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Excellent video. I'm 50% in USFR and 50% in HIGH( simplify enhanced income etf) USFR gives me 5.2% yield & HIGH gives me 9.6% .they both pay monthly dividends.
Bravos! Just one remark - the snowball is not starting to move, you just have the ability to invest a lot of your own cash and continue to buy more and more stocks. I don't care from where you have it, but more power to you. But for the average person I don't see this being the case - from 1.5k divs to 5ks in an year and to talk about divs increases and snowball effects. Lets all be realistic here. I don't want to discourage people in investing in divs stocks, please do it, just set your expectations and be real about it - it will take a long time.
@@Dividendology sure, but point is getting there. lets not forget that not everybody can put 1000$+ every month, also considering that in some countries the tax on dividends can be from 20-30%, which makes it extremely hard to start the ball rolling :)
@@Dividendology How much is your total growth % over the last year? (Not including the additional capital obviously) I think it would be beneficial to point that out, to show how successful the portfolio itself has been.
Sure, he's adding to the snowball but all of his individual stocks are still increasing their dividend. There are really only 3 things that increase the rate of compounding. Time, rate and contribution. Only 1 of them is within the average investor control, the amount you put in.
the "snowball" everyone talks so highly takes years and years to even start rolling.. i saw numerous portfolios that they collect $500 a year in dividends...
Fantastic walkthrough! But when reinvesting dividends (eg, instead of using the money for expenses), then it's creating portfolio churn. An alternative is to buy a long-dated call option which will have the expected dividends priced in (discounted from price). But to reduce the drag from the downside protection, is possible to also sell the corresponding put (it reduces the position cost, but if the market falls, the portfolio will continue to experience losses, as it would with shares). And to increase expected value, the excess capital can also be invested (since the option position requires less cash outlay than the shares). A similar duration Treasury could work, or more shares/options if leverage is desired
takes a lot of patient AND money.. the dividends on these stocks /ETF requires boat of money to make any decent returns.. i want to see someone's portfolio of less than $20K..see their monthly, quarterly dividends. compounding a few hundreds per quarter doesn't even make up for the lost of underlying stock..hence, you need tons of money to DCA down and have great patient.
Appreciate the breakdown. In our current higher interest rate environment, I wonder what the benefit dividend stocks (with ~3.5% return) have over holding safer government securities or money markets (~4.5% return)
Fantastic job! The only note/option that I would add to the reasoning is wether or not you'll actually live off dividends once they can support your montly expenses. From now to 2040 you reinvest your dividends to build up the portfolio faster, after that if you'll actually start to live off dividends you're not going to reinvest the gains so the final result after 30 yrs would be something in the middle. We should also consider that you may retire from your job at some point if the plan is going well and then you'll be starting to not putting down the 2500$/month. I know it sounds mental/iterative but it would great to have the options to choose which year to stop reinvesting and which year to stop investing your salary.
$5k per year off $130k, that's just under 4% Why wouldn't I just put the same $130k in a CD and collect $5200 at 4% (after taxes), without all the risk?
His low returns come from the initial Dividend Yield. To my knowledge long term planning is better. Companies that have high dividend growth will pay way more in the future.
If 5k a year is the goal, take the 130K, put it in a high yield online savings account. I just found one, no minimum balance, 4.5% APY….Thats $5850 risk free fdic insured.
@@n222nyit just shows that many think the are so smart they have to share all this wisdom. Truth is that more than half of these youtubers aren’t that ‘bright’. The real smart people make millions working for a bank etc.
Quick question: does your monthly cost of living include the $2500 contribution to your portfolio? I’m assuming it doesn’t because that would mean nearly half of your cost of living is investment contributions, and also that’s not really a cost of living. If that assumption is correct, then if you actually tried to live off your dividends after 16 years, your growth would stall because you’d be unable to continue contributing $2500 per month. It seems like you’d want to tweak your numbers…maybe when you CAN live off your dividends, and when you SHOULD live off dividends, and alter your contributions after those points to reflect what you’ll be realistically able to contribute living solely from dividends.
The calculation is correct! Even if I stop contributing and stop reinvesting dividends, as long as my dividend growth rate is above the rate of inflation, I can live off dividends indefinitely.
@@Dividendology yes, you certainly could, but your growth rate of your portfolio will be much less than what you’re portraying, because you will no longer be contributing the additional $2500 per month.
Yup. I was thinking the same thing when he showed a constant dividend curve. The curve should flatten more when he stops contributing and turns off DRIP
You show exponential dividend growth but I’m assuming that once you make enough from dividends to meet your monthly cost of living, that you will then quit your job and start living off the dividends, right? If that’s the case, your exponential curve is flawed as you’d no longer be reinvesting the dividends after that point, right? You’d instead be withdrawing them in order to pay your expenses….
Can someone explain to me whats the difference between my employer investment 401K plan, and this dividend portfolio? Like if I have $130,000 in my employer 401K plan, the dividend payout should be similar compare to this video right? I dont get it, thank you ahead of time
Just a thought, maybe you could do a video on some index funds that mimic the etfs. I put in around $2300 per month in my 403b, looking to create a solid dividend fund portfolio.
If my math isn't wrong i think your using basically an inflation of around 2%, you might want to be a bit more conservative and say 3.5%. You might also want to reduce your dividend payout by 20% to account for taxes, I'm not sure if you are already doing that, as when you start getting around 50k a year in dividends the tax man bill starts to become a real pain at roughly 20% or so.
What type of account is this (brokerage, Roth, TIRA)? Depending on that answer how do you manage taxes? As a DGI investor myself I like your presentations and have watched several (not enough time yet to watch all), and also like your spreadsheets/tracking. Is that all on Apple Numbers? or do you use Excel?
@@trappart9209you can only contribute so much money into a tax deferred account such as an IRA. In addition, it is subject to income limits. Thus, some people have to use both tax deferred account and a brokerage account. Uncle Sam always has to get his cut.
@@trappart9209 You can access the $ in the taxable brokerage account at any time whereas you have to be older than 59.5 to get $ out of a tax-deferred account penalty-free, in general.
Based on your conclusion (im in a similar standing, though not as aggressive), better to retire at 50 and live off those dividends. Then pull your 401k/roth ira at whatever age becomes the national "retirement age" and live off both?
@bishwasmishra6447 yes, you can, but its not a wise decision unless you absolutely need the cash before that age. A 401k is taxed more if drawn from before the legal retirement age.
You should add a dividend payout per share chart. Your SCHD is dwarfing the rest of your holdings because you are highly invested in the ETF when looking at total payout. This can lead to incorrect assumptions and missing opportunities.
Awesome stuff! Love the breakdowns of everything with the charts, you have a super organized tracking tool! Slow and steady with those dividend increases!
It would provide more immediate dividend income, but Not what I’m looking for long term. Dividend growth will way outperform those long term and provide more dividends long term.
Is there an SCHD mutual fund? Or Index type fund? My 403B plan won’t allow me to buy etf’s but usually there are mutual funds that mimic target etfs like JEPAX that is the mutual find for JEPI.
Great work. Love the spreadsheet and detail. But... do you ever ask yourself, "with treasuries paying 5.5% (uber safe), why bother with Div reinvesting program?
It appears the xls file is a download you can obtain by way of patreon membership, assuming the download is not pulling information from a source of information tied to that membership, you could presumably subscribe for the first month, download the file, then discontinue the membership before the second month to only pay a one time fee.
It’s amazing that you have 130k as initial investment and 2.5k as monthly contributions… I guess investing is not for everybody…I can only invest 100€ per month 😅😂😂 I started this year currently in for 1100€ and my daily dividend calendar says I have a yield of 5% for about 56€ from 170 different individual stocks 😅 almost daily dividend income 😆
@@dexinvictus6103 Says who? xD your fear? every month i wiil add more positions until i have those spesific 2000 individual stocks that pay dividend from a pool of 2500000 stocks in the global market xD...then i will might think to rebuy or sell xD xD that might happen after 20-30 years xD tho
@@TJay96 Because compounding interest is a mathematical method of investing which works only if you have a stock that always pays dividend by a % return of investment of its price in your pocket..or to reinvest ...the amazing thing about it is that it doesnt need anything else for it to work!!!
Pretty stupid time effort speaking to holding half your portfolio in SCHD then just over concentrate in a bunch of top contributors individually, your correlation with SCHD will be minimally changed likely in the 0.95 - 1.00 range statistically speaking. Also I doubt you seriously researched these 31 companies (like literally think about how much it takes to keep up with just quarterly results for these companies to make sure your thesis hasn’t changed besides any deeply analytical aspects).
if you account for the 4% withdraw rate from the organic market growth, would that cut the duration to live off of your portfolio from 16 years to about 8yrs?
And if you don't loose oyur job, and if your fridge/ac doesn't break, and if you don't get sick, and if you don't get hurt, and if you don't have a kid. I think I about covered it. Also 2500 per month invested from your work, that's kind of crazy for the average person. If I ate romin and spagetti and pbj I MIGHT be able to put away 1500 per month.
Your ~$200 per month income on $130,000 equals ~2% return per year. You could just move your $130k into a high yield savings account like SoFi (and others) and be making 4.6% right now! AND you would have zero risk and spend zero time managing it. You would more than double your return and simplify your life. What am I missing?
Yes, good question. I put out a long post on Twitter about this the other day. Here’s the link: x.com/dividendology/status/1715383987328151890?s=46&t=wpzI2zdMVKv2hHdLaJXqbA
You are most likely missing the long term power of dividend growth. While my portfolio doesn't produce crazy amounts of dividend payments right now, because I buy dividend growth companies, my yield on cost in the future could easily hit numbers like 30%, or even closer to 50%. It's basically like sacrificing higher dividend payments now, for more dividends later.
This is a great and really important question, and I actually talked about this on Twitter (X) not too long ago. I'll link you to my post that explains it: x.com/dividendology/status/1715383987328151890?s=20
@@Dividendology Do I need to plugin the ETFs once and will it track it for me? Or can I link it to a Sofi account and expect it to track my investments automatically?
Dude all this thought is useless if you make 2k per year in dividends. Just invest in a covered call ETF and make 13K per year. Inflation is gunna chew you up and spit you out
so just leave 16 years saving all the money having an assumption that inflation will be as calculated.... in the result you got lifetime savings burning your life out (
@@Dividendology I think people live off their dividends too fast and lose close to all of their momentum....Therefore the minimum equity required is actually much higher....But still very possible :)
I would go to a cheap Asian country for a few years, so cost of living would be well below dividend income, and therefore could live for free while continuing to reinvest some of the dividends.
@@Dividendology best thing I ever did was make it so my monthly expenses were low. If I was in poverty tomorrow I would still be able to maintain the basics. Not saying you should go to that extent. But that number greatly determines whether dividends > expenses How much do you want to reach that goal? With intensity and intention, I think you could speed that date up by a lot. And I’m not harpin on ya. Guy, you are just killin it out there.
having 50% in SCHD is stupid, no matter how much you belive in them because you can't possibly know everything about them and they might have a rogue employee that totals them (as a bad example), or some other unlikely but possible event.
@@Dividendology long term, most likely. But when t bill are at 5.4%+, probably not. I'm not all for any one solution. Right now, I've got $500k+ in t bills, bc it makes more money with less risk. When it makes sense to switch back to the market, I'll do it.
Wow. Amazing. Can we also have the combo or key to your safety deposit box, along with your vacation schedule since you are freely giving out personal financial information? Society gets more rock solid with each passing generation. Sad.
I watch several RUclips videos on how to trade in the stock market but haven't made any head start because they are either talking some gibberish or sharing their story of how they made it and I do not want to make mistakes by taking risks in my own hands
Great video! Your portfolio does have more holdings in the technology industry than the graph represents tho cause SCHD consist of many businesses in the tech industry. Tech is SCHDS largest holdings industry wide
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Je llplpl
Lolol llpl
Lkk
These are really low Yield dividends... so much better options out there buy some ENB - Enbridge, it has close to 8%.
Excellent video. I'm 50% in USFR and 50% in HIGH( simplify enhanced income etf) USFR gives me 5.2% yield & HIGH gives me 9.6% .they both pay monthly dividends.
Bravos!
Just one remark - the snowball is not starting to move, you just have the ability to invest a lot of your own cash and continue to buy more and more stocks. I don't care from where you have it, but more power to you.
But for the average person I don't see this being the case - from 1.5k divs to 5ks in an year and to talk about divs increases and snowball effects. Lets all be realistic here.
I don't want to discourage people in investing in divs stocks, please do it, just set your expectations and be real about it - it will take a long time.
no doubt it takes time, but being able to reinvest on average $400 a month in dividends really does get the snowball rolling.
@@Dividendology sure, but point is getting there.
lets not forget that not everybody can put 1000$+ every month, also considering that in some countries the tax on dividends can be from 20-30%, which makes it extremely hard to start the ball rolling :)
@@Dividendology How much is your total growth % over the last year? (Not including the additional capital obviously) I think it would be beneficial to point that out, to show how successful the portfolio itself has been.
Sure, he's adding to the snowball but all of his individual stocks are still increasing their dividend. There are really only 3 things that increase the rate of compounding. Time, rate and contribution. Only 1 of them is within the average investor control, the amount you put in.
the "snowball" everyone talks so highly takes years and years to even start rolling.. i saw numerous portfolios that they collect $500 a year in dividends...
Fantastic walkthrough! But when reinvesting dividends (eg, instead of using the money for expenses), then it's creating portfolio churn.
An alternative is to buy a long-dated call option which will have the expected dividends priced in (discounted from price).
But to reduce the drag from the downside protection, is possible to also sell the corresponding put (it reduces the position cost, but if the market falls, the portfolio will continue to experience losses, as it would with shares).
And to increase expected value, the excess capital can also be invested (since the option position requires less cash outlay than the shares). A similar duration Treasury could work, or more shares/options if leverage is desired
Dividend Investing is not for the impatient. Thanks for the reminder. Stay the course!
You bet!
takes a lot of patient AND money.. the dividends on these stocks /ETF requires boat of money to make any decent returns.. i want to see someone's portfolio of less than $20K..see their monthly, quarterly dividends. compounding a few hundreds per quarter doesn't even make up for the lost of underlying stock..hence, you need tons of money to DCA down and have great patient.
@@josephsaeteurn9158 gotta start somewhere though!
Appreciate the breakdown. In our current higher interest rate environment, I wonder what the benefit dividend stocks (with ~3.5% return) have over holding safer government securities or money markets (~4.5% return)
There is no benefit. Dividends are completely irrelevant to stock returns.
I guess if you add the stock performance on top of the dividend it's over 4.5%
I have been eyeing $UPS for a while, would love to see one of your thorough breakdowns on this company.
Why not just put in a savings account that has 4%+?
Because companies increase their dividend payments over time.
Love how the snowball is rolling. Contributions giving it a nice boost - well done!
That's awesome. When did your account jump to 130K????
Does dividend income always count as regular income, or if you reinvest immediately do you get some advantage or anything?
taxes depend on multiple variables such as location, income, and whether your dividends are qualified or non-qualified
😮
Reinvesting does not provide a tax advantage, you still owe taxes (depending on where you live) on the dividend income received in that year.
Fantastic job! The only note/option that I would add to the reasoning is wether or not you'll actually live off dividends once they can support your montly expenses.
From now to 2040 you reinvest your dividends to build up the portfolio faster, after that if you'll actually start to live off dividends you're not going to reinvest the gains so the final result after 30 yrs would be something in the middle. We should also consider that you may retire from your job at some point if the plan is going well and then you'll be starting to not putting down the 2500$/month. I know it sounds mental/iterative but it would great to have the options to choose which year to stop reinvesting and which year to stop investing your salary.
In other words, you think a more realistic point would be when his dividends surpass cost of living + reinvestment?
@@vector4100 kind of... Maybe cost of living + the same salary you would be getting from your daily job, keeping enough reinvestment
Is this in a 401k or an IRA or what kind of amount???
$5k per year off $130k, that's just under 4%
Why wouldn't I just put the same $130k in a CD and collect $5200 at 4% (after taxes), without all the risk?
His low returns come from the initial Dividend Yield. To my knowledge long term planning is better. Companies that have high dividend growth will pay way more in the future.
Because the stock price also increases increasing the portfolios value and dividend payments
So it looks like you are receiving less that $2,000 per year in dividends!
Maybe. He is aiming for $5000 yearly.
If 5k a year is the goal, take the 130K, put it in a high yield online savings account. I just found one, no minimum balance, 4.5% APY….Thats $5850 risk free fdic insured.
@@n222ny 4.8% isn't enough to makeup for inflation you need at least 8% to make 5%. Granted nor is dividends.
@@n222nyit just shows that many think the are so smart they have to share all this wisdom. Truth is that more than half of these youtubers aren’t that ‘bright’. The real smart people make millions working for a bank etc.
Maybe hes what? Taking unecessary risk for less returns? Yup
Quick question: does your monthly cost of living include the $2500 contribution to your portfolio? I’m assuming it doesn’t because that would mean nearly half of your cost of living is investment contributions, and also that’s not really a cost of living. If that assumption is correct, then if you actually tried to live off your dividends after 16 years, your growth would stall because you’d be unable to continue contributing $2500 per month. It seems like you’d want to tweak your numbers…maybe when you CAN live off your dividends, and when you SHOULD live off dividends, and alter your contributions after those points to reflect what you’ll be realistically able to contribute living solely from dividends.
The calculation is correct! Even if I stop contributing and stop reinvesting dividends, as long as my dividend growth rate is above the rate of inflation, I can live off dividends indefinitely.
@@Dividendology yes, you certainly could, but your growth rate of your portfolio will be much less than what you’re portraying, because you will no longer be contributing the additional $2500 per month.
Yup. I was thinking the same thing when he showed a constant dividend curve. The curve should flatten more when he stops contributing and turns off DRIP
@@Mdevlin0when the master enters the chat
You show exponential dividend growth but I’m assuming that once you make enough from dividends to meet your monthly cost of living, that you will then quit your job and start living off the dividends, right? If that’s the case, your exponential curve is flawed as you’d no longer be reinvesting the dividends after that point, right? You’d instead be withdrawing them in order to pay your expenses….
Can someone explain to me whats the difference between my employer investment 401K plan, and this dividend portfolio? Like if I have $130,000 in my employer 401K plan, the dividend payout should be similar compare to this video right? I dont get it, thank you ahead of time
Just a thought, maybe you could do a video on some index funds that mimic the etfs. I put in around $2300 per month in my 403b, looking to create a solid dividend fund portfolio.
Good idea!!
How did you do the monthly expense increase projection due to inflation? What is your annual inflation assumption? Great charts. Thanks!
If my math isn't wrong i think your using basically an inflation of around 2%, you might want to be a bit more conservative and say 3.5%. You might also want to reduce your dividend payout by 20% to account for taxes, I'm not sure if you are already doing that, as when you start getting around 50k a year in dividends the tax man bill starts to become a real pain at roughly 20% or so.
Love the video. I have 280 shares currently of SCHD at 71.90 per share. Waiting for that juicy dividend next month ha
doing really well mate congrats! how did you fix the income by industry after finviz changed their tables?
I've gotten good at web scraping, so I can usually figure out how to update it.
lmk if u figure it out please i’m having the same problem
What type of account is this (brokerage, Roth, TIRA)? Depending on that answer how do you manage taxes? As a DGI investor myself I like your presentations and have watched several (not enough time yet to watch all), and also like your spreadsheets/tracking. Is that all on Apple Numbers? or do you use Excel?
I use a brokerage as well as a tax deferred retirement account. And the sheet is in google sheets which is free to use for anyone!
@@DividendologyI am curious why don't people use only tax deferred account? What is the benefit of using brokerage acc?
@@trappart9209you can only contribute so much money into a tax deferred account such as an IRA. In addition, it is subject to income limits. Thus, some people have to use both tax deferred account and a brokerage account. Uncle Sam always has to get his cut.
@@trappart9209 I see the benefit as not having any limit that you can invest.
@@trappart9209 You can access the $ in the taxable brokerage account at any time whereas you have to be older than 59.5 to get $ out of a tax-deferred account penalty-free, in general.
If you think MPW will go back up it’s good to average down… if you think it could fall longer it’s good to sell
MPW is a hot mess
Based on your conclusion (im in a similar standing, though not as aggressive), better to retire at 50 and live off those dividends. Then pull your 401k/roth ira at whatever age becomes the national "retirement age" and live off both?
He might be using 401k for the dividend stocks. Or parts of it. Isn’t that possible?
@bishwasmishra6447 yes, you can, but its not a wise decision unless you absolutely need the cash before that age. A 401k is taxed more if drawn from before the legal retirement age.
You should add a dividend payout per share chart. Your SCHD is dwarfing the rest of your holdings because you are highly invested in the ETF when looking at total payout. This can lead to incorrect assumptions and missing opportunities.
I guess I should watch the whole video before commenting 😂
Awesome stuff! Love the breakdowns of everything with the charts, you have a super organized tracking tool! Slow and steady with those dividend increases!
Glad it was helpful!
For someone starting new 18 with 10k, what should they invest in? Dividends reinvested or bank stocks?
why do you invest in SCHD over Nasdaq 100 (QQQ)is it because they pay more dividents?
$AGNC = 16% dividend
$CLM = 17%
$CRF = 16%
Slightly higher risk but you would be more than doubling your monthly dividend income.
It would provide more immediate dividend income, but Not what I’m looking for long term. Dividend growth will way outperform those long term and provide more dividends long term.
Jepi dropped to 51 and svol dropped to 21 and we scoped up more
Is there an SCHD mutual fund? Or Index type fund? My 403B plan won’t allow me to buy etf’s but usually there are mutual funds that mimic target etfs like JEPAX that is the mutual find for JEPI.
it's a dividend-focused ETF.
If you would live in another country you would be able to do so within 10 years or less. And safe more. Your cost of living is very high.
Let’s say the U.S debt reaches 100 trillion in 20 years from now. What do you think would happen to the markets?
What market? Understand debt to pay ratio? Look at the available cash everywhere and you get your answers
Great work. Love the spreadsheet and detail. But... do you ever ask yourself, "with treasuries paying 5.5% (uber safe), why bother with Div reinvesting program?
I talked about this in my most recent portfolio update!
Personal Budget video coming out soon?
Ya, what is costing him $4000 a month? Unless he lives in ny or cal.
Good video dividendology!
How did u get the dividend dashboard?
I built it!
Great video. Watched & liked!
I like your chart. What program is that
I built it in google sheets! It’s an automated portfolio tracker. You can download it on my patreon page at the link in description.
any way to just purchase for one time fee, your xls file that you showed?
It appears the xls file is a download you can obtain by way of patreon membership, assuming the download is not pulling information from a source of information tied to that membership, you could presumably subscribe for the first month, download the file, then discontinue the membership before the second month to only pay a one time fee.
It’s amazing that you have 130k as initial investment and 2.5k as monthly contributions… I guess investing is not for everybody…I can only invest 100€ per month 😅😂😂 I started this year currently in for 1100€ and my daily dividend calendar says I have a yield of 5% for about 56€ from 170 different individual stocks 😅 almost daily dividend income 😆
when I started I was contributing around $50 a month, so keep at it!
170 positions is a waste of time and capital
@@dexinvictus6103 Says who? xD your fear? every month i wiil add more positions until i have those spesific 2000 individual stocks that pay dividend from a pool of 2500000 stocks in the global market xD...then i will might think to rebuy or sell xD xD that might happen after 20-30 years xD tho
170 individuals positions seems pretty insane. Why not just get an ETF? Its difficult enough being informed with 10 positions
@@TJay96 Because compounding interest is a mathematical method of investing which works only if you have a stock that always pays dividend by a % return of investment of its price in your pocket..or to reinvest ...the amazing thing about it is that it doesnt need anything else for it to work!!!
Wouldn't investing in mutual funds be easier/faster?
Pretty stupid time effort speaking to holding half your portfolio in SCHD then just over concentrate in a bunch of top contributors individually, your correlation with SCHD will be minimally changed likely in the 0.95 - 1.00 range statistically speaking. Also I doubt you seriously researched these 31 companies (like literally think about how much it takes to keep up with just quarterly results for these companies to make sure your thesis hasn’t changed besides any deeply analytical aspects).
You are going to get there soon and wonder why you didn’t start sooner
if you account for the 4% withdraw rate from the organic market growth, would that cut the duration to live off of your portfolio from 16 years to about 8yrs?
Ive got 10k to invest. Should i put it in my webull account, all schd, or my m1 where its spread across all my individual positions? Im torn!!
Hey can you so a video on Avnet ticker AVT?
When did your account jump to 130K????
I had been sitting on around 25k of cash for awhile. I just happened to invest most of it this month.
@@Dividendology the red makes me wanna throw some money in as well
Why not SPYI?
What group of stocks will continually provide a stock price increase AND a dividend payout of 7% and 7% yoy over decades?
you invested 130000 to get 230 dollar per month? you think this is okay?
You can do better with cds….what am I missing?
Do you pay taxes on the dividends? I don't do dividend stocks because I would get crushed from taxes.
And if you don't loose oyur job, and if your fridge/ac doesn't break, and if you don't get sick, and if you don't get hurt, and if you don't have a kid. I think I about covered it. Also 2500 per month invested from your work, that's kind of crazy for the average person. If I ate romin and spagetti and pbj I MIGHT be able to put away 1500 per month.
Otherwise, I love the video.
Exactly. $2500 a month is crazy. $1000 a month is a lot
Maybe a silly causation but what broker do you use?
Your ~$200 per month income on $130,000 equals ~2% return per year. You could just move your $130k into a high yield savings account like SoFi (and others) and be making 4.6% right now! AND you would have zero risk and spend zero time managing it. You would more than double your return and simplify your life. What am I missing?
Yes, good question. I put out a long post on Twitter about this the other day. Here’s the link: x.com/dividendology/status/1715383987328151890?s=46&t=wpzI2zdMVKv2hHdLaJXqbA
Seems like an awful lot of volatility for not much ROI. Or am I missing something?
You are most likely missing the long term power of dividend growth. While my portfolio doesn't produce crazy amounts of dividend payments right now, because I buy dividend growth companies, my yield on cost in the future could easily hit numbers like 30%, or even closer to 50%. It's basically like sacrificing higher dividend payments now, for more dividends later.
Do stocks pay out daily dividends?
I thought at most just once certain month/s if not a year
No, unless it's a specially designed fund or ETF, regular stocks (that pay dividends) will pay out 4x a year, every 3mo.
Not all stocks pay dividends.
So you don't pay any capital gains?
Can you release the excel sheet? I’d like to use it
Yes! You can download it on my patreon page. Link in description.
What is this tracking app or program your using to track all this information?
It’s an automated portfolio tracker I’ve built. You can download it on my patreon page. Link in description!
How do you beat inflation and grow your portfolio enough. I find that dividend usually only compensates for inflation 😢
Focus on companies with high dividend growth rates
Thoughts in NEP?
Can you share you're Cost Basis on SCHD?
Kudos, great video.
I agree to what you said
👍👍👍
Excellent
Why do this if $130k can make $6-7k per year in a high yield savings that's FDIC insured?
This is a great and really important question, and I actually talked about this on Twitter (X) not too long ago. I'll link you to my post that explains it: x.com/dividendology/status/1715383987328151890?s=20
That the same thing im saying. That what I’m doing.
So how does your portfolio perform compared to SPY?
Sucks lol
What software or website are you using to demonstrate this excellent illustration and graphs?
its an automated portfolio tracker I built in google sheets! You can download it on my patreon page. Link in description!
@@Dividendology Do I need to plugin the ETFs once and will it track it for me? Or can I link it to a Sofi account and expect it to track my investments automatically?
Very informative video sir . ..
Dude all this thought is useless if you make 2k per year in dividends. Just invest in a covered call ETF and make 13K per year. Inflation is gunna chew you up and spit you out
Not correct at all. This video explains why: Why Dividend Growth Investing Pays BIG!
ruclips.net/video/GQHe7LejhEg/видео.html
Bought TSLY, XRMI and IWMY this morning. Thanks for the video!
16 years is a long time
Why don’t you have JEPI ??!!???
What about inflation? I feel like you're still a bit further out
Inflation is taken into account in the live off dividends model
Bro that's 3.8% per year. You can literally make more on a capital one savings account lmao
Dividend growth pays way more long term
just a couple hundred bucks
When did you start the portfolio and roughly how much did you start with?
Started around 10 years ago. I started with 0 and was only contributing around $50 a month at the time. Made many mistakes early on as well.
SVOL, JEPQ, DJIA, PFLT, ACRE
I get that it’s a “good return” but wow $400 bucks on a $130k seems terrible lol
Praying on SCHD's downfall
I'd love to see it go lower!
Praying for Pavement to get back together!
Short term downfall* lol
You would be fighting your neighbors for food if that happens💀
@@sneak916you don’t get it. Your neighbors are going to BE the food.
so just leave 16 years saving all the money having an assumption that inflation will be as calculated.... in the result you got lifetime savings burning your life out (
If you start living off dividends in 16 years, wont that slow down the snowball tremendous and will you be able te keep reinvesting?
It will, but if the dividend growth rate stays above the rate of inflation, then I can live off dividends indefinitely.
@@Dividendology I think people live off their dividends too fast and lose close to all of their momentum....Therefore the minimum equity required is actually much higher....But still very possible :)
I would go to a cheap Asian country for a few years, so cost of living would be well below dividend income, and therefore could live for free while continuing to reinvest some of the dividends.
Awesome video
you make 230 dollar per month. that aprox. 23 pizzas. bro you invested 130 000 dollars to get just to have 1 meal per day for free? cringe
I make more with 60k just by having Robinhood gold that pays 5%
He’s getting 3.7% dividend payments and the stock growth will be over 5%…
Work towards slashing your cost of living. You’ll reach it a whole lot quicker.
true. I made it a little higher than it really is to add some cushion.
@@Dividendology best thing I ever did was make it so my monthly expenses were low. If I was in poverty tomorrow I would still be able to maintain the basics. Not saying you should go to that extent. But that number greatly determines whether dividends > expenses
How much do you want to reach that goal?
With intensity and intention, I think you could speed that date up by a lot. And I’m not harpin on ya. Guy, you are just killin it out there.
having 50% in SCHD is stupid, no matter how much you belive in them because you can't possibly know everything about them and they might have a rogue employee that totals them (as a bad example), or some other unlikely but possible event.
SCHD is an ETF making up over 100 companies :)
@@Dividendology but it is still administered by a single entity, right?
The entity has no control over the stock prices
By the time you can earn a living solely on dividends you will be too old to enjoy it
130k and u only got 800 dollars payout? Hell no i rather scam
A lot of useless graphs and you don't have the most important data, annualized return.
you would have made more and risked less by taking that same money and investing in T-bills.
My portfolio will destroy t-bills long term and already has.
@@Dividendology long term, most likely. But when t bill are at 5.4%+, probably not. I'm not all for any one solution. Right now, I've got $500k+ in t bills, bc it makes more money with less risk. When it makes sense to switch back to the market, I'll do it.
You missed out the market going up 20%+ this year then.
You have 50% of your portfolio in one stock!?
Yes! It’s an ETF though. Big difference.
It is BS
Wow. Amazing. Can we also have the combo or key to your safety deposit box, along with your vacation schedule since you are freely giving out personal financial information? Society gets more rock solid with each passing generation. Sad.
It’s not that deep, he just sharing his investments
What are you on about? He didn’t share his passwords
I watch several RUclips videos on how to trade in the stock market but haven't made any head start because they are either talking some gibberish or sharing their story of how they made it and I do not want to make mistakes by taking risks in my own hands
Good video dividendology!
Thank you!
Great video! Your portfolio does have more holdings in the technology industry than the graph represents tho cause SCHD consist of many businesses in the tech industry. Tech is SCHDS largest holdings industry wide
Man I need to learn how to make this kind of chart .. very impressive
Thanks!! It took quite some time. That’s why I make it available to download.