 |
|
03-28-2022, 09:51 AM
|
#101
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Sep 2005
Location: Northern IL
Posts: 26,899
|
 Quote:
Originally Posted by MichaelB
It’s important to not lose sight of the OPs request. Not looking for a “dividends vs no dividends” debate or portfolio market outperformance. OP is looking for a “fairly safe” way to generate dividend income to help cover monthly expenses.
|
Sorry, my last post crossed with yours.
IMO, it's fair to point out that the 'fairly safe' way of generating income might not be by focusing on div payers at all. I don't think we should ignore that the question itself may be flawed.
I can think of all sorts of cases where someone asks the best way to do a job with xyz, and the correct, informative, helpful, constructive answer is - "Don't -xyz is not the correct tool for that job". Or at least, explain why it's not the best tool, or the reasons why the OP thinks it is a good tool may be flawed.
To ignore that just seem like putting your head in the sand. I'd rather try to help people with the overall problem, not focus on some possibly misguided detail,
-ERD50
|
|
|
 |
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
|
03-28-2022, 11:49 AM
|
#102
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Mar 2005
Location: Chicago
Posts: 13,186
|
Quote:
Originally Posted by MichaelB
It’s important to not lose sight of the OPs request. Not looking for a “dividends vs no dividends” debate or portfolio market outperformance. OP is looking for a “fairly safe” way to generate dividend income to help cover monthly expenses.
|
+1
Excellent point Michael. It does seem that the more zealous among us seem to carry over arguments/discussions from other threads in order to keep pounding that one note piano.
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
|
|
|
|
|
03-29-2022, 04:44 AM
|
#103
|
|
Thinks s/he gets paid by the post
Join Date: Jul 2013
Posts: 1,884
|
Quote:
Originally Posted by mrfeh
This.
OP - go over to bogleheads.org and search for "total return" or "dividend investing" for more reading than anyone can handle.
There is nothing special about dividends, and they are probably sub-optimal.
|
A recent example from bogleheads, with links to other discussions/resources within:
https://www.bogleheads.org/forum/viewtopic.php?t=373879
A video from that thread that folks may be interested in:
And with that, I will leave this thread. 
|
|
|
|
|
03-29-2022, 08:11 AM
|
#104
|
|
Thinks s/he gets paid by the post
Join Date: Aug 2015
Posts: 1,890
|
Quote:
Originally Posted by ERD50
Sorry, my last post crossed with yours.
IMO, it's fair to point out that the 'fairly safe' way of generating income might not be by focusing on div payers at all. I don't think we should ignore that the question itself may be flawed.
I can think of all sorts of cases where someone asks the best way to do a job with xyz, and the correct, informative, helpful, constructive answer is - "Don't -xyz is not the correct tool for that job". Or at least, explain why it's not the best tool, or the reasons why the OP thinks it is a good tool may be flawed.
To ignore that just seem like putting your head in the sand. I'd rather try to help people with the overall problem, not focus on some possibly misguided detail,
-ERD50
|
This exact scenario happened back in 2013 when I joined my first financial forum. I just got a big bonus and wanted to know if I should pay off $100k of car loans or invest it. That's it. Just answer the question, damnit. Well, everyone kept asking me why I had $100k in car loans. I didn't think that was relevant. They were persistent, almost to the point of what I thought was being rude. After a great deal of pushing on their part and pushing back on my part, I finally relented and posted my whole financial picture. That lead to me changing my ways drastically and allowing me to retire last year.
If they had not questioned the bigger picture and just answered my question, I would still be broke and working.
__________________
Consistently sets low goals and fails to achieve them.
|
|
|
|
|
03-29-2022, 08:17 AM
|
#105
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Mar 2017
Location: City
Posts: 10,351
|
Quote:
Originally Posted by corn18
... If they had not questioned the bigger picture and just answered my question, I would still be broke and working.
|
Yes. In real life and in forums often the way we phrase a question precludes finding the optimum solution to a problem. I think this happens more often than we realize.
__________________
Ignoramus et ignorabimus
|
|
|
|
|
03-29-2022, 08:31 AM
|
#106
|
|
Thinks s/he gets paid by the post
Join Date: Oct 2017
Location: Tellico Village
Posts: 2,622
|
Quote:
Originally Posted by COcheesehead
The interest payment on a bond is locked. They don’t increase when rates rise. The yield increases, because the value of the bond has decreased, but not the amount of the payment.
|
In a bond fund, new bonds are purchased with higher interest rates and that would increase the payment for the same $1000.00 of bond. Am I wrong about that? The new bonds would be replacing older bonds(depending on the duration) and the actual income would increase.
__________________
Retired May 13th(Friday) 2016 at age 61.
|
|
|
|
|
03-29-2022, 10:19 AM
|
#107
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 17,266
|
Quote:
Originally Posted by MichaelB
It’s important to not lose sight of the OPs request. Not looking for a “dividends vs no dividends” debate or portfolio market outperformance. OP is looking for a “fairly safe” way to generate dividend income to help cover monthly expenses.
|
If income is the goal why not go with Wellesely Fund from Vanguard?
I admit a prejudice. My only medium and long term bond holdings are those in Wellesely.
__________________
Comparison is the thief of joy
The worst decisions are usually made in times of anger and impatience.
|
|
|
|
|
03-29-2022, 10:46 AM
|
#108
|
|
Thinks s/he gets paid by the post
Join Date: Feb 2021
Posts: 2,351
|
This may have already been mentioned but remember that growth investments may pay dividends too. VTI, a commonly recommended stock fund, is paying 1.28%. If you stick 550K in there, you're going to earn $7,000/yr in dividends.
|
|
|
|
|
05-09-2022, 05:47 PM
|
#109
|
|
Recycles dryer sheets
Join Date: Jul 2013
Posts: 271
|
[QUOTE=alaska55;2769754]
Quote:
Originally Posted by OldShooter
Just for grins I plugged SCHD and VFIAX (Vanguard 500 Index Fund Admiral Shares) into Portfolio Visualizer.
Over ompou20 years, the compounded growth of SCHD was 14.54% and the cnded growth of VFIAX was 15.27%. Difference is 0.73%. Doesn't sound like much? SCHD's reported distribution yield (aka most recent dividend yield) is 2.92%. So someone collecting $1,000/year in dividends from SCHD is leaving about $250/year on the table versus buying VFIAX for better total return.
Looked at another way, you could say that SCHD's total return was about 5% less than VFIAX.
So I wouldn't say that SCHD's total return is comparable to VFIAX. I would say that it is significantly lower. That's a judgment call; YMMV, of course.
.
|
How numbers can change!
|
|
|
|
|
05-09-2022, 06:09 PM
|
#110
|
|
Thinks s/he gets paid by the post
Join Date: Jun 2006
Posts: 2,083
|
Quote:
Originally Posted by SoReadyToRetire
…
The reason we even started thinking about dividends was because we finally met with a financial planner, and that person wants to take all her money and put it into a separately managed account that will cost her 1% per year. It focuses on dividends. She said if we did that, G wouldn't have to work at ALL.
What else did I leave out?
|
The bold is a huge red flag to me.
I think Dividend stocks are a wonderful tool, all of my income is generated through dividend stocks.
However, any FA that makes promises such as that, is a huge red flag IMO.
|
|
|
|
05-09-2022, 06:15 PM
|
#111
|
|
Full time employment: Posting here.
Join Date: Feb 2017
Location: Severn
Posts: 947
|
For what it's worth. I have $535k in dividend funds and am making 3.8k a month in dividends. I'm on the aggressive side so it's not for everyone.
|
|
|
|
|
05-09-2022, 06:28 PM
|
#112
|
|
Thinks s/he gets paid by the post
Join Date: Feb 2021
Posts: 2,351
|
Quote:
Originally Posted by Lawrencewendall
For what it's worth. I have $535k in dividend funds and am making 3.8k a month in dividends. I'm on the aggressive side so it's not for everyone.
|
What fund has an 8.5% yield?
|
|
|
|
|
05-09-2022, 06:46 PM
|
#113
|
|
Full time employment: Posting here.
Join Date: Feb 2017
Location: Severn
Posts: 947
|
Quote:
Originally Posted by disneysteve
What fund has an 8.5% yield?
|
AGNC (11.75)
BRSP (9.02)
BRW (13.95)
CGBD (8.89)
CLM (20.15)
DX (9.6)
ECC (13.14)
GNL (12.03)
GLP (9.42)
HQH(10.79)
HRZN (9.92)
IVR (21.56)
JRI (8.5)
LIFZF (15.55)
MFV (9.1)
NEWT (10.44)
NRZ (9.22)
OPP (16.12)
ORC (18.4)
OXLC (13.55)
PDI (11.64)
PHT (10.25)
PSEC (9.86)
RIV (14.69)
RVT (9.86)
XFLT (10.61)
YYY (10.73)
These future dividends is based on TODAY's prices and TODAY's dividends. The 3.8k monthly was last years monthly dividends paid and is NOT speculative. My crystal ball is out for repair.
I've had some that bombed (bankruptcy). 2020 (covid) was a little harsh. Some reduced/suspended dividends but most of them recovered.
|
|
|
|
|
05-09-2022, 06:59 PM
|
#114
|
|
Thinks s/he gets paid by the post
Join Date: Aug 2015
Posts: 1,890
|
Quote:
Originally Posted by Lawrencewendall
AGNC (11.75)
BRSP (9.02)
BRW (13.95)
CGBD (8.89)
CLM (20.15)
DX (9.6)
ECC (13.14)
GNL (12.03)
GLP (9.42)
HQH(10.79)
HRZN (9.92)
IVR (21.56)
JRI (8.5)
LIFZF (15.55)
MFV (9.1)
NEWT (10.44)
NRZ (9.22)
OPP (16.12)
ORC (18.4)
OXLC (13.55)
PDI (11.64)
PHT (10.25)
PSEC (9.86)
RIV (14.69)
RVT (9.86)
XFLT (10.61)
YYY (10.73)
These future dividends is based on TODAY's prices and TODAY's dividends. The 3.8k monthly was last years monthly dividends paid and is NOT speculative. My crystal ball is out for repair.
|
And you are comfortable with the total value of these stocks being down 28% in the last 52 weeks on average? One is down 64%. I guess the 8.5% yield offsets that, but still doing worse than a 60/40 portfolio.
And they are true dogs from their all time highs. Down an average of 68%. Not for the feint of heart.
__________________
Consistently sets low goals and fails to achieve them.
|
|
|
|
|
05-09-2022, 09:55 PM
|
#115
|
|
Full time employment: Posting here.
Join Date: Feb 2017
Location: Severn
Posts: 947
|
Quote:
Originally Posted by corn18
And you are comfortable with the total value of these stocks being down 28% on average? One is down 64%. I guess the 8.5% yield offsets that, but still doing worse than a 60/40 portfolio.
|
With today's market, tell me WHAT's NOT down. Don't care about portfolio value. Keep paying me the monthly dividends. Don't ever need to sell shares to fund current lifestyle. Pay me the monthly dividends. Forward projections say 63k this/next year. Do I care of the portfolio value? Pay me the monthly money.
|
|
|
|
|
05-09-2022, 10:43 PM
|
#116
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2006
Location: Boise
Posts: 7,882
|
Quote:
Originally Posted by Lawrencewendall
Do I care of the portfolio value? Pay me the monthly money.
|
You imply you care about the latter and not the former. Some might suggest that the two are interconnected to a noticeable degree.
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
|
|
|
|
|
05-09-2022, 10:59 PM
|
#117
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 17,099
|
Quote:
Originally Posted by Lawrencewendall
With today's market, tell me WHAT's NOT down. Don't care about portfolio value. Keep paying me the monthly dividends. Don't ever need to sell shares to fund current lifestyle. Pay me the monthly dividends. Forward projections say 63k this/next year. Do I care of the portfolio value? Pay me the monthly money.
|
We have some IEP (thankfully in an IRA) and a small amount as it's really a partnership and I don't want complexity added to my tax return.
We only have 200 shares.
I had bought it as I though Icann was smart like Buffet so figured I'd follow him a bit.
It pays 14.65% right now, and has steadily paid the same $8 per share for years.
I think it's pretty reliable, so I get the dividend paying part, even if the price does not go up.
__________________
Fortune favors the prepared mind. ... Louis Pasteur
|
|
|
|
|
05-10-2022, 03:47 AM
|
#118
|
|
Thinks s/he gets paid by the post
Join Date: Aug 2015
Posts: 1,890
|
Quote:
Originally Posted by Lawrencewendall
With today's market, tell me WHAT's NOT down. Don't care about portfolio value. Keep paying me the monthly dividends. Don't ever need to sell shares to fund current lifestyle. Pay me the monthly dividends. Forward projections say 63k this/next year. Do I care of the portfolio value? Pay me the monthly money.
|
I had $1M. Now I have $320,000 (68% loss). I can't get past that no matter how much the dividend is.
__________________
Consistently sets low goals and fails to achieve them.
|
|
|
|
|
05-10-2022, 09:20 PM
|
#119
|
|
Full time employment: Posting here.
Join Date: Feb 2017
Location: Severn
Posts: 947
|
|
|
|
|
|
05-10-2022, 09:29 PM
|
#120
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2016
Location: Colorado
Posts: 8,971
|
Dividends are a taxation event, not an income event. When I get a dividend my net worth increases by…zero.
|
|
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|
Linear Mode
