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Dividend Growth Investing
Posted on 3/13/24 at 8:29 am
Posted on 3/13/24 at 8:29 am
New to this form of investing. I have a brokerage account that I dump money into regularly all going into FXAIX which is at about 100 shares right now. Will continue this investing.
Opened another brokerage account to only focus on dividend growth investing. Hoping to build that up so that the dividends eventually pay my expenses, everything is set to DRIP for the next 20 years.
Here is my current portfolio:
ABR 33.002 $429.69 Cost Basis 14.04
MO 7.777 $334.80 COst Basis 43.00
OMF 6.006 $292.31 COst Basis 39.26
KMI 8.125 $145.76 Cost Basis 16.76
WU 5.667 $78.26 Cost Basis 11.95
Current Yield 9.97%
Yield on Cost 10.3%
Total Portfolio: 1280.80
Estimated Dividends next 12 months $127.69
Will be building up MO for now as it is at a good price range, wish I bought more OMF at my cost basis.
Will add O, XOM and MAIN
Give me your thoughts!
Opened another brokerage account to only focus on dividend growth investing. Hoping to build that up so that the dividends eventually pay my expenses, everything is set to DRIP for the next 20 years.
Here is my current portfolio:
ABR 33.002 $429.69 Cost Basis 14.04
MO 7.777 $334.80 COst Basis 43.00
OMF 6.006 $292.31 COst Basis 39.26
KMI 8.125 $145.76 Cost Basis 16.76
WU 5.667 $78.26 Cost Basis 11.95
Current Yield 9.97%
Yield on Cost 10.3%
Total Portfolio: 1280.80
Estimated Dividends next 12 months $127.69
Will be building up MO for now as it is at a good price range, wish I bought more OMF at my cost basis.
Will add O, XOM and MAIN
Give me your thoughts!
This post was edited on 3/13/24 at 8:31 am
10
Posted on 3/13/24 at 9:09 am to ThatsAFactJack
I’ve looked into this a few times. The idea is great but given what I’d have to invest each month in order for just the dividends to pay my expenses one day, it’s not feasible for me personally. I’m in the “have to rely on growth instead of dividends” camp.
Posted on 3/13/24 at 9:33 am to ThatsAFactJack
As for as individual stocks for dividends, I recently added ABBV to my portfolio
DGRO and VEIPX are good steady funds for long term dividends. I have had them both in my ROTH for many years
DGRO and VEIPX are good steady funds for long term dividends. I have had them both in my ROTH for many years
Posted on 3/13/24 at 9:50 am to ThatsAFactJack
I like the idea. I am of a similar mindset, then you realize it's going to take probably 15-20 years to get to a point where you're making a meaningful income off dividends. Like around 2 million.
Not saying it's not a strategy worth pursuing. I've got a solid dividend & growth section of my portfolio but I stopped thinking about the actual dividend return and will continue to do so until I'm at least north of a million in there.
Not saying it's not a strategy worth pursuing. I've got a solid dividend & growth section of my portfolio but I stopped thinking about the actual dividend return and will continue to do so until I'm at least north of a million in there.
Posted on 3/13/24 at 10:19 am to ThatsAFactJack
I focused on dividend investing for a while.. advice I would give:
1) you are still buying pieces of a company. Make sure you believe in the value and growth potential for that company even if your focus is dividends. Companies that have good/great dividends but whose business model is dying will potentially have to cut dividends or go bankrupt.
2) to avoid been burned by an individual company you can invest in ETFs that focus on dividend growth. I like SCHD.
1) you are still buying pieces of a company. Make sure you believe in the value and growth potential for that company even if your focus is dividends. Companies that have good/great dividends but whose business model is dying will potentially have to cut dividends or go bankrupt.
2) to avoid been burned by an individual company you can invest in ETFs that focus on dividend growth. I like SCHD.
Posted on 3/13/24 at 10:36 am to ThatsAFactJack
MO is a dividend king
Make sure to time your buys right with this one. There will be turmoil ahead for sure.
Make sure to time your buys right with this one. There will be turmoil ahead for sure.
Posted on 3/13/24 at 10:56 am to TDsngumbo
quote:
TDsngumbo
quote:
I’m in the “have to rely on growth instead of dividends” camp.
I feel this. My 401K is all growth as of now, 44 years old, my brokerage account is around $17k all FXAIX which is considered aggressive.
This is more for any additional money I find each month to throw to something after taking care of all other needs. In reality it will never pay all my bills, but if I can get 15-20K a year in dividends and not touch the principal that will be a nice bump to my retirement lifestyle and a nice gift to pass on eventually.
This is an experiment I want to try after reading a decent amount on dividend growth investing, but it is truly money I would have blown on hunting/golfing/vacation nonsense anyway. Not taking away from my regular financial planning.
Posted on 3/13/24 at 11:05 am to ThatsAFactJack
Look into jepq if you want dividends as well. I do about 250$ a month into it. Approx 10% dividend that’s divided monthly
Posted on 3/13/24 at 1:20 pm to DaBeerz
ARCC
PSEC
PSEC
Posted on 3/13/24 at 1:40 pm to ThatsAFactJack
I’m 64 and I did it through mutual funds and not stocks. At the moment I’m about 50/50 taxable not taxable and about 52/48 stocks/ bonds. I just figured it out yesterday at my full retirement age of 67 with my social security the wife’s teachers pension and the income generated in taxable accounts my gross will match what we were earning in salaries which is plenty. I wouldn’t have to touch any of the principal n taxable or no taxable accounts.
Posted on 3/13/24 at 2:52 pm to ThatsAFactJack
Im no fan of dividend investing, rather choose when to realize my gains. That said, you may be better off holding dividend stocks in a tax advantaged account instead of taxable brokerage. Otherwise, you're going to pay tax on every dividend and drag down your total return.
Posted on 3/13/24 at 3:28 pm to JL
quote:
ARCC
PSEC
Interesting… as those are two of the div equities that I also happen to have. I also have some MO, GDV, HNDL and ORI, among others spread across various accounts and account types. I had IBM, but foolishly lost it in a poorly timed covered call play.
Having some amount of div payers seems a wise move, simply because a significant portion of the S&P returns over time has come from dividends.
Posted on 3/13/24 at 4:39 pm to TorchtheFlyingTiger
quote:
Im no fan of dividend investing, rather choose when to realize my gains. That said, you may be better off holding dividend stocks in a tax advantaged account instead of taxable brokerage. Otherwise, you're going to pay tax on every dividend and drag down your total return.
Great advice here. I just started moving over to dividend payers over the last 2 years.
Posted on 3/13/24 at 4:39 pm to agdoctor
This is a strategy I’m thinking about when get to retirement. To live off of dividends and interest of investments.
98% in stocks of which majority are growth. But do think I’ll shift to dividend plays when finally do retire
98% in stocks of which majority are growth. But do think I’ll shift to dividend plays when finally do retire
Posted on 3/13/24 at 6:07 pm to kaaj24
I love O and MO. Have both myself. I time it right and buy when low. I also have Microsoft and apple as both give dividends but I get tech exposure. I will always buy BAC when under 30 and hold when over 30. Also like Verizon and American Express for dividends investing.
Posted on 3/13/24 at 6:54 pm to ThatsAFactJack
I worked up a spreadsheet on this once wondering if compounding and reinvesting dividends would grow into a substantial income.
Which it does if you have a significant amount of time and start with enough money.
Which it does if you have a significant amount of time and start with enough money.
Posted on 3/13/24 at 9:09 pm to TorchtheFlyingTiger
quote:
Otherwise, you're going to pay tax on every dividend and drag down your total return.
That depends on how QDI is treated tax wise in the future. I think he is better off with mix of growth in taxable and dividend oriented in a Roth and taxable. At one point I had over 40 individual stocks and it got to be a bit of a PITA. Lot easier to tax loss with ETFs as well.
Posted on 3/13/24 at 10:51 pm to JL
quote:
PSEC
I cannot believe people buy this kind of thing. Prospect has a long history of giving you fewer and fewer dollars per share while simultaneously eroding your share price. I’ll never understand it.
Posted on 3/14/24 at 6:04 am to slackster
It has not been a stellar performer by any means. Thankfully the position that I have is rather small.
Posted on 3/14/24 at 6:23 am to Jag_Warrior
ARCC is a different story altogether at least.
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