I wish I was smart enough to understand Options Dick.....good for you!
Good call gonna have to get up earlier to take advantage of the dipping club
What! And give up the fun out of trading?
Here is an income investor's answer: MSFT is a fabulous company and it''s shares have made lots of folks wealthy. But it's DIVIDEND YIELD is less than 1%. If you purchase MSFT today, you are likely to realize healthy positive returns over any relatively long horizon. BUT if you are an INCOME INVESTOR --- with Treasury debt in the 4's, solid corporate debt in the 7's, and well run debt CEFs in the 11's --- and you choose start even a growing INCOME INVESTMENT at under 1%, you cannot ever recover the radical incone opportunity differentials. It's really important for investors who choose an "equity income" strategy to appropriately evaluate the source of their wealth creation, and it is almost never from the dividend/income component of total returns.
That poster is ignored, but I get the gist of the post from responses.
To expand that idea into a substantial income stream for individual equity holdings with growing dividends should discuss perhaps yield on cost which over time can be huge. Also over time in absolute terms will have significant dividend streams which are tax qualified. See Waynew. Another approach is periodic selling of parts of portfolio, e.g. spy. I don't favor that but read an analysis of someone running the numbers over long periods of time and even if began in bear markets still outperformed many other approaches.
I usually suggest PTY (or PCN) to see if that spooks them. So baby steps.
1.They can but depending on value raises especially when you need the money it is not as dependable or lucrative as monthly or quarterly auto deposited cash with no market timing decisions are.
If you’re ignoring me, then don’t indirectly reply to me.
That's wonderful. Good for you. If I had a time machine, I'd buy that fund or at least most stocks in it in 2011 IF IF IF I could tolerate equity price risk in return for growth. But having already done a trade like that before retirement, I required income without accepting equity price risk. So I STARTED my income stream at about 8% rather than waiting 14 years for 6.4%, DIDN'T sit like a bump on a log through Fed tightening cycles, and now have a far larger portfolio that yields about 12.2% on cost (which is pretty close to market value because I always look for opportunities to take unrealized gains and invest them to grow income). Vanguard appears to have done a good job for you growing your wealth. Hopefully THAT rather than income was your goal.
Congrats - I too was a buy and hold investor for all of my career, mainly SPY and whatever equity funds my 401K admin. allowed. But, I realized with CEF's and other strong dividend stocks and REIT's that my income in retirement would be much better than the 4% WR that is always the "norm". I certainly don't consider PTY , PAXS, ADX, etc. "junk" . ADX I believe is the second oldest CEF in the country, 1929, and predates mutual funds and ETF's. So, while there are many ways to invest and withdraw in retirement you have chosen one pathway and some of us have chosen another. It doesn't make you right , it doesn't make you wrong. We just chose different avenues.That yield is collection of some of the best US companies.... not on junk you "trade". This is an example how you invest (not trade garbage) and make real money/dividend holding great US companies.
My total dividend yield is currently about $18,000 a month. What’s great about it is that I don’t chase yield (I certainly don't chase garbage ETFs) —40% of my portfolio is actually in tech companies with very little yield.
No crit, but let me suggest something. Consider adopting a different "chasing" program ASSESSMENT APPROACH before becoming disappointed. I now know my distribution income earned in July. The basic stuff I started with threw off 24.6k. Swapping with an eye to later post-7/11 ex-date opportunities --- and executing on some but not all ---- I added another 3.8k for sure before a more complex AGNC buy-write that will throw off at least 3k. So instead of 24.6k, the PORTFOLIO is throwing off at least 31.4k. I still hold some/some % of assets picked up on swap and have not "reestablished" my month starting position ---- because THAT'S not my objective. But income growth is ---- and BEFORE receiving the distribution income coming soon, my PORTFOLIO is up 2.4% in the past month. Some ex-date swaps were "losers" and some were "winners " but I pay no attention to those details ---- just PORTFOLIO value and PORTFOLIO income. FWIW.....just a different focus.....JFR limit orders hit and so am out of the Div Chase this month. Combined with the improvement in my DX exit/entry, I had a net $3,045 gain ($1,215 more than if I had not done the trades, $469 of pure div increase). This net gain could go up or down slightly as I reinvest to some combination of JAAA/JBBB with corresponding net change there. Will do this over the next week to get back in prior to Ex-Div for those.
I was hoping to go in and out of EIC and JFR closer to my entry which would have really juiced this months Divs, but an additional $469 will have to do. Whatever is going on with EIC killed this month.
Not going to win the Div Chase every month.
Still on track for $130k+ div's for 2025.
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