Early retirement with the best dividend growth ETFs
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- Опубліковано 2 гру 2023
- Early retirement with the best dividend growth ETFs
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02:43 - What makes a great dividend growth ETF
10:18 - Growth that beats inflation
14:07 - Yield on Cost comparison
17:39 - Projecting future returns
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More about dividend growth investing:
DGRO or DGRW which dividend growth ETF is right for you: • DGRO or DGRW which div...
VIG or DGRO: Which dividend growth ETF is better for you: • VIG or DGRO: Which div...
Best High Dividend Schwab ETF (SCHD): • Best High Dividend Sch...
The most unique dividend growth ETF (12% Dividend CAGR) (DGRW): • The most unique divide...
Best Dividend Growth Blackrock ETF (DGRO): • Best Dividend Growth B...
I'm not a financial advisor and the content discussed today is merely my opinion and intended only for your entertainment. The content expressed in this video should not be considered as professional financial advice. This video may contain links through which we are compensated when you click on or are approved for offers. The information in this video was not provided by any of the companies mentioned, and has not been reviewed, approved, or otherwise endorsed by any of these entities.
#DividendGrowthInvesting
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I am a UA-cam junkie and I am constantly watching investing videos and I have to say this is one of the best and most informative presentations I have seen in a long time. Thank you so much, Jake!! This is a must see video for every novice investor.
Really glad you enjoyed it and I'm also a youtube junkie :) Thanks for watching!!
Totally agree.
Thank you for your awesome hard work
One of your best videos Jake!! Excellent work!!
Glad you liked it! Thank you!
Thank you for this video. I recently found your channel and I love it
Hey there!! So glad you found the channel. Really appreciate you taking the time to comment!
Excellent video!
Thank you!
One of the best videos on the subject. Thanks!
Glad it was helpful!
Finally bro. I was waiting for you man.
:) So glad you are here!
Had to come back and comment because of the ending. Great, great message and very inspirational! It is indeed possible to achieve wealth in this country, you just have to work hard and stay disciplined. “Live like no one else today so you can live like no one else tomorrow.” As an immigrant in this country achieving financial stability, I couldn’t agree more. You can indeed build wealth!
exactly!!!
Thank you very much. Excellent Video Jake.... Always enjoy your work and educational process with each video you do. I appreciate your hard work for us. This video was right up my alley as I was looking at each of these ETF's (currently have SCHD in multiple accounts) and was really looking at DGRW & DGRO + thinking about adding VIG too. I am retired and wanted to expand a little into some good dividend ETF's. Thanks again.
Really glad to hear you enjoyed the video! These ETFs are great if you are retired to get some extra growth from your portfolio to outpace inflation.
Thank you Jake. Hopefully one day I can do that. I just can't get enough of your videos.
So nice of you to say that! Thank you for watching my videos!
Great vid and analysis and insight
Thank you!!
Thanks! This helped me a lot. Im starting pretty late in the game but Im going to see how far I can get. It'll be much better than having nothing extra. I appreciate the work you put into the video.
Glad it was helpful!! Thanks for watching!
Great video! Very helpful for an average investor like me!
Thank you so much!!! Glad the video was helpful for you!
YES MORE ETF VIDEOS ARE GREAT
LOVE your video's!!! Do you have a video, or can you do one, when someone is in their 60's, never invested in market, but got a nested, and wants to invest in market and live off dividends. Keep up the great work!!
Just subscribed. What you say here makes so much sense
Really happy to have you!! Glad you enjoyed the video!
Me too and I liked the channel too🎉
Hello 👋 great content, I have what is probably a dumb question about your calculator I'm using, it says you can change column D to adjust the time horizon. Trying to adjust it for a 20year bit not familiar with Google sheets..any help is appreciated thx again.
Jake thank you for sharing! what about asset overlap? are these four all well in this sense? thank you
There is going to be overlap but not as much as you would think. You can use this site to check for overlap: www.etfrc.com/funds/overlap.php
Well said Jake “You don’t have to pick the right stock at the right time and know when to sell it, you’re not Wall Street”
exactly!!! Thanks for watching!
I loved your passion in today's video. i have followed your advice months ago and still really happy with your strategy.
Thank you for saying that! Really glad to hear you are happy with this strategy/approach. I hope that it helps you keep things simple.
Same. I love these like, almost fireside chats that he gives us. I really like them, the “let’s talk” sort of videos more than the ones that go over numbers. It gets me thinking. Like the ones where it gets more personal and he asks us what’s important to us, etc.
2:06 ah! That’s the same quote I used on my FB when making a post about him on his death!!
The other quote that’s practical is his “get to 100K then you can rest” talk. Had a big impact on me.
Great choice! Both really great quotes!
SCHD and VYM for the win in my portfolio. thought about adding VUG
So how would this compare to a simple VTSAX index fund?
Note: yield on cost is calculated differently for DCA style of investing, since you’ll need to account for recurring contributions and stock price dynamics.
Correct! I should put together a spreadsheet to calculte YOC by DCAing.
hell yes!
@@DividendGrowthInvesting
I have a question about the spreadsheet. Basic math. The yield starts roughly at 2.59% of portfolio value. By the time you get to 30 years the yield to portfolio value is 6.96% that sounds wrong.
No matter what your costbasis is and how much the dividend was raised the yield for any perticular year is always roughly 2.59%.
Am i missing something?
💯 Simple path to wealth, can't go more simple 😁
yeah!!
Divb and Fdvv are my picks to compare with SCHD. DIVB is for dividend paying and buybacks companies, and FDVV is like Fidelity version of SCHD and recently lowered ER to 0.15 from 0.29, all three have great total returns and similar yield
Ya both very interesting.
Do you suggest this portfolio or a 25/25/25/25 (SCHD, DGRO, VYM, SPYG), if my time horizon is 10-15 years?
Well it depends on quite a few factors. I think if you want to keep it very passive, these are great ETFs to have as your core portfolio. SPYG will be difficult to retire off the dividend, so you may look to rebalance in 10-15 years. If you haven't watched my video on the simple path to wealth with divdiend growth investing with the core and satellite approach, I'd suggest watching that next: ua-cam.com/video/iEwAipBKPUo/v-deo.html
Love your work and your explanations! My only question is, how would this compare to VTI or VT in a Roth IRA for a 30+ year time horizon?
I view them separate. VTI is great for broad exposure to the market. I own VTI in my Roth IRA. I plan to sell VTI in retirement to pay for my living expenses or rebalance into dividend ETFs whereas with these ETFs I buy them to hold and never sell because the goal is to live off the dividend.
I guess my question is why don't you do this in your Roth IRA as well? Do you feel VTI and other broad market ETFs will outperform these dividend ETFs?@@DividendGrowthInvesting
More Yield on Cost videos!!!
Will do!! I love the topic of Yoc!!
This is the way to go, but because its so boring people will do the opposite.....LOL and i just want to say the clips in your vids are hilarious, always good to have a laugh.
lol thank you for saying that!!! I think that is my favorite part of making youtube videos. I can only imagine new viewers to the channel watching them like wtf.... hahahaha
Thanks! Can you make an European version of these Dividend growth etfs? It would help me a lot. Thanks.
Yeah I need to do a European version. Stay tuned. Thanks for watching!
Love VIG, just wish I started earlier
Yeah it’s especially interesting now that Msft and appl are in the index.
Great video! I’m 20 and in college and I just opened a roth ira. I plan to invest 400 a month into it and my holdings are 33/33/33 VOO QQQM and COSTCO. But i realized VOO and QQQM are overlapping so im thinking about tranfering VOO into more QQQM since it is more growth focused. What are your thoughts?
I want to be on the route of dividend investing since money is earn from there is tax free. In my situation do you believe I should add SCHD and DGRO then proceed to invest 400 a month and add more satellites as my capital grows?
Well everybody considers voo or whatever s&p etf u have should be your foundation like I have the fidelity s&p 500 an xlk(technology sector) bu only have 7 shares in xlk an 22 in fidelity s&p. So my point is I wouldn’t put more in the technology sector then s&p bc it is more risk unless u have a high risk tolerance an for dividends I’m in Schd an vym it’s rly jus whatever dividend u want bc there is alot out there bu Schd is my main dividend etf
Can you put the link for your DGI calculator? it's not in the description
Its in the pinned comment, but I will also add to the description. Thanks for watching!
Savings rate and expenses are two of the easiest things you can control. Love the video. Still waiting for you to revisit your investing on leverage video. What would a home equity loan in 2020 look like if you put that money in a basket of stocks or ETFs like SCHD, VOO, DIVO, DGRO, etc look like now 3 years later? How would the yield on cost look? If you reinvested dividends would the various ETFs already be generating enough cash to cover the loan payment?
Love the channel. Thanks
Hey Mike! Thank you so much for saying that! I've had quite a few people comment on that leverage video this week. Maybe youtube is promoting it more now... Yeah that would be an interesting topic... If rates ever come down to around 0% like they were in 2020-2021, I think that strategy may work!
@@DividendGrowthInvesting I have that one bookmarked and rewatch it again along with a similar video Ben Felix put out. It is a reminder to think outside the box and that debt is a tool (a potentially dangerous one) that can be, well, leveraged if used judiciously. It is a way to get what Ben refers to as time diversification.
@@mikesurel5040 yeah I sometimes wish I did it back when rates were low. If we have another crisis we know the FED playbook… might be able to take advantage of it next time.
Hi, Jake! Thanks for another awesome video. I'm just about to start my investing journey with an initial 100k investment with a time horizon of 10-12 years. I'm looking to have a portfolio with a split with Growth ETFs of 50% (50% SPYG + 50% VGT - to rebalance these towards High dividend ETFs in the future) + another 50% in Dividend ETFs (50% SCHD+50% VYM - don't think it makes sense to overlap VYM with DGRO). What do you think? I would appreciate your feedback a lot. Thanks!
I’m right where u are I got 100k to invest. A little less on the time horizon. I’m going 60% schd 20% dgrw 10% divo the other 10% a mix of Jepi qyld etc
SCHD is the king 👑
Great ETF!!
If i want to hold vti only should i drip the dividends back into vti or should i buy something else with them? Im in my 30s and want to retire before 45
Entirely depends on your goals. Could go either way. VTI is great to live off the 4% rule. If you want to live off your investments and not sell, you’d want to look for other ETFs like SCHD or DGRO for example
Check the DIVB ETF. That one is better than DGRO on total return and less expenses ratio and higher dividend yield too.
I’ll check it out. Thanks for the recommendation
DIVB still has the, "New car smell," appeal.
Without even looking I bet the holdings are similar . Tomato - tomatoh
@@girldaddividendinvestor Not that new. Maybe not that popular.
We just had a hyperinflation period from 2020 until today.
I’ll be using 4% inflation rate from now on especially knowing that our government doesn’t have a balance budget and our national debt will never be paid.
Wouldn’t hurt to be more conservative then you can be only pleasantly surprised :)
SPGP and XLG are going to be the backbone of my portfolio for the foreseeable future
sounds like you got a plan in place!
I'm 22 years old, and I actually own all 4 of these ETFs in a TFSA (I live in Canada), what percentage split of these 4 ETFs would you recommend for the best diversification as well as the best dividend growth? I know numerically speaking going in 100% all into SCHD would yield the best results, but diversification is important, currently I'm doing 40% SCHD, 20% DGRO, 20% DGRW, 20% VIG, but after using your Dividend investment calculator I think I might switch to 40% SCHD, 40% DGRO, 10% DGRW and 10% VIG since that percentage allocation yields better portfolio and dividend growth over the long term than my current percentage allocation
Well for diversification you’d want to underweight SCHD and overweight the others. For growth, it depends on your goals. Schd is a great balance of its yield and growth. The others are great for growth and diversification.
I wouldn’t over think it too much. I’d personally do 40/40/10/10 like I show in the video and then adjust year by year as your goals change.
@@DividendGrowthInvesting Okay I'll do that, thank you so much!
@@DividendGrowthInvesting Could you make a video on how you would change the percentages if someone was 20 compared to 50 or 70? THanks.
Hey, I’m a Canadian investor as well. I have one question my friend, is it ok to have US stocks and etfs in a TFSA? To my knowledge you will get a 15% withholding tax on it. Currently, my US etfs are in my RRSP because you wouldn’t get withholding tax on it. I’m 19 and still learning, if anything I said was incorrect please feel free correct me :)
I personally really like the idea of eventually using Dividends to cover most of my expenses one day, I don't know when or If i'll ever fully retire so in the meantime making more from not just my job is a win-win! Unfortunately I can't get anyone else I know really to consider the stock market. Apparently its all just gambling, and its better to just have fun at the Casino (almost the words used exactly to me)
My wife is from Germany and said she heard the same thing from her family and friends. I would suggest first learning and understanding what it means to invest. If you educate yourself and help others around you understand what it really means to invest, it makes it easier. We often fear what we don't understand. It starts with educating yourself then taking action on what you learn.
@@DividendGrowthInvesting perhaps I've not honestly explained it properly to people around me. Good food for thought. Thanks
I'm not sure that SCHD should be in this comparison. While it is my largest individual holding, growth is not a main focus of the fund, which is why, like the other three funds, does not have "growth" in it's name. SCHD is also the only one of the three that doesn't have any of the "Big 7" companies included. I retired in June, and SCHD will be used to generate income, and the almost 4% dividend yield works great, matched with several individual dividend stocks. Now, for the "growth"portion of my portfolio, I hold DGRO along with some other funds and individual stocks.
Yea I always thought schd was a value etf; What growth etfs would you recommmend in addition to things like qqqm?
What about 50% SCHD and 50% DGRO? 50% SCHD, 25% DGRO, 25% VIG? I like DGRW and I want to get into it but it’s that expense ratio worries me a little.
Unless you are investing 500k In DGRW you are not gonna feel it.
I’m not too concerned about the expense ratio. It does pay a monthly dividend and it seems to be performing very well. I like it as a satellite position.
why did you review schd instead of schG??? ... Wasnt that kind of the point?
I was thinking the same…isn’t schd a value etf?
Not a single one of those are available for europeans.
Where can one find their European counterparts?
:( I will make an international version soon.
@@DividendGrowthInvesting 💪🏻🇪🇺
Do UK version pleaaaaase
Yeah I need to do a European version of this
@@DividendGrowthInvesting definitely
DERW is forward looking and gives best return , why not invest 100 % in that ETF
Pros and cons to going 100% in one of these. DGRW is a great ETF
buying 4 dividend etfs? Aren't they similar and overlapping? I'm not sure this is a good example...am i wrong?
There is overlap but not as much if you focus on a 40/40/10/10 approach like I mentioned at the end of the video.
@@DividendGrowthInvesting thanks for the reply! Do you recommend buying now or waiting for the markets to come down some?
Buy now! @@hightide1500
you dont own NVDA or SOFI stocks?
Not directly. I own them in ETFs though :D
What ETFs do you invest into?
SCHD/DGRO/VYM
👍💰💰💰💰
:) Thanks for watching!!
Hey, why are you doing a 40/40/10/10 split, why not a 25/25/25/25 split? I know you're doing a core and satellite strategy, I'm just curious about the reason behind allocating 40% to SCHD and DRGO each and only 10% to VIG and DGRW each? Why are SCHD and DGRO your core, and why are VIG and DGRW your satellites?
Sorry for the slow reply! I would suggest watching this video: ua-cam.com/video/iEwAipBKPUo/v-deo.html
In this video I go over why.
How bout VTI 40%...SCHD 40%...VGT 20%..and reinvest div while keep adding yearly/dca into VGT then sell VGT into SCHD when I retire.
Great video!
Thank you!!!