dobig
Recycles dryer sheets
Just wanted to jump in here an say thank you for this. I am new to investing/managing money. I have had a fund managed for me for the last 35 years. I am getting ready to take control of my IRA. However I have no confidence. I took 20k out of my saving account and started buying stocks, ETF.s ect. Trying to learn what is what. I have only lost money so far LOL. I really like all the different strategies so far. If you don't mind can you list some of the CEF's and ETFS your have purchased for dividend income. Seems to me some the CEFS are kinda sketchy when looking from a beginners perspective. I would really love to come up a dividend based strategy with ETFS that can grow. Along with some consistent CEFS.
When I'm buying dividend etfs I look more at yearly average increase in dividends vs current income and secondly capital appreciation. In the long run these should be the winners. My top holding is Schd with a current dividend yield of around 3.8%. Nothing eye catching. What makes it exciting for me is it's dividend growth. In 2012 it paid about .80 cents a share per year in dividends. Today those same shares pay around $2.80 a share per year. On top of that the etf is up around 300% in the same time frame.
A good companion would be DGRO. Lower yield, high dividend growth and good capital appreciation. Paired with SCHD you get a good blend of high quality dividend paying companies without much overlap. Others to possibly consider might be DVY, VYM, FDVV (interesting allocation with big tech holding top 3 positions). All are considered safe low cost investments with proven track records (except FDVV) that should give you consistent income with growing dividends that should easily outpace inflation.
You can also look at some safer international etfs such as VYMI (sister to VYM) and SCHY (sister to SCHD). Higher yields than their US counterparts with usually slower growth.
For cefs I don't mess with anything beyond UTG and UTF. Not anything sexy with around 7% yields but long term history and dividends have slightly increased over time to help with inflation protection.
Do not chase yield. Think of the tortoise and the hare. This was not meant as a shot at Flieger.