The simple path to wealth with dividend investing (SCHD & DGRO)
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- Опубликовано: 20 сен 2024
- The simple path to wealth with dividend investing (SCHD & DGRO)
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How my net worth grew from $0 to $2,000,000 in 10 years: • How my net worth grew ...
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#DividendGrowthInvesting
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Dividend reinvestment calculator: docs.google.com/spreadsheets/d/1W8UvXLZdEpVX-UPTKiHIT1oYIkj7Omvf30FgB3FTKWY/edit?gid=139608451#gid=139608451
I got a late start to investing, but I still have a 20-year time horizon. I’m focused on dividends, but I’m still investing in S&P 500 in my 401K, since they don’t have anything dividend-related, with my Roth IRA focused on dividends. Just had a conversation with my 13-year-old daughter about the importance of investing. Getting her started early so she can have options when she reaches adulthood.
I have been a dividend focused investor for a long time. This does not mean I don't own growth stocks, I do. A well rounded portfolio should be a mixture of both categories. I invest in the market, but never put all my money in market.
SCHD, SCHG, and AVUV equally weighted without rebalancing would likely give a higher return over a long time period which could be converted further into SCHD and various REIT’s as you near retirement. Don’t forget growth when you’re younger but especially don’t forget small cap value which has had the best returns long term.
Good to diversify and understand your investing goals.
Dude! This video is Gold!! Thank you so much for this information and these tools 🛠️ may God bless you so much!
Glad it was helpful!
I simply love when you talk about your simple path to wealth on DGI. I really wish I could do it... but as a non-US citizen, I can't afford a -30% tax on every dividend payment. It'd be something like "investing with handbrakes pulled up". Too much friction.
Yeah some countries tax dividends at a higher rate. Would it be possible to invest in growth while you work and fund your portfolio and then rebalance in the future and buy dividend stocks/ETFs?
@@DividendGrowthInvesting Thanks, Jake, that's what I'm doing =]! I'm on a core/satellite approach with a total world + factor investing accumulating funds domiciled in Europe (tax friendly). I'll keep building it up until 10y to retirement - when I'll switch to distributing/dividend funds. Nevertheless, I'm a preacher of your Simple Path here: I spread the word to everyone. Keep it up!
@@PhilbertOSapo It sounds like you are on a great path! Thank you so much for spreading the word! I appreciate it!!
For us European citizens, What do you think about investing into individual companies trying to replicate DGRO and SCHD? That way you don't have the massive tax disadvantage. It's much more work though.
@@fernandoh.8879 I wouldn't try and copy it 1 for 1, but you could map your portfolio in a similar way. The benefit of ETFs is they rebalance and reallocates the holdings over time and reduces your risk.
LOL hilarious intro 🤣. I just open a retirement account for my 22 Yrs old daughter. I'm going to follow your DGRO/SCHD approach in her account.Thank you Jake, I really enjoy your channel!
lol that fish! Really glad to hear you are adopting the simple path to wealth with dividend investing for your daughter!!
Just found your channel love your content I’m 24 and getting started on my investment journey.
Welcome aboard! Glad to hear you found the channel! 24 is a great time to start investing! If you haven't already, make sure you understand how to invest based on your time horizon and understand if you want to focus on dividend investing or the 4% rule. If you haven't seen it already, you can learn more about that in this video: ruclips.net/video/ZL9uEQBhcao/видео.html
24 is a great age to start. Schd and dgro are amazing to start. Also take a look at SPLG. Those 3 etfs are an excellent start
That clip of the guy getting in water with that large fish was hilarious!! I would stayed on the boat with my life jacket on! Thanks for this video... I'm a big fan of using ETF. I plan on learning more about evaluating stocks but it does add work and stress to managing a dividend portfolio.
ETFs are my favorite way to invest. Thanks for watching!
This is one of my favorite videos is all time and I have watched it several times while driving to work in the morning! Thank you for your work! I love SCHD, JEPQ and HDV
thank you Jake! I'm 19 years old and am happily looking torwards the future, and I'm hoping to be financially free as soon as I can! Thank you for your insight
Well steer clear of dividend stocks. Total return is all that matters, like he said.
Glad it was helpful. Focus on growth and dividend growth to start until you figure out your time horizon and goals.
Save,save,save!!!!
Great video, I'm a fan of your Simple Path to Wealth videos since they're more attainable and realistic then the overly complicated videos by other content creators. It's a far more ideal route for most investors than the hyped stocks that get pushed on RUclips.
Glad to hear you like this approach. Its not the most flashy.. but I don't think investing should be flashy. I really like what JL Collins shares in the simple path to wealth. My approach was entirely inspired by him!
With long term calculators such as this one, I think that the price appreciation should be equal to the dividend growth. If SCHD /DGRO were to generate those high dividends in the future, the market would value that and the price would increase, keeping the long term dividend yield in that 3-4% range. Love the videos and your approach to investing!
Loving it Jake! Hope you've been well and make sure to talk about Taxation since it's a glossed over yet extremely important topic for everyones path!
Hey!! Glad you enjoyed the video! Yeah taxes are a very important part of investing. Check out this video I made on paying zero taxes on your dividend income: ruclips.net/video/9_LX-ayAzo0/видео.html
That fish video! Love the channel for this stuff!
lol :)
Looks like everyone enjoying the video clip 😂😂😂.. Great video Jake, have a great week!
lol ya! Thanks! You too!
One of the best and most informative videos out there, really nice job with this one, mate.
Thank you!
You’re awesome Jake! Thank you!!!
Appreciate you watching!
What about transferring over from growth to dividend income 2 years before you retire?
Yup that works as well
Jake! You’re using numbers from the greatest bullfrog market in human history!!!
lol omg as I tell my wife on a regular basis.. calm down.
@@DividendGrowthInvesting the plot thickens
Yes I love these. My approach and it feels good when you back it up 😁
Yeah!!! Appreciate you watching!!
Great video Jake. I look forward to every one. Also love the new programs with interesting articles.
Hey Michael!! Appreciate it man! Glad you like the new series! I’ll see ya on Thursday!!
“MOM…THE MEATLOAF!!” 😂😂😂😂
lol omg!!! Thanks, Mike!!! I saw your other comment. I’ll take a look if I can find something and if I do I’ll reach back out! Have a great weekend!!
Good video bro! My preference is to have dividend growth coupled with leverage ETFs like UPRO
@@chris-rios I’m curious to know how that goes with the markets currently at all time highs.
Thank you for this!!!! Yay!
Glad you are here!!
Income has been on portfolio visualizer 3yrs for sure. I've spent many hours running scenarios on it also. Another interesting thing to do is look at what would happen if your parents invested $1000 in to a stock when you were born....hint: we could have all been millionaires 😂😂
I would add 10% VWO for international exposure
Thinking about using this simple path dividend portfolio. I am a huge fan of JL Collins method especially coming from a non-financial but do it yourself background. I was calculating theoretical dividend returns and it seems like to may be worth the risk of solely using SCHD instead of adding DGRO. What are your thoughts on this ?
I talked about this more in detail in my last review my pie towards the beginning of the video. You don't get enough market participation with just SCHD. You want to add something like DGRO to gain more market diversification.
Thank you very much for the reply and insight!
LETSGOOOOO I love these videos and videos like this thank you much 🙏
Hey!!! Happy Sunday!! Glad you like them!
I love dividend investing, getting those payments in for just holding a company is amazing. from what I've witnessed it all comes down to having a Licensed investment Adviser to handle your portfolio. All thanks to mine who has traded my savings daily from quarter a million to almost one million dollars in the last 9 months. ❤✅
Thank you!! That is a great goal and one that you can see come to reality month over month as your dividend income grows!!
Amazing ! I have Liquid $150K to put into stocks, but i want to ensure good profits & safety. how did you find the right Investment Advisory?
Essmildaa Morgan is well known, just look her up
Thank you! I will do just that .
Essmildaa Morgan is finally getting all the popularity she deserves and this doesn't come as a surprise.
Two powerhouse combo!
I’m going to start dividend investing very soon I’m 21 years old, should I continue investing in a Roth as well? I want to retire around 45-50 but I’m not sure if I should continue investing in a Roth if I plan on retiring early.
Yeah I would not neglect your Roth IRA completely. I personally invested a lot of money up front in my Roth IRA enough to have it coast in the background and then focused on my taxable accounts. Depends on your strategy.
@@DividendGrowthInvesting copy 🫡
Also just to confirm with an advice you gave on a older “the simple path to wealth” video with dividend investing, it’s smarter to add in an ETF such as VYM if im investing for 20+ years, I’m not sure if that advice is still on the table since that was an older video.
@@DividendGrowthInvesting thank you for your videos, I found your channel today and I’ve learned so much 🙏🏾
Great video bro, keep it up!
Appreciate it!
My 2024 investing strategy;
“Hold on to the fish!” 🐟
lololol
Great presentation, Can you share the link to the spreadsheet? thank you
Dividend reinvestment calculator: docs.google.com/spreadsheets/d/1W8UvXLZdEpVX-UPTKiHIT1oYIkj7Omvf30FgB3FTKWY/edit?gid=139608451#gid=139608451
Good content as always. The “Display Income” feature existed in the old version too.
good to know!! I never saw it before! This makes it so much easier to use the dividend reinvestment calculator for a portfolio!
Whats the real difference between VYM and DGRO? Their weight?
@@manueldelgado5336 well they are very different indexes. Check out my videos on how to invest based on your time horizon. It’s the dividend growth rate and the yield.
@@DividendGrowthInvesting thanks! Will check it out. Does it also mention alternatives for SCHD in case we cannot invest in that one?
Hi Jake, great video!. i personally use SCHD/VIG, is that a good combo? Also where can we access your dividend investment calculator that you created?
VIG is also good. VIG and DGRO are very similar. Dividend reinvestment calculator: docs.google.com/spreadsheets/d/1W8UvXLZdEpVX-UPTKiHIT1oYIkj7Omvf30FgB3FTKWY/edit?gid=139608451#gid=139608451
Great show. My portofolio VOO QQQM SCHD
I like that you end with "and you might have to save more". Like you said, a lot of people don't want to hear that.
I think Buffet said that successful investing is about temperament, not intelligence. This really hammers that home.
Hey Mike! Yeah... sometimes people don't want to hear the truth because it makes them uncomfortable. Learning to be comfortable with being uncomfortable is something that takes time. Ya... Warren really has the best quotes.
lol that fish intro.. hilarious!
lololol
Bros's never getting on another boat again!😂 I haven't put much in my 401k this year. It's up 10k in six months. $110,200 😮
lolol yeah! dude thats amazing! The snowball is working!
Yes!! Love this! Gives me motivation to keep staying the course. Thank you, good sir for all the education you have shared. Its truly so valuable and i always hear the biggest regret is not starting sooner. Thanks for everything.
Really glad to hear you liked it! One day at a time!!
Sadly in Europe we can't invest in SCHD
:(
Nice video. But why not investing in VOO since it has the best total return in comparison to e.g. DGRO? if the goal is reaching the FIRE as soon as possible the total return reach the person faster to that particular point. After that one can switch the portfolio to a higher yield, it's it?
Both could work. There are pros and cons to both approaches. I personally do a combination of both. I invest for growth in my Roth IRA and dividend growth in my taxable accounts. Depends on your goals risk tolerance etc.
Thank you for making this video Jake. I do have a question though. In the video you mentioned that the total return of investing in VOO would likely be higher than DGRO & SCHD. My question is if the investor was ok with the higher volatility of the VOO, would it make sense to invest in VOO for some period of time, and then rotate into DGRO & SCHD or would the tax hit offset the higher returns?
100% it could make sense! You have to remember though that the timing could get tricky if you are unlucky. Imagine you wanted to rebalance in 2008 or 2020 or 2022. You can get very unlucky or very lucky with the timing. In theory, over a long time period, focusing on growth and then rebalancing into DGRO/SCHD could work very well. I personally recommend that people consider doing both. Investing in SCHD/DGRO and also in growth that way you don't have all of your eggs in one basket. I invest in just growth in my Roth IRA and in SCHD/DGRO in my taxable accounts. Find what works for you and go for it!
@@DividendGrowthInvesting what would you recommend to invest in in a 401k account then, or do you not suggest not investing there if trying to retire early since that money is technically not accessible before 59.5? I guess how would you suggest prioritizing investments there and what types of investments (dividend or growth oriented?)
Any thoughts on SCHD having a big selloff with Schwab having another rocky quarter?
unrelated
Please excuse me but I'm having trouble accessing all the tools you mentioned you created above. Can you simply cite the link(S) for the "Dividend Re-investment Calculator, Portfolio Models etc.?" Thank you for your patience.
Here you go:
Dividend reinvestment calculator: docs.google.com/spreadsheets/d/1W8UvXLZdEpVX-UPTKiHIT1oYIkj7Omvf30FgB3FTKWY/edit?gid=139608451#gid=139608451
www.portfoliovisualizer.com/backtest-portfolio
@@DividendGrowthInvesting Excellent. Thank you
They have had the income view before the update it was just not as easy to find.
good to know! Yeah I never came across it before.
Hi Jake, not sure if I missed this but how do you get 5yr dividend growth for JEPI and JEPQ? Prob not enough data on this yet. Is there a % we can assume? I am trying to calculate total dividend growth rate. Thanks.
We don’t have the history to back test it. I personally use 0% dividend growth for covered call ETFs in my projections. Thanks for watching!
Hi Jake! Great video. You mentioned in this video that the excel sheet used was a free tool you created! How can I get it?
Thanks
HEY JAKE! Great video. I'm not great with computers would appreciate if you could run model 40/40/20 schd vgt jepq thx bro. Great work I'm on the path
You would have much higher capital appreciation and about the same dividend growth. VGT is not ideal to live off the income. You would most likely want to consider rebalancing out of VGT later on and adding a higher dividend ETF if your plan is to live off the income from your portfolio.
Your voice sounds like Tim Sykes the penny stock guy
lol I’ve heard someone say that before
Thank you for great video as always.. Jack what is your view on CGDV etf for long term along with SCHD?
I've had a few people comment about this ETF in the last few days. I'm assuming another youtuber talked about it in one of their videos. I'd have to do a deep dive, but on the surface, I much prefer DGRO!
@@DividendGrowthInvesting Thank you.. see if you get a chance to look in detail.. it is actively managed with low expense ratio with good returns.
Thoughts on HDV?
I like HDV but more for just income. I look at HDV as a good satellite position of 1-10% of an overall portfolio for someone retiring very soon.
@@DividendGrowthInvesting Thank you sir!
Hi
hey there!! Happy Sunday!
@@DividendGrowthInvesting thanks you to
Second!
Hey Ethan!!!!
That clip is in the top 3 of all your clips. Hahaha, I couldn't stop laughing. It took me 5 more minutes to finally get focused on the video. I look forward to seeing what type of clip is next. Thanks for sharing your knowledge.
Glad you enjoyed it!
How do we use your calculator? I don’t see the link
in the pinned comment
@@DividendGrowthInvesting thank you!!
Anybody know of a good portfolio visualizer alternative? The new version is so awful.
Yeah I don't like the UI. The data they provide is very valuable though.
One thing I *strongly* caution against is looking too far forward when your calculations have the capital appreciation and the dividend cagr set to different rates. In a couple years, probably no big deal but if you look at the difference over 30 years you'll notice some ridiculous yields. That isn't just the magic of compounding; that's an illogical expectation. We can't take historical growth rates, project forward, and expect the market to ignore a 10% yield on SCHD.
Yeah I think keeping it more conservative is the best approach. I will say though that compound rates are easier to maintain with ETFs than with individual stocks because the weighting allocation is market cap weighted and based on the survival of the fittest. I feel much more confident with the numbers when looking at ETFs compared with individual stocks.
The fish bahahahah omg.
lol omg :D
I am still confused if I should go for VOO or SCHD/DGRO :(
Just do all of them 😊
In Sept 2023 DGRO dividend was $0.39
In Dec 2023 DGRO dividend was $0.37
In Mar 2024 DGRO dividend was $0.31
In Jun 2024 DGRO dividend was $0.29
Where is the dividend growth?
Compare the payments in sept vs sept etc. and you will see it :)
@@DividendGrowthInvesting
Ok, going back 5 years I see an annual average dividend increase of over 30% (2019/2020 compared to 2023/2024). Thanks for the insight. As you suggest, DGRO is a complement to SCHD in my portfolio. And the overall price has gained substantially.
Inflation entered the chat
I have to reach "professional investor" status to be able to invest in those funds, I just need quarter of a million more to get to the minimum required 😅 (€ 500K).
Hi Eva!!! The "simple path to wealth with dividend investing" which was inspired by JL Collins is mostly focused on keeping things simple and not over complicating things. You could substitute SCHD/DGRO with other local options that are available to you. There is a lot of red tape when it comes to investing in Europe :( I remember very well. I hope you are doing well!
I still dont get why people at young age would go for dividends. Less capital efficient and less returns overall. From your 20s to 50s you go ham on growth. Then probably sell for dividend....
Yeah ideally focus on growth or dividend growth with a longterm time horizon.
i have two words for you; "life annuities" or term annuities. your principle is protected, you get an agreed interest rate, noo dividend cuts... the stock market is to crap... so many companies paying dividend while dumping shares on the market... little to no dividend.. if you are younger you can buy an annuity that lasts until you can collect retirement funds... or how about mean reversion silver trading? trading real wealth? sure some small percentage in liquid high yielding funds on the stock market... but i would not put all your retirement dreams on this.
Well different strokes for different folks I guess. I appreciate you taking the time to watch!
@@DividendGrowthInvesting at& t paying dividend while dumping shares on the market? So many stock like johnson and johnson, coke dividend so small.... Annuity will provide much better cash flow, with no risk...
Look at funds like CASH on the Toronto stock exchange . Or CSAV. High interest dividend payed monthly. Your principle is protected... Reliable interest to spend or compound.
Have you read the "ponzi factor" book? People are waking up to what the stock market has become...
Recap: Go to the casino and win.
Lol
So where is the calculator link?
Dividend reinvestment calculator: docs.google.com/spreadsheets/d/1W8UvXLZdEpVX-UPTKiHIT1oYIkj7Omvf30FgB3FTKWY/edit?gid=139608451#gid=139608451
absolutely no way you went from $200 to 800k in 5 years just with dividend funds.
Check out this video: ruclips.net/video/JtZWsyIpaKw/видео.html