Class is now in session :-) Try M1 Finance: bit.ly/TryM1Finance How to transfer to M1: bit.ly/TransfertoM1 Seeking Alpha Premium (get 58% off): bit.ly/SeekingAlpha-DGI Instagram: instagram.com/dgi_jake/ Dividend Reinvestment Calculator: docs.google.com/spreadsheets/d/1W8UvXLZdEpVX-UPTKiHIT1oYIkj7Omvf30FgB3FTKWY/edit?usp=sharing
You're totally right about people not factoring in the fact that you'd be dollar cost averaging in. Heck a lot of channels i watch talk about timing the market all the time saying things like "i wont buy unless it's lower than my cost", meanwhile i try to make my payments grow every new payment. I feel like in the long run consistent growth will trump any attempts to time the market when it comes to a dividend strategy.
VYM was the first equity I bought as a new investor 3 years ago. If it wasn't at > $100 a share currently I'd definitely be increasing my positions. One of my favorite holdings
I also look at the fund management, how often fund management has changed hands, how long the current mangers have been managing the fund and their overall experience. Anyone who has been through 2000-2001, 2008-2009 and weathered those tumultuous years probably has a good skillset to navigate when the going gets rough.
SCHD - same super low expense ratio, higher yield, better 15-year-performance. I have VYM too, both VYM and SCHD also show great dividend growth rates.
I'm just starting to invest and VYM makes part of my portfolio. If I would have known the power of investing, I would have started many years ago. However, it's never too late to invest. A few other ETFs I invest in are: 1. SPLG - SPDR Portofolio S&P 500 ETF 2. VXUS - Vanguard Total International Stock ETF 3. VNQ - Vanguard Real Estate ETF Great vid man. Thanks! 👌🏽
Thanks for this video! You’re right, other dividend channels don’t talk about some of the things you mentioned which is another main reason I watch your channel too! Thanks for breaking it down!
@17:50 you can see that March 2018 the payout was 0.6084, March 2019 = 0.6516, March 2020 = 0.5544, March 2021 = 0.6564. So it is not dividend growth per se every year and they are also susceptible to quite big dividend cuts in periods of stress....
I'm investing in the S&P 500 and in individual stock. But such a dividend ETF is also a good idea. But I would take a world dividend ETF because that is more diversified.
A lot of these companies in this ETF generate revenue outside of the US. For US tax payers, this ETF is also very advantageous because there are no international tax implications with VYM. There are a lot of great international focused ETFs out there. I personally invest into VXUS.
I had VYM in my watch list for a while now. I have 7 of the top 10 holdings.. but after this video, I'm going to start building a position. Thanks Jake!! You always bring amazing content 🙌 . One day when I see you in person, I'm going to buy you all the beer at the bar🍺😆. Have a great week. Cheers!
7/10 means you are on to something!! VYM is a great high dividend ETF! I'm hoping in the future once the pandemic calms down to have a meet up in Austin!
Schd is better performing than VYM, has identical yield, better criteria for stocks that are chosen into the etf and cheaper buy in price which is more attractive for retail investors. I'd go with SCHD for a high yield dividend ETF
Thank you! Without a crystal ball, future returns are difficult to predict. People a lot smarter than me struggle to accurately predict future returns. I use historical returns to help guide me in a direction, but they are no guarantee.
VHYAX is an index fund and VYM is an ETF. Both are identical in their holdings. VHYAX has a very slightly higher expense ratio. Brokerages like Robinhood and M1 don't offer the ability to invest into index funds. I personally prefer VYM.
Here in the UK we have VHYL which is there high yield World etf. I'm now seriously considering buying in. I have a portfolio of British companies and I feel this could help with balance.
Thanks for the video. The content is great. One thing to note is the dividends are taxed as ordinary income. If you are not yet close to retirement age, maybe best to put money in growth funds.
Love the briefing! However, with individual companies you accrue the dividend increases...Do you get these when you own an etf? Sorry, your briefing just answered my question.
@@DividendGrowthInvesting also from the past 10 years SPY has out performed VYM by about 2% and 2% compounded over several years can actually be a million dollar difference
I’m debating on which dividend ETF I want to put into my Roth IRA that I am opening soon. SCHD or VYM? I know both are great but if you had to pick one which one do you think?
They are both pretty different in terms of what you are getting. For example, SCHD only has around 70 holdings whereas VYM has over 400. Both VYM and SCHD follow a different index and methodology so its not like comparing apples and apples. When picking an ETF or any individual company, it depends on when you plan to live off the dividend (e.g. not reinvest dividends and no longer contribute to the portfolio). If I could only pick one and had no choice, I would go with VYM personally. Because I am not forced to pick just one, I own both of them :) You may want to also check out this video on how to invest based on your time horizon. These are sample portfolios that you could consider or build off of: ruclips.net/video/1fOUSqqurHU/видео.html
Really depends on the person. I have my Roth IRA with Vanguard and my taxable account is all with M1 Finance. M1 finance is great for passive investing, not for trading. If you want to be more active (buy and sell), then I think M1 is not for you and you would be better off with a more traditional brokerage like Schwab.
@@DividendGrowthInvesting I’m going to be a passive investor. I have a savings account that I want to put in the market just because the savings account doesn’t pay very much interest and it should do better in the market. After the initial investment I’m going to reinvest the dividends and hopefully put in a few hundred more each month. M1 seems good but I also like Schwab because of the checking account that has no ATM fees anywhere in the world.
I just started to invest recently I have SCHD & SCHG ETF’s in my portfolio right now. I’m only 28 but not too sure which direction to take when it comes to growth or dividend investing. Both has it pros and cons. What would you recommend? Any tips or advice would help. I’m currently investing 50/50 into both ETFs
Hey Jake! Off topic but ive seen earlier videos that youve done about GAIN and MAIN. Do you still own them and what do you think about them nowdays. (I own both personally) Thanks in advance! And great video as always!
I think this approach can work very well! It works the best if in a tax sheltered account like a Roth IRA or HSA (but can also work great in a taxable account).
Hey, does it make sense to be holding & reguarly investing into SPY, VOO, and SPHD or should I just pick one for the long term? My RH portfolio is mainly individual dividend stocks, some real estate, & ETFS.
Still learning, but if VOO is giving a better return than VYM, and you intend on DRIPping, wouldn't it make sense to just buy VOO and then when you actually want to start using the dividends, sell VOO and buy VYM?
There are tax implications that can impact this, but yes without having a crystal ball, this could make sense - especially in a tax sheltered account like in an IRA or HSA. Because my timeline is 5 years, I am investing directly into VYM in my taxable account. In my Roth IRA and HSA for example I invest into higher growing ETFs like VGT and VTI.
@@DividendGrowthInvesting That makes sense. I retire in 10 years and am late to the investing game, so am sort of caught in what I should do. I want to use dividends to supplement my pension, but also know I'll need quite a bit of capital in order to make the dividend amounts useful. Thanks for the response
Which retirement account is this for? I see your example shows an initial investment of $30,000 followed by annual deposits of 24k. I have a Roth IRA so I can't put more that $6000...
Absolutely a good question as IRAs limit the investment per year. Can’t withdraw these till 59.5 age but don’t pay on the dividends and growth now either as I understand….
Hey Ryan! I think that could make a lot of sense. In my opinion, I think having one brokerage focus on one strategy and the other on another is a good idea.
@@DividendGrowthInvesting Great! Thanks. I don’t like having to split everything up but since I already have two brokerages, might as well do it. I can always move one to the other
@@DividendGrowthInvesting is DGRO a good long term wealth building ETF? I ask because it costs way less than SCHD and VYM with a much lower dividend yield. Over time, as the share price increases, wouldn’t the yield decrease?
Hi so iv watched this video and your schd video for someone who can’t invest into both, I’d like to pick one only for a Roth IRA account, would vym be better for long term since it’s been around longer then schd? I have a time horizon of investing in my Roth around 30 to 35 years towards the future, Thanks for your time
Hey Jake. This is not dividend related but do you use M1 plus? And if so do you think that it is worth it? I am considering it to obtain that 2nd trading window and also 1%APY and 1% cash back sounds nice. If I only used the M1 debit card every week to fill my gas tank that would be roughly $500 cash back a year.
Hey Patrick! I personally really like M1 plus because I use M1 Borrow. Getting that 2% interest rate is amazing. M1 Borrow offers the lowest margin interest rates. I use M1 borrow as an emergency fund and to invest into real estate for example. The 1% APY is also great. For example wealthfront only offers like .35% at the moment.
I personally am not a big fan of mutual funds because of the high fees. I like index funds with low expense ratios. VYM, HDV, SCHD (VNQ, SPYD which have non-qualified dividend income) are my favorite high dividend ETFs.
The issue I have with this one is the investments in Exxon and have boycotted them since the Valdez. Overall, I don't want to invest in big oil, so I'm really picky about my ETFs. Good information, even if I'm not excited about the security. :) Power watching your videos this morning.
Hey Sam! My M1 portfolio is in a taxable account and is not beating the SP500. Because I plan to retire in 5 years, I focus more on value (dividend cash flow) and value has been trailing the SP500. I am beating the SP500 in my retirement accounts where I focus more on growth :) I have 20+ years for my retirement accounts to compound.
Not to mention your portfolio is probably much less risky than the benchmark? So many headlines are made: investor x doesn't beat the market! Because there's no popular and sexy ratio for risk? That's for wussies!
Both are great depending on your time horizon. VYM is great if you plan to live off the dividend in the short to mid term and DGRO is great if you plan to live off the dividend income mid to long term.
I personally do not invest into them. I think they could be a good source of passive income. If I were to invest into QYLD or JEPI in the future, I would limit it to
SEA HOUSE no not because of that. I’m currently trying to build up my core positions. I may add something like qyld in the future. I’m curious to follow it and track it’s performance these next couple of years
Hi Robbin! I invest only into equities not bonds. Because I plan to live off my dividend portfolio in early retirement, I am only investing into dividend ETFs and individual companies. In my tax sheltered accounts like my IRA and HSA, I invest into growth ETFs.
@@DividendGrowthInvesting I’m 57 and just started investing. I want to use my dividends to add to my teacher retirement. I keep reading that at my age, I should have 40% in bonds and 60% in stocks. Do dividend investors not use this methodology?
@@robbinarp1193 Most dividend investors have a lower percentage in bonds. Bonds are great at at capital preservation not accumulation. If you are trying to preserve capital, bonds can then be a great option. If you are trying to still grow your portfolio, then you would be in most cases better to stick with equities (stocks or ETFs that hold stocks). Dividend companies/ETFs are a great substitute for bonds :)
Hey man (sorry in advance for length of the comment) Great video. I Don't currently use ETF's as I enjoy picking stocks and it helps keep me motivated haha Really enjoyed the breakdown nether the less (also enjoyed the fruit metaphor/simile) Wanted to ask a question but expect you would be to busy. Would you ever think of doing a review my channel (Similar to the review my pie) only suggesting as have never seen it before (Though that may be because it's algorithmic suicide but Wanted to ask) Again love the vids (and the free resources) and will be sending my portfolio for review shortly (just waiting to hit a full year in my ISA for a nice picture 😁) Bw man and hope the week goes well
Thank you Ben! That is actually a really cool idea for a video! I’m currently working full time and invest into real estate so I can’t make more than one video a week. I hope in the future I will have more time to make more content and this will be on the list! Cheers from Austin Texas!
@@DividendGrowthInvesting you are more than welcome least I can do after the amount of information you give away 😀 Best wishes from the UK Have a great one:)
AT&T is a bad investment. You lose more in growth per yea then the dividend covers. You’re better off finding one that has no growth and a decent dividend.
Both are great and serve different purposes. VYM is great for cashflow (and as we saw in the video capital appreciation over the long-term, but lags the SP500). VTI is great for total returns (Capital appreciation and dividends). I invest into VYM in my taxable account because I want to live off the dividend income in 5 years. I invest into VTI in my Roth IRA to grow over the next 25 years with the plan to sell VTI and reposition into dividend stocks/ETFs like VYM.
Using your "DGI Dividend Reinvestment Calculator," how do you adjust the current price for VYM? I changed C5 to the current price and columns D and E changed accordingly but the remaining columns remained the same.
That can work just fine. You could do it that way or keep the 100 dollar share price and just put the current yield. This will accomplish the same thing.
Class is now in session :-)
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docs.google.com/spreadsheets/d/1W8UvXLZdEpVX-UPTKiHIT1oYIkj7Omvf30FgB3FTKWY/edit?usp=sharing
Wonderful! Will tell my friends about your site.
Why dont you own a total market etf like VTI? Also what you this of GOOD? It seems to have a high dividend.
.
. .
You can never go wrong with a high quality etf in your portfolio
They add so much stability to my overall portfolio - not to mention the emotional benefits that are hard to measure.
You're totally right about people not factoring in the fact that you'd be dollar cost averaging in. Heck a lot of channels i watch talk about timing the market all the time saying things like "i wont buy unless it's lower than my cost", meanwhile i try to make my payments grow every new payment. I feel like in the long run consistent growth will trump any attempts to time the market when it comes to a dividend strategy.
I love this comment! This is so true!
I think it depends how i do it is i buy in at a certain time(when i get paid) and then i save some money for any dips
VYM was the first equity I bought as a new investor 3 years ago. If it wasn't at > $100 a share currently I'd definitely be increasing my positions. One of my favorite holdings
Same here!! I was trying to buy as much as I could when it was in the 80s but it shot up too fast...
First choice too. Bought it for 110. Not cheap but not that expensive
I also look at the fund management, how often fund management has changed hands, how long the current mangers have been managing the fund and their overall experience. Anyone who has been through 2000-2001, 2008-2009 and weathered those tumultuous years probably has a good skillset to navigate when the going gets rough.
Very good point. I do the same. It’s easy to do well when things are great. It’s not easy when things aren’t going so great.
VYM was one of my picks and hasn't steered me wrong. Its doing good
VYM and SCHD are doing so great!!
SCHD - same super low expense ratio, higher yield, better 15-year-performance. I have VYM too, both VYM and SCHD also show great dividend growth rates.
Exactly!! SCHD and VYM are my largest holdings
How much do you have in schd vs vym?
“Who is your daddy and what does he do?” That’s the first thing that popped into my head when I saw the kindergarten cop clip.
lol yeah!!
Totally off topic, but the fruit basket looks frigging delicious! And great analogy, too! And as always, thanks for this video 🍎!
I know right?!?!?!? Those Strawberries though...
Some stocks decrease in price just after ex-dividend date, a great time to average in. I see your point on the ETFs
Exactly! Especially if you plan to hold them long-term, it is always a great idea to buy the dip on ETFs like VYM.
I'm just starting to invest and VYM makes part of my portfolio. If I would have known the power of investing, I would have started many years ago. However, it's never too late to invest. A few other ETFs I invest in are:
1. SPLG - SPDR Portofolio S&P 500 ETF
2. VXUS - Vanguard Total International Stock ETF
3. VNQ - Vanguard Real Estate ETF
Great vid man. Thanks! 👌🏽
These are all really great! I also own VXUS and VNQ!
Thanks for this video! You’re right, other dividend channels don’t talk about some of the things you mentioned which is another main reason I watch your channel too! Thanks for breaking it down!
absolutely!!! Thank you for watching!!
@17:50 you can see that March 2018 the payout was 0.6084, March 2019 = 0.6516, March 2020 = 0.5544, March 2021 = 0.6564. So it is not dividend growth per se every year and they are also susceptible to quite big dividend cuts in periods of stress....
Exactly! Very good point.
I'm investing in the S&P 500 and in individual stock. But such a dividend ETF is also a good idea. But I would take a world dividend ETF because that is more diversified.
A lot of these companies in this ETF generate revenue outside of the US. For US tax payers, this ETF is also very advantageous because there are no international tax implications with VYM. There are a lot of great international focused ETFs out there. I personally invest into VXUS.
@@DividendGrowthInvesting Yes, that's right. But I do not live in the US. I have to pay the same tax no matter where the income comes from.
That's a great ETF, but I'm more of an individual stock type investor since the dividend raises are always the best 😁
I won't argue with you on that! It is very nice having more consistency in the dividend payout each quarter with individual companies.
I had VYM in my watch list for a while now. I have 7 of the top 10 holdings.. but after this video, I'm going to start building a position. Thanks Jake!! You always bring amazing content 🙌 . One day when I see you in person, I'm going to buy you all the beer at the bar🍺😆. Have a great week. Cheers!
7/10 means you are on to something!! VYM is a great high dividend ETF! I'm hoping in the future once the pandemic calms down to have a meet up in Austin!
Thanks for sharing. Can you also do an in-depth review of SCHD and DGRO?
Hey Eddie! Yes I plan to in a future video. Thanks for watching!
You do a great job of breaking the etf down and key things to look for. Wish this video was out when I started investing.
Thank you dewayne! I wish I started learning this stuff earlier in life. Better late than never I guess.
Just earned a new subscriber and like! This content is GOLD! Thank you for sharing.
Thank you so much Allan and welcome!!!
Schd is better performing than VYM, has identical yield, better criteria for stocks that are chosen into the etf and cheaper buy in price which is more attractive for retail investors. I'd go with SCHD for a high yield dividend ETF
SCHD is also a great ETF. SCHD and VYM are my largest holdings.
U.K. viewer. Great video Sir ! 👍🏽
Thank you!!! Cheers from Texas!
great video. This gave me more confidence in my picks in my portfolio. Thanks!
Hey Revlis! Thank you!!
Best totorial, resech,delivered beautifully, .
Thank you!!
Great information as usual! Thank you!
Thank you!!!
Phenomenal breakdown. Thank you so much for sharing your knowledge!
Thanks for watching!!!
Great info! Love it. Will you also do a video about how to predict future rate of return(ROR)?
Thank you! Without a crystal ball, future returns are difficult to predict. People a lot smarter than me struggle to accurately predict future returns. I use historical returns to help guide me in a direction, but they are no guarantee.
Love the video great information! I do want to ask; what is your take on VYM vs. VHYAX (the admiral shares)?
VHYAX is an index fund and VYM is an ETF. Both are identical in their holdings. VHYAX has a very slightly higher expense ratio. Brokerages like Robinhood and M1 don't offer the ability to invest into index funds. I personally prefer VYM.
@@DividendGrowthInvesting 🧐🤔 innnnteresting - thank you!
Thank you for the video. I prefer SCHD and DGRO
Both great ETFs!
Great informative vid, thanks a lot for sharing!
Thanks for watching! :D
Here in the UK we have VHYL which is there high yield World etf. I'm now seriously considering buying in. I have a portfolio of British companies and I feel this could help with balance.
There are a lot of great UK companies! VHYL is a great choice.
Outstanding presentation 👌
Thank you!!!
Excellent job and explanation. I've enjoyed this video. Will go back and watch a few more & I will become a subscriber... Thank you...
Hi Lance! I'm so glad you enjoyed it! Thanks for watching!
Thanks for the video. The content is great. One thing to note is the dividends are taxed as ordinary income. If you are not yet close to retirement age, maybe best to put money in growth funds.
Hi Brian! The dividends are taxed as qualified income not ordinary income with this ETF. This is a very tax efficient ETF.
@@DividendGrowthInvesting Thanks for the correction.
Love the briefing! However, with individual companies you accrue the dividend increases...Do you get these when you own an etf? Sorry, your briefing just answered my question.
Yup ETFs also increase their dividend.
Can't go wrong with dividend ETF's!
yeah!!!! :D
I prefer SCHD over VYM but why not both
Me: do I pick 1 or 2?
Dj Khaled enters the chat: "another one"
@@DividendGrowthInvesting also from the past 10 years SPY has out performed VYM by about 2% and 2% compounded over several years can actually be a million dollar difference
@@wasbii22 Very true! When it comes to the total return (Capital appreciation + dividend), SPY hands down is the better choice.
I own both but prefer SCHD too
I’m debating on which dividend ETF I want to put into my Roth IRA that I am opening soon. SCHD or VYM? I know both are great but if you had to pick one which one do you think?
Yes.
They are both pretty different in terms of what you are getting. For example, SCHD only has around 70 holdings whereas VYM has over 400. Both VYM and SCHD follow a different index and methodology so its not like comparing apples and apples. When picking an ETF or any individual company, it depends on when you plan to live off the dividend (e.g. not reinvest dividends and no longer contribute to the portfolio). If I could only pick one and had no choice, I would go with VYM personally. Because I am not forced to pick just one, I own both of them :) You may want to also check out this video on how to invest based on your time horizon. These are sample portfolios that you could consider or build off of: ruclips.net/video/1fOUSqqurHU/видео.html
Both.
I personally went with a split of schd 45%, vig 35%, dgro 15% and dgrw 5%.
Thank you everyone
What you think about qyld
Hey Keith! I am making an entire video on QYLD and other call option ETFs.
Which retirement account is this for. I see your example shows an initial investmwnt of $30,000. I have a Roth IRA so I can't put more that $6000...
VYM and VTI! 👍🏾
yes!! :)
Amazing video Jake., Great Arnold Flash back.. F.I.R.E Team Voyager out ..
Thank you!!! lol Hasta la vista
VYM is a good ETF, but VOO has outperformed it. Many people focus on growth and then convert more to value/dividend payers.
Very true!
Do you recommend a particular brokerage? I notice M1 on a lot of your videos. Do you like it better than Schwab or vanguard?
Really depends on the person. I have my Roth IRA with Vanguard and my taxable account is all with M1 Finance. M1 finance is great for passive investing, not for trading. If you want to be more active (buy and sell), then I think M1 is not for you and you would be better off with a more traditional brokerage like Schwab.
@@DividendGrowthInvesting I’m going to be a passive investor. I have a savings account that I want to put in the market just because the savings account doesn’t pay very much interest and it should do better in the market. After the initial investment I’m going to reinvest the dividends and hopefully put in a few hundred more each month. M1 seems good but I also like Schwab because of the checking account that has no ATM fees anywhere in the world.
This was an excellent video! I try to explain all of this in my videos but I think it comes across less smooth lol. Great content.
Thank you so much for watching!!
Did you calculate taxes?
Dividends taxed as ordinary income while S&P500 yield is much lower so much less taxes.
I just started to invest recently I have SCHD & SCHG ETF’s in my portfolio right now. I’m only 28 but not too sure which direction to take when it comes to growth or dividend investing. Both has it pros and cons. What would you recommend? Any tips or advice would help. I’m currently investing 50/50 into both ETFs
Hey Jake!
Off topic but ive seen earlier videos that youve done about GAIN and MAIN. Do you still own them and what do you think about them nowdays. (I own both personally)
Thanks in advance!
And great video as always!
Hi Omar! Thank you! I think they are fine investments, but I have never owned them in the past and currently do not own them.
Vym and DGRO, holding them till the day I die.
High five!! You are in good company!
How do you think about the idea of invest in growth ETF (VUG/QQQ) for 20-30 years, and then switch to VYM when retirement?
I think this approach can work very well! It works the best if in a tax sheltered account like a Roth IRA or HSA (but can also work great in a taxable account).
@@DividendGrowthInvesting thanks for your comment, Jake
Hey, does it make sense to be holding & reguarly investing into SPY, VOO, and SPHD or should I just pick one for the long term? My RH portfolio is mainly individual dividend stocks, some real estate, & ETFS.
That could work well. It all depends on your time horizon and investing goals. This can be different for every person.
@@DividendGrowthInvesting I will turning 25 this year.
@@headcase2226 how much tax is deducted from you dividends?
Hey Jake, I submitted my portfolio to the email. When will the next subscriber Pie be?
Hey Ryan! I create a review my pie video every 3 weeks.
@@DividendGrowthInvesting 🎉 🎉
@@DividendGrowthInvesting ,Hi Jake, how about mine?
Still learning, but if VOO is giving a better return than VYM, and you intend on DRIPping, wouldn't it make sense to just buy VOO and then when you actually want to start using the dividends, sell VOO and buy VYM?
There are tax implications that can impact this, but yes without having a crystal ball, this could make sense - especially in a tax sheltered account like in an IRA or HSA. Because my timeline is 5 years, I am investing directly into VYM in my taxable account. In my Roth IRA and HSA for example I invest into higher growing ETFs like VGT and VTI.
@@DividendGrowthInvesting That makes sense. I retire in 10 years and am late to the investing game, so am sort of caught in what I should do. I want to use dividends to supplement my pension, but also know I'll need quite a bit of capital in order to make the dividend amounts useful. Thanks for the response
Which retirement account is this for? I see your example shows an initial investment of $30,000 followed by annual deposits of 24k. I have a Roth IRA so I can't put more that $6000...
Absolutely a good question as IRAs limit the investment per year. Can’t withdraw these till 59.5 age but don’t pay on the dividends and growth now either as I understand….
I have two brokerage accounts, should I use one for dividend investing and the other for growth stocks?
Hey Ryan! I think that could make a lot of sense. In my opinion, I think having one brokerage focus on one strategy and the other on another is a good idea.
@@DividendGrowthInvesting Great! Thanks. I don’t like having to split everything up but since I already have two brokerages, might as well do it. I can always move one to the other
For a dividend portfolio, what do you think of these 4 ETF’s at 25% each: SCHD, VYM, XLE, VNQ. The overlap is minimal
Not the biggest fan of XLE. Perhaps a dividend growth ETF like DGRO might be a good fit in there.
@@DividendGrowthInvesting is DGRO a good long term wealth building ETF? I ask because it costs way less than SCHD and VYM with a much lower dividend yield. Over time, as the share price increases, wouldn’t the yield decrease?
@@DividendGrowthInvesting also VYM and DGRO overlap by almost 70%. Maybe SCHD 50%, VYM 25%, VNQ 25%
@@Jpsantos94 Well all depends on your goals, but I do like all 3 of them and own all 3 of them.
Hi so iv watched this video and your schd video for someone who can’t invest into both, I’d like to pick one only for a Roth IRA account, would vym be better for long term since it’s been around longer then schd? I have a time horizon of investing in my Roth around 30 to 35 years towards the future, Thanks for your time
If I had to choose just one, I probably would choose SCHD.
Thank you for responding, some people have told me dgro or vti, so my head is all over the place with efts
I just got done watching the video and unless I missed something… did you compare it to VOO? You said you’d do it towards the end of the video.
Hey Jake. This is not dividend related but do you use M1 plus? And if so do you think that it is worth it? I am considering it to obtain that 2nd trading window and also 1%APY and 1% cash back sounds nice. If I only used the M1 debit card every week to fill my gas tank that would be roughly $500 cash back a year.
Hey Patrick! I personally really like M1 plus because I use M1 Borrow. Getting that 2% interest rate is amazing. M1 Borrow offers the lowest margin interest rates. I use M1 borrow as an emergency fund and to invest into real estate for example. The 1% APY is also great. For example wealthfront only offers like .35% at the moment.
Thanks for the great content. Where can I find the google sheet?
please advice a High dividend Mutual fund. As i like auto -invest and mostly brokers only allow Auto-invest on Mutual funds.
I personally am not a big fan of mutual funds because of the high fees. I like index funds with low expense ratios. VYM, HDV, SCHD (VNQ, SPYD which have non-qualified dividend income) are my favorite high dividend ETFs.
I'm 33 I have Schd QYLD Nusi and Jepi. But looking for 2 more ETFs
SCHD is my favorite dividend growth ETF :D
I thought the FTSE is the London stock exchange.
Financial times stock exchange :)
@@DividendGrowthInvesting Thank you.
I'm a big fan of QYLD. It's currently 25% of my little portfolio.
QLYD Can be a great source of passive income. That dividend yield is massive!
@@DividendGrowthInvesting ...and steady which is pretty important also.
With M1 couldn't you just copy an etf allocation and skip the fee?
Yes, you could mirror an ETF allocation with M1.
That would mean on the other hand that you’d have to manually update the ETF as it would be managed by yourself, right?
@@19Rinka86 completely true. But it'd give you freedom to tweak things to your liking.
@@delbomb3131 Makes sense!
@@19Rinka86 like that one he showed having its top holding as chase, personally I'd have something else at the top.
The issue I have with this one is the investments in Exxon and have boycotted them since the Valdez. Overall, I don't want to invest in big oil, so I'm really picky about my ETFs. Good information, even if I'm not excited about the security. :) Power watching your videos this morning.
I can completely understand that. There are other ETFs out there that do not include oil.
Is your vanguard did I’d end portfolio one that your going to keep investing for the long haul?
Yup!
I’m a badass I’m doing that and more:) it’s growing and seeing the dividends increasing as well capital
That is so great!! High five!
Hey Jake!
Just out of curiosity, are you beating the S&P500
Hey Sam! My M1 portfolio is in a taxable account and is not beating the SP500. Because I plan to retire in 5 years, I focus more on value (dividend cash flow) and value has been trailing the SP500. I am beating the SP500 in my retirement accounts where I focus more on growth :) I have 20+ years for my retirement accounts to compound.
Not to mention your portfolio is probably much less risky than the benchmark? So many headlines are made: investor x doesn't beat the market! Because there's no popular and sexy ratio for risk? That's for wussies!
I like VIG overall, but yield is pretty low right now. I like SCHD for higher yield.
SCHD is one of my favorite ETFs along with VYM!
Schd ftw
So why don’t buy VOO If it is better over 10 years?
Jake, vym or dgro
Both are great depending on your time horizon. VYM is great if you plan to live off the dividend in the short to mid term and DGRO is great if you plan to live off the dividend income mid to long term.
What is the etf qualified dividend tax rate?
VYM is 100% qualified.
Thank you for your help. :)
Thanks for watching!!
Does schd or vym require a K1 form at tax time?
Very simple 1099-DIV form which you get from your brokerage.
Great video.
Thank you!
Hey Jake,
Curious what you think about QYLD and some of these higher yield stocks. : )
I personally do not invest into them. I think they could be a good source of passive income. If I were to invest into QYLD or JEPI in the future, I would limit it to
@@DividendGrowthInvesting
Do avoid them because their potential growth is so limited?
SEA HOUSE no not because of that. I’m currently trying to build up my core positions. I may add something like qyld in the future. I’m curious to follow it and track it’s performance these next couple of years
@@DividendGrowthInvesting Thanks so much for the response. : )
You never give he annual dividend ratio, why????????
Opinions on NOBL?
Very high quality ETF, but not ideal if you plan to live off the dividend in the next
I like VDIGX a lot better than VYM. SCHD in your portfolio is a gimme at this point.
Do you invest in bonds or just dividend stocks and dividend etfs?
Hi Robbin! I invest only into equities not bonds. Because I plan to live off my dividend portfolio in early retirement, I am only investing into dividend ETFs and individual companies. In my tax sheltered accounts like my IRA and HSA, I invest into growth ETFs.
@@DividendGrowthInvesting I’m 57 and just started investing. I want to use my dividends to add to my teacher retirement. I keep reading that at my age, I should have 40% in bonds and 60% in stocks. Do dividend investors not use this methodology?
@@robbinarp1193 Most dividend investors have a lower percentage in bonds. Bonds are great at at capital preservation not accumulation. If you are trying to preserve capital, bonds can then be a great option. If you are trying to still grow your portfolio, then you would be in most cases better to stick with equities (stocks or ETFs that hold stocks). Dividend companies/ETFs are a great substitute for bonds :)
@@DividendGrowthInvesting _ Thank you so much for your videos and for taking time to answer questions including mine.
Look into USOI. Thank me later.
Thanks for the recommendation!
Hey man (sorry in advance for length of the comment)
Great video. I Don't currently use ETF's as I enjoy picking stocks and it helps keep me motivated haha
Really enjoyed the breakdown nether the less (also enjoyed the fruit metaphor/simile)
Wanted to ask a question but expect you would be to busy. Would you ever think of doing a review my channel (Similar to the review my pie) only suggesting as have never seen it before (Though that may be because it's algorithmic suicide but Wanted to ask)
Again love the vids (and the free resources) and will be sending my portfolio for review shortly (just waiting to hit a full year in my ISA for a nice picture 😁)
Bw man and hope the week goes well
Thank you Ben! That is actually a really cool idea for a video! I’m currently working full time and invest into real estate so I can’t make more than one video a week. I hope in the future I will have more time to make more content and this will be on the list! Cheers from Austin Texas!
@@DividendGrowthInvesting you are more than welcome least I can do after the amount of information you give away 😀
Best wishes from the UK
Have a great one:)
AT&T is a bad investment. You lose more in growth per yea then the dividend covers. You’re better off finding one that has no growth and a decent dividend.
VYM or VTI???
Both are great and serve different purposes. VYM is great for cashflow (and as we saw in the video capital appreciation over the long-term, but lags the SP500). VTI is great for total returns (Capital appreciation and dividends). I invest into VYM in my taxable account because I want to live off the dividend income in 5 years. I invest into VTI in my Roth IRA to grow over the next 25 years with the plan to sell VTI and reposition into dividend stocks/ETFs like VYM.
@@DividendGrowthInvesting Thank you! It means, I make a good decision to own VTI and put it in a Roth IRA.
1:24 "it won't be a lond video" :P
Lol yea :P
Using your "DGI Dividend Reinvestment Calculator," how do you adjust the current price for VYM? I changed C5 to the current price and columns D and E changed accordingly but the remaining columns remained the same.
That can work just fine. You could do it that way or keep the 100 dollar share price and just put the current yield. This will accomplish the same thing.
2nd :( I'm on break in like 15 brb :)
lol!! :D
just go 100% VDHG and go nuts
Prefer vusa
:)
❤
Veiw 274 like 31 (because it matters)
Actual comment to follow :)
Ben you the man!
Thumbs up
Thank yoU!!
"it won't be a long video"... 29 minutes later....
lol ya...
drooling
yes!!
First
YESSSS!!!!
Which retirement account is this for. I see your example shows an initial investmwnt of $30,000. I have a Roth IRA so I can't put more that $6000....
It could be a mixture of a roth ira, hsa, or taxable account.