How Much a $1 Million Portfolio Would Pay In Dividends
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- เผยแพร่เมื่อ 10 มี.ค. 2024
- Today we are going to look at how much a $1 MILLION portfolio would pay in dividends.
Dividend investing is not about year 1 income, dividend investing is about year 10+. Investing in dividend stocks is a process and takes time but the rewards are worth it. The Power of Compounding dividends is very real.
In this video I will build a new portfolio and show you how dividend growth can work for you.
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What changes would you make to the portfolio for someone focused on dividends?
I would ditch all S&P500 related companies and popular ETF's and buy for 100.000 dollar physical gold, then 100.000 dollar of pfysical silver. Then 100.000 dollar in uranium miners, 100.000 dollars in big oil companies. A 100.000 dollars into oil tankers with high yield dividends. Then 100.000 dollars into dry bulk shipping companies. 100.000 dollars into oil service companies. 100.000 dollars into the biggest gold mining companies and 100.000 dollar into homebuilders. And the last 100.000 dollars i would invest in coal companies with big dividends.
Aren't VZ, KO & ABBV already in the top 10 holding in the SCHD. I might replace the individual holdings with the VYMI to get some non-US exposure.
Get rid of the individual stocks. SCHD in 1st position because of divi growth. In descending order - VYM, FDVV, VYMI, DGRO, SPYD, IDV. Add small 2% positions in cef's such as UTG and UTF to goose dividend and add some corporate preferred etfs in 2% positions - PFF, PFXD, SPYH. If you don't want corporate etf's WFCPRL and BACPRL are top of list. Safer exchanging corporate etfs for 1-3 year treasuries but you're giving up some yield.
Thanks for the advice! I’m a fan of getting the money in the market, and continuing to do so with dollar cost averaging a set amount of money into the market each week.
New to this stock thing. Is this worth doing ?
I’m 45 and just starting this journey. I feel so behind!
Growth stocks may be a better option when you’re young. Dividends is more for older investors who want to protect as well as generate income.
I think there is a lot of opportunity to pivot the solutions offered to actually help investors. Based on personal experience working with a pro advisor, I started with less than $275K in 2022, I currently have over 7 figures in a nicely balanced portfolio, without having to sell my positions to cover bills. Everyone is different, and I don’t blame most people for going all in on stable portfolio value with quality dividend and interest producing assets in retirement.
Care to elaborate? I put in a small amount over a year ago but I’m barely breaking even.
As a CPA you should do a video about taxes on dividends and so forth
Like a forest fire that wipes out the old trees to make room for new growth, bearish periods ultimately establish a new crop of stocks to buy and watch while setting the stage for a robust new uptrend.I have been reading articles of people that grossed profits up to $250k during this crash, what are the best stocks to buy now or put on a watchlist?
For the average person, the strategies are fairly demanding. In actuality, most professionals who have the necessary expertise to pull off such trades effectively carry them out.
Yes, I've been in constant touch with a Financial Analyst for approximately 8 months. You know, these days it's really easy to buy into trending stocks, but the task is determining when to sell or keep. That's where my manager comes in, to help me with entry and exit points in the industries I'm engaged in. Can’t say I regret it, I’m 40% up in profits just in 5months with my initial capital of $160k.
Smart, If i wanted to do the same with my retirement funds too, how do i get started trading?
@@JimmyA.Alvarez
One of the fiduciaries I deal with is Jennifer Lea Jenson. Just check the name. There would be a letter with the necessary information to set up an appointment
thank you for sharing; I just looked up the broker you recommended on Google and was really impressed with her qualifications. I will immediately send her an email.
I want a balanced portfolio with growth investments, safe investments, and also focus on dividends to gain up to $20K monthly, my concern is picking the right stocks that can survive a recession. How do i go about this?
In this current unstable markets, It is advisable to diversify while retaining 70-80% in secure investments. looking at the worth of your portfolio, you should consider financial advisory.
Agreed, my portfolio is well-matched for every market season yielding 85% from early last year to date. I and my advisr are working on a 7 figure ballpark goal, tho this could take another year. IMO, financial advisors are the most sought-after professionals after doctors.
great gains there! mind sharing details of your advisor pleas? i've started gaining more cash flow with my employment and looking at putting money into stocks and alternative assets that can help build wealth over time
She goes by ‘Paula Eloise Davis’ I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
Cheers buddy. Smart and great looking lady. Hopefully will my time. I left messages, was told to expect feedback. Thank you.
Great video. Have you ever looked at LEAD? Lower yield but growth and price appreciation have been strong.
Buy a good cross section of an economy, build a diverse portfolio that keeps you motivated, speed up the process where possible: I'm all for dividends and I DRIP into Efts (ARKW, VOO, VXUS, IVV) and company stocks. After my first million I realized that when a stock starts booming chances of you finding out means you are quite late to the party, for this I make sure my CFA handles that, ever grateful to Anna Rounds Fay. It's like turning your notifications to earn more millions.
out of curiosity I did read about Anna Rounds Fay on the web, she has a great resume
Truly It’s all about accumulating wealth through compound interest investments.
found her webpage by looking up her name online.... Her resume is quite outstanding, I'll be writing a mail to her shortly
i made my focus on looking at investing from a long term perspective and watching it compound
Hi 👋
Thanks for this video
Glad to see some of my holdings is also in your list
Would it be best to have this in a retirement account or taxable investment account? Thanks.
is there a link to your spreadsheet?
Good one!! Thank you! 👍
Thank you!
I have 2 core holdings (SCHD, Broad US market), and 10 satellite ETF holdings - all dividend or dividend growth ETFs... The usual suspects: DGRW, DGRO, DIVO, SCHY, VIG, VIGI, VYM, etc. I allow myself to increase or decrease contributions to my satellite holdings while being consistent in my core holdings. I only hold one stock: BRK.B. I just don't have the confidence buying and holding single stocks. Hopefully my strategy is enough to secure my retirement 🤞🏼🤞🏼
How about just invest 100% SCHD? I’m in retirement and I like the downside protection compared with VOO, QQQ. Also like the high rate of return on dividends
I have positions in SCHD, VICI, VZ, BAC and XOM among others.
What are your thoughts on Spci coverage for the 1 million dollar portfolio? Since the coverage protects 500,000, should you have it in 2 separate brokerage accounts?
Really appreciate the video. Can you share the Excel file you used? Why only 6 individual stocks? Isn't that a bit concentrated?
The ETFs take care of the diversification.
ETFs are the core of this portfolio example
Great video content as always Mark
Great video and good spreadsheet! I do similar investing, but juice it with options for higher returns and more fun!
ABBV is a great choice for individual stock
Nice portfolio. I like how you show what is made a year. It gives people a realistic focus.
Compounding is such a beautiful thing ❤
Options are a great way to juice it up. I take a similar approach.
Thanks, Mark, for an interesting video presentation. I am long ABBV, O, SCHD and VICI, too. Of the ETFs you discussed, DGRO does not make any sense to me given the fact that its dividend growth rate is inferior to SCHD. So, I will stick with SCHD as a good foundational ETF with a decent dividend yield and an excellent long-term dividend growth rate.
I agree on your comments on DGRO vs SCHD, which is why SCHD is perfect for me. However, what DGRO is going to give you that SCHD is lacking is that Technology exposure.
@@MarkRoussinCPA--Okay, got it, Mark! Thanks for the clarification. Still, I will stick with SCHD and take a pass on DGRO.
During a bear market, the headlines will focus on negative news, whether it's declining economic growth, geopolitical upheaval, cultural and legal turmoil, or some combination of all three. I listened to a podcast of someone that grew his reserve from $120k to almost $460k during this Red season, can you share tips on how to make such aggressive proceeds in short periods?
You’re right! The current market might give opportunities to maximize profit within a short term, but in order to execute such strategy , you must be a skilled practitioner.
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
MEGHAN MAUREEN KRISTENSEN is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance
Now if you had 2M would you sinply double up everything you bought or would you spread out to more stocks (im simply wondering as $ values increase if more stocks are added or if its simply more investments into each
$2M would be a nice chunk of change. The answer to your question is going to be dependent on how hands on or hands off you want to be. More individual positions, which I have about 50 total positions, can be very hands on. More ETFs would create a well diversified hands off portfolio. Thanks for watching!
@Wellwellwell32 - if the first million did not pay all your bills with dividends, add an additional 100k or 200k until it does. Then, invest the remaining amount in more growth focused ETFs like VOO, QQQM, VGT, SCHG, etc. These all pay small dividends, too, but they will boost your overall portfolio over the long term. You would always sell from the growth group when you need a new car, roof, appliance, etc, and never touch the dividend side.
what's your answer to someone who says because of the inverted yield curve from the last few years saying that you can get 5% on short T-bills and CDs vs your slightly less than 4% interest in year one? I always get this questions and I don't know what to say.
Would you consider a core S&P 500 etf portfolio & the 4% rule as an alternative to dividend investing?
A Core S&P 500 is ALWAYS a great idea, but for someone looking strictly for dividends, which was this example, I felt we got a lot of MSFT, AAPL and other top S&P 500 companies from some of these ETFs. However, my personal portfolio has and always will have an S&P 500 as the TOP position.
In down years you will be selling more shares to maintain income. With dividend investing you'll likely see a more stable income stream without the need to touch the stocks. A market crash of 30% or more is not unheard of. Ideally you need around 2 years worth of living expenses set aside if you're going to do the index strategy so you can weather a crash and not sell at the bottom. However over the long term you'll see greater share price appreciation with the index strategy. There's no right way, it's just a matter what suites you best.
With dividend yields like that combined with social security, I could live quite comfortably with a million dollar portfolio without ever touching the principal.
Great video Mark. A lot of work went into the research on this one, that effort did not go unnoticed and is appreciated. I don't hold any ETF's in my portfolio. When I started my investment journey back in the 90's ETF's were not a thing, I held individual stocks and I continue to do so today. As far as your individual stocks I own all of them with the exception of Starbucks. ABBV (#2), VICI (#12), O (#1), VZ (#39 - second smallest position) and KO (#3). Almost 25% of my portfolio is made up of the individual stock you highlighted. Although I don't own SBUX, you could make an argument for MCD (#8) and/or PEP (#6) instead of KO. The compounded segment was spot on and supports Albert Einstein's quote; "Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it." Have a great week - Jim
Thanks Jim, great stuff!
Why not put it all in SCHD?
So with a million dollars, what about putting 25% of it into div investments, 25% into set it and forget it ETF/MF funds, 25% into strong reputable growth and consumer stocks and 25% into riskier potentially higher growth stocks. This divides it up into 4 portfolios with different goals/risks/earnings and and you will still earn dividends on the ETFs/MFs and other stocks outside the Div portion but that wouldnt be the main focus for those portions of 1 million dollar portfolio. Curious what you or others here think about this way of dividing it up? Thanks!
Longer time horizon, you absolutely want to add a little more growth. Love your diversification here. Thanks for watching.
What is the best way to get into stocks trading with no experience and being a beginner
Add some JEPI?
Like always, great video. The portfolio seems solid, my only exception would be Verizon. I don't like how the company is managed, and I think 8.5% is too large of an investment in a company I see as risky in the long term.
100% fair concerns, plus the debt levels are high. Therefore, if you have a longer time horizon, something with a lower yield and faster dividend growth would work better, but for the purposes of this video to increase income, as most who reach a $1M portfolio, are usually closer to retirement.
Agreed, if you are looking for dividend income, yes.
Equal parts JEPI, JEPQ, VOO, QQQM is what I do. No selling of shares unless I need to rebalance.
You've got a high degree of overlap between JEPQ and QQQM. If tech goes south you're vulnerable to a sizable hit.
I just started retirement. I don’t need dividends until 10 years. Why not just buy SCHD to keep it simple and in 10 years I’ll be great with dividends reinvested for 10 years? Thank you
U could do that.
SCHD or SPHD
Yeah that'll work pretty great still
if you put the entire $1m into the SCHD, you'd only lose $6.6k per year total income, and have a much safer portfolio. This portfolio has $455k at risk in individual company holdings for a total extra return of $6.6k. is it worth it?
Main street capitol is a solid dividend stock with good capital appreciation. Dividend is 5.79% and a 5 year return of 84.48%. It beat the S&P 500 at ytd, 1y,3y, and 5y intervals
This is really inspiring. Now I just need to earn the money first, so I can get back to investing towards a goal like this.
It is a process that takes patience. You will get there!
thanks for the math demonstration. I think the growth assumptions are very optimistic. I doubt that income will almost triple in 10 years with these investment choices.
That is what is fun about the calculator, you can make it more aggressive or extremely conservative to get an idea on where you may fall out in term sof dividend income, but again all estimates and subject to change.
Northrop Grumman / Lockheed Martin / General Dynamics / Mondolez Intl / PepsiCo / Proctor and Gamble…. Equally weighted - approximately $166,000 EA $$ 🤣👍
All of the individual stocks should have monthly 10 delta covered calls written against them to increase yield to upper 4 percent range
Take out VZ, add JEPQ and JEPI
If you want high yield, its pretty easy to get 10% with non-ESG stocks like mining, tobacco, oil......very easy actually. AND more globally and sector diversified.
CALM MO BTI IIPR RIO BHP PBR BTG SQM ENB TRP VALE ET EPD
best part is these usually go up when tech is crashing too
Bought 100 shares of $SBUX at $92/share last week using a cash secured Put. Made $37 this week on the covered call. Loving me some Starbucks. Thanks for the past recommendations on SBUX. (I don't drink the coffee though. As a New Englander by birth, I invest in Starbucks but drink Dunkin.)
I stopped by and helped out your stock today, haha. Thanks for watching!
I’d get some msft unh visa
I suppose it depends on your longer term goals but Im not sure about investing a million for only 40k annual dividends. If you have 10 years or were looking for a portfolio that continues to gain value over time vs. income I get it. But what if you had a windfall from the sale of a business and wanted to generate annual income to live off of long term? 40k won't cut it. I get 40k from just 4 rental properties with only 210k cash out of pocket and I get depreciation on taxes and appreciation on value + rent growth. I know people getting 5% on CDs. Not suggesting CDs would be a great strategy.....just that it depends on goals. I would think 1 million should generate 100k annually conservatively with a mix of independent real estate, syndicate investing and ETFs....all with expected growth, return of capital opportunities and tax advantages.
What would you do if you had a million and wanted to generate replacement income? That would be a topic I would be interested in exploring
I have 6 of the ones you listed. Nowhere near $1,000,000 though ..... yet.
What about taxes
VZ seems like a yield trap to me.
Is your $1M spreadsheet available to download?
It is for students within my 6-week Investing Course only.
Verizon is too risky right now, otherwise great stocks.
There's only 3 wireless carriers in the US. It's the largest of the 3, how is it risky? It's no longer a landline phone company.
$4400 is what it gets me…..per month….on average, but it fluctuates.
Not a financial advisor yet offer a course?
Are financial advisors the only people that know how to invest?
my goal is 1mil in schd haha
Et tu? It looks like everyone is doing a video on how to get $50K from a million dollar portfolio, or, how much they are making in dividends from their million dollar portfolio!!
So sad. So i basically need a million dollars invested to have enough dividend income to kind of live off of 😆
Skip to 2:40. Too much introduction
O has lost 20%
I honestly don't understand why you're discussing these dubious schemes. There are plenty of options like Eledator and similar ones that are fast and profitable.
Good thing your not a financial advisor because you really know how to waste a million dollars.
😂😂😂 bulshido list