Which gets me RICH faster? Growth ETF vs. Dividend ETF Investing
Вставка
- Опубліковано 25 сер 2024
- Dividend investing vs. Growth investing. Best investing strategy in 2024 $$$. Which one gets your portfolio to $1,000,000 fastest? Should I just invest in growth stocks to grow quick then sell and put it in to dividends for passive income? Ryne Williams and I discuss the pros and cons of both investing strategies and some great dividend stocks and growth stocks for one's portfolio
#etfinvesting #dividendinvesting #growthetf #schd
Ryne Williams Channel: / rynewilliams
Join the Patreon Group for EXCLUSIVE content: / investingsimplified
Live stock purchases, live Q&A exclusive ZOOM for members only, and a very strong investing community to network with so we can all reach FINANCIAL FREEDOM FASTER!
For Private Financial Coaching 1hour Zoom Session: ProfessorG.invest@gmail.com
Dividend Masters Course: investing-simp...
The ONLY Dividends course you’ll ever need!
Click here for 5.1% APY+3% APY booster + Up to 15 Free Stocks ►j.moomoo.com/0...
Other Videos You'll Enjoy!
💰Ranking BEST S&P 500 Funds: • CONFIRMED: Ranking Bes...
💰Own THIS MANY Stocks and ETFs: Perfect Portfolio: • ULTIMATE Investing Por...
💰3 ETFS THAT MAKE YOU RIDICULOUSLY RICH: • 3 ETFs THAT MAKE YOU R...
💰 Best Order to Invest Your Money in 2024: • Optimal Order for Inve...
💰If I Started Investing Today (From $0), THIS IS WHAT I'D DO: • If I started Investing...
💰SCHD - BEST DIVIDEND ETF: • SCHD: SIMPLE PATH TO W...
💰 SAVE MORE MONEY (better than a budget): • SAVE MORE MONEY (witho...
💰5 Best ETFs FOREVER in ROTH IRA: • 5 Best ETFs to Buy and...
*All content on my UA-cam channel reflects my own opinions and should NOT be taken as legal advice, financial advice or investment advice. Please be safe and seek out guidance of professionally trained and licensed individuals before making any decisions.
DISCLAIMER: Links included in this description might be affiliate links. If you purchase a product or service with the links that I provide I may receive a small commission. There is no additional charge to you! Thank you for supporting my channel so I can continue to provide you with free content each week!
So which one are you choosing? Growth or Dividends?!
I have TWO - Three ETF portfolios - VOO, SCHD, QQQM and the second one for my kids is VTI, VYM, VGT... performance through DCA is incredible! Just wanted to see the difference in the makeups
@@FurryHippoFinance interesting! I like it! Which one is performing better so far?
Both
I’m retired so mostly value stocks that pay decent dividends. I also have a large percentage of my money in Vanguard Wellington Admiral Shares and Vanguard S&P 500 mutual fund. I need dividends for income
@@NolanGouveia In the last month the kids are winning at 8.02% while mine is at 5.75% darn them!
Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.
People believe their currency has the worth it does because they have no other option. Even in a hyperinflationary environment, individuals must continue to use their hyperinflationary currency since they likely have minimal access to other currencies or gold/silver coins.
Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire.
I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.!!
Angela Lynn Schilling is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an email shortly.
I went with growth 100% when first started investing my early 40s. Now in my 50s, I shifted to dividend SCHD 60%, 20% SCHG growth, 10% SP500. 10% stocks. Only my regret is I shoulda started this earlier in my 20s.
I'm 51, how do you set this up? Currently I deposit 666 mo into my Roth and set it to purchase 200 of Fxaix.
FXAIX 👍
This is what I’m trying to plan out, growth first then dividends
I’m starting now at 23, any other advice?
@@DatBoaCheffff VOO or VTI in your roth, growth tilt (SCHG, QQQM, VUG) in your brokerage for minimal tax drag, and if you get a 401k match at work be sure you're getting your full match and stack more VOO/VTI there or whatever's closest to S&P 500/large cap blend/broad market
don't worry about dividends right now, save yourself the 40 years of taxable events and you'll be way ahead when you're retirement age and can just reallocate for income then
stay consistent and level headed, you're gonna absolutely kill it
Thank you for including me in this man! This came out awesome 👏
I’m looking forward to watching this content💪🏾
Hey Ryan, newsletter follower; great intel! As I mentioned to Nolan, my son is all in… I share your thoughts and opinions with him too… have a blessed day!
Thank YOU for the awesome insights my friend!
Ryne I don’t think Peanut liked what you said about there being multiple ways of skinning a cat😂
Subscribed!
Dividend investing keeps me engaged. Watching my payouts grow is exciting. I have no quarrel with growth investors, it’s not my choice.
Which companies are you invested in ?
Same here my man started at the end of last year and I completely love it
@@boyasaka quite a few. I think over 20. SCHD and SCHY are two ETFs I own. And a lot of the widely held ones JNJ, Coke, Pepsi, Chevron, Visa, Starbucks, Cintas, AO Smith, Texas Instruments.
@NolanGouveaa Learn to spell troll
In my opinion watching income grow is the only benefit to dividend investing and this might be the thing that keeps many motivated, so its a win. If find total return exciting.. Each to their own- its all better than nothing.
ThanX Prof. G (and Ryne).... Excellent video.... I hold a mix of both ETF's and individual stocks - more so dividend side of things) as my portfolios are to be passed on to loved ones as I do not need the income at this state of my life. You both have excellent channels and provide consistent quality presentations each and every time...!!!. I always look forward to your videos every week. Please be well.
I think the main takeaway from this great conversation (and what I do myself) and have a balanced portfolio that encompasses both dividends/dividend growth and pure growth plays. I have a four ETF portfolio (SCHD + DGRO + QQQM + VTI) but also pure growth stocks like the top tech/semi stocks but also SPYI + O + VICI + MO + MAIN that I am working to grow to a point where I can fund the ETF portfolio but also some bills long term. I also put a small amount into BTC/miners and some speculative plays like PLTR and all this means future stable income, opportunities to play long term growth while hedging against any market volatilities that are definitely going to happen.
Great points!
Great video. I am retired and have dividend and growth mutual funds and ETFs as well as a few individual stocks - all in my pre-tax accounts. Thanks for turning me onto Microsoft on one of your earlier videos. I have been buying a few shares every month with a goal of owning 100 shares by the end of the year.
🙌🙌 love me some MSFT
I have 3 etf's that pay ridiculous monthly dividends.
With each monthly dividend I use it to buy 3 growth etf's.
All within a non taxable account.
which 3 monthly etfs do you have?
@@Jpsantos94 QQQY, JEPY, SVOL
@@stuinvests it's paid me over $20k in dividends this year. All of which I've put into VOO.
Usually those paying hardcore dividends will also facing hardcore losses in the capital so you are still losing at the end.
@@wds3222 wrong. The huge dividends have already covered my initial investment amount. Now the dividends are just never ending cashflow that buy me thousands in VOO, SCHD and XXXM every month.
I invest in both growth and dividends. With my growth stocks I plan on running the wheel strategy
Wheel stratagy?
@@patheticprepper4496 selling options and rolling them out
@@patheticprepper4496 ua-cam.com/video/kE0T8l-p9ko/v-deo.htmlsi=qz12Nem3fdN0oFRx
@@patheticprepper4496 ua-cam.com/video/kE0T8l-p9ko/v-deo.htmlsi=qz12Nem3fdN0oFRx
What is the wheel strategy?
Im just glad I started watching both of your videos and get some kind of financial information, especially when you're analyzing individual businesses.
Risk (or risk perception) is a big factor in my investment decisions. I tapped the like button 3 times but it only registered +1 like. I tried! 😂 Great discussion. Thanks, guys!
Follow both of you guys... Glad you brought it together!
🙌🙌
More videos like this please. Debating and chatting with other traders is very insightful. Thank you
Will do!
Most of all my SCHD and DGRO is in rolled over 401k and I reinvest the dividends and quite happy with the product and process
Love this conversation. Personally, I’m choosing both strategies. Hard to go wrong with a well blended hybrid investing strategy. VOO, SCHG & SCHD. Putting my money in each of these ETFs on a weekly basis.
I like it my friend! Balance is key!
Same here 👍
Hey guys great video. I’m doing both with the three fund portfolio and in a brokerage. I also like how you explained the taxes on both as well. I’m in my 50’s and unsure of the taxes in my brokerage. I want tax free in retirement or very low in my brokerage. This video gives more insight on taxes for a brokerage vs a Roth. Thanks guys
Same! 🎉
Great strategy with your three holdings. How old are you?
Woohoo good to see you both together. You are the 2 I mostly watch. Great video. Thank you so much for sharing your knowledge. 😊
Thankyou!
It's a mix for me. Growth for my retirement nest egg, dividend stocks for my future Lamborghini. :)
Also, happy I stayed to the end, I own SCHD, MSFT and V.
I like your style!
Exactly
Great Video, I love being apart of this investing community. I choose both. I love dividends in a down market/rescissions and I love growth to capture Bull Markets
Great stuff!
I’ll go for the dividend and a little bit on growth. I want fire 🔥 as soon as I can. SCHD all the way with VTI and little bit on QQQM single stock O realty income. My play money is Bitcoin you never know what the future holds 5% weekly. 🤓
Great moves! I like those ones as well!
I have the same ones.
Two of the best in informative and entertaining UA-cam finance guys together. Nicely done, fellas.
Thank you Lee!
It really depends on where you live. I am Romanian and I invest in the Romanian market. We only have one major ETF that's based in Romania and for that, you don't pay taxes on your dividends and if you use a Romanian broker, you only pay 3% tax when you withdraw your money (1% if you held it for more than 1 year). This ETF basically replicates the BET, the Romanian index and it's great, but the TER is 1.35%, so there goes your dividend tax exemption. It automatically reinvests your dividends and I have it on autopilot for the past 2 years.
I don't like just going with growth because the dividends you'll acquire over time are so low that paying for anything like smaller bills will take so much money before you can do so. And relying just on an ETF to grow can be bad because you might need to sell off during a bad economic time, and you could lose money on it. Growth is great during economic prosperity but not at all good during mediocre times. Finally my goal is passive income, and many growth ETFs barely check that box. This is why I do a mixed ETF setup to capture growth and dividends over time. They can balance the upsides and downsides
Just compare the 5 year return of SCHD against SCHG…..53% vs 134%. The 10 year being 113% vs 311%. Dividends don’t make up for the fact you’re missing out on hundreds of percent in total return. If you’re growing your money over decades it’s an absolute no brainer lol
I did exactly that. I had NVDA, MSFT, AMZN over the past 5 yrs. I took my profits and placed them into Dividend etf's and am letting the rest run in these names. In 10 yrs, I will probably put most of this into a Div etf when i live off of dividends....perhaps i got a bit lucky as well, but that is the way i chose to do it. Thank you both for a great presentation!
Also my long term cap gains will be low once i retire. So when i sell the growth for div income, my div will also be at a lower taxation in retirement as well.
lower I meant because i will be in a different tax bracket once retired for both cap gains and div income.
❤❤I’ve been researching investing this week and I’ve learned so much from your page!! Thank you for your great beginner friendly videos!!
You’re welcome! Glad they can help!
Growth stock is priced at growth levels… and dividends stocks are usually priced lower.. like some said it’s a trade off.. sometimes value comes in when a growth stock is priced incorrectly or a dividend growth stock is mispriced due to all the money going into growth companies… I love the idea of a growth dividend etf and some growth stocks etf… they essentially rebalance themselves and the dividends from both can drip back into the etf and no major risk…
i sell options against growth positions to create my own dividends.
So informative both of you killed it
Another important consideration for dividend versus growth in taxable is the state of the market at retirement. If you are already invested in dividends, you just retire. If you need to sell growth stocks first, you need to time it when the stock market is flat or up. You may not want to sell your growth stocks when the market is down. Yes the dividend stocks to buy will be down too BUT in down market growth stocks usually go down a lot more than dividend stocks. So you may find you need to wait a few years to retire because of stock market being down
Good point!
growth stocks have Interest what makes them faster than Dividends in the Long Run.. Even if its down you still have more than if Dividends go down.
Two of my favorite UA-camrs together !!!
this conversation is what i've been waiting for!!! thank you guys
Happy you're here man!
Successful investing is hard work because it means disciplining your mind to do the opposite of human nature. Buying during a panic, selling during euphoria, and holding on when you are bored and just craving a little action. Investing is 5% intellect and 95% temperament.
Government policy has thrown the future under the bus for decades. The day of judgment is near. I predict an 80% drop in the stock market. Investors will abandon stocks in favor of real estate. There will be no money in banks... You must devise a strategy for survival.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to over $750k.
Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.
Her name is “Rebecca Nassar Dunne’” can't divulge much. Most likely, the internet should have her basic info, you can research if you like
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
This was a second to none collaboration guys! For now, I am sticking strictly to dividend investing!
Amazing! Thanks for watching and commenting
There’s also SCHB substitute for VTI and SPLG for VOO. XLK or FTEC subs for VGT. Sadly, I’m not seeing other UA-camrs mention them. Great video though thank you. 🙏🏼
I honestly feel like they don't because they may be told not too, it's not popular .. something. Cause people talk about schg but Qgrw is better. Schg does have lower expense ratio but they reduced the expense ratio once before and I'm hoping they will again. It's only 40 dollars. Gold rated by morning star.. I think it is a early schg... i do like schg, just like QGRW better
The govt probably won't allow them. They don't want people investing in things that give %20+percent annually. The must only talk about 401k so that you are in the mindset to work until you are 60+. You must never talk about investing in taxable brokerage accounts. You must never talk about SBLOCS and never paying taxes ever again in life
Another great total market option that no one rarely brings up is SPTM. Tracking the S&P 1500 since 2020, has a profitability screening and is efficient and cheap at a 0.03 expense ratio.
Loved this chat! It has me rethinking of how I’m structuring my Roth IRA to focus more on the shares and yield rather than the growth dollar amount 🔥
🙌🙌
I am all growth that also give me divedens for now but when i get older i will switch to more dividen over growth.
I think the concept of Yield on Cost is what really proved to me that Dividends are in fact worth it. And a lot of Dividend channels don’t actually mention that as much as they should
The idea of me basically getting 10%+ in dividends in comparison to the amount that I put in is too good to pass up on
Yield on Cost doesn't get talked about enough, but it's a vital tool in avoiding the many yield traps that are out there.
@@JG-DivMan that as well as understanding that Yields are calculated by the Dividends Paid Per Share divided by the Share Price
Meaning a big reason as to why a lot of these stocks have such high yields are because they’re underperforming🤷🏻♂️ but also could be because they grew their dividends by a big amount
Great video! I’ve been curious about this topic for a while. I put my dividend stocks in my tax free account within my 3 fund portfolio and my growth and individual stocks in all my accounts.
This is probably one of my top 5 video from your channel! Great info, keep them coming professor. 🤙🏼
Thankyou for watching and for the kind feedback!
OMG, love you two together in this video! I watch each of you separately on a regular basis! ❤️❤️❤️
Thank you so much for the support!
Very helpful discussion! I’ve been trying to find the answers to these situations online and this discussion helped me grasp the concept more. I’m going to start adding some dividend stocks
Wow!!
Excellent video/ content!
From beginning to end, soo many great points from both of you!
Awesome video. Love the conversation. I'm sticking with the 3 fund portfolio. Balance in all things!!!
I like your style!
Awesome collab with two absolute Investing Tuber juggernauts!
Thankyou my friend!
In a country where you are taxed on gains when selling stocks, I certainly would consider to go higher on dividend stocks from the start. Here in Switzerland, we are not taxed on appreciation gains. So I put more into growth values which I will transform to dividend values when I will live off the dividends.
What I find fun is to use both methods, max out my Roth IRA early in the year and rebalance, then see how they differ over the year. Neat seeing the difference in years like 2022 vs 2023 etc.
I don't know why dividend investors have hard time to accept that dividend investment STATISTICALLY grows your money less in the long run.
However, I definitely agree that, it is less volatile (especially on economic downturns) and it is an easier/fun strategy for the mind (you get paid increasing amounts over the time).
Yup definitely pros and cons!
Agreed. That’s why I buy growth and not dividend.
@@stuinvests Same with all things if you get Gifts Now you have less Gifts so growth is the Long Run Tactic
Good morning from Texas…. Ready for today’s video session via Zoom. Thank you for all the intel. FYI: My youngest son (15) is all in… Apple, MSFT, and can’t decide between SCHD, QQQM, SPY or DGRO. He will decide.. How’s the new office? Big transition for the Rooster? IPPON!!! 🥋
Yes can't wait! Which type of investing do you prefer? growth or dividends?
I rather do growth and transition to dividends. I'm thinking splg dividend could be as good as SPY. So is splg or spy a better dividend play than Schd? Long term
At multiple times, Ryan makes the claim that using growth to reach a fixed portfolio value and then switching to dividends would result in less current income than growing your portfolio to the same value using dividend snowball the whole way. This is just categorically false. Your income is always defined as the number of shares times the current dividend value. Two portfolios of just schd worth the same amount have to have the same number of shares, by definition, and therefore will earn the same amount of income. It makes no difference if one person held schd the whole time and dripped to get there while the other accumulated that wealth via a different route
Yeah I was thinking the same thing.
Great video Professor G! interesting conversation. It'll be great to see a video on what dividends etf UK investors can buy that is similar to SCHD, as we can't buy SCHD :-( I have VHYL but would like something else similar to SCHD to compliment VHYL without much overlap. From doing some research, i've heard FUSD and FGQI are a good alternative to SCHD but also heard that GGRG is better but more risky as it's less transparent what companies make up that fund at any point in time. so a bit confused :s
Cudos to both of you. Once again, very informative vid. Good to watch the back and forth between groth and dividend investing. Thank you both. 😊
You’re welcome Ron!
Great video👏. Thank you I invest 50/50 in Growth and Dividend investing.
Equal in number of shares of each or equal dollar amount of each?
“Down goes Professor G!” Williams by knockout! Just kidding - both you guys are heavyweight champs!
Psychologically dividend growth worked for me. Financially it also worked. Dividend growth for 20+ years, growth the first 10 years. The tech crash in 2000-2002 is when I started to really learn, and I switched to dividend growth. Wish I had started dividend growth in the very beginning (1992). I didn't totally avoid growth, but I started to focus more into growth after my dividend income reached my target and having the core and base paying solid dividends puts me into a great place to watch the gyrations of growth companies and funds.
This was a great video to watch. Thank you for putting that together!
Great video - The key thing most people miss with dividends is the dividend growth rate. Most people focus on the dividend yield. To understand dividend investing it is very important to understand dividend growth rate. This is what really powers the dividend snowball.
The greatest duo, the best in finance.
You are too kind
Great collaboration! Both of you guys always bring solid, practical info! 😊
You guys are very honest
Thank you for all this explanation
You’re welcome!
Thank you for the great information professor G and Ryne!
What are your thoughts on Fselx?
EPIC VIDEO!!!!!
Justo perfect, please keep this partnership!!
Regards from Panamá!!
Thank you very much!
I wanted to add 1 pro and 1 con of each that were not covered. For dividends to me, the best upside is the peace of mind that passive income provides and it’s biggest downside to me is that having dividends that can actually do anything takes a ridiculous amount of capital. I wish you had covered the sequence of returns risk with growth stocks/etfs and the best thing about them is their gains are unmatched by other security instruments.
I do a combination of both, because companies like Amazon don't pay dividends as of yet.
I watch Ryne every week. Always great information
Awesome! 🎉 Including a little special... 😊 20:58 Ryne talking about "more than one way to skin a cat" and it seems his cat smelled that rat and escaped in advance from that 'proof of love' at 13:36 😂
On the point of chasing high dividend yields, I don't see a huge negative in collecting from a 20% yield if you are aware that the stock will either cut dividends, or go bankrupt because of them. Using many platforms for investing, it's super easy to sell your position and buy into another "safe" dividend. For example, in my early days of dividend chasing, I bought into ARR (25% divvi at the time) and the dividends actually made me come out in the green on ARR once I sold even though I was in the red about 9%. Chasing high yields is not all bad if you can keep track of the company's future payouts.
You can definitely use that strategy, you just need to stay on top of it!
Great talk guys. I do both but I favor dividends a bit more. Learned so much from you guys
I am 69 and concentrating on dividends and not growth. Mostly ETF's and very little stocks that pay dividends. Stocks has earnings and are expensive, not good for my needs.
My stab at answering "growth then transfer to div vs div the whole time" (which I have asked in the past): Investing in dividend stocks and ETFs earlier means that you will, likely, accumulate more shares, as they are, likely, cheaper the earlier you purchase them. More shares equals greater dividend payout. If you wait until your growth portfolio reaches $1m, you will be able to purchase fewer shares at that time, the future, than if you bought shares all along the way until it hit $1m. The best thing I learned about dividend investing is that the amount of money doesn't matter at all, only the number of shares.
But if the growth stocks outgrew the dividend stocks you would be able to buy more dividend stock shares, right? Also trying to comprehend all this. Hypothetically:
Year 1 - same money buys 1 share of each
Growth stocks outperform.
Year 5- same money buys 1 share of dividend stock and 3 shares of growth stock.
Sell growth stocks and get 3 dividend shares instead of 1.
No? 🤷♂️
But if the growth stocks outgrew the dividend stocks you would be able to buy more dividend stock shares, right? Also trying to comprehend all this. Hypothetically:
Year 1 - same money buys 1 share of each
Growth stocks outperform.
Year 5- same money buys 1 share of dividend stock and 3 shares of growth stock.
Sell growth stocks and get 3 dividend shares instead of 1.
No? 🤷♂️
But if the growth stocks outgrew the dividend stocks you would be able to buy more dividend stock shares, right? Also trying to comprehend all this. Hypothetically:
Year 1 - same money buys 1 share of each
Growth stocks outperform.
Year 5- same money buys 1 share of dividend stock and 3 shares of growth stock.
Sell growth stocks and get 3 dividend shares instead of 1.
No? 🤷♂️
But if the growth stocks outgrew the dividend stocks you would be able to buy more dividend stock shares, right? Also trying to comprehend all this. Hypothetically:
Year 1 - same money buys 1 share of each
Growth stocks outperform.
Year 5- same money buys 1 share of dividend stock and 3 shares of growth stock.
Sell growth stocks and get 3 dividend shares instead of 1.
No? 🤷♂️
Year 5 the same money would almost certainly not buy 1 share of a dividend stock as the price of the stock is nearly certain to rise. If you buy when they are cheaper and dca, you will likely get more individual shares, which means a greater dividend payout, as those are based only on the number of shares you own, not the amount of money you have invested.
So I have XLG, DGRO, DIVO and IBIT for some crypto exposure. I have been on the fence about XLG ( Invesco S&P 500 top 50 ETF) but that’s my biggest holding and the one I’ve held the longest. I’ve seen very few videos on them and they’re not talked about much. What category would they be considered as, it says large blend?
Still plan on putting mostly growth in my Roth IRA and switching it to dividend after i hit 65 or so. I almost put SCHD in my Roth, but after the recent annual change, i decided it's best not to try it. I will stick with VOO, SCHG with 10% of AVUV AND VXUS
I like Dividends for the sake of having variety in the kinds of growth my portfolio can receive, I also like that it can slow the bleeding of a struggling stock.
One of my biggest positions Sofi has been pretty stagnant for about a year now. It happens🤷🏻♂️ and it doesn’t mean it’s a bad company that doesn’t have stock growth potential, but I will say that the pain of this stagnation wouldn’t be anywhere near as bad if I could at least be getting some kind of dividend from it🤷🏻♂️
I go with a hybrid approach, I refuse to invest if there is no dividend, but I pick those dividend payers with good potential for growth. COST, CTAS, MSFT, etc.
keep pumping out those financial informational videos Professor G!!!!
Get off your knees boy..
Idk, I'm 29, and I personally (without any professional advice) am starting investing very heavy into dividend funds, like SCHD which I will later use to increase the amount I can invest in SPY and bonds. I feel as if I can make it farther if my dividend ETF's help increase how much I am able to contribute to my investing
Good call!
Two of my favorite investors!!!
🎉🙌🙌
I've been heavily focused on growth investing as I've built out a nice portfolio, however I have been filling out my dividend portfolio within my IRAs to avoid the tax pitfalls and bring a little bit of balance to my account to preserve my insane growth. I'm actively investing new capital in both at 60% dividend/ 40% growth, which was reversed until the past year.
I like that split and strategy!
As an Australian i am lucky, thank you franking credits lol. Best of both worlds growth and dividends lol.
I am glad you touched on the selling later tax bill, so many miss that part.
🙌🙌
This was the video I was waiting for
Do dividends go up specifically because of time you hold stock or does it go up for everyone that holds stock? In other word are you rewarded with higher dividend the longer you hold the stock. Thanks
Thanks for helping us out with finances; you guys are awesome!
Trying to comprehend all this. Hypothetically:
Year 1 - same money buys 1 share of each
Growth stocks outperform.
Year 5- same money buys 1 share of dividend stock and 3 shares of growth stock.
Sell growth stocks and get 3 dividend shares instead of 1.
No? What am I missing?
In a nutshell, I don't believe in the efficient market hypothesis....
For me, a 'good' stock can be undevalued forever just as a 'bad' stock can remain overvalued forever...
So, the dividend (portion of the profits shared by the company with stock holders) investing for me is best answer.
When Buffer bought Coke shares, their dividend yield was about 3%. It was already a huge company that paid dividends.
Nowadays, that same position got way bigger due to the stock value multiplied for Buffett and the dividend yield of that position (last time I heard) is over 50% for him (yield on cost).
Dividend investing works and it can also bring value through time.
Great reasoning!
Good Morning from Miami. Thank you for the great show and information.
Thankyou for watching and commenting!
Money can buy Happiness and offset mental health it’s amazing as a retired Infantry Veteran how my outlook on life has changed to positive as I build my daughter’s future..
Thanks as always for your content.
You're welcome! Which type of investing do you prefer? growth or dividends?
Dividends! What ever way you go is what’s right for you! We’re all on our way to wealth.
Great content, keep the information flowing.
Thankyou! Which do you prefer to invest in? Dividends or growth?
@@NolanGouveia I like growth 80% dividend 20%. I think that growth etfs have a better return over the past 10 years so looking forward I hope they do the same. At the end of the race I want the largest return on money invested.
@@Chad17764 definitely makes sense but I like that you have a little of both!
If you invest in an ETF like schd and a company reduces or quits paying a dividend is it shuffled to the bottom of the ETF or possibly even kicked out of the fund keeping the overall etf functioning like its intended?
Yes exactly!
True divden is not guranteed and can be cut.Growth is also not guranteed.I love passive income from divdens.I do also invest in growth.I am 70 percemt divdens 30 percent growth stocls.Happy investing/stacking.
Can someone elaborate on the example he gave at 17:00
As I understand it BOTH million dollar portfolios will get the $35,000 yield but SCHD why have more over the years to reach the million?
Isn’t $1M in SCHD the same whether you get there by DCAing into SCHD for years or selling $1M of growth ETFs then buying $1M of SCHD? How is the income larger if you just DCA into SCHD until you hit $1M the whole time? Great interview btw
Professor G, it was an interesting point that if you buy a growth ETF, you'll eventually have to sell it and take a hit on the tax. Is there a formula, say your investing in growth ETF and then you sell in 25 yrs, how much more would you have to make on that growth ETF vs directly investing of the dividend ETF which you're not selling?
Thank you so much for the info, Professor G and Ryne. 👍
We are here to help!
If you hold a brokerage account full of growth stocks … well… to convert to dividend or bonds will cost you in taxes
Best to have a mix of pure growth like META, TSLA and some dividend growth companies like JNJ PG ABBV as well as income producing ones like MAIN BXSL
I think that comparison depends on different situations.
Suppose, user A invests 750k in Dividend ETF and it grows to 1M.
User B invests 750k in Growth ETF and it grows to 1.5M. (We are considering for dividend etf, dividend is not cut and kept increasing. For growth etf, price keeps appreciating over time with higher rate than dividend etf as growth etf does that.)
Now, user B moves to a state which is tax friendly such as Texas and etc. Now if user B sells his growth etfs and converts them to dividend etfs for income, may be user B will pass user A with dividend income at that point because he will be paying less taxes now. What do you think? I am doing 55% dividend and 45% growth etf and stock investing.
I’m helping my daughter with a little bit of money. We open her a ROTH IRA, she is only working a part time. I’m motivating her as much as I can. She gets paid by weekly, so if she put’s $100 I put $100 is she put’s $200 I put $200. She is on her first year of college. I’m planning to help her till she graduates and gets a full time job. My question to you is, do you thing splitting it exactly the same between VOO, SCHD and SCHG is good enough or do you thing adding good high yield divided stock is a good idea. Something like Realty income O or JEPI ?
One thing i don;t understand. Ryan said that if you invest in dividend stocks early, then the dividend growth will outperform. So if i invest now and the dividend is 2%, maybe in 2-3 years is 7%. Isn't that the same if you invest in growth and then switch to dividend? The dividend at that point in time is still 3%. The way he phrased it makes it sound that you buy in at a very low dividend rate, the dividend rate grows only for people that had already invested (so he gets the 7% because he's longer invested, and i get 2% if i buy now). Which i don't know if that's the case.