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Thinks s/he gets paid by the post
I have a question for anyone which has a substantial amount of income (more than 25%) coming from dividends.
Can you (do you) get a 3% yield from the dividend portion of portfolio?
I have a solid dividend mutual fund (T Rowe Equity Income) which yields around 2.2%. I have looked at similar funds for other houses (like Windsor) and the yield appears to be around 2-2.5% for most funds which are 100% equity.
If you are getting 3% or more in yield, is it because you got lucky (picking a few stocks), because you have a good fund/etf, or because you combined dividend income with another source.
Aside- it appears most balanced funds yield around 4%-4.5% (T Rowe Spectrum Income is what I use, Wellesley is similar). RPSIX is about a 15-85 fund, Wellesley is about 40-60.
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follow up question (assuming the answer is individual stocks which are contributing most of the dividend income)- how many years did you invest to accumulate the shares/income needed?
My thought right now is to max my 401k before I start a taxable account which is for dividends. I also plan to pay down my mortgage before I aggressively create a dividend portfolio (tax reasons- want to avoid paying taxes on the dividends until mortgage is paid off, then use around 5 years of investing the mortgage payment to create the taxable dividend portfolio). If you think this is bass ackwards, chime in.
Can you (do you) get a 3% yield from the dividend portion of portfolio?
I have a solid dividend mutual fund (T Rowe Equity Income) which yields around 2.2%. I have looked at similar funds for other houses (like Windsor) and the yield appears to be around 2-2.5% for most funds which are 100% equity.
If you are getting 3% or more in yield, is it because you got lucky (picking a few stocks), because you have a good fund/etf, or because you combined dividend income with another source.
Aside- it appears most balanced funds yield around 4%-4.5% (T Rowe Spectrum Income is what I use, Wellesley is similar). RPSIX is about a 15-85 fund, Wellesley is about 40-60.
----
follow up question (assuming the answer is individual stocks which are contributing most of the dividend income)- how many years did you invest to accumulate the shares/income needed?
My thought right now is to max my 401k before I start a taxable account which is for dividends. I also plan to pay down my mortgage before I aggressively create a dividend portfolio (tax reasons- want to avoid paying taxes on the dividends until mortgage is paid off, then use around 5 years of investing the mortgage payment to create the taxable dividend portfolio). If you think this is bass ackwards, chime in.