You can grab all 35 holdings here: public.3.basecamp.com/p/Q1qmbKnc2uY7NizFYJSRxYPM There's no obligation, but you're also welcome to try Simply Safe Dividends for free to check out how your dividend portfolio looks and a lot more: www.simplysafedividends.com/ Thanks for watching! - Brian
I live off dividends on ETFs, for sure it can improve your wealth if you reinvest them to buy more shares, creating a snowball effect that allows your investments to compound over time. It's one of the most passive and effective ways to build an income stream. well managed steady growth for me.
Lowery have you considered the possibility of cashing out some of those dividends for paying off your monthly expenses, instead of re-investing them? Bcos I need a lot as rent, inflation alone eat up almost all of what I make.
tbh I keep compounding, adhering to well established patterns from a professional, even as a rookie, can bring tremendous value! I’ve trimmed, added also and now my average growth has increased 88% in the past year while participating behind a top performer. effectively remits over 100k annually and increasing.
Well lowery you're sooo crushing it, I'm really looking forward to growth over time now. I will be reinvesting dividends like you, so my position size will grow. Okay if I ask how you maintained such growth from dividends, also your top performer.
tail wagging the dog. if you can't manage a 3 month cycle on your cash flow just have a buffer account that pays you your monthly income and pick the best portfolio regardless of dividend dates. it can be part of your emergency fund which overall can fluctuate on a 3 month cycle. a bit above what you want for 1.5 months a bit below for 1.5 months.
I agree investors shouldn't prioritize smooth monthly payouts over owning great companies and keeping a well-diversified portfolio. Accumulating and redistributing cash flow is a nice problem to have and one that isn't too hard to solve! I'm always surprised by the popularity of monthly dividend stocks for that reason, but sometimes the simple ideas sell the best. Thanks for watching and commenting! - Brian
Of course this is going to always be my favorite video. Thank you Brian for answering my question and putting together this amazing and well explained portfolio, I only own 25 stocks but I matched a good number of stocks. Great video!
That is a great tool, I engineered my taxable to pay me every month using quarterly dividends. I really like your platform, now I want to check it out.
Thanks! Our small team has been working on it for almost a decade now. The 14-day free trial is completely free with no strings attached - no credit card required or anything like that. You can even sync your portfolio during the trial to quickly see how safe your dividends are and a lot more! Feel free to reach out if you ever have any questions. We are always happy to help! Best regards, Brian
That's an interesting idea, too! I have the portfolio saved in my Simply Safe Dividends account, which will make it easy to revisit. I'll jot down this idea. Thanks for watching and commenting! - Brian
An all-ETF portfolio with smooth payouts is an interesting idea! I could see this being more challenging since their payouts are variable and tend to be volatile due to rebalancing. But I'll keep this in mind for a future video. Thanks for watching and commenting! - Brian
Likely all real estate stocks, whose unqualified dividends get taxed as ordinary income (IE taxed at whatever tax bracket you're in), so for taxes it's most efficient to hold those kind of stocks in a 401k / IRA. Stocks with qualified dividends get taxed at just 15%.
@Mazlem nailed it. Our site Simply Safe Dividends shows you how each company's dividend is taxed so you know where it might be best for you to hold the stock for tax purposes. Here's a tip we give for non-qualified payers: --- Dividends paid by REITs and BDCs are mostly non-qualified and taxed as ordinary income via form 1099 (no K-1 is issued). Investors generally prefer to own shares in a tax-sheltered account (e.g. IRA) to avoid the higher tax rate applied to non-qualified dividends. Note: A portion of payouts may be a capital gains distribution taxed at a lower rate. Another portion may be return of capital, which is not taxed and instead reduces your cost basis. But in most cases, non-qualified dividends will account for the majority of a payout.
Thanks! I'm a believer in owning great companies with safe dividends and diversified sector exposures over trying to optimize smooth monthly payouts, but it was a fun exercise to try and achieve both goals. I appreciate you watching and commenting :) - Brian
Thanks for the info. It would be great if you could upgrade the platform so that it can also grade ETF, from a Dividend Safety perspective and have a deeper analysis for ETF overall!
Thanks for your suggestion! Providing more information on ETFs is an interesting idea. One challenge is that their holdings rebalance periodically, which can really impact their dividend any given period. We'll keep that in mind, though. Brian
Excellent video. I wish I had implemented something like this portfolio long ago as I must retire next year at 60 and it would be great to have this kind of income stream. Desperation might make me have to consider dumping some money into covered call etf.
Thanks, Michael! With hopefully decades of retirement ahead of you, having some growth-oriented investments like dividend growth stocks or even a broad index fund like VTI could be something to explore. Regarding covered call ETFs, I published a relevant article on these investments last year. In case you're interested, you can check it out here: www.simplysafedividends.com/world-of-dividends/posts/5625-covered-call-etfs-too-good-to-be-true Thanks again for watching and commenting! - Brian
Great question, George! Dividends are only part of the portfolio's total return. I'd expect low-single-digit price appreciation, making for a total return in the high single digits or so (~5% dividend yield + 2-4% annual price appreciation). Thanks for watching! - Brian
Using SSDs screener tools for a few years; with satisfactory results to create and maintain a steady monthly income from USA stocks and MLPs. Only caution is, one needs to pay close attention to share price decreases, and act promptly……An example would be ATT with > 50% drop in share price with an increase in dividends but the principle is gone forever, even though they paid the income…😂😂
I hear you about valuation concerns for some stocks. The S&P 500 itself has an average P/E ratio of ~18 over the last decade. It's been an exceptional period of US stocks. There are plenty of dividend stocks that haven't kept up with the tech and AI-crazed market, though. Just have to do some digging! Thanks for watching and commenting. - Brian
I haven't looked at TSLY closely. Speculating on Tesla seemed bad enough to a conservative investor like me. TSLY takes this to another level by bringing option premiums into the picture and a juicy 1% fee. I'm out! Hope this helps! Brian
Thanks for watching and commenting! Just to clarify, the 5% is the starting yield - without growth, you're correct that income would get eaten away by inflation over time. This portfolio has grown its income organically by around 5-6% annually. I'm hopeful that rate continues and believe that would offset most measures of inflation - including money supply as measured by M2 here: fred.stlouisfed.org/series/M2SL Best regards, Brian
I shared this with another commenter and will repost here: I agree investors shouldn't prioritize smooth monthly payouts over owning great companies and keeping a well-diversified portfolio. Accumulating and redistributing cash flow is a nice problem to have and one that isn't too hard to solve! I'm always surprised by the popularity of monthly dividend stocks for that reason, but sometimes the simple ideas sell the best.
Very nice video !!! could you please do a video for investors who just starting now and has only 500-1000USD to invest but the period is over 37 years thank you !.
Thanks for your suggestion! With smaller amounts and a very long time horizon, I'd be tempted to keep things simple and buy a quality ETF like VTI or SCHD. I'd think more about prioritizing income when the time until retirement draws closer. Thanks for watching and commenting :) Brian
You can grab all 35 holdings here: public.3.basecamp.com/p/Q1qmbKnc2uY7NizFYJSRxYPM
There's no obligation, but you're also welcome to try Simply Safe Dividends for free to check out how your dividend portfolio looks and a lot more: www.simplysafedividends.com/
Thanks for watching!
- Brian
Great share on dividends, I've both divids stocks and ETFs.
I live off dividends on ETFs, for sure it can improve your wealth if you reinvest them to buy more shares, creating a snowball effect that allows your investments to compound over time. It's one of the most passive and effective ways to build an income stream. well managed steady growth for me.
Lowery have you considered the possibility of cashing out some of those dividends for paying off your monthly expenses, instead of re-investing them? Bcos I need a lot as rent, inflation alone eat up almost all of what I make.
tbh I keep compounding, adhering to well established patterns from a professional, even as a rookie, can bring tremendous value! I’ve trimmed, added also and now my average growth has increased 88% in the past year while participating behind a top performer. effectively remits over 100k annually and increasing.
@Msmelissa a lot of people let their dividends ride for the long-term given its solid returns effects overtime
Well lowery you're sooo crushing it, I'm really looking forward to growth over time now. I will be reinvesting dividends like you, so my position size will grow. Okay if I ask how you maintained such growth from dividends, also your top performer.
tail wagging the dog. if you can't manage a 3 month cycle on your cash flow just have a buffer account that pays you your monthly income and pick the best portfolio regardless of dividend dates. it can be part of your emergency fund which overall can fluctuate on a 3 month cycle. a bit above what you want for 1.5 months a bit below for 1.5 months.
I agree investors shouldn't prioritize smooth monthly payouts over owning great companies and keeping a well-diversified portfolio. Accumulating and redistributing cash flow is a nice problem to have and one that isn't too hard to solve! I'm always surprised by the popularity of monthly dividend stocks for that reason, but sometimes the simple ideas sell the best.
Thanks for watching and commenting!
- Brian
100% agree. Too many companies not worth owning long term this way.
Of course this is going to always be my favorite video.
Thank you Brian for answering my question and putting together this amazing and well explained portfolio, I only own 25 stocks but I matched a good number of stocks.
Great video!
Thanks for the inspiration :) Nice to hear you had some overlap with some of the ideas I put out there, too. Hope you have a great week!
- Brian
Interesting video and experiment. Would have been great to see the impact of toggling ON the Reinvest Dividends option.
That is a great tool, I engineered my taxable to pay me every month using quarterly dividends. I really like your platform, now I want to check it out.
Thanks! Our small team has been working on it for almost a decade now. The 14-day free trial is completely free with no strings attached - no credit card required or anything like that. You can even sync your portfolio during the trial to quickly see how safe your dividends are and a lot more!
Feel free to reach out if you ever have any questions. We are always happy to help!
Best regards,
Brian
Will you do a real portfolio of this with quarterly rebalancing and with monthly updates? Comparing to SCHD and SPY. It would be great to follow
That's an interesting idea, too! I have the portfolio saved in my Simply Safe Dividends account, which will make it easy to revisit. I'll jot down this idea.
Thanks for watching and commenting!
- Brian
Nice video on dividend portfolio, however this is all based on individual stocks. Can you demonstrate a similar portfolio comprising ETFs?
An all-ETF portfolio with smooth payouts is an interesting idea! I could see this being more challenging since their payouts are variable and tend to be volatile due to rebalancing. But I'll keep this in mind for a future video. Thanks for watching and commenting!
- Brian
@@simplysafedividends The payouts don’t have to be monthly just regular and reliable
The spreadsheet showed that some of those stock were Non-Qualified. What does that mean?
Likely all real estate stocks, whose unqualified dividends get taxed as ordinary income (IE taxed at whatever tax bracket you're in), so for taxes it's most efficient to hold those kind of stocks in a 401k / IRA. Stocks with qualified dividends get taxed at just 15%.
@Mazlem nailed it. Our site Simply Safe Dividends shows you how each company's dividend is taxed so you know where it might be best for you to hold the stock for tax purposes.
Here's a tip we give for non-qualified payers:
---
Dividends paid by REITs and BDCs are mostly non-qualified and taxed as ordinary income via form 1099 (no K-1 is issued).
Investors generally prefer to own shares in a tax-sheltered account (e.g. IRA) to avoid the higher tax rate applied to non-qualified dividends.
Note: A portion of payouts may be a capital gains distribution taxed at a lower rate. Another portion may be return of capital, which is not taxed and instead reduces your cost basis. But in most cases, non-qualified dividends will account for the majority of a payout.
Very cool tools that I hadn't thought of using for balancing monthly income payments. I'm impressed. Thanks!
Thanks! I'm a believer in owning great companies with safe dividends and diversified sector exposures over trying to optimize smooth monthly payouts, but it was a fun exercise to try and achieve both goals.
I appreciate you watching and commenting :)
- Brian
Some of your dividend stock listed here is "borderline safe" isn't that a little risky?
Thanks Brian!
You're welcome, Charles! Thanks for watching :)
- Brian
Thank you !
You're very welcome! Thanks for watching :)
- Brian
Thanks for the info. It would be great if you could upgrade the platform so that it can also grade ETF, from a Dividend Safety perspective and have a deeper analysis for ETF overall!
Thanks for your suggestion! Providing more information on ETFs is an interesting idea. One challenge is that their holdings rebalance periodically, which can really impact their dividend any given period. We'll keep that in mind, though.
Brian
Excellent video. I wish I had implemented something like this portfolio long ago as I must retire next year at 60 and it would be great to have this kind of income stream. Desperation might make me have to consider dumping some money into covered call etf.
Thanks, Michael! With hopefully decades of retirement ahead of you, having some growth-oriented investments like dividend growth stocks or even a broad index fund like VTI could be something to explore.
Regarding covered call ETFs, I published a relevant article on these investments last year. In case you're interested, you can check it out here: www.simplysafedividends.com/world-of-dividends/posts/5625-covered-call-etfs-too-good-to-be-true
Thanks again for watching and commenting!
- Brian
I’m still unable to accept that you put 500k for 25K dividends, I mean is this ROI really worth it?
Great question, George! Dividends are only part of the portfolio's total return. I'd expect low-single-digit price appreciation, making for a total return in the high single digits or so (~5% dividend yield + 2-4% annual price appreciation).
Thanks for watching!
- Brian
Using SSDs screener tools for a few years; with satisfactory results to create and maintain a steady monthly income from USA stocks and MLPs. Only caution is, one needs to pay close attention to share price decreases, and act promptly……An example would be ATT with > 50% drop in share price with an increase in dividends but the principle is gone forever, even though they paid the income…😂😂
thank you for another video
You're welcome! Thanks for watching and leaving a comment :)
Best regards,
Brian
I have a hard time investing in a company that has a pe over 15! Absolutely not over 20
I hear you about valuation concerns for some stocks. The S&P 500 itself has an average P/E ratio of ~18 over the last decade. It's been an exceptional period of US stocks. There are plenty of dividend stocks that haven't kept up with the tech and AI-crazed market, though. Just have to do some digging!
Thanks for watching and commenting.
- Brian
what your thoughts about tsly ?
I haven't looked at TSLY closely. Speculating on Tesla seemed bad enough to a conservative investor like me. TSLY takes this to another level by bringing option premiums into the picture and a juicy 1% fee. I'm out!
Hope this helps!
Brian
Too much NAV depletion
But 5% doesnt keep up with monetary inflation, CPI yes but do you believe those numbers?
Thanks for watching and commenting! Just to clarify, the 5% is the starting yield - without growth, you're correct that income would get eaten away by inflation over time.
This portfolio has grown its income organically by around 5-6% annually. I'm hopeful that rate continues and believe that would offset most measures of inflation - including money supply as measured by M2 here: fred.stlouisfed.org/series/M2SL
Best regards,
Brian
I would throw in one or two of JEPI/JEPQ/SPYI/GPIX/IWMI
Who cares if the monthly payments are equal!
I shared this with another commenter and will repost here:
I agree investors shouldn't prioritize smooth monthly payouts over owning great companies and keeping a well-diversified portfolio. Accumulating and redistributing cash flow is a nice problem to have and one that isn't too hard to solve! I'm always surprised by the popularity of monthly dividend stocks for that reason, but sometimes the simple ideas sell the best.
Very nice video !!! could you please do a video for investors who just starting now and has only 500-1000USD to invest but the period is over 37 years thank you !.
Thanks for your suggestion! With smaller amounts and a very long time horizon, I'd be tempted to keep things simple and buy a quality ETF like VTI or SCHD. I'd think more about prioritizing income when the time until retirement draws closer.
Thanks for watching and commenting :)
Brian