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re: Buying stock long term

Posted on 6/24/14 at 11:16 am to
Posted by kennypowers816
New Orleans
Member since Jan 2010
2446 posts
Posted on 6/24/14 at 11:16 am to
I disagree with your general philosophy towards investing for a person under 30. I'm not saying its wrong or bad necessarily, but just that I don't subscribe to that. And one thing in particular...

quote:

Many will tell you to invest in a dividend distributing ETF...but I'd rather get 8-10 solid dividends every quarter instead of 1 or 2. Thats just me.


Do you understand this concept? Have you done the math on this? I'm just curious, because 8-10 dividends of 2% is the same as 1 dividend of 2% assuming the balance of your whole portfolio is the same.

--

As for the OP, put it in an index fund of some sort. I personally like VTSMX as a "set it and forget it fund" because its just a total stock market fund, but there are many other funds that I own in my various accounts:

BFOCX
INPIX
FDGRX
NBGEX
PRDGX
FSEVX
NAESX
VWELX


Posted by bayoubengals88
LA
Member since Sep 2007
19038 posts
Posted on 6/24/14 at 11:20 am to
quote:

Do you understand this concept? Have you done the math on this? I'm just curious, because 8-10 dividends of 2% is the same as 1 dividend of 2% assuming the balance of your whole portfolio is the same.


No. I don't understand it at all. I've asked before, but no one has explained.

Also, I'm shooting for 3-4% yield, but I'm assuming thats irrelevant to your argument.

ETA: Say I invested in VYM...my annual dividend would be about $1.60 per share? is that right?
This post was edited on 6/24/14 at 11:32 am
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