While the end of the dotcom debacle is considered to be 2003, it wasn’t until last summer that the index overtook its 2000 high, having slumped as low as 1,293 in the wake of the 2008 financial crisis.
In longer ‘compound’ performance terms, 2025’s +24.7% return comes on the back of 2024’s +35.6 % and 2023’s +46.4%, a solid +106.7% return over the past three financial years, representing a +2.7 percentage point outperformance of the benchmark index over that time. Of course, those with a longer memory will point out 2022’s -33.6%. The point I make is twofold – the volatility associated with the tech sector can be painful, but the rewards when they do come have also been substantial. This is the balance one has to remember when investing in tech.
If you are looking for a share for your Snowball to provide the TFLS for your Snowball, tech is one area you could research.
2022’s -33.6% so not a consideration for the SNOWBALL.
A solid +106.7% return over the past three financial years
IF you get your timing right it could provide cash for your Snowball and still retain your stake in the company.
Dividends delivered more than half of FTSE 100 returns over the past decade
First published: 05:44 14 Mar 2026 GMT
As growth stock valuations stretch and SaaS shares slide, data from Bowmore Asset Management puts the case for income investing back on the table, from London to Singapore.
Dividends accounted for 52% of the total return of the FTSE 100 over the last 10 years, according to research by Bowmore Asset Management, a finding that puts the often-overlooked role of income at the centre of the long-run equity performance debate.
The data arrives at a telling moment. After years in which growth investing dominated, with technology and software companies routinely outpacing income-focused strategies, the tide is shifting. Stretched valuations on growth stocks and a recent rout in software-as-a-service shares have reminded investors that high multiples carry real risks.
The Asia Pacific picture
The pattern extends far beyond the UK. Over the 20 years to November 2025, dividends drove 56% of total equity returns across the Asia Pacific region, suggesting that income’s contribution to long-run performance is not a quirk of the British market but something more fundamental.
The macro backdrop reinforces the case. Global dividends reached a record $519bn in the third quarter of 2025, up 6.2% year-on-year, reflecting broad corporate health and a continuing commitment to returning cash to shareholders.
Why income is back in favour
James Woodman, Investment Director at Bowmore Asset Management, frames the shift in investor sentiment as a direct response to valuation concerns in growth markets.
“The multiples on many growth stocks no longer look attractive, which is why investors are looking at higher-yielding shares,” he says. “Growth shares have taken a hit recently and are at risk of a larger correction. At the same time, corporate governance reforms globally continue to drive dividend growth.”
Equity income investing focuses on generating returns through steady cash flow rather than relying solely on share price appreciation. The approach tends to favour sectors with resilient earnings, including utilities, consumer staples, financials and energy.
Dividends as a sign of strength, not stagnation
The research also pushes back on a persistent misconception: that dividend-paying companies are mature, slow-moving businesses that have run out of growth ideas.
Woodman is direct on this point. “Dividends are not a sign that a company has run out of ideas. They are a sign of financial strength and rational capital allocation. Returning excess cash to shareholders allows investors to redeploy it into new opportunities rather than leaving it tied up in projects that may not generate attractive returns.”
The argument positions income investing not as a defensive retreat, but as a disciplined approach to capital that serves investors across market cycles.
FTSE 100 total return: dividends vs price alone
The chart illustrates the cumulative divergence between the FTSE 100 total return index, which includes reinvested dividends, and the price return index over the past decade. Over time, the compounding effect of dividends accounts for a substantial share of the gap.
If I Were Retired Today, These 3 Income Machines Would Be My First Buys
Mar. 14, 2026
Leo Nelissen
Summary
Ares Capital Corp., Agree Realty Series A Preferred, and Rayonier offer compelling, diversified income opportunities for a retirement portfolio.
ARCC yields 10.4%, trades below book value, maintains a BBB rating, and has a sustainable dividend supported by low nonaccrual rates.
ADC.PR.A offers a 6.2% yield, trades well below liquidation value, and benefits from Agree Realty’s A-rated balance sheet and net lease tenant base.
RYN provides 5.2% yield, cyclical upside, and inflation protection, though a recent dividend reduction followed a merger; each pick addresses distinct risk/reward themes.
The Good Brigade/DigitalVision via Getty Images
Introduction
As some of you may know, I was a Corporate Treasury intern in the past. That was back in 2019 when I was still figuring out what I wanted to do in life. A few months after I left to finish my master’s degree in International Business Administration (with a focus on purchasing and supply chains), my former boss retired. That’s old news and doesn’t affect your portfolio at all. However, because Henkel (the company where I interned) is a European heavyweight, he was interviewed, as he was a rather powerful treasury manager.
I’m bringing that up because I just re-read the piece. One thing stood out to me:
Treasury chief Michael Reuter has left consumer-goods company Henkel and retired at the end of September, as DerTreasurer has learned. Shortly before his departure, he and his team were able to make a splash in the capital market: Henkel issued two sterling bonds totaling the equivalent of 850 million euros, both with a negative yield. – Der Treasurer (translated)
Again, this isn’t about Henkel or about my past. This is about the last line in that paragraph, which mentioned that Henkel issued the equivalent of EUR 850 million in negative-yielding debt. Back then, people paid corporations to take their money. Sure, Henkel is an A-rated giant with terrific diversification, but it’s still “nuts” if you think about it.
And, to use a chart from 2019, it wasn’t unusual. Back then, the total amount of debt with a negative yield was $16 trillion. More than 28% of the debt tracked by the Bloomberg Barclays Global Aggregate Index had a yield of less than 0%.
X/@jsblokland (August 2019)
Back then, it was truly the best time to own low-risk, high-quality dividend growth stocks, as investors were aggressively chasing income as if the world would end. This was obviously fully supported by ultra-low rates in developed nations.
To me, it’s a perfect example of how major capital shifts impact our portfolios. Less than two years ago, when rates spiked, the exact opposite happened. Some investors (I’m painting with a broad brush again) sold equities and went into short-term bonds that yielded more than 5%. That explains the massive surge in money market assets, as we can see below.
Federal Reserve Bank of St. Louis
While I am typing this, there’s close to $8 trillion in money market funds, which is basically short-term government debt (risk-free income, so to speak).
In 2020, that number was $5 trillion. Between 2010 and 2019, it was $3 trillion on a very consistent basis, as investors were buying income in other places, as the yield on short-term debt was close to zero.
These are the capital rotations I care so much about, as they are crucial for asset management. We’re seeing the same in equities. In the first two months of this year, investors wanted cyclical value stocks (that’s my core thesis, as most readers will know) and non-U.S. equities.
As we can see below, over the past 15 years, U.S. stocks were the place to be. However, on a year-to-date basis in 2026 (that’s January-February), U.S. stocks lagged international stocks.
JPMorgan
The war in Iran changed that.
My friend and business partner, Albert Marko, wrote on that, as he made the case that the U.S. is using the conflict to create new capital flows into the U.S., based on the realization that in times of distress, it has the safest supply chains (think of its oil supply), dollar safety, military power, and other tailwinds.
Albert Marko
Bloomberg just confirmed that:
But the developments since the US and Israeli attacks on Iran reveal that America is still the go-to market for investors. If the US has warts, it remains the center of global innovation and home to the deepest and most liquid markets on the planet, a feature that becomes indispensable when economic shocks hit. After 14 chaotic months, we’re also seeing signs emerge of institutional resilience at the Federal Reserve and Supreme Court, an additional source of comfort. – Bloomberg
That’s a good thing, as it not only supports my thesis that America remains a terrific (if not the best) market for long-term capital allocation, but also because the market’s biggest companies are now in need of massive funding. While most hyperscalers (think of the Mag-7) have terrific balance sheets, AI spending is now forcing them to diversify these risks.
It was just reported that Amazon (AMZN) is issuing $37 billion in bonds. According to Reuters, the bond deal resulted in $126 billion worth of demand, which is a good sign for Amazon. And then there’s Alphabet (GOOGL), which raised $100 billion, including through a 100-year bond. It was observed 10x, according to Seeking Alpha.
At this point, I have to admit that my intro seems to be all over the place (and close to 1,000 words – sorry!).
However, it brings me to my main point, which is that as global markets are getting volatile, the U.S. once again defeats the argument that it’s not the go-to place for capital anymore. We also see that Americans are using it to issue debt for the AI transition.
Unfortunately, this creates a bit of an issue. As rates are potentially falling, the environment isn’t great for income anymore. And while we’re far away from a 2019 scenario where it costs money in some cases to lend money to corporations, it’s not a scenario where I want to be forced into deals like financing the AI revolution. I want no part in that, at least not through bonds.
This brings me to the question that people ask me quite frequently, which is what I would own if I were retired right now? It’s high-quality U.S. income that comes with both income and unique characteristics that add value to most income portfolios.
With all of this in mind, let’s look at three income ideas I would buy today if I were retired.
Here’s What I Would Buy
A big part of the intro was about the credit market. I have often said that I do not like bonds, as I’m an “equity guy.” I want to own a share of a company and grow with it over time, while generating income, in some cases.
Right now, that lending market is under fire. While Alphabet and Amazon are not having a hard time finding buyers, the private credit market is seeing cracks. Many asset managers and their Business Development Companies have sold off hard this year, including some of the best players like Ares Management (ARES) and Apollo Global Management (APO), which I consider the gold standard of private credit.
Fears are basically created by software disruption and some negative headlines regarding “unexpected” defaults that make people wonder how much bad debt is hidden in this industry. When adding that private credit is very cyclical, it explains why I am so careful in this industry.
However, I still would buy exposure here, as there are some great deals out there. One of them is Ares Capital Corp. (ARCC). It’s the BDC owned by Ares Management. Right now, I am actually looking to buy ARES in the months ahead (I’ll update you on my liquidity and plans soon). However, if I were retired, I would buy the higher-yielding BDC.
Ares Capital currently yields 10.4%. This dividend hasn’t been cut since the Great Financial Crisis. And, as of December 31, 2025, it’s a BDC with a superior total return compared to banks and BDC peers, as Ares has figured out how to find a great balance between risk (yield) and safety (picking the right deals).
Ares Capital Corp.
Moreover, not only is this the biggest BDC on the market, but also a BDC with terrific fundamentals, as it has a BBB credit rating from all three major rating agencies (Fitch even has a positive outlook, which could mean a path to BBB+), and more than $6 billion in liquidity.
Its portfolio has a nonaccrual rate of 1.8% (at cost). That’s in line with prior year levels, according to the company. Moreover, it’s below its own long-term average of 2.8% and below the BDC industry average of 3.8%. At fair value, that number is just 1.2%.
The company also believes its dividend is sustainable:
We believe ARCC is in a good position to maintain its dividend despite market expectations for further declines in short-term interest rates. We generally set our dividend level based on our view of the earnings power of our company. While lower short-term rates present an earnings headwind, we believe there are multiple factors that can support our earnings and thus, our current dividend level for the foreseeable future. – ARCC 4Q25 Earnings Call
And to incorporate higher risks, ARCC is now being traded at 7% below book value.
Another stock I would buy is Agree Realty Series A (ADC.PR.A), which is Agree Realty’s preferred stock. In other words, it’s somewhat of a hybrid between a bond and a stock. Investors get exposure to Agree Realty (equity ownership), yet no voting rights and no dividend growth. What they do get is bond-like dividend payments and more safety, as preferred stock is more “senior” than common equity.
Generally speaking, I dislike capped upside, which applies to assets without dividend growth. However, the risk/reward of this preferred stock is great, as it trades at $17.19 while I am writing this. That’s substantially lower than the liquidation price of $25. That’s the price you’ll get if the company were to buy back the preferred stock.
That limited upside isn’t great for long-term growth investors, yet it’s perfect for income, as it is a premium of 45% compared to the current price. That’s the upside you’ll get before you potentially lose these shares in a buyback. Moreover, because of the low price, the monthly dividend yield is 6.2%. That’s a terrific yield, roughly 200 basis points above the 10-year government bond.
As a comparison, Agree Realty (ADC) common stock yields 3.9%. That dividend has a five-year CAGR of 1.9%. On October 14, it raised the dividend by 2.3%. If we assume that the dividend growth rate holds, investors will end up with a yield on cost of 4.9% after ten years, which is still way below the rate on the preferred stock.
Agree Realty
It also helps that Agree has an A-rated balance sheet, a portfolio that mostly caters to ultra-safe net lease tenants, and growth opportunities in areas like sale-leaseback. Moreover, as this preferred stock is cumulative, if Agree were to run into issues leading to dividend cuts, it would have to make preferred shareholders whole before it would be allowed to pay a common dividend again.
I really like this preferred stock. And, if I were to retire today, I would buy this in a heartbeat.
The third pick is somewhat unusual, as it’s Rayonier (RYN). This company is a specialty REIT. Technically, it’s a “Land Resources REIT,” as it owns timberland that covers more than 4 million acres after merging with PotlatchDeltic.
Rayonier
As a result, their business model is based on three factors. They sell timber to lumber mills, where lumber for a wide range of purposes is created. Homebuilding is a major factor. This business is cyclical, as it depends on pricing and demand. It also generates high-quality revenue from strategic master-planned communities. That’s high-quality developed land for new housing communities. It’s much less volatile than selling timber.
Rayonier
Last but not least, they use land for value-adding opportunities like solar, carbon credits, bioenergy, and so much more.
As we can see in the total return chart below (capital gains + dividends), RYN isn’t a low-volatility stock, which is why I have always avoided it. If I want a volatile stock, I prefer buying a housing supplier that tends to rise faster during times of strong economic growth.
TradingView (RYN)
The good news is that the RYN risk/reward looks highly attractive.
As we can see below, despite the increase in the ISM Manufacturing Index (the black line), the year-over-year performance of RYN has continued to go down. At this point, I like the risk/reward a lot.
TradingView (ISM Manufacturing Index, RYN)
If we get broadening economic growth, we’ll see both pricing and demand tailwinds in this space. Moreover, while the dividend was cut by 4.6% in February, it was part of the merger. Currently, it yields 5.2% based on a quarterly dividend of $0.27.
At points like these, I think RYN makes for a great investment that provides income, a great risk/reward, as well as inflation protection for an income portfolio, as this stock tends to do well in times of rising inflation.
Generally speaking, I truly believe that all three of these picks bring something truly unique to the table that I find highly compelling for an income portfolio. And, as I always say, stay tuned for more ideas!
For now, here’s a short takeaway:
Takeaway
My introduction was pretty chaotic today. However, my point is that it’s all about identifying capital rotations and finding the best risk/reward for an income portfolio, or any portfolio, really.
At a time when money market funds are overflowing with capital, rates are likely to be pressured, and economic growth is set to rebound, I like to apply a diversified approach to buying high-quality income.
If I were retired today, I would buy ARCC for elevated BDC income, preferred Agree Realty stock due to a 6% yield and a terrific risk/reward, and Rayonier because it provides 5% income and cyclical tailwinds and elevated inflation protection.
These are three different themes, but all have one thing in common, which is a unique ability to add value to an income portfolio.
Three Risks You Need To Know
The biggest risk for ARCC is credit risk. While it is protected against further declines in short-term rates, a domino effect in credit could lead to elevated non-accrual rates.
For Agree Realty’s preferred stock, the biggest risk is a surge in long-term government debt rates. As these compete with preferred stock due to the bond-like dividend payments, they could keep a lid on capital gains.
For RYN, the biggest risk is a sluggish housing market and related pricing headwinds in lumber.
I’ve chosen a share that should be in the SNOWBALL as it’s a dividend hero and increased its dividend for over 50 years.
Remember it’s easier with
and the buy signal can reverse on you.
The only interpretation you need, after you have bought, is when to take profit, all or part. Also since the reversal last April markets have been really strong and so it’s likely to get more difficult from here. If you trade the chart, you will not get in, right at the bottom or out right at the top.
MRCH is one share I am considering buying for the SNOWBALL as a replacement for DIG that was sold.
DIG paid a 6% dividend on last year’s NAV, so if the NAV falls next year’s yield would fall with it.
I would like to buy MRCH if/when it yields around 5%, as it has a progressive dividend policy, so
the yield should on buying price should yield more than 6%. One big problem in setting a buying target is that the market could reverse and you are left with no position. If the market continues to fall after you have bought, as long as you are happy with the yield, it matters little. You can only get out a share at the top and in at the bottom by luck, so don’t waste too much time trying to do so.
I’ve chosen a share that will never be included in the SNOWBALL but would of been of interest too many to own. Your aim is just to trade the price, without any other consideration.
The KISS is to own above the blue support line and add to the position, pyramiding, at the basic point and figure buy signal.
(shown on the chart)
When a new resistance line is formed, you either sit it out, sell part or whole and try to get back into the trade at a better price.
You could take out your profit, retain your stake and re-invest in your snowball and try to do it all over again.
Obviously you wouldn’t want to trade against the chart and buy tomorrow. Whilst tech is always going to be the buzz trade of tomorrow, it may not be today.
There is a whole world of technicals for point and figure trading of which you don’t need to know, any of, to make money
A growing collection of US stocks has been on quite a rollercoaster ride this month. Yet the US stock market as a whole has so far proven to be relatively resilient to the conflict in the Middle East. In fact, despite all the doom and gloom of media headlines, the S&P 500‘s so far only slipped by around 2%.
However, the story’s been quite different when zooming in on individual sectors. So which US stocks are the winners and losers right now? What lies around the corner? And what can investors do to protect their portfolios?
Winners and losers
As skyrocketing oil & gas prices have already made clear, the war in Iran doesn’t bode well for energy-related supply chains. But it’s particularly problematic for industries that rely heavily on fossil fuels.
Most notably, this includes airlines and cruise operators who consume a lot of fuel. American Airlines, United Airlines and Delta Air Lines have already seen roughly 31%, 23%, and 16% wiped off their respective share prices since the start of the year. And it’s a similar story for Carnival Corporation and Norwegian CruiseLine.
On the other side of this equation sit the energy producers such as ConocoPhillips, Chevron, and Exxon Mobil, all of which have enjoyed a 20%+ surge over the same period. Meanwhile, defence contractors including Lockheed Martin and Northrop Grumman have enjoyed even bigger rallies as war expands their order books.
Risk of contagion
With some sectors benefiting and others taking a tumble, the overall impact on the S&P 500 has been fairly muted. But that could change depending on how the situation evolves.
A prolonged conflict risks inflation making a nasty comeback, particularly for energy prices, putting more pressure on consumer wallets. It could even delay or perhaps reverse recent interest rate cuts. And combined, these effects could adversely impact the real estate, automotive, discretionary retail, construction, and industrial sectors.
So what should investors do now?
Keep calm and carry on
While the evolving geopolitical and macroeconomic landscape is concerning, it’s essential not to start panic-selling. Instead, investors should review their personal risk tolerances and adjust their portfolios accordingly.
For investors who can stomach the volatility, using any future dips in stock prices to buy more quality shares at a discount could pave the way for superior long-term returns.
The idea of buying dividend shares for their passive income potential can sound promising. How might the nuts and bolts work in practice?
Posted by Christopher Ruane
Published 14 March
You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services.
Image source: Getty Images
The idea of putting money into dividend shares to earn passive income is a very old one.
One reason it has hung around so long is precisely because it can work well. Another is its adaptability: it can be suited to the amount of money a particular person has to spare.
Let me run through some basics, to show what that might look like in action for someone targeting £750 per month of income.
Understanding the role of dividend yield
£750 per month equates to £9k per year.
If someone wanted to earn that in interest from a bank account, they would look at the interest rate to decide how much to invest.
The current Bank of England base rate is 3.75%. Now, deposit accounts may well offer less, but using the base rate as an example, £9k is 3.75% of £240k. So, someone targetting £9k per year of interest at a 3.75% rate would need to invest £240k.
In some ways, dividend yield works along similar lines – but with some important differences.
The current average FTSE 100 yield is 3%. But in today’s market, I think 6% is achievable while sticking to blue-chip businesses. At a 6% yield, a £9k passive income would take investment of £150k.
Dividends are never guaranteed, though. Come to that, interest rates can move around too.
These days it is unlikely that the money in a bank account will be wiped out through bank insolvency (the first £120k is typically covered by a compensation scheme at any rate). But share prices can move around in value.
That might be bad for the portfolio’s worth, if prices fall. But it can also be good in my view as prices can move up.
So, as well as passive income, someone investing in the stock market may also make a capital gain.
The mechanics of stock market investing
Before putting money into the stock market to try and generate passive income streams, an investor ought to learn about some of the key concepts involved. Those range from valuing shares to how fees and commissions can eat into financial returns.
One dividend share I think is worth considering for its passive income prospects is FTSE 100 asset manager M&G (LSE: MNG).
The company aims to grow its dividend per share annually – and in this week’s annual results it did exactly that.
The current yield of 6.8% is well above the 6% target I mentioned above.
Dividend growth was not the only good news in the results. One risk that has troubled me about M&G in recent years is investors pulling more out of its funds than they put in.
But the company reported a £7.8bn net inflow last year into its open business (‘open’ because some of M&G’s funds are closed to new money). That is encouraging, though the risk still concerns me especially in volatile markets like those we are currently seeing.
M&G has a strong brand and large customer base, with £376bn of assets under management and administration. It is highly capital generative, which could help support ongoing dividend growth.
