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god watching these videos makes me so happy, ima 19 year old canadian who got into investing a few weeks ago, with my current pay i make about 75000 a year and am living with my parents so expenses are at an all time low, hoping to be able to retire by 50 or at least start working part time and enjoy my fourties’ instead of working construction for 50 years like all my coworkers
Excellent video Personally I have a 3 bucket portfolio 60% SCHD and DGRO (now money) 25% VOO (5 years money) 15% VGT (10 years money) I believe the growth is a must to have During retirement because of the hyperinflation periods that we just went through and unfortunately we don’t know what is coming next 😢 Keep the great work
Great strategy! I like the 3 bucket strategy. What about cash or short term investments? I’m assuming you also have a cash/short term investment bucket as well
Love your content! ETFs pays! I have a considerably large collections and position on SVOL, SCHD is about 35% of my Roth IRA SPDR S&P 500 value Tilt ETF is about 31% of my Roth. The rest is covered call ETFs for all 4 US market indexes, international, extra concentration with sector ETFs with energy, health care, utilities, WTI futures and general commodity futures ETFs. these allocations balance out my portfolio.
Hi Tim I am so big on individual stocks and it has worked well for me, but I also like to have a well balanced, low-cost set of ETFs that keeps the money in my pocket. I'm impressed with your selections how effective are your ETFs approach returns on the long run with this lot?
Superb jacob adhering to well established patterns from a professional standpoint would make you love high yielders efts! I've set up a spreadsheet of high yielders, total allocation to each position, monthly dividends (avg) and I got to say I'm going all in when the time is right (double). I mix both high and low-medium yields in my portfolio, but the higher yielders is the way to go on efts.
Cheers I'm looking to start a position in SCHD, JEPQ with dividends of existing stocks. It's going into an IRA and I'm really looking for growth over time. I will be reinvesting dividends, so my position size will grow. Okay if I get introduced to your viewpoint, I need similar performance on mine.
Magic. 🎉 First time I've seen that model. I've done some of that on my own organically but not intentionally. Now i can see why some of my outcomes were more likely to have happened the way that they did. I only got into looking at dividend growth rates, coverage ratios, payout ratios, and such the last 2 years. The quality screening has made a huge difference in annual dividend income. Cool to see a prescriptive model. Subscribed! P.s. congrats on FIRE!! 🥳
I always kept thinking I was about 10 years away from retirement until suddenly I realized I could retire, but if I waited a bit then my retirement would be more comfortable/flexible. At that point I started to really focus on accumulating cash just in case I retired (or was forcibly retired) into bad market conditions. Now that I am retired I've been picking up some REITS and covered call funds just to boost my yield and doing some pre-tax to Roth conversions.
What a great video! It’s like my entire channel in one video. Time horizon is the most important metric for a DGI type of investor. Love to see someone give the DHS ETF some love too!
Excellent video. I consider myself a veteran investor, but need reminders like this from time to time. This would be absolutely PERFECT to show a newer investor.
switched half my portfolio to XDTE and QDTE, huge bump in income, not living off the income yet, but will need to reinvest a portion to maintain nav, but so much better than JEP funds or others
@@Alex-he1ve they aren't meant to take the whole distribution. It needs a percentage put back in. A lot of funds like yieldmax funds need 70-90% reinvested. Also need to know the underlying.
I highly suggest to anyone reading this comment to go out and read or listen to JL Collin’s book, The Simple Path to Wealth! Such an easy read and even better listen if you do Audio Books. After listening to Jake talk about this book for the 784,747,334th time, I finally decided to give it a try. 😆 I get why it’s brought up so much. Great book! Give it a try!
Looks great. I like it. I’m more into a dividend portfolio since I’m retired. I own stocks like SCHD, VYM, SO, DUK, O, WPC, FRT, OHI, VICI, CVX, SJM, UPS, UGI, CAG, GIS, TFC, JPM, C, GPC, UNP, VIS, EPD, BMY, PFE, LYB, OMC, PEP, MFC, RY, BNS, PRU, PFG
A lot of great companies you listed!! I think you may be interested in covered call ETFs for more income. Something to check out. Watch those expense ratios though!
Im SCHD + DGRO + VOO at 75-80% of my retirement portfolio but do have 20% in TSLA that I won’t sell for 20 years. I want to compare the growth between these and compounding in 20 years. It will be fun.
Thanks for the pyramid explanation, Jake. It makes it easy to explain what I'm doing to others. I have a dividend pyramid (85%) to live off of and a growth pyramid (15%) for future expenses or more dividend purchases if a great deal shows up like Oct 2023.
The big question is what should the initial investment be? If we have to retire in 10 years time and expect a million dollar value at the end of 10 years, what is the starting number to plug in with the pyramid?
Check out my videos on the simple path to wealth with dividend investing. Starting with Schd/dgro is a great place to start in my opinion. Then like I mentioned in the video, treat it like a target date fund and add more income as you get closer to retirement
This has to be one of your best videos that you've put together I really enjoyed it the content and it definitely gives direction to Both Younger and Older Individuals for retirement. Nice Job🎉
If I’m 44 couldn’t I use DGRO/SCHD as my core and something like VTI and QQQM as satellite positions for more growth and then sell those positions off in my mid 50s to invest more into DGRO/SCHD and then switch to VYM/HDV as my satellite positions? This video was a great explanation and loved the TDF comparison. Makes perfect sense.. thank you
Think of this as a guide not a rule. That would absolutely work. You focus on a core that meets your time horizon and goals. Keep it simple and stay flexible as life changes.
Great Video as usual, in opinion, if you have 20+ years to invest, you should only invest in ETF. For average long term investor, it is very difficult to predict the long term future of any company.
Hey Michael! I’m always on my computer so I use it more on my desktop but the app is great if you want to check the dividend calendar or see the performance of your portfolio or multiple portfolios from different brokerages in one app.
I’ve gotta stop watching so many different channels. I’ve got the Core/Satellite approach In mind but I find I’m wanting 3 core and about 25 satellite positions haha..
Hi Jake, i need some clarifications please. So you wouldn't recommend any core positions for those who are on the very top of the pyramid as there are only three satellite stocks?
If you want to retire off dividends, I would have a core of just ETFs and my favorites are SCHD/DGRO. Satellites can be both ETFs and individual stocks. Look at this as a guideline not a rule.
Always really enjoy your videos. Good general information. But it really sickening for me as an investor in GB using trading 212 platform i cant invest into SCHD and DGRO which are amongst my favourite ETFs
Hi Jake, great video as always!!! Just trying to find your opinion on this one. I’ve been actively investing since April and trying to find the best approach to select the timing of my investing following your core/satélite approach. If I’m currently investing $200 monthly and I’m 28 years old trying to retire by my 60’s, would you invest equally based on your target distribution between your core and satellites or would you invest one month into your core and then balance it next month with the other $200 directed into your satellite and some core positions? Or which approach you think best suits in the timing of the investments with the core/satellite approach?
Hey!! Keep it simple and automate it regardless of what the market does. As you get closer to retirement treat it like a target date fund and slowly adjust the target weightings as you invest new money
I have questions. I plan on keeping attention a small portfolio. 8 to 12 holdings total. How many core stock or ETFs should I have before adding the satellites?
Great video! Could you please do a video on SPYD? And compare it to SCHD. Everybody talking about SCHD and DGRO, but it seems that SPYD that has both better growth, and better dividend yield. Am I missing something?
Does it matter how much I put in in the first year? Can I just buy 1 share in year 1 and maybe in year 4 I invest 100k. Does the compund divided growth still working?
it does matter since it compound. let say, if you invest 100k on day 1 vs investing 100k/12=$8,333.33 for each month of the year, that 100k day 1would make more...that is if you investment is value stock instead of a trap dividend stock. you are looking at around 60% differences average wise.
Hello Jake, I was wondering if you could roll in a deeper dive soon into SCHY. I am seeing some dividend growth gains for it in seeking alpha. Right now I'm all SCHD and DGRO. Do you think SCHYs dividend growth will continue to be this big?
Question, I agree with you on DGRO, but why not DGRW? It seems like DGRW is the same thing except it pays monthly, which is good for ME personally when I have a life saving medication that I buy monthly. Is there some other difference between the two I don't know about which I should?
@@DrewBlue32 I see Dgrw as a great satellite position. The high expense ratio and inconsistent dividend growth makes it a satellite in my opinion. But you can see at as a core holding. Think of this as a guideline not a rule
I like the mixed approach the best my 457 has s&p 500 and blue chip growth funds pre tax, my roth and taxable has mostly SCHD and VYM, with a few jepi, VNQ. I will be adding vti and schg eventually for more net worth growth.
Jake, I want to book time and talk to you because in my portfolio I usually don't pull the trigger. I did take a big pay cut but the money is still there
Good pyramid Jake. You know I still debate with myself. If I could go back 10 years which three ETFs would you put in your taxable, which three ETFs in your Roth? 🤔 So many combinations..
I own DGRO & SCHD as core holdings but I am not sure what percentage of my portfolio should they be. Right now they are my 2 largest holdings but they make up 15% each with a goal of 20% each. Should it be bigger as a core holding or is that just right
This was an epic video, and I appreciate your GROWTH approach. Far too many investors gun for dividend yield and it is crushing more wealthy opportunities than not.. If you are up for a face video, I would love to have you join me on Masters of the Market with these insights!
Before watching the Video: My current Time Horizon is 15-20 Years.I've seen the Thumbnail and my Plan is to work up the Pyramid from the bottom. I have stocks and ETFs from all the pyramids segments, but for the first 100k to 200k I'l focus on the high yield bottom to get the cash flow started so that I can invest more a bit quicker. Iets see what I'm learning from the Video. :)
After watching: Okay, so the Idea to treat the portfolio like a target date fund is compelling and makes sense to me. But like you, I invest in assets from all the segments and I still think its smart for me to prioritize higher yields for now to get the ball rolling, since I just started about a year ago. What do you think?
Thank you, Jake! Great video as always. I am in retirement (65+). Are you saying I should not have DGRO and SCHD in my portfolio? (because I do) and should only have those positions at the bottom of the pyramid?
@@DividendGrowthInvesting Thank you! How do you feel about SCHG vs DGRO? I did a comparison in Seeking Alpha and SCHG outperformed DGRO in Max Total Return but you are a lot better at analyzing ETFs.
Regulated utilities. I didn’t mentioned this in the video, but be very careful not to rush into buying DUK or SO when they trade at a high PE. You want to buy into these ideally when they have a ~4.5% forward yield. Right now SO has a 3% forward yield. Food for thought :)
@@DividendGrowthInvesting Wondering if Constellation Energy or Exelon are better buys long term than DUK and SO in the utility space because of the low dividend growth rates of the latter.
I already know how. At my point in life I'm after divideds more than growth. I invest in high but safe yields not over $25 share. Plus some tax free mutual CEF's. Make around 9-10% interest and sleep well. Only problem is money to invest and time since I'm old.
So, my question is … does this pyramid work if you are just starting your core? I’m 10 years from retirement so I’m a little late to the game with limited funds. I’m open to suggestions/answers. Thanks all.
Yes you just want to make sure you’re investing in the right accounts for example in the US in a Roth or 401k. Then you want to find a balance of growth and yield that meets your expected expenses for the future.
I retired last year at 62, and SCHD is my largest holding, aside from cash! Not sure why you say SCHD is good for people 10 - 20 years from reitirement, and not for current, or near retirement. It has a great dividend yield, currently near 3.5%, although my yield at cost is closer to 4.7%. It has, as you state, a dividend growth rste of over 10%, which is great for retirees, because it increases at a greater rate than inflation!
Good video, I look at it I invest in what I buy…..Kraft Heinz, Pand G, Coca-Cola etc… those companies will not crash in recession everyone needs food, toiletries and comfort food.
Not exactly. Im saying if you want to live off your dividend portfolio, in addition to a core portfolio of SCHD/DGRO, you want to understand which investment vehicles will support your goals. JEPI/JEPQ are a great way to turbo charge your income if you need more income when you retire. They are great options to consider for satellite positions - based on your situation and goals.
Love the videos. Quick question, how are you living off of ~$30k that you make in dividends? Other question is, if you don't mind, how does this dividend affect your taxes in the U.S.?
Or I could do it my own way. Don’t get me wrong here, great overall advice. ❤ But people usually figure out what type of investor they are along their journey and I wish people fit neatly into a pyramid.
I noticed it says $0 cash and all the buying power is margin. I currently have level 2 options account on webull and public. I think to get a margin account I need a minimum of $2k. I guess my question is, how can i get a margin account like this? Do I have to start with the $2k and build up the margin? Thanks for anyone that can help explain
@@dividendfire855 lol well VIG has added a lot of growth stocks like Msft and Apple now that they’ve increased their dividend 10+ years. But yeah SCHD/DGRO are my preferred core.
@@DividendGrowthInvestingthat’s the problem with VIG, the stocks must have a consistent 10 year track record of paying dividends, DGRO only needs 5. Lost opportunity, not adding META, GOOG and CRM amongst others.
You have ruined the words 'it might look a little something like this' for me. I think there is a ton of great stuff in here. Regardless of your investing philosophy, having a plan and a reason for what you are doing makes it easier to navigate volatile markets. There are a few other channels I watch that push the idea of holistic investing. I think that is very important for anybody that is going to do this long term
@@MarioChapa-m7d you will then want to adjust the dgro down about 5-10 years before you plan to retire and add more income. Obviously depending on your goals and time horizon.
Thanks for watching!
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god watching these videos makes me so happy, ima 19 year old canadian who got into investing a few weeks ago, with my current pay i make about 75000 a year and am living with my parents so expenses are at an all time low, hoping to be able to retire by 50 or at least start working part time and enjoy my fourties’ instead of working construction for 50 years like all my coworkers
You're a huge influence on my portfolio. My goal is to retire 10 years early. Thanks!
Puts a smile on my face reading this! Really glad to hear that! Thanks for taking the time to watch!
Then stay away from dividends.
@@theowenssailingdiary5239nah that’s just false information
@@theowenssailingdiary5239 Why's that?
@@theowenssailingdiary5239 Why's that?
Excellent video
Personally I have a 3 bucket portfolio 60% SCHD and DGRO (now money)
25% VOO (5 years money)
15% VGT (10 years money)
I believe the growth is a must to have
During retirement because of the hyperinflation periods that we just went through and unfortunately we don’t know what is coming next 😢
Keep the great work
Great strategy! I like the 3 bucket strategy. What about cash or short term investments? I’m assuming you also have a cash/short term investment bucket as well
@@DividendGrowthInvesting
Yes Sr., 2 years of cash in a HYSA
You don't know what is coming next, but you are all in on stocks?
we get a great recession at end of the year
@@relaxandlearn7996can’t recess if you keep printing!
Love your content! ETFs pays! I have a considerably large collections and position on SVOL, SCHD is about 35% of my Roth IRA SPDR S&P 500 value Tilt ETF is about 31% of my Roth. The rest is covered call ETFs for all 4 US market indexes, international, extra concentration with sector ETFs with energy, health care, utilities, WTI futures and general commodity futures ETFs. these allocations balance out my portfolio.
Awesome collections! I like VOO and SCHD equally!
The money man! all this allocation must be giving you good returns.
Hi Tim I am so big on individual stocks and it has worked well for me, but I also like to have a well balanced, low-cost set of ETFs that keeps the money in my pocket. I'm impressed with your selections how effective are your ETFs approach returns on the long run with this lot?
Superb jacob adhering to well established patterns from a professional standpoint would make you love high yielders efts! I've set up a spreadsheet of high yielders, total allocation to each position, monthly dividends (avg) and I got to say I'm going all in when the time is right (double). I mix both high and low-medium yields in my portfolio, but the higher yielders is the way to go on efts.
Cheers I'm looking to start a position in SCHD, JEPQ with dividends of existing stocks. It's going into an IRA and I'm really looking for growth over time. I will be reinvesting dividends, so my position size will grow. Okay if I get introduced to your viewpoint, I need similar performance on mine.
29 years old building my core right now with just SCHD and DGRO. Later I’ll be adding a few satellite positions
The simple path to wealth with dividend investing!!!
DGRO 💪🏻💪🏻
Magic. 🎉 First time I've seen that model.
I've done some of that on my own organically but not intentionally. Now i can see why some of my outcomes were more likely to have happened the way that they did. I only got into looking at dividend growth rates, coverage ratios, payout ratios, and such the last 2 years. The quality screening has made a huge difference in annual dividend income.
Cool to see a prescriptive model. Subscribed!
P.s. congrats on FIRE!! 🥳
Glad it was helpful!
I like the pyramid, Jake. Great way to look at investing timeline and dividend growth rate. I wish I knew about this thirty years ago! 😢
You and me both! Thanks for watching!! Hope you’re doing well!
I always kept thinking I was about 10 years away from retirement until suddenly I realized I could retire, but if I waited a bit then my retirement would be more comfortable/flexible. At that point I started to really focus on accumulating cash just in case I retired (or was forcibly retired) into bad market conditions. Now that I am retired I've been picking up some REITS and covered call funds just to boost my yield and doing some pre-tax to Roth conversions.
The Simple Path to WEALTH: SCHD/DGRO 40/40, FTEC/QQQM 10/10 and you will be able to sleep well.
What a great video! It’s like my entire channel in one video. Time horizon is the most important metric for a DGI type of investor. Love to see someone give the DHS ETF some love too!
You know that old saying.. great minds think alike!!!
Dumping 4k a month into SCHD! Hoping to retire in 10-12 years!
Nice!!! I wouldn’t go 100% SCHD only. Consider combining it with DGRO for more diversification and potential growth
@@DividendGrowthInvesting good thing you aren't an advisor. Give it a rest mate.
@theowenssailingdiary5239
What advisor (or investor for that matter), would be silly enough to recommend or want a single ticker for retirement!?
Excellent video. I consider myself a veteran investor, but need reminders like this from time to time. This would be absolutely PERFECT to show a newer investor.
Appreciate you taking the time to watch! Yeah I wish I started with this earlier in life
switched half my portfolio to XDTE and QDTE, huge bump in income, not living off the income yet, but will need to reinvest a portion to maintain nav, but so much better than JEP funds or others
Glad to hear they work for ya. There are many paths that lead to success. Thanks for watching!
I hesitate to invest in XDTE and QDTE yet, afraid of NAV erosion. As I close to retirement I concentrate on SPYI/QQQI/JEPQ so far
@@Alex-he1ve they aren't meant to take the whole distribution. It needs a percentage put back in. A lot of funds like yieldmax funds need 70-90% reinvested. Also need to know the underlying.
I highly suggest to anyone reading this comment to go out and read or listen to JL Collin’s book, The Simple Path to Wealth! Such an easy read and even better listen if you do Audio Books. After listening to Jake talk about this book for the 784,747,334th time, I finally decided to give it a try. 😆 I get why it’s brought up so much. Great book! Give it a try!
Hey Mike!! Hahaha yeah it really helped me and I think a lot of people would benefit from the simple approach! Hope you’re doing well!
Next we need The Dividend Meme Pyramid!
lol coming right up! 😂😂😂😂
Looks great. I like it. I’m more into a dividend portfolio since I’m retired. I own stocks like SCHD, VYM, SO, DUK, O, WPC, FRT, OHI, VICI, CVX, SJM, UPS, UGI, CAG, GIS, TFC, JPM, C, GPC, UNP, VIS, EPD, BMY, PFE, LYB, OMC, PEP, MFC, RY, BNS, PRU, PFG
A lot of great companies you listed!! I think you may be interested in covered call ETFs for more income. Something to check out. Watch those expense ratios though!
Im SCHD + DGRO + VOO at 75-80% of my retirement portfolio but do have 20% in TSLA that I won’t sell for 20 years. I want to compare the growth between these and compounding in 20 years. It will be fun.
All great ETFs!! lol that’s a lot of Tesla :)
I'm like-minded in this approach...
What so you think about VGT 100%(20+ years time) then 2-5 years before retirement, move to schd and dgro?
Thanks for the pyramid explanation, Jake. It makes it easy to explain what I'm doing to others.
I have a dividend pyramid (85%) to live off of and a growth pyramid (15%) for future expenses or more dividend purchases if a great deal shows up like Oct 2023.
Glad to hear it was helpful!! Thanks for watching!
The big question is what should the initial investment be? If we have to retire in 10 years time and expect a million dollar value at the end of 10 years, what is the starting number to plug in with the pyramid?
Check out my videos on the simple path to wealth with dividend investing. Starting with Schd/dgro is a great place to start in my opinion. Then like I mentioned in the video, treat it like a target date fund and add more income as you get closer to retirement
This has to be one of your best videos that you've put together I really enjoyed it the content and it definitely gives direction to Both Younger and Older Individuals for retirement. Nice Job🎉
Thank you!! I appreciate you saying that!
Loving these videos, thanks for putting out such quality and consistent content
Glad you enjoy it! Thanks for watching!
If I’m 44 couldn’t I use DGRO/SCHD as my core and something like VTI and QQQM as satellite positions for more growth and then sell those positions off in my mid 50s to invest more into DGRO/SCHD and then switch to VYM/HDV as my satellite positions?
This video was a great explanation and loved the TDF comparison. Makes perfect sense.. thank you
Think of this as a guide not a rule. That would absolutely work. You focus on a core that meets your time horizon and goals. Keep it simple and stay flexible as life changes.
Besides the time horizon, the other factor is planned expenses.
It makes sense to optimize for growth, as long as your expenses are covered.
@@adrianneaga 100%! In most cases it’s not what you make but what your expenses are. If you can avoid life style creep, you can reach FI much faster!
I mean you one should go with higher-growing (dgro, vig etc) category even if retiring soon, but already having his expenses covered.
Great Video as usual, in opinion, if you have 20+ years to invest, you should only invest in ETF. For average long term investor, it is very difficult to predict the long term future of any company.
more ETFs the better in my opinion
Thank you Jake. I’m very interested in Snowball analytics. Does it work better on my laptop or my phone or either?
Hey Michael! I’m always on my computer so I use it more on my desktop but the app is great if you want to check the dividend calendar or see the performance of your portfolio or multiple portfolios from different brokerages in one app.
I’ve gotta stop watching so many different channels.
I’ve got the Core/Satellite approach In mind but I find I’m wanting 3 core and about 25 satellite positions haha..
Stop watching these dividend bro's for a start.
thanks. loved how simple it is, and thanks for the nice way you explained it
I love this model. I will adapt it makes sense I like the time horizon format
glad it was helpful!!
@@DividendGrowthInvesting absolutely!
Great video, love how simple yet effective this approach is.
Glad you liked it! Thanks for watching!!
Hi Jake, i need some clarifications please. So you wouldn't recommend any core positions for those who are on the very top of the pyramid as there are only three satellite stocks?
If you want to retire off dividends, I would have a core of just ETFs and my favorites are SCHD/DGRO. Satellites can be both ETFs and individual stocks. Look at this as a guideline not a rule.
As long as you continue to answer comments you will always have my audience. Helping you live that barista fire life
:) appreciate it fabi!
As long as it’s not a food pyramid I’m interested!! 😂
Hahaha :)
eat ur veggies
@@MRkriegs Vegetables sparingly and mostly fermented. Eat meat.
What about trading 212 where u dont have a option for SCHD etc.. what alternatives should you use for the 10+year investment strategy
Great video. Thank you. I learned a tremendous amount from this.
Glad it was helpful!
Always really enjoy your videos.
Good general information. But it really sickening for me as an investor in GB using trading 212 platform i cant invest into SCHD and DGRO which are amongst my favourite ETFs
Yeah :( maybe there are other similar options out there
Awesome presentation!!! I wish I had this a long time ago, it would have helped me tremendously.
Yeah if only! I’m in the same boat!
For a moment there, I thought you were going to write out the definition of a target date fund! 😂😂😂 Thanks for the visuals
lol omg haha
Hi Jake, great video as always!!!
Just trying to find your opinion on this one. I’ve been actively investing since April and trying to find the best approach to select the timing of my investing following your core/satélite approach.
If I’m currently investing $200 monthly and I’m 28 years old trying to retire by my 60’s, would you invest equally based on your target distribution between your core and satellites or would you invest one month into your core and then balance it next month with the other $200 directed into your satellite and some core positions? Or which approach you think best suits in the timing of the investments with the core/satellite approach?
Hey!! Keep it simple and automate it regardless of what the market does. As you get closer to retirement treat it like a target date fund and slowly adjust the target weightings as you invest new money
For income what about QYLD, RYLD, or XYLD as opposed to JEPI or JEPQ?
All up to you. I prefer jepq/jepi. Use this as a guideline not as a rule.
Curious on your thoughts on Walmart. The long term growth coupled with a strong dividend attracts me.
Good defensive stock. Great satellite position.
Appreciate your reply. Keep up the fab work on these videos its super helpful.
For sure!!! Glad to hear it was helpful!
Very impressive. Thanks for sharing this!
Glad you enjoyed it!
I have questions. I plan on keeping attention a small portfolio. 8 to 12 holdings total. How many core stock or ETFs should I have before adding the satellites?
Keep it simple. I like Schd/dgro
Great video! Could you please do a video on SPYD? And compare it to SCHD. Everybody talking about SCHD and DGRO, but it seems that SPYD that has both better growth, and better dividend yield. Am I missing something?
Hi great vid. Iam now 57 almost 58. I invest now for 3 years in dividend. What way is the best for me?
Max out you’re retirement accounts and find a balance of income and growth that meets your expenses
Does it matter how much I put in in the first year? Can I just buy 1 share in year 1 and maybe in year 4 I invest 100k. Does the compund divided growth still working?
it does matter since it compound. let say, if you invest 100k on day 1 vs investing 100k/12=$8,333.33 for each month of the year, that 100k day 1would make more...that is if you investment is value stock instead of a trap dividend stock. you are looking at around 60% differences average wise.
Thank you but what about etfs equivalent to those in Europe? SCHF etc are not available here :(
Yeah :( there are some good alternatives available in Europe
At 12:30 and on, you are using the numbers of years until retirement. What would I use if I have already retired ?
😂 lol that actually sounds exactly like my dividend portfolio as well. I'm glad I'm not the only that's all over the place thank you Jake 😃
but what about compounding interest? How in the world are you getting any CI when youre invested in this many stocks???
Excellent video!. Do you have anything like this for people already in retirement or 70 and above?
The same would apply just the % would be different per investment.
Hello Jake,
I was wondering if you could roll in a deeper dive soon into SCHY. I am seeing some dividend growth gains for it in seeking alpha. Right now I'm all SCHD and DGRO. Do you think SCHYs dividend growth will continue to be this big?
Yes I can. Thanks for watching!!
Question, I agree with you on DGRO, but why not DGRW? It seems like DGRW is the same thing except it pays monthly, which is good for ME personally when I have a life saving medication that I buy monthly. Is there some other difference between the two I don't know about which I should?
@@DrewBlue32 I see Dgrw as a great satellite position. The high expense ratio and inconsistent dividend growth makes it a satellite in my opinion. But you can see at as a core holding. Think of this as a guideline not a rule
I like the mixed approach the best my 457 has s&p 500 and blue chip growth funds pre tax, my roth and taxable has mostly SCHD and VYM, with a few jepi, VNQ. I will be adding vti and schg eventually for more net worth growth.
Yeah you have to go with the best option available. Thanks for watching!!
Does BST ever make it here considering the tax treatment of distributions and also if you plan on never selling?
Nothing I’d personally consider due to the high fees but it’s something you could see as a satellite position.
Jake, I want to book time and talk to you because in my portfolio I usually don't pull the trigger. I did take a big pay cut but the money is still there
Yeah I do it a few times a week. Only do it if it will be valuable for you. I have nothing to sell you but my time.
You need to adjust your data. The advent of CC ETFs for income that pay 10-12%. These are much better then JEPI and JEPQ.
not sure I follow
Good pyramid Jake. You know I still debate with myself. If I could go back 10 years which three ETFs would you put in your taxable, which three ETFs in your Roth? 🤔 So many combinations..
I’d go growth in my Roth and dividend growth in my taxable. Low fees and focus on the simple path
I own DGRO & SCHD as core holdings but I am not sure what percentage of my portfolio should they be. Right now they are my 2 largest holdings but they make up 15% each with a goal of 20% each. Should it be bigger as a core holding or is that just right
Depends on you. I personally think you can’t have to little in your core with Schd/dgro. 60-80% of your total portfolio in my opinion
This was an epic video, and I appreciate your GROWTH approach. Far too many investors gun for dividend yield and it is crushing more wealthy opportunities than not.. If you are up for a face video, I would love to have you join me on Masters of the Market with these insights!
Hey Ari! Appreciate you taking the time to watch! If we could do it audio only, I’d be open to it. Hope you have a great week!
Im confused...
So a "high yield" fund pays out a higher Rate, correct?
So what does a "high growth" fund do...?
❤❤
High yield generally means lower dividend growth and vice versa.
Why not have JEPQ higher? It pays over 10% dividend yield
It’s a great satellite position but the dividend growth is lower
Wished I know about this in high school back in the day
You and me both!
Do you use growth or S&P ETFs at all?
Um, which some cheap dividend stocks pay big money monthly?
Before watching the Video: My current Time Horizon is 15-20 Years.I've seen the Thumbnail and my Plan is to work up the Pyramid from the bottom. I have stocks and ETFs from all the pyramids segments, but for the first 100k to 200k I'l focus on the high yield bottom to get the cash flow started so that I can invest more a bit quicker. Iets see what I'm learning from the Video. :)
After watching: Okay, so the Idea to treat the portfolio like a target date fund is compelling and makes sense to me. But like you, I invest in assets from all the segments and I still think its smart for me to prioritize higher yields for now to get the ball rolling, since I just started about a year ago.
What do you think?
Thank you, Jake! Great video as always. I am in retirement (65+). Are you saying I should not have DGRO and SCHD in my portfolio? (because I do) and should only have those positions at the bottom of the pyramid?
No I still would have Schd/dgro as you’re core but you add on top of those to get more income/ yield if you are close to retirement
@@DividendGrowthInvesting Thank you! How do you feel about SCHG vs DGRO? I did a comparison in Seeking Alpha and SCHG outperformed DGRO in Max Total Return but you are a lot better at analyzing ETFs.
@@DividendGrowthInvestinghey Jake. I own SCHD and have been thinking of adding DGRO but don’t they overlap a lot? I’ll appreciate your answer. Thanks.
Was always curious why Southern and Duke have such low historical dividend growth rates 2 -3%...
Regulated utilities. I didn’t mentioned this in the video, but be very careful not to rush into buying DUK or SO when they trade at a high PE. You want to buy into these ideally when they have a ~4.5% forward yield. Right now SO has a 3% forward yield. Food for thought :)
@@DividendGrowthInvesting Wondering if Constellation Energy or Exelon are better buys long term than DUK and SO in the utility space because of the low dividend growth rates of the latter.
Would you put SCHG in a roth or taxable account? If you already had VFIAX in a 401k thru employer
I like growth in my Roth so I can rebalance tax free in retirement
@@DividendGrowthInvesting thank you for your response
@@DividendGrowthInvesting I ended up going with DGRO, DFVV in my taxable / SCHG in my roth.
I'm all over the board, lol, all the way at the top, with Costco visa, home Depot, SCHD, Microsoft, all the way down to JEPI, and O
I already know how. At my point in life I'm after divideds more than growth. I invest in high but safe yields not over $25 share. Plus some tax free mutual CEF's. Make around 9-10% interest and sleep well. Only problem is money to invest and time since I'm old.
So, my question is … does this pyramid work if you are just starting your core? I’m 10 years from retirement so I’m a little late to the game with limited funds. I’m open to suggestions/answers. Thanks all.
Yes you just want to make sure you’re investing in the right accounts for example in the US in a Roth or 401k. Then you want to find a balance of growth and yield that meets your expected expenses for the future.
Isnt there a big fund overlap with dgro and vym to add it as a satellite?
I retired last year at 62, and SCHD is my largest holding, aside from cash! Not sure why you say SCHD is good for people 10 - 20 years from reitirement, and not for current, or near retirement. It has a great dividend yield, currently near 3.5%, although my yield at cost is closer to 4.7%. It has, as you state, a dividend growth rste of over 10%, which is great for retirees, because it increases at a greater rate than inflation!
SCHD is great as a core position for any time horizon, but the percentage allocated will just be different depending on your time horizon/goals.
Any Alternative for UK investors for DGRO and SCHD?
Good video, I look at it I invest in what I buy…..Kraft Heinz, Pand G, Coca-Cola etc… those companies will not crash in recession everyone needs food, toiletries and comfort food.
@@CentralNH thanks! Yup dividend stocks can be great in a recession
Jake are you saying that all retirees should be sitting in the bottom rung JEPI, JEPQ etc?
Not exactly. Im saying if you want to live off your dividend portfolio, in addition to a core portfolio of SCHD/DGRO, you want to understand which investment vehicles will support your goals. JEPI/JEPQ are a great way to turbo charge your income if you need more income when you retire. They are great options to consider for satellite positions - based on your situation and goals.
@@DividendGrowthInvesting ok, makes sense. Thanks for clarifying!
Question about your sponsor, do they have a basic or advanced budgeting tool feature?
They have a basic free version you can try.
@@DividendGrowthInvesting thank you. Will test it, if worth it ill buy.
Hey thanks for the video, how do we go about getting advice from you? I just started investing age 31
So i shoildnt buy PFLT at age of 30?
What tool do you use the filter through thousands of business?
Seeking alpha
Love the videos. Quick question, how are you living off of ~$30k that you make in dividends? Other question is, if you don't mind, how does this dividend affect your taxes in the U.S.?
I talk about it in this video because I have more than one brokerage. ruclips.net/video/ARRbFHi7Em8/видео.html
@@DividendGrowthInvesting Thank you! I will watch this :)
Love it, excited to watch.
Thanks for watching!!
Or I could do it my own way.
Don’t get me wrong here, great overall advice. ❤ But people usually figure out what type of investor they are along their journey and I wish people fit neatly into a pyramid.
Many paths lead to success. It’s all about finding what works for you
I noticed it says $0 cash and all the buying power is margin. I currently have level 2 options account on webull and public. I think to get a margin account I need a minimum of $2k. I guess my question is, how can i get a margin account like this? Do I have to start with the $2k and build up the margin? Thanks for anyone that can help explain
What portfolio software is that?
I put everything together in miro its a free tool that you can use.
Great strategy to wealth.
Thanks for watching!
Awesome video ❤
Thanks 🤗
That ending! 😂
lol :)
You had me at pyramid. On to the video
:) thanks for watching!!!
VIG has no business being next to DGRO/SCHD.
VIG is the Temu of VOO.
VOO has better total return and similar yields.
@@dividendfire855 lol well VIG has added a lot of growth stocks like Msft and Apple now that they’ve increased their dividend 10+ years. But yeah SCHD/DGRO are my preferred core.
@@DividendGrowthInvestingthat’s the problem with VIG, the stocks must have a consistent 10 year track record of paying dividends, DGRO only needs 5.
Lost opportunity, not adding META, GOOG and CRM amongst others.
You have ruined the words 'it might look a little something like this' for me.
I think there is a ton of great stuff in here. Regardless of your investing philosophy, having a plan and a reason for what you are doing makes it easier to navigate volatile markets.
There are a few other channels I watch that push the idea of holistic investing. I think that is very important for anybody that is going to do this long term
lol omg…. Yeah I can see that haha. Happy Sunday, Mike!!
Jake! What happened to Omega Health? It shot up 30%+ in 2024 so I hope you did not sell!?
I own it in my reit portfolio. My cost basis is $31!! I’m holding.
@DividendGrowthInvesting Smart move. You led me to this jewel and patience has paid off big time this year^^
Hey Jake how about 50% dgro 40%schd 5% voo and 5% visa im.48 years old
@@MarioChapa-m7d you will then want to adjust the dgro down about 5-10 years before you plan to retire and add more income. Obviously depending on your goals and time horizon.
Best mouse writing I have ever seen
Hi i live in the uk can i use your promo cod link ??
Yes
Great content Just subscribed.
Thank you and welcome!!
Would you say a core to satellite ratio of 65 to 35% is too big of a gap from your 80/20 suggestion?
65/35 is fine. It just means you need to manage your satellites more. Look at it as a guideline and not as a rule
Came here for "look a little like this"!
Omg lol :D