What is your dividend strategy for 2023? 💰 Seeking Alpha - get the best research tools to stay ahead in your stock and ETF research. Receive 50% off on a Premium Membership ► sweetlifesuccess.com/go/seekingalpha
I have 1800 shares of JEPI in my 401k on the Roth side. And 5,050 shares of SCHD on the Pretax side. Drip them both. Have 3 years or less until retirement. Still also putting in 15% of my pay into both plus the company match. This is going to work out great!
I'm buying both but if I had to absolutely pick one I'd go SCHD. Simply for the growth and focus on dividends. Though I do plan to get 100 shares of JEPI and do the dividend waterfall strategy. I'm also trying to get 100 shares or SCHD and DVY. Just got my second share of DVY yesterday
I do agree with positions in both these funds, (less in JEPI due to short track record), but what would compliment these funds is running the SPY wheel to generate more income. If people understood how call options worked, people would just write the calls themselves and not pay an active manager via expense ratio. I have been investing in both these funds for a while now but the wheel has generated much more juicy premiums. I only advise the wheel in sideways markets. Plus, JEPI will result back to a 7-8% yield when the markets start to trend higher and we enter the next bull cycle. The only reason why JEPI has such a high yield today is because the volatility is high in the markets. But I do like the active strategy of out of the money calls JEPI executes to participate in the upside. I would advise a small position in JEPI for people who are 10-15 years out from retirement in tax advantaged accounts and not in taxable brokerages especially if they are young. What some people don’t realized is the majority of the money generated is taxed at earned income because it’s a “distribution”. SCHD is much more tax friendly due to no call writing and most stocks in the ETF are qualified dividends but not all.
JEPI's payouts are a mixture of dividends (appr. 10% of payout) and distributions (about 90% of payout). JEPI dividends are taxed similarly as qualified dividends. For most investors this is 15% tax rate. . JEPI's other distributions are taxed as oidinary income. The rate for them is between 10 and 37%. Run the numbers for both scenarios based on your tax bracket. For most people, SCHD has provided a better return after taxes.
yes and no, it relies on performance, which is more volatile, still a good etf but the top 10 holdings cover more than 40% of the ETF, If 4-5 of those stocks outperform SCHD suffers.
Hi Bob. I'm 40 years old and really like your videos. For the past few months, I have been doing some research on dividend investing. According to the info I've got, investing 50/50 into JEPI and SCHD would be a nice option.
I want to do that dividend waterfall with JEPI to SCHD once I gain some more capital into JEPI. Then I can split the dividend and put half back into JEPI and half into SCHD while SCHD is also reinvesting its dividends!
as a young investor i am bit skeptical or just cautious about all high dividend yields . as i am planning to keep investing hard for the next 10 years i already put ~40% of my income every single month . Problem is that one month i buy bit of this , bit of that how to keep track of everything ?Maybe ill need to sell some security and ill miss the window . So it feels better to invest into safer securities and ill have to worry less about them , maybe ill never have to sell them . Ofc as it was said in the video u can buy high div now like a big chunk if possible and use dividends to buy safer stocks . but it all requires calculations to know if it is a right decision.
Bob if I went to the bank and borrowed 100k would these pay for them selves over the long run? Just curious. I took that number just because it looks nice.
Depends of how much interest and how long your paying for id think. Once you figure out how much you have to pay them every month you then have to figure out what you want to invest in and figure out how much it'll make every month and see if that outweighs your debts. You also have to think. If you invested all at once then there's a chance the stock price goes down. Meaning your divies will yeild less....or it could go up. Giving you more. But its impossible to know until after. So always be careful. Especially when thinking about using that amount of borrowed money. I know using your own cash is a slow grind that seems fruitless a lot of times. But it beats owing someone tones of cash while bag holding stocks with -20% value
Taking a loan to purchase something that will continue to pay you dividends is the gift that keeps on giving. Proceed with caution and infuse your own cash as well as the yield to pay off loan on an accelerated pace minimizing time your exposed to volatility while on the margin. I wouldn’t use SCHD to employ that strategy. Pays quarterly and the yield is too low.
If i get paid a Annual dividend of 183.60 and the stock pays out a dividend monthly. Do i divide it by 12. To get my monthly dividend payment ? Example 183.60÷12 = $15.3
You're right. When we zoom out though on the 3y, SCHD outperforms (57.73% vs 50.63% on SPY), and 5y SCHD outperforms (74.76% vs 69.19% on SPY). This is considering total return which is what we always want to look at. JEPI however underperforms SPY on all 3 scenarios.
To be honest SCHD is not performing very well. Too much exposure to the financial sector and if dividends are cut performance will lag. JEPI is not too much exposed in any sector and options give it steady cash flow!
My first post though I watch many of your videos. Im not sure where people come up with these "pay tax" numbers ... someone posted 50% tax ? There is NO 50% tax bracket sorry. As of this year a married couple making $100,000 and taking the standard deduction fall below the $83,350 zero tax. There are only 3 capital gains tax brackets 0% 15% and 20%. Now dividend income is only taxed once you break $83,000 and you only pay tax ( 15% ) on the overage amout you have to make almost $500,000 a year to get to 20%. Look if you are bypassing a 13% yld for a 4% yld thinking oooh Im not going to pay taxes lol you are foolish go for the yld unless you make a half million a year your tax will be zero or just a few $$$. Please go read the tax codes they are not that hard to understand
For real retirement application. Talk about taxes . What about qualified vs non qualified. Knowing the performance of a stock is great but what happens when you're living off them which is the reality of passive income.
Wrong. The expense ratio is already a percentage, you don't hit the percentage button again. It's still pennies in the short term, but long term it's an issue. .06 x 10000 = $60.
Umm first of all .06 * 10000 is $600 and second you're wrong about the percentage. The expense ratio is .06% not 6%. $6 expense per $10000 invested is correct.
To convert a percentage to a decimal you take the percentage: 0.06% and then move the decimal over two places = 0.0006. The percentage button on a calculator just does it for you. So $10,000 x 0.0006 = $6
Honestly you waste way too much time on an expense ratio ( in these two funds) that are irrelevant. Come on $41 dollars between the two? Yes on a hundred years you’ll be able to buy a car maybe.
I’m not saying expense ratio is a bad thing, but you’ll be surprised how many people not only calculate it wrong but get hung up on it, so I always like to point it out. But of course it really is peanuts as you mention based on the car in 100 years 😂
Thinking about selling my growth stocks but not yet I'm up like over 20%-45% so I can be one of the big Dawgs lol But I'm still adding to both Whenever I make money on my own options or equity tradeing I always add a bit to them non stop IM ADDING to etfs Ryld Jepi Schd Vym At a certain point when I'm up on capitol or don't want reinvest all the drip on my budget positions I add to etfs instead build my postion on them instead Sprinkle here and there to BLK
What is your dividend strategy for 2023?
💰 Seeking Alpha - get the best research tools to stay ahead in your stock and ETF research. Receive 50% off on a Premium Membership ► sweetlifesuccess.com/go/seekingalpha
Great job!!!
Do you think JEPI is a good investment today as of 12/07/23?
I’m pro JEPI right now. I’m thinking the bull market is going to flatten out.
And you consider Jepi is a ordinary and taxes are 50% and the other is pay 15% 😅😅😅😅
I have 1800 shares of JEPI in my 401k on the Roth side. And 5,050 shares of SCHD on the Pretax side. Drip them both. Have 3 years or less until retirement. Still also putting in 15% of my pay into both plus the company match. This is going to work out great!
I'm buying both but if I had to absolutely pick one I'd go SCHD. Simply for the growth and focus on dividends. Though I do plan to get 100 shares of JEPI and do the dividend waterfall strategy. I'm also trying to get 100 shares or SCHD and DVY. Just got my second share of DVY yesterday
Great video!! I'm into both at about the same money level.
I do agree with positions in both these funds, (less in JEPI due to short track record), but what would compliment these funds is running the SPY wheel to generate more income. If people understood how call options worked, people would just write the calls themselves and not pay an active manager via expense ratio. I have been investing in both these funds for a while now but the wheel has generated much more juicy premiums. I only advise the wheel in sideways markets. Plus, JEPI will result back to a 7-8% yield when the markets start to trend higher and we enter the next bull cycle. The only reason why JEPI has such a high yield today is because the volatility is high in the markets. But I do like the active strategy of out of the money calls JEPI executes to participate in the upside. I would advise a small position in JEPI for people who are 10-15 years out from retirement in tax advantaged accounts and not in taxable brokerages especially if they are young. What some people don’t realized is the majority of the money generated is taxed at earned income because it’s a “distribution”. SCHD is much more tax friendly due to no call writing and most stocks in the ETF are qualified dividends but not all.
JEPI's payouts are a mixture of dividends (appr. 10% of payout) and distributions (about 90% of payout).
JEPI dividends are taxed similarly as qualified dividends. For most investors this is 15% tax rate. . JEPI's other distributions are taxed as oidinary income. The rate for them is between 10 and 37%. Run the numbers for both scenarios based on your tax bracket. For most people, SCHD has provided a better return after taxes.
Brilliant video! This helped me out. ❤
Fantastic!
Super helpful video, thanks!
Very comprehensive and much appreciated!!!!
The fact that schd dosent rely on options is awesome.
yes and no, it relies on performance, which is more volatile, still a good etf but the top 10 holdings cover more than 40% of the ETF, If 4-5 of those stocks outperform SCHD suffers.
Best explanation ever, thanks so mucho Bob great job👌
I have been taking the dividends from one of my stocks, taking those dividends in buying SCh D
Thank you SHARPE!🔥🥰 new sub notification bell ON!!!!
Thanks for answering my question!! :)
You’re most welcome!!
Been wondering this myself. Thanks
You're welcome!
Hi Bob. I'm 40 years old and really like your videos. For the past few months, I have been doing some research on dividend investing. According to the info I've got, investing 50/50 into JEPI and SCHD would be a nice option.
Im actually doing the same, started 1 year ago.. same age 😅
That’s precisely my plan.
I'm now watching the waterfall video. 👍
What would you think about waterfalling JEPI dividends into VOO?
Hello, great video as usual . Which is the video for a believe you said covered calls I want to learn more about that
Any thoughts on IEP?
I hold both
I want to do that dividend waterfall with JEPI to SCHD once I gain some more capital into JEPI. Then I can split the dividend and put half back into JEPI and half into SCHD while SCHD is also reinvesting its dividends!
That's great!!
Sorry, this is a newbie question, the total returns comparison, is that straight dividend paid out? Or with the dividends reinvested?
Just curious, since not all of the holdings pay out monthly, where does the monthly dividend payout come from or how is it calculated?
SCHD for the win.
Thoughts on yieldmax oark tsly aply
So due to tax implifications, JEPI is best placed into a Roth IRA and SCHD would be better suited in your traditional?
Yes
7:05 yes I enjoy it!
as a young investor i am bit skeptical or just cautious about all high dividend yields . as i am planning to keep investing hard for the next 10 years i already put ~40% of my income every single month . Problem is that one month i buy bit of this , bit of that how to keep track of everything ?Maybe ill need to sell some security and ill miss the window . So it feels better to invest into safer securities and ill have to worry less about them , maybe ill never have to sell them .
Ofc as it was said in the video u can buy high div now like a big chunk if possible and use dividends to buy safer stocks . but it all requires calculations to know if it is a right decision.
Bob if I went to the bank and borrowed 100k would these pay for them selves over the long run? Just curious. I took that number just because it looks nice.
I’ll crunch the numbers in the morning but I’ll say I am not one to advise borrowing or debt especially with the higher interest/etc! I’ll circle back
Depends of how much interest and how long your paying for id think. Once you figure out how much you have to pay them every month you then have to figure out what you want to invest in and figure out how much it'll make every month and see if that outweighs your debts.
You also have to think. If you invested all at once then there's a chance the stock price goes down. Meaning your divies will yeild less....or it could go up. Giving you more. But its impossible to know until after. So always be careful. Especially when thinking about using that amount of borrowed money. I know using your own cash is a slow grind that seems fruitless a lot of times. But it beats owing someone tones of cash while bag holding stocks with -20% value
@@BobSharpe I’m thinking if that’s a possibility to have either of these work for me to pay back the 100k.
Taking a loan to purchase something that will continue to pay you dividends is the gift that keeps on giving. Proceed with caution and infuse your own cash as well as the yield to pay off loan on an accelerated pace minimizing time your exposed to volatility while on the margin. I wouldn’t use SCHD to employ that strategy. Pays quarterly and the yield is too low.
ca u do both schd and jepi?
How are you seeing SCHD comparing to DIVO? I already have JEPI but thinking about adding another to my portfolio.
what about JEPQ?
If i get paid a Annual dividend of 183.60 and the stock pays out a dividend monthly. Do i divide it by 12. To get my monthly dividend payment ?
Example 183.60÷12 = $15.3
Yes
Thanks
You're welcome!
SPY paid me 28% dividend and 32% annualized through Q2
JEPQ vs SCHD
Both
Just pulled up these ETFs. They are severely
underperforming SPY this year.
You're right. When we zoom out though on the 3y, SCHD outperforms (57.73% vs 50.63% on SPY), and 5y SCHD outperforms (74.76% vs 69.19% on SPY). This is considering total return which is what we always want to look at. JEPI however underperforms SPY on all 3 scenarios.
value stock got hit this year. if you look at last year, schd beat spy.
Yeah, that’s how dividend ETFs work genius
@@jollamayep with underperforming SPY. Thanks for validating my point. Sorry about your returns.
@@torchy187 My guy I’m up 13% using VOO and growth ETFs
How much SCHD do you own?
The most important difference is the taxes
Team $SCHD here
To be honest SCHD is not performing very well. Too much exposure to the financial sector and if dividends are cut performance will lag. JEPI is not too much exposed in any sector and options give it steady cash flow!
I'm thinking about doing $75 per week $25 in JEPI $25 in SCHD and $25 in VOO using DRIP. Do you think that's a good strategy?
My first post though I watch many of your videos. Im not sure where people come up with these "pay tax" numbers ... someone posted 50% tax ? There is NO 50% tax bracket sorry. As of this year a married couple making $100,000 and taking the standard deduction fall below the $83,350 zero tax. There are only 3 capital gains tax brackets 0% 15% and 20%. Now dividend income is only taxed once you break $83,000 and you only pay tax ( 15% ) on the overage amout you have to make almost $500,000 a year to get to 20%.
Look if you are bypassing a 13% yld for a 4% yld thinking oooh Im not going to pay taxes lol you are foolish go for the yld unless you make a half million a year your tax will be zero or just a few $$$. Please go read the tax codes they are not that hard to understand
For real retirement application. Talk about taxes . What about qualified vs non qualified. Knowing the performance of a stock is great but what happens when you're living off them which is the reality of passive income.
Don't forget that JEPI pays UNQUALIFIED dividends.
Great point! Thanks for the comment
Wrong. The expense ratio is already a percentage, you don't hit the percentage button again. It's still pennies in the short term, but long term it's an issue. .06 x 10000 = $60.
Umm first of all .06 * 10000 is $600 and second you're wrong about the percentage. The expense ratio is .06% not 6%. $6 expense per $10000 invested is correct.
Dude. No.
10000 percent of 0.06 = 6
It's 6 bucks.
To convert a percentage to a decimal you take the percentage: 0.06% and then move the decimal over two places = 0.0006. The percentage button on a calculator just does it for you.
So $10,000 x 0.0006 = $6
@@BobSharpe You gonna put Robinhoods new stock screener function through the Bob Test for us??
@@Xammblu_Games stay tuned! 😄
SCHD has going south all yr. VOO is up 6%. SCHD is down 6%. Make a video why SCHD sucks in 2023
Good idea! Stay tuned
SCHD is struggling so far this year
Yeah it really is, down 7% so far this year
Honestly you waste way too much time on an expense ratio ( in these two funds) that are irrelevant. Come on $41 dollars between the two? Yes on a hundred years you’ll be able to buy a car maybe.
I’m not saying expense ratio is a bad thing, but you’ll be surprised how many people not only calculate it wrong but get hung up on it, so I always like to point it out. But of course it really is peanuts as you mention based on the car in 100 years 😂
SCHD hasn’t made a penny in 2.5 years
Thinking about selling my growth stocks but not yet I'm up like over 20%-45% so I can be one of the big Dawgs lol
But I'm still adding to both
Whenever I make money on my own options or equity tradeing I always add a bit to them non stop
IM ADDING to etfs
Ryld
Jepi
Schd
Vym
At a certain point when I'm up on capitol or don't want reinvest all the drip on my budget positions I add to etfs instead build my postion on them instead
Sprinkle here and there to BLK
Jepi is ordinary, pay 50% taxes and schd pay 15% taxes is qualified you welcome 😅😅😅😅