I prefer a hybrid approach…covered call etfs are my favorite…second is high yield…third is dividend growth…this approach has produced very good results…
I invest primarily in individual growth dividend stocks such as PG, PEP, HD, IBM etc. I own around 25 stocks and sell covered calls on these stocks strategically where I’m looking to just double my annual dividend amount. I also own some pure income holdings (10% of my portfolio) such as JEPI, VZ, MO, IRM, MAIN etc. I took early retirement 7 years ago so for me its all about cash flow so I also run a completely separate wheel options strategy on the indexes such as IWM, SPY, DIA, RSP etc. I have around $1.7 million and this year will make approximately $60K in dividends and my options income will be lower this year at around $40K. Last year my options income was $63K. It’s a game changer. What is nice is I don’t sell shares to pay the bills and my total return is outstanding.
My approach: just *growth* (single s&p500 stocks w/o dividends and index ETF), price appreciation of 'growth' assets > 1'000% then fuels pure *income* investments >10% annual dividend yield (ideally keeping the NAV and in consequence the dividend level as well like CEF, cc ETF, and BDCs, MLPs, REITs, preferred stocks wrapped in ETFs). No *dividend growth* stuff, that's neither fish nor fowl, just for folks having no idea what they wanna achieve in which time with their bucks. 😊
Many dividend growth investors want to take advantage of the Canadian dividend tax credit which can have a negative tax rate at the lowest tax bracket in some provinces. But dividend growth funds do not necessarily pay dividends. GDV has never paid out dividends since its 2018 inception but rather ROC and some capital gains.
Soooo I'm mostly in growth at the moment and looking to reach FI in 8 years. When I reach FI I plan to allocate just enough to Income covered calls etfs to pay bills and still keep a good portion in growth etfs in rrsp. Should I be getting into income covered etfs now (I like hyld and qqcc) I think vdy and schd is a waste of time why not just go hcal and or other cc etfs.
For all the securities mentioned, what would be the ones to be an RRSP and which to be in a TSFA, are any of them Canadian or all US with the 15% holding tax. Thank you!
I have 2 questions if you don't mind. If dividend ETF out performs income ETF then how come you do not buy at least 1 dividend ETF? What strategy you use so an income ETF will outperform a dividend ETF? Thanks for continuously educating us.
Outperformance is not always the main goal. Some investors prefer to give up some performance for a higher monthly payment. The performance of an inocme ETF can be increased with leverage. Leverage can also give back the upside that is lost by covered calls. Covered calls are needed to produce high income. Case in point: the year-to-date Total Return of QQCL (NASDAQ-100 index) which has been around since October is outperforming ZNQ (as well as mutual funds BMO95120, TDB908). QQCL is a leveraged covered call ETF with a yield of 13.74%. ZNQ pays at the end of the year amounting to less than 1%. The year-to-date Total Return of both funds is 13.24% for QQCL and 11.53% for ZNQ (and 11.49% for BMO95120; 7.72% for TDB908)
because that's not my objective. if total return is your mission, you would not even have dividend ETFs you would have index ETFs because those outperform dividend ETFs
Great video, as usual. I do a hybrid- I get huge monthly dividends from QQQY, JEPY and SVOL. And use most of those dividends to buy SCHD, VOO and QQQM every month.
i learn a lot from your videos and started using some ideas i learned; and going to join the membership because i am worried about the future in US with possible stock losses. So far just doing dividend with drips and have 5 years till retirement. Hope to meet more people in the group
Interesting. I just posted this same video idea 4 hours before you. Great minds think alike hahah. So many people seem confused about cone investing. Some of your videos have definitely helped me understand more clearly and inspired me to also start sharing my journey on income investing. Thanks for sharing your knowledge of investing with us.
I love the income style :) As long as the person is reinvesting is all of it to speed up the compounding. I buy Assets with the Income. Always grateful to you @Adriano :)
Yes, except in a non-registered account you get dinged with the taxes for all the income received during the year. Many growth funds pay nothing thereby accumulating the unrealized gains until the fund is sold.
I would like a video regarding renting for the remainder of one's life. I know financially the numbers probably don't make sense in comparison to owning real estate but the headaches of real estate don't set well with me. I'm asking because I thought I heard you state that you rent for essentially the same reason. Thank you.
I prefer a hybrid approach…covered call etfs are my favorite…second is high yield…third is dividend growth…this approach has produced very good results…
the best approach is the one that works best FOR YOU! - thanks for sharing my friend
I invest primarily in individual growth dividend stocks such as PG, PEP, HD, IBM etc. I own around 25 stocks and sell covered calls on these stocks strategically where I’m looking to just double my annual dividend amount. I also own some pure income holdings (10% of my portfolio) such as JEPI, VZ, MO, IRM, MAIN etc. I took early retirement 7 years ago so for me its all about cash flow so I also run a completely separate wheel options strategy on the indexes such as IWM, SPY, DIA, RSP etc. I have around $1.7 million and this year will make approximately $60K in dividends and my options income will be lower this year at around $40K. Last year my options income was $63K. It’s a game changer. What is nice is I don’t sell shares to pay the bills and my total return is outstanding.
My approach: just *growth* (single s&p500 stocks w/o dividends and index ETF), price appreciation of 'growth' assets > 1'000% then fuels pure *income* investments >10% annual dividend yield (ideally keeping the NAV and in consequence the dividend level as well like CEF, cc ETF, and BDCs, MLPs, REITs, preferred stocks wrapped in ETFs). No *dividend growth* stuff, that's neither fish nor fowl, just for folks having no idea what they wanna achieve in which time with their bucks. 😊
Thanks Adriano! I’m definitely a hybrid investor & VDY is a 3% allocation in my Canadian & SCHD is a 10% allocation in my RRSP 🙌🏼
If I bought GDV from Robinhood, are there management fees?
Many dividend growth investors want to take advantage of the Canadian dividend tax credit which can have a negative tax rate at the lowest tax bracket in some provinces. But dividend growth funds do not necessarily pay dividends. GDV has never paid out dividends since its 2018 inception but rather ROC and some capital gains.
yes they do have tax advantages but only at lower tax brackets and only on non registered accounts.
Very well explained, thanks Adriano! I’m a new income investor but overwhelmed with the amount of options in Canada
What about fees with GDV?
its .85% fee as it states on their site
@@PassiveIncomeInvesting GDV is not etf! $Global Dividend Growth Split Corp (GDV.CA)$ ---i heard u sad what they hold?
Hey Adrian, is their any high yield etf for consumer staples for Canadians
nope
Soooo I'm mostly in growth at the moment and looking to reach FI in 8 years. When I reach FI I plan to allocate just enough to Income covered calls etfs to pay bills and still keep a good portion in growth etfs in rrsp. Should I be getting into income covered etfs now (I like hyld and qqcc)
I think vdy and schd is a waste of time why not just go hcal and or other cc etfs.
the key is understanding there are many many roads to get to a goal. its a matter of finding the one that makes the most sense to you
Thanks for digging into some clarity on the investment styles. Learned something new today !!
thanks Craig!
My 4 funds for my RSP are SCHD and SPYD and DGRO and SVOL all U.S. listed
For all the securities mentioned, what would be the ones to be an RRSP and which to be in a TSFA, are any of them Canadian or all US with the 15% holding tax. Thank you!
Are you still on qqqy or any defiance ?? Ita scary how.th3 chart are lookimg
yes the monster under your bed is also scary when you are a kid. but then you grow up and understand things better
My other question qqqy iwmy or jepy ?? Any suggestions ??
I have 2 questions if you don't mind. If dividend ETF out performs income ETF then how come you do not buy at least 1 dividend ETF? What strategy you use so an income ETF will outperform a dividend ETF? Thanks for continuously educating us.
Outperformance is not always the main goal. Some investors prefer to give up some performance for a higher monthly payment.
The performance of an inocme ETF can be increased with leverage. Leverage can also give back the upside that is lost by covered calls. Covered calls are needed to produce high income.
Case in point: the year-to-date Total Return of QQCL (NASDAQ-100 index) which has been around since October is outperforming ZNQ (as well as mutual funds BMO95120, TDB908). QQCL is a leveraged covered call ETF with a yield of 13.74%. ZNQ pays at the end of the year amounting to less than 1%. The year-to-date Total Return of both funds is 13.24% for QQCL and 11.53% for ZNQ (and 11.49% for BMO95120; 7.72% for TDB908)
because that's not my objective. if total return is your mission, you would not even have dividend ETFs you would have index ETFs because those outperform dividend ETFs
Great video, as usual.
I do a hybrid- I get huge monthly dividends from QQQY, JEPY and SVOL. And use most of those dividends to buy SCHD, VOO and QQQM every month.
SCHD is a great investment IF you have 30 years to wait. It’s a slow but steady grower.
VOO will beat it
i learn a lot from your videos and started using some ideas i learned; and going to join the membership because i am worried about the future in US with possible stock losses. So far just doing dividend with drips and have 5 years till retirement. Hope to meet more people in the group
Interesting. I just posted this same video idea 4 hours before you. Great minds think alike hahah. So many people seem confused about cone investing. Some of your videos have definitely helped me understand more clearly and inspired me to also start sharing my journey on income investing. Thanks for sharing your knowledge of investing with us.
thanks bud!
Well said Adriano!
Good presentation as usual! Keep up the good work!
Much appreciated!
I love the income style :) As long as the person is reinvesting is all of it to speed up the compounding. I buy Assets with the Income. Always grateful to you @Adriano :)
grateful for your comment!
Great video Adrian, thanks
Very well explained Adriano. Thanks!
Income investments that are dripped become growth investments.
Yes, except in a non-registered account you get dinged with the taxes for all the income received during the year. Many growth funds pay nothing thereby accumulating the unrealized gains until the fund is sold.
yes you can look at it that way!
Very helpful. Thanks
First! Thank you!
I would like a video regarding renting for the remainder of one's life. I know financially the numbers probably don't make sense in comparison to owning real estate but the headaches of real estate don't set well with me. I'm asking because I thought I heard you state that you rent for essentially the same reason. Thank you.
headaches are what does not make sense to me
Not my thang but interesting anyway.
FDVV outperforms SCHD & VIG
my data shows SCHD outperforming but almost identical. tomato tomato
Next video: Bitcoin verse Dividend Investing
lol