The market trend can turn around very quickly. In fact, the indexes often switch from a bear market to a bull market when the news is at its worst and the mood of investors is at its lowest point. I read an article of people that grossed profits up to $150k during this crash, what are the best stocks to buy now or put on a watchlist?
In particular, amid inflation, investors should exercise caution when it comes to their exposure and new purchases. It is only feasible to get such high yields during a recession with the guidance of a qualified specialist or reliable counsel.
True, initially I wasn't quite impressed with my gains, opposed to my previous performances, I was doing so badly, figured I needed to diverssify into better assets, I touched base with a portfolio-advisor and that same year, I pulled a net gain of 550k...that's like 7times more than I average on my own.
Great discussion. I have a 100 percent stock zero bond portfolio. I have 85 percent in dividend stocks and ETF's, and 15 percent in growth stocks and ETF's. I spend 75 percent of my dividends, pay tax with 15 percent, and use the 10 percent to rebalance dividends vs growth. I rebalance in January and July. I'm retired and this seems to work for me.
Where are you at now in a 2022/2023 down market? -25% to -40% FANG was blasted and now the Fed has to shred 5 Trillions dollars while fighting inflation.
I gotta disagree with you on why a company should pay a dividend!!! What is a company in business for??? To make a profit of course. Who should the profit go to? The owners of the company, of course. Paying a targeted dividend makes the management of the company accountable to the shareholders.
Rob is correct. Total return is more important than duvidends. The high dividend etfs principle prices drops more than the dividend paid over time. I gave up on the high dividend etfs, since the sp500 proved to be a better investment.
Great discussion. For us, it isn't a binary investment strategy, but dividends are part of our overall retirement strategy, especially during our gap years, that includes dividends, growth stocks, CD and treasury ladders, pension, real estate income and alternatives. Eggs in multiple baskets helps us sleep better in a risk-parity style portfolio.. without social security in the equation...
Yes indeed 👌and those whom favour a dividend ONLY approach, don't realise that they are being manipulated by their OWN inherent loss aversion bias (of selling shares) instead of just income from dividends (and shares being held - or in their eyes the fear of NOTHING Being GIVEN AWAY/Going backwards)
I agree 100%. And a well funded dividend portfolio also allows you to occasionally fuel an occasional "moon shot". I research low-cap growth stocks in the $7-$20 range, and when I find a good one I buy until my money runs out. Very profitable, but not a good tactic for funding ALL of my retirement.
Ok, I want to supplement our retirement income stream. I can buy a joint income annuity with a roughly 5+ percent payout with no residual value or buy Chevron or Exxon yielding about the same that have a long history of increasing dividends and the stock can be passed to our heirs. This dividend strategy has more risk than an insurance company going under and not paying as promised but the reward is potentially far higher.
Boomers promote growth, as all they know in their lifetime of investing is growth. 65% of historical stock market returns came from dividends. The 1970's the only returns were more or less dividends. It's a boomer bias that one should be careful to recognize. It would be wise to have some nice stable value holdings. In my opinion
I admire your dedication. I've learned alot in past videos. But as I've watched many people and spoken to different financial advisors. I don't think there is any perfect or exact way that works for everyone. Its all opinions of each person and what works for them... I own Berkshire. And while Warren Buffet doesn't pay dividends. He does invest in companies that do.
Thank you for all the information! To me, dividend stocks are still better since I'm in Canada. The reason is, those Canadian companies that pay a high dividend give better growth as well. Take any of those big banks, energy companies in Canada and combine them in any way you like, they are simply better than the SP500. You can get a much better income as well as growth.
Not to mention the Tax Free Savings Account … Between me and my wife, we have $140k invested which is yielding close to $850 month, invested about 75% in blue chip Canadian banks, telecoms, energy pipelines, insurance and utilities which increase their dividends yearly. The remaining 20% is in REITs, Royalty Funds and ETFs, while 5% is in Income Funds, Covered Call Funds and Split-Share Funds. I’m in my mid 40s and she’s in her late 30s. With reinvesting the dividends, dividend increases and buying more dividend stocks … we aim to be making $1500/month TAX FREE in 6 years, at which point we’ll be withdrawing money.
@@lawrenceweston922 if dividend is your only type of asset that's great, but if you have some growth or other equity the TFSA room is best reserved for those, as qualified dividends get much better tax treatments compared to capital gains. All this is, of course, assuming you've maxed all your tax free or tax deferred accounts and are simply optimizing tax efficiency.
@@Narcissist86 Great points, thanks for the heads up. I’m looking for Income and capital (purchasing power) preservation. I want to pay for my children’s education and give them a helping hand to get started. In about about 6 years: 1.) I’ll stop receiving tax benefits for the children 2.) I’ll stop receiving UCCB benefits for the children 3.) Their education expenses will skyrocket I’m trying to position myself for these shocks, I’ve thought that building a portfolio of relatively safe dividend stocks within a TFSA is the way to go. That $1500/month will cover the first 2 shocks, so I’m also investing in the RESP for them for the tuition. I thought about growth stocks as well, what’s your advice? I’m not concerned about retirement as our TFSA, my defined pension, my close to max CPP, modest RRSP, rental income should do us well .. I need money to help my kids start off right.
@@lawrenceweston922 Have you received the maximum CESG from your RESP contributions? if not, you might only have a year or so left of eligibility before the beneficiary is too old. Other than that, I can't think of too much else you can do. If you need something in the next 6 years I might consider beginning to shift to more conservative asset mixes. Even though bonds and GICs pay so poorly now, the fact is that the market can drop 30% and not recover for 5 years, so even dividend stocks can hurt you exactly when you need to withdraw. Ultimately it's up to your own risk appetite. Also depending on your children's field of study, I highly encourage your children to either get summer jobs or internships/co-op studies to help lessen the financial load on you. Plus managing their own finances are important lessons in and of itself. It really sounds like you're very well positioned to help them succeed.
@@Narcissist86 Another good point about the CESG, yes I’m contributing the maximum and getting the maximum CESG. I’m not risking the kids RESP in the market, it’s all in GICs which this year won’t even keep pace with inflation, I should look at bonds though. Our dividend stocks are strictly in my and my wife’s TFSA, and we’re in them strictly to build tax-free cashflow when we no longer get the CCB and face a higher tax bill due to not having dependents.
I have been retired now for four years. I worked as a firefighter for 30 years and so I receive a pension from the PERS in my state. I also contributed to a deferred compensation plan (supplemental retirement plan for government employees) that I have rolled over into an IRA post retirement. I understand that I do not have the same situation as most because I receive plenty of money in my pension to live on. That being said, would I still not reinvest dividends, or should I take the dividends for the purpose of reinvesting it in other assets?
People need to learn the basic financial statemwnts,mand what they represent. Where do dividends come from? What is the source for buying shares back? Both come from the same source - free cash flow. The decission which is better for the shareholders is clearly a nice subject for discussions. As Robert (and not just him) noticed that CEOs many times don't care what their duty are to the ownders and do everything to enriching themselves by buying shares even it makes no sense (they are way overpriced like AAPL, MSFT, GOOGL, AMAZON, etc) sometimes financed by company's borrowing, and it should be prosecuted as a form of fraud. Will this happen when people whomare supposed to guard agains such abuses themselves engage in insider trading (the FEDs, congress, etc ).
I’m only 30 min in, but I expected you to talk about tax efficiency of selling stocks vs taking dividends - capital gains vs ordinary income. I balance invest. I go about growth and value - dividends come along for the ride.
I was live in the chat the rest of us had some great fun at your expense. All good! We kept watching where your eyes we going, is he going to read chat and when you put your hands up I did it to….then went an made coffee.
Yes, dividends might be the *only* return in this case. We've been in a bull market so long that people can't imagine it stopping. A fine fund like SCHD can pay the bills, and doesn't need to be managed in any way. I'm not opposed to growth stocks btw; I own both. @Jennifer
Keep in mind that an S&P 500 index fund pays a dividend. The issue is focusing on investments simply because they pay a yield higher than the market. A somewhat higher yield, like from SCHD, is perfectly reasonable in my view. But stretching for a 4 or 5% or higher yield often leads to lower total returns in the long run.
Great video. Total return is number one, but you can achieve some pretty amazing total returns with dividend growth companies. You can have your cake znd eat it too, just requires more research
Gotta keep disagreeing with you on this……I’m totally open to being refuted, but so far you haven’t really done it. With regard to Warren Buffett, the adage applied to politicians applies: forget what he says and look at what he does……if you look at BRK as WB’s personal portfolio (which it really is), he absolutely LOVES collecting dividends.
People always speak of the link between cash flow and stock price, but I'm yet to hear anyone explain in detail exactly how this works. Is there any inherent value derived from cash flow, or is it purely an extension of the fact that the company is doing well which naturally attracts more investors? If it's the former can you flesh it out better than the nebulous terms most speak of it in and break this down block by block?
I disagree with some of your assumptions and conclusions about using dividends only. Yes, dividends do impact the overall value of your holding over time BUT it isn't as if dividends are an unknown to the company that is paying them. They are budgeted, just like investing in R&D, new products, customer acquisition, etc. Much easier to live on dividends as compared to share selling. Plus, with living on dividend paying companies that increase them every year, even in bad times, is a much easier target to hit as compared to owning the right stocks you can trim and rebalance into. I have not had a single year in which my dividend increases were not well more than the inflation rate. If I had to harvest shares, the period from 2000 to 2010 could have been fugly. Your SCHD vs SPY comparison is apples to oranges as they are two completely different funds plus you happen to run a period of time that is a bull market for nearly the entire period. Also, one can get dividends without using ETFs at all. Best to build your own as when buying an ETF you are buying what they hold regardless of the valuation of any single holding, which means you are going to be overpaying for many stocks if you rely on ETFs only. You also have no control on if the ETF will actually grow dividends every year as not every dividend ETF grows the dividend. They pay dividends but aren't always built around growing dividends over time.
@@chrisa.515or geared to those coming up to or already in retirement but assuming they already have a large portfolio of stocks (and possibly bonds and others)
@Rob. I have a difficult time getting my head around the value of any dividend investing plan when I think about a single stock risk such as earnings. Look at CLX as an example, or JPM. Blue chip dividends tend to pay around 3%. When i look at selling a covered call on a major ETF such as QQQ, I see better returns. I just looked at selling ATM call on QQQ at expiratin 365 days away. It equates to 10.8%. Here I have liquidity, diversity, and a return bigger than inflation. Rob, can you provide your point of view on using a covered call in lieu of a dividend investment for retirement?
Bruh...we've been in a 13 year hyper bull market and that was preceded by a 7 year hyper bull market...when this collapses, which it will, dividends will become very important. you are VERY off cycle right now...
I have been investing since 1989. I have seen many different markets. What I figured out matches what Rob says. In the long run, dividend ETFs do not out perform the sp500, nasdaq or growth funds. Everyone knows the stock price is dropped by Wall Street the exact amount of the dividend...... to the penny. Keep your core stock bucket in. Sp500, sp100, nasdaq, dow 30..... your dividends should be a satellite investment... not your core holdings. The bigger the yield, the lower your total return. Go look at the fat dividend etfs of DIV and SDIV, they just keep dropping.
I appreciate your insight on dividends, and agree completely with your analysis with regard to dividend payments in retirement accounts. I am curious about them in taxable brokerage accounts, though, given their preferential tax treatment vs the capital gains taxes you’d have to pay directly selling. Do you have any perspective on this? I’m all for targeting best total return, but the post tax return is the number I really care about. I envision a future where I take income from a variety of accounts, so when one’s income is from a lot of sources, does it make sense to target dividends in a taxable account as a starting basis, or since there’s enough “regular” income from the other accounts is it a wash?
If you have to doubt a company’s leadership, you’re investing in the wrong companies. And when it comes to buying the S&P, they have to be one of the top 500 profitable US businesses. Pretty safe bet IMO
Isn't this really about risk profile? The largest companies paying dividends generally represent lower risk versus the S&P 500. As investors get older, they may want to add more fixed income/bonds. Bonds haven't been doing so hot for some time. Dividend stocks can be a better alternative. Also, for investors who feel their portfolio already has too much risk, they may decide to add new money to dividend stocks to begin to shift the risk to a lower level. This 2nd consideration is why I'm adding some dividend stocks. Does this make any sense? : )
My two cents: The US has many of the greatest companies in the world. The S&P contains the top 500 that are profitable. Risk free? Absolutely not. Diversification is important, and you are asking the right questions. But perhaps you are confusing *risk* with *volatility*? If the S&P blows up, so does the stock market and probably a whole lot else. So perhaps focus on portfolio weighting (S&P vs T-bills vs…) rather than favoring a subset of stocks? IMHO
So if someone wanted to have a dividend ETF in their portfolio, how much would you recommend ( what percentage of the portfolio ? ) should be in dividend stocks or ETF's ? Would appreciate if anyone has any thoughts, any comments...
I personally don't tilt my portfolio by more than 10%. So, for example, if I want small cap value, I'd put no more than 10% in a SMV fund. Same goes with a dividend ETF, which to me is more about the value tilt than the dividend tilt.
Great video. Total return is number one, but you can achieve some pretty amazing total returns with dividend growth companies. You can have your cake znd eat it too, just requires more research
![The Dave Ramsey Portfolio vs Low Cost Index Funds [Live Q&A]](http://i.ytimg.com/vi/MqMIltSQfZI/mqdefault.jpg)
![The Dave Ramsey Portfolio vs Low Cost Index Funds [Live Q&A]](/img/tr.png)
The market trend can turn around very quickly. In fact, the indexes often switch from a bear market to a bull market when the news is at its worst and the mood of investors is at its lowest point. I read an article of people that grossed profits up to $150k during this crash, what are the best stocks to buy now or put on a watchlist?
In particular, amid inflation, investors should exercise caution when it comes to their exposure and new purchases. It is only feasible to get such high yields during a recession with the guidance of a qualified specialist or reliable counsel.
True, initially I wasn't quite impressed with my gains, opposed to my previous performances, I was doing so badly, figured I needed to diverssify into better assets, I touched base with a portfolio-advisor and that same year, I pulled a net gain of 550k...that's like 7times more than I average on my own.
This aligns perfectly with my desire to organize my finances prior to retirement. Could you provide me with access to your advisor?
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further.
I just curiously searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you
Great discussion. I have a 100 percent stock zero bond portfolio. I have 85 percent in dividend stocks and ETF's, and 15 percent in growth stocks and ETF's. I spend 75 percent of my dividends, pay tax with 15 percent, and use the 10 percent to rebalance dividends vs growth. I rebalance in January and July. I'm retired and this seems to work for me.
Where are you at now in a 2022/2023 down market? -25% to -40% FANG was blasted and now the Fed has to shred 5 Trillions dollars while fighting inflation.
@@jettfinancial checking in from 2024 and dude is probably sitting pretty, everything at all time highs
@@TonyCox1351 took you this long to respond 😆
@@jettfinancial no I’m not the guy responding this is my first time watching this video
I gotta disagree with you on why a company should pay a dividend!!! What is a company in business for??? To make a profit of course. Who should the profit go to? The owners of the company, of course. Paying a targeted dividend makes the management of the company accountable to the shareholders.
Rob is correct. Total return is more important than duvidends. The high dividend etfs principle prices drops more than the dividend paid over time. I gave up on the high dividend etfs, since the sp500 proved to be a better investment.
Great discussion. For us, it isn't a binary investment strategy, but dividends are part of our overall retirement strategy, especially during our gap years, that includes dividends, growth stocks, CD and treasury ladders, pension, real estate income and alternatives. Eggs in multiple baskets helps us sleep better in a risk-parity style portfolio.. without social security in the equation...
Having a mixture of growth and dividends gives you best of the both worlds
Yes indeed 👌and those whom favour a dividend ONLY approach, don't realise that they are being manipulated by their OWN inherent loss aversion bias (of selling shares) instead of just income from dividends (and shares being held - or in their eyes the fear of NOTHING Being GIVEN AWAY/Going backwards)
I agree 100%. And a well funded dividend portfolio also allows you to occasionally fuel an occasional "moon shot". I research low-cap growth stocks in the $7-$20 range, and when I find a good one I buy until my money runs out. Very profitable, but not a good tactic for funding ALL of my retirement.
Ok, I want to supplement our retirement income stream. I can buy a joint income annuity with a roughly 5+ percent payout with no residual value or buy Chevron or Exxon yielding about the same that have a long history of increasing dividends and the stock can be passed to our heirs. This dividend strategy has more risk than an insurance company going under and not paying as promised but the reward is potentially far higher.
Boomers promote growth, as all they know in their lifetime of investing is growth. 65% of historical stock market returns came from dividends. The 1970's the only returns were more or less dividends. It's a boomer bias that one should be careful to recognize. It would be wise to have some nice stable value holdings. In my opinion
I admire your dedication. I've learned alot in past videos. But as I've watched many people and spoken to different financial advisors. I don't think there is any perfect or exact way that works for everyone. Its all opinions of each person and what works for them... I own Berkshire. And while Warren Buffet doesn't pay dividends. He does invest in companies that do.
Thank you for all the information! To me, dividend stocks are still better since I'm in Canada. The reason is, those Canadian companies that pay a high dividend give better growth as well. Take any of those big banks, energy companies in Canada and combine them in any way you like, they are simply better than the SP500. You can get a much better income as well as growth.
Not to mention the Tax Free Savings Account … Between me and my wife, we have $140k invested which is yielding close to $850 month, invested about 75% in blue chip Canadian banks, telecoms, energy pipelines, insurance and utilities which increase their dividends yearly. The remaining 20% is in REITs, Royalty Funds and ETFs, while 5% is in Income Funds, Covered Call Funds and Split-Share Funds.
I’m in my mid 40s and she’s in her late 30s. With reinvesting the dividends, dividend increases and buying more dividend stocks … we aim to be making $1500/month TAX FREE in 6 years, at which point we’ll be withdrawing money.
@@lawrenceweston922 if dividend is your only type of asset that's great, but if you have some growth or other equity the TFSA room is best reserved for those, as qualified dividends get much better tax treatments compared to capital gains.
All this is, of course, assuming you've maxed all your tax free or tax deferred accounts and are simply optimizing tax efficiency.
@@Narcissist86 Great points, thanks for the heads up. I’m looking for Income and capital (purchasing power) preservation. I want to pay for my children’s education and give them a helping hand to get started. In about about 6 years:
1.) I’ll stop receiving tax benefits for the children
2.) I’ll stop receiving UCCB benefits for the children
3.) Their education expenses will skyrocket
I’m trying to position myself for these shocks, I’ve thought that building a portfolio of relatively safe dividend stocks within a TFSA is the way to go. That $1500/month will cover the first 2 shocks, so I’m also investing in the RESP for them for the tuition. I thought about growth stocks as well, what’s your advice?
I’m not concerned about retirement as our TFSA, my defined pension, my close to max CPP, modest RRSP, rental income should do us well .. I need money to help my kids start off right.
@@lawrenceweston922 Have you received the maximum CESG from your RESP contributions? if not, you might only have a year or so left of eligibility before the beneficiary is too old.
Other than that, I can't think of too much else you can do. If you need something in the next 6 years I might consider beginning to shift to more conservative asset mixes. Even though bonds and GICs pay so poorly now, the fact is that the market can drop 30% and not recover for 5 years, so even dividend stocks can hurt you exactly when you need to withdraw.
Ultimately it's up to your own risk appetite. Also depending on your children's field of study, I highly encourage your children to either get summer jobs or internships/co-op studies to help lessen the financial load on you. Plus managing their own finances are important lessons in and of itself.
It really sounds like you're very well positioned to help them succeed.
@@Narcissist86 Another good point about the CESG, yes I’m contributing the maximum and getting the maximum CESG. I’m not risking the kids RESP in the market, it’s all in GICs which this year won’t even keep pace with inflation, I should look at bonds though.
Our dividend stocks are strictly in my and my wife’s TFSA, and we’re in them strictly to build tax-free cashflow when we no longer get the CCB and face a higher tax bill due to not having dependents.
I have been retired now for four years. I worked as a firefighter for 30 years and so I receive a pension from the PERS in my state. I also contributed to a deferred compensation plan (supplemental retirement plan for government employees) that I have rolled over into an IRA post retirement. I understand that I do not have the same situation as most because I receive plenty of money in my pension to live on. That being said, would I still not reinvest dividends, or should I take the dividends for the purpose of reinvesting it in other assets?
People need to learn the basic financial statemwnts,mand what they represent. Where do dividends come from? What is the source for buying shares back? Both come from the same source - free cash flow. The decission which is better for the shareholders is clearly a nice subject for discussions. As Robert (and not just him) noticed that CEOs many times don't care what their duty are to the ownders and do everything to enriching themselves by buying shares even it makes no sense (they are way overpriced like AAPL, MSFT, GOOGL, AMAZON, etc) sometimes financed by company's borrowing, and it should be prosecuted as a form of fraud. Will this happen when people whomare supposed to guard agains such abuses themselves engage in insider trading (the FEDs, congress, etc ).
Also, some companies may cut back on their dividends like ATT is planning to & or like Disney eliminate their dividends.
Att, had serious debt. They were going to cut it eventually. Always pick great companies. If they cut it, move on to the next one.
I’m only 30 min in, but I expected you to talk about tax efficiency of selling stocks vs taking dividends - capital gains vs ordinary income.
I balance invest. I go about growth and value - dividends come along for the ride.
Well, taxes are the same, at least for long-term cap gains and qualified dividends. Of course, with cap gains you control the amount and timing.
I was live in the chat the rest of us had some great fun at your expense. All good! We kept watching where your eyes we going, is he going to read chat and when you put your hands up I did it to….then went an made coffee.
This was very informative, you answered all of my questions Rob
What about closed end funds? Is there an advantage buying them vs regular dividend funds vs growth funds for that matter?
What if S&P is flat for decades like it happened in the past? Isn’t dividend better off for retirees? Thanks for the video
Yes, dividends might be the *only* return in this case. We've been in a bull market so long that people can't imagine it stopping. A fine fund like SCHD can pay the bills, and doesn't need to be managed in any way. I'm not opposed to growth stocks btw; I own both. @Jennifer
Keep in mind that an S&P 500 index fund pays a dividend. The issue is focusing on investments simply because they pay a yield higher than the market. A somewhat higher yield, like from SCHD, is perfectly reasonable in my view. But stretching for a 4 or 5% or higher yield often leads to lower total returns in the long run.
Really ?
Another guy that doesn't understand that the loss of the share price is relative to people buying or selling the stock?
fantastic, in depth video. you really do deserve to continue to grow your channel significantly 😍
Some people invest in individual dividend stocks as a place to park cash because CD’s & High Yield Savings accounts are pitiful.
Rob, another great one by you. Quick question: Do you have a session where you just go over using the Portfolio Visualizer Software?
The bucket strategy can only win in situations when stocks and bonds are both down.
Great video...thanks.
I'm shocked to see that dividend funds can be more volatile than an s&p 500.
Great video!
The only individual companies I own is apple and Microsoft. The only ones I can keep track of
Great video. Total return is number one, but you can achieve some pretty amazing total returns with dividend growth companies. You can have your cake znd eat it too, just requires more research
Gotta keep disagreeing with you on this……I’m totally open to being refuted, but so far you haven’t really done it. With regard to Warren Buffett, the adage applied to politicians applies: forget what he says and look at what he does……if you look at BRK as WB’s personal portfolio (which it really is), he absolutely LOVES collecting dividends.
Buffet says he doesn’t even look at the dividend??
@@wread1982 that's because he does not run the stock portfolio at Berkshire anymore.
@@ronloftis9080 I just remember him saying it’s all about how good the company is, and depends on it’s evaluation and financials
@@wread1982 Buffet mentions his COKE dividends lots. He loves his dividends.
@@Steven-rw8zr google why Warren buffet hates dividends numb nuts 🥜
People always speak of the link between cash flow and stock price, but I'm yet to hear anyone explain in detail exactly how this works. Is there any inherent value derived from cash flow, or is it purely an extension of the fact that the company is doing well which naturally attracts more investors? If it's the former can you flesh it out better than the nebulous terms most speak of it in and break this down block by block?
Rob, great content. Thanks for sharing your wisdom.
I disagree with some of your assumptions and conclusions about using dividends only.
Yes, dividends do impact the overall value of your holding over time BUT it isn't as if dividends are an unknown to the company that is paying them. They are budgeted, just like investing in R&D, new products, customer acquisition, etc.
Much easier to live on dividends as compared to share selling. Plus, with living on dividend paying companies that increase them every year, even in bad times, is a much easier target to hit as compared to owning the right stocks you can trim and rebalance into.
I have not had a single year in which my dividend increases were not well more than the inflation rate. If I had to harvest shares, the period from 2000 to 2010 could have been fugly.
Your SCHD vs SPY comparison is apples to oranges as they are two completely different funds plus you happen to run a period of time that is a bull market for nearly the entire period.
Also, one can get dividends without using ETFs at all. Best to build your own as when buying an ETF you are buying what they hold regardless of the valuation of any single holding, which means you are going to be overpaying for many stocks if you rely on ETFs only. You also have no control on if the ETF will actually grow dividends every year as not every dividend ETF grows the dividend. They pay dividends but aren't always built around growing dividends over time.
@@chrisa.515or geared to those coming up to or already in retirement but assuming they already have a large portfolio of stocks (and possibly bonds and others)
Hi @robberger - really enjoying the shows. Is there anywhere online where you show your own portfolio holding percentages?
@Rob. I have a difficult time getting my head around the value of any dividend investing plan when I think about a single stock risk such as earnings. Look at CLX as an example, or JPM. Blue chip dividends tend to pay around 3%. When i look at selling a covered call on a major ETF such as QQQ, I see better returns. I just looked at selling ATM call on QQQ at expiratin 365 days away. It equates to 10.8%. Here I have liquidity, diversity, and a return bigger than inflation. Rob, can you provide your point of view on using a covered call in lieu of a dividend investment for retirement?
Bruh...we've been in a 13 year hyper bull market and that was preceded by a 7 year hyper bull market...when this collapses, which it will, dividends will become very important. you are VERY off cycle right now...
Dividends will be cut. Total return is mainly what matters.
I have been investing since 1989. I have seen many different markets. What I figured out matches what Rob says. In the long run, dividend ETFs do not out perform the sp500, nasdaq or growth funds. Everyone knows the stock price is dropped by Wall Street the exact amount of the dividend...... to the penny. Keep your core stock bucket in. Sp500, sp100, nasdaq, dow 30..... your dividends should be a satellite investment... not your core holdings. The bigger the yield, the lower your total return. Go look at the fat dividend etfs of DIV and SDIV, they just keep dropping.
I appreciate your insight on dividends, and agree completely with your analysis with regard to dividend payments in retirement accounts.
I am curious about them in taxable brokerage accounts, though, given their preferential tax treatment vs the capital gains taxes you’d have to pay directly selling. Do you have any perspective on this? I’m all for targeting best total return, but the post tax return is the number I really care about.
I envision a future where I take income from a variety of accounts, so when one’s income is from a lot of sources, does it make sense to target dividends in a taxable account as a starting basis, or since there’s enough “regular” income from the other accounts is it a wash?
I like vanguard Wellington fund
Excellent screen resizing skill at 6:56! You’ve still got it! Audio is overrated!
Dividends LOCK in your gains
What about the companies that would have deployed their profits poorly? I would want them to pay me their earnings as dividends instead.
If you have to doubt a company’s leadership, you’re investing in the wrong companies.
And when it comes to buying the S&P, they have to be one of the top 500 profitable US businesses. Pretty safe bet IMO
Isn't this really about risk profile? The largest companies paying dividends generally represent lower risk versus the S&P 500. As investors get older, they may want to add more fixed income/bonds. Bonds haven't been doing so hot for some time. Dividend stocks can be a better alternative. Also, for investors who feel their portfolio already has too much risk, they may decide to add new money to dividend stocks to begin to shift the risk to a lower level. This 2nd consideration is why I'm adding some dividend stocks. Does this make any sense? : )
My two cents: The US has many of the greatest companies in the world. The S&P contains the top 500 that are profitable.
Risk free? Absolutely not. Diversification is important, and you are asking the right questions. But perhaps you are confusing *risk* with *volatility*?
If the S&P blows up, so does the stock market and probably a whole lot else. So perhaps focus on portfolio weighting (S&P vs T-bills vs…) rather than favoring a subset of stocks?
IMHO
Every time you say QQQ I think Roscoe P. Coltrane. 😅
Do you still agree with this assessment two years later?
The math says yes
rob i am 71 years old compare vwinx plus dodbx wood a 50-50 mix be right
50/50 is within the range that William Bengen found worked with the 4% rule. But of course, a lot of other factors go into this decision.
Rob, I appreciate and learn from your videos. Please be better at concisely stating your points before going into supportive discourse.
Red Sox!!!
Go all in on ZIM 🤓☑️🙃
Why companies offer it if it would hurt them on the long term?
So if someone wanted to have a dividend ETF in their portfolio, how much would you recommend ( what percentage of the portfolio ? ) should be in dividend stocks or ETF's ? Would appreciate if anyone has any thoughts, any comments...
I personally don't tilt my portfolio by more than 10%. So, for example, if I want small cap value, I'd put no more than 10% in a SMV fund. Same goes with a dividend ETF, which to me is more about the value tilt than the dividend tilt.
@@rob_berger Thank you for the perspective
It’s hard to pierce the cognitive bias armour shielding dividend investing cult members from data and facts.
Very bad advice
Great video. Total return is number one, but you can achieve some pretty amazing total returns with dividend growth companies. You can have your cake znd eat it too, just requires more research