The Idea that I don't value total return as highly as reliable cashflow seems bonkers to the critics. But I don't need to save up a lump sum for some kind of big purchase. I need to generate income that I can live off and that allows me to retire early.
Exactly, to each their own! I'm 27 and only own two ETF's, SCHD+QQQM. Besides that, a handful of individual stocks. It can be that simple. I plan on retiring before 40 so a higher allocation to SCHD doesn't bother me. Can't beat their dividend growth+starting yield.
I‘d like to add the dividend snowball and dividend safety to the mentioned points 🤔☺️ a) reinvesting the cashflow will generate even more cashflow over time b) sure, it depends on the stock, but a drop/cut of the dividend by 30% is much less likely than a drop of 20-30% of the stock price due to some news 🤔 personally to me it feels like dividend investing is a lot safer than investing into a company and hoping the share price growth will go up indefinitely 🤔 c) also for dividend and value investors market volatility isn’t as stressy and rather a point where you invest even more when you see a „bargain“. Market volatility won’t affect your cashflow though.
I think the reason why some people see dividends as „irrelevant“ is because they see the massive jumps on stock prices and feel like they can earn more in less time if they focus on appreciation. Why that might be true on some occasions, people tend to forget that those „gains“ are unrealized. They need to cash it out at the right time. A dividend portfolio takes longer to build up (probably), but the gains are real in the form of a predictable cashflow 🤔 I’m super nervous about my Nvidia holding atm (the stock valuation is beyond my risk tolerance, but FOMO I guess 😅). Halfway at triggering that sale button… My JNJ, MAIN and Allianz holdings let me sleep like a baby at night though 🤣
The $5k or so I get every month from dividends say otherwise - at this point, all reinvested to keep the snowball going. Took seventeen years to get to this point.
I follow the same approach as yours. I'm young, so I need income between now and until I retire. Dividends via SCHD seems like the logical choice. Plus I ran out of places to put my money. Threw some into dividends.
When i was in my twenties, i was so impatient, I would never grasp the idea of investing. Now as I'm much older, I'm 70% yield, 30% growth. I should've started earlier instead of playing catch up. I'm just trying to set up to retire early. Good luck everyone, thanks for the vid, JP!
I think dividends are fantastic for retired people. I’m not into it now because after taxes and less growth over an etf like VOO, I don’t want to miss the massive extra growth over a decade+
The Idea that I don't value total return as highly as reliable cashflow seems bonkers to the critics. But I don't need to save up a lump sum for some kind of big purchase. I need to generate income that I can live off and that allows me to retire early.
100% agree I’m in a similar boat!
Exactly, to each their own! I'm 27 and only own two ETF's, SCHD+QQQM. Besides that, a handful of individual stocks. It can be that simple. I plan on retiring before 40 so a higher allocation to SCHD doesn't bother me. Can't beat their dividend growth+starting yield.
Exactly 100%! Sounds like a great strategy you have🤝
I‘d like to add the dividend snowball and dividend safety to the mentioned points 🤔☺️
a) reinvesting the cashflow will generate even more cashflow over time
b) sure, it depends on the stock, but a drop/cut of the dividend by 30% is much less likely than a drop of 20-30% of the stock price due to some news 🤔 personally to me it feels like dividend investing is a lot safer than investing into a company and hoping the share price growth will go up indefinitely 🤔
c) also for dividend and value investors market volatility isn’t as stressy and rather a point where you invest even more when you see a „bargain“. Market volatility won’t affect your cashflow though.
Great points and I agree with all of them! Thanks for chiming in.
Dividends are so irrelevant, that’s why so many millionaires live off of them 😂
Exactly😂
I think the reason why some people see dividends as „irrelevant“ is because they see the massive jumps on stock prices and feel like they can earn more in less time if they focus on appreciation. Why that might be true on some occasions, people tend to forget that those „gains“ are unrealized. They need to cash it out at the right time.
A dividend portfolio takes longer to build up (probably), but the gains are real in the form of a predictable cashflow 🤔
I’m super nervous about my Nvidia holding atm (the stock valuation is beyond my risk tolerance, but FOMO I guess 😅). Halfway at triggering that sale button…
My JNJ, MAIN and Allianz holdings let me sleep like a baby at night though 🤣
The $5k or so I get every month from dividends say otherwise - at this point, all reinvested to keep the snowball going. Took seventeen years to get to this point.
Nice! Thats awesome💰💰
I follow the same approach as yours. I'm young, so I need income between now and until I retire. Dividends via SCHD seems like the logical choice. Plus I ran out of places to put my money. Threw some into dividends.
Glad we have a similar approach and both love SCHD, thanks for sharing👍
When i was in my twenties, i was so impatient, I would never grasp the idea of investing. Now as I'm much older, I'm 70% yield, 30% growth. I should've started earlier instead of playing catch up. I'm just trying to set up to retire early. Good luck everyone, thanks for the vid, JP!
Good call and sounds like you have a great strategy. Thanks for the support!
I think dividends are fantastic for retired people. I’m not into it now because after taxes and less growth over an etf like VOO, I don’t want to miss the massive extra growth over a decade+
I get that 100%! Whatever works best for you👍
Love reinvesting dividends, get some great stocks and put them on auto pilot in a ROTH IRA. "...The miracle of compounding.."
Yep 100% thats the best👍💰
At this point, why not go for buyback stocks over divident stocks?