I agree with you. Purely chasing yield is probably not healthy. Some diversification is needed. That's why I have SCHD. As of today, 5/23/23, SCHD has a listed yield of 3.64% and VYM has a listed yield of 3.09%. I started buying SCHD to obtain growth and a higher yield than S&P 500. At 3.64%, it's more than twice the yield of S&P 500. In addition, SCHD has grown 44% over the last 5 years while VYM has grown 25% in the same period. That said, I would rather hold SCHD for dividends and growth as opposed to VYM or SPYD.
@@tirevelation777 Dividend income would still rely on not exhausting the portfolio, which is the idea behind Bengen's 4% Rule observation. I'm not spending down the portfolio yet, but I'll be using Monte Carlo simulations and a dynamic spending strategy. If I had to pick a "rule" it would probably be 3.5%. I discussed this here: www.optimizedportfolio.com/4-percent-rule/
Get my dividend portfolio here: www.optimizedportfolio.com/m1-finance-dividend-pie/
we own only VYM for now in our small income portfolio, have spyd in our watchlist. Another great video! 🔥
have a couple spyd shares thinking of vym
I agree with you. Purely chasing yield is probably not healthy. Some diversification is needed. That's why I have SCHD. As of today, 5/23/23, SCHD has a listed yield of 3.64% and VYM has a listed yield of 3.09%. I started buying SCHD to obtain growth and a higher yield than S&P 500. At 3.64%, it's more than twice the yield of S&P 500. In addition, SCHD has grown 44% over the last 5 years while VYM has grown 25% in the same period. That said, I would rather hold SCHD for dividends and growth as opposed to VYM or SPYD.
Thanks for sharing!
Buy both only 9% overlap schd with spyd
Good plan. That's what I'm doing moving forward. Cheers@@KaskoXeroVlogs
@@richardjohnson1261 anytime 😊
If you “don’t chase” dividends, then what do you go after? Total returns?
Yep
@@OptimizedPortfolio So instead of dividend income, do you use the 4% rule or something similar for when its time for distributions?
@@tirevelation777 Dividend income would still rely on not exhausting the portfolio, which is the idea behind Bengen's 4% Rule observation. I'm not spending down the portfolio yet, but I'll be using Monte Carlo simulations and a dynamic spending strategy. If I had to pick a "rule" it would probably be 3.5%. I discussed this here: www.optimizedportfolio.com/4-percent-rule/
@@OptimizedPortfolio Thanks, I will check it out.