marko
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Mar 16, 2011
- Messages
- 8,513
First of all, I fully realize how dividends reduce the NAV and how " it's all the same" etc etc etc.
I LIKE dividends and cap gains because, for the most part, like many here, I set them aside into a separate 'bank' and draw from them over the course of a year. My number one reason is that it saves me from having to make a "sell" decision when I need cash, which can often be the worst time to do so.
Background:
My dividends have been paying out surprisingly steady amounts over the past 10 years. Just a hair under 2%. Sources are MFs: a mix of Target Dates, HY, Bond funds, Growth funds, Mid-Caps etc. 60/40
My Cap Gains are lumpy but average about 1.7% (2017 will be an exceptionally good year, bringing in this year around 5.5% total Divs and CGs)
My Div/CG bank has about 2 years reserve.
Question:
My total Div/CG average is about 3.5% which generally covers my annual expenses; I haven't had to sell shares to cover expenses for over a decade.
Lately I find myself looking at funds/stocks with higher dividend payouts; trying to get that 2% to 2.5% or 3%. I'm not sure why I'm considering this for --as noted-- I don't really need the extra cash.
So. I'm wondering if my 2% dividends is what most folks here are happy with and am I just getting greedy or if my 2% is considered sub-par with this group. I fully realize that I'm chasing yield and the risks involved.
Yes, this is a first-world problem! I keep saying to myself "don't just do something, stand there!"
I LIKE dividends and cap gains because, for the most part, like many here, I set them aside into a separate 'bank' and draw from them over the course of a year. My number one reason is that it saves me from having to make a "sell" decision when I need cash, which can often be the worst time to do so.
Background:
My dividends have been paying out surprisingly steady amounts over the past 10 years. Just a hair under 2%. Sources are MFs: a mix of Target Dates, HY, Bond funds, Growth funds, Mid-Caps etc. 60/40
My Cap Gains are lumpy but average about 1.7% (2017 will be an exceptionally good year, bringing in this year around 5.5% total Divs and CGs)
My Div/CG bank has about 2 years reserve.
Question:
My total Div/CG average is about 3.5% which generally covers my annual expenses; I haven't had to sell shares to cover expenses for over a decade.
Lately I find myself looking at funds/stocks with higher dividend payouts; trying to get that 2% to 2.5% or 3%. I'm not sure why I'm considering this for --as noted-- I don't really need the extra cash.
So. I'm wondering if my 2% dividends is what most folks here are happy with and am I just getting greedy or if my 2% is considered sub-par with this group. I fully realize that I'm chasing yield and the risks involved.
Yes, this is a first-world problem! I keep saying to myself "don't just do something, stand there!"
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