I’ve maxed out my Roth IRA and 401K. Index/growth focused. Started a dividend portfolio in summer 2021 with extra cash as an experiment and for fun. Got about $30,000 in there now and get around $225/mo in dividend payments.
Mid 50s - team high growth now with a small part in dividends. Switching to higher dividend growth in retirement. Hopefully getting more moved over into the Roth accounts. Team Jacob and Edward!! Great info.
Hey, guys, have you made a video about how to "transition" out of a primarily growth portfolio into a more stable one when you get to retirement? I'm talking mainly about in a taxable account. What's the most tax efficient way to transition the portfolio in retirement?
I'm in my mid 50s and most of my holdings are for growth but I took a portion of my nest-egg to focus on high-yield high-dividend stocks. If I can manage to have dividends add up to somewhere near or above $12,000/year ($3,000/month would be ideal) that'll be a nice bonus and I won't have to sell my holdings to live off.
Dividends don’t offer any benefit from a tax perspective. They actually hurt you in a taxable brokerage account. The tax rate for dividends and selling shares after owning them for one year is the same. But getting dividends is forced taxation even if you reinvest them. You have to beat SPY after accounting for that tax drag.
@@CalmerThanYouAre1 As a business owner I cherish my dividends in my brokerage account. It means I can reduce 1 employee or decrease the amount of money my business has to generate each year. Also my brokerage dividends are not subject to FICA taxes as my wages are from my business. I pay myself a draw as a pass through LLC owner.
Team dividend for early retirement! I don't like the idea of selling shares. Is it giving up some total return? Probably. Is it the most tax efficient? Nope. Do I care? Not at all.
Re Twilight: It was Team Jacob vs. Team Edward. I have neither seen the movies nor read the books, but, somehow, that piece of pop culture seeped into my brain. Maybe it was all for this moment to help the algorithm. 🤷🏽
Dustin, What stock screener are you using in this podcast ? I've tried to replicate it, but the stock screeners I find don't have the Total Return Field. Thank you in Advance. Philip Masse
How do you shift to a dividend portfolio at retirement without getting hammered by taxes. For example have a growth focused portfolio while you’re young then when you retire you’d have to sell and buy dividend funds. Is there a way to do that without paying a large amount of taxes?
I believe a best-case dividend portfolio actively managed with Wavetech or Portfolio Xpert software would provide superior results! I know the sales pitch may not be welcome, but as a customer, I don't think I'm wrong on this. p.s. I really do love your insights. But I love managing (or trying to manage) my portfolios myself.
Surprised you guys didn’t run the comparison with some obvious dividend growth index funds like SCHD, DGRO or VIG. SCHD is beating SPY in total return over all periods since its inception. And with a much higher starting yield and a much higher dividend CAGR. Living on a reliably growing stream of dividend income in retirement is the best risk-adjusted and “emotion-adjusted” investment strategy you can follow. VIG saw a 4% dividend cut in the depths of the 2008 financial crisis when the market fell 54%. There is also substantial peace of mind in having a 1-fund approach. No need to rebalance or worry about what the news is saying. Just keep buying until the dividend stream exceeds your expenses.
Constructive criticism: When talking about younger investors it is intellectually dishonest to not include the dividends being reinvested on the long term charts comparing it to the s&p. It would paint a different picture. If those charts included drips I apologize however it does not appear as though they do.
The 1sr EVER 1 Trillion Dollar MC, The 1st EVER 2 Trillion Dollar MC, The 1st EVER 3 Trillion Dollar MC. Would You call that Growth? They ALSO are a Dividend KING in the Making.
It's my third month being retired now. And life hasn't been so difficult as I thought basically because I put my head down and made ways for other source of Income. I'm a huge fan of earning more money, and I think everyone should have a side hustle. Side hustling can allow you to earn that little bit of extra money that can help you achieve your financial goals faster - whether it's paying off student loans or saving for retirement. Thanks to my CFA Karen Marie Emma.
I wish I could like this comment million times. I always tell people that it's better late than never. Therefore, If you want the chance to maximize your income, you will need to explore investing your money.
I have 37% of my portfolio in dividend growth. But, my top holdings are ETF'S and mutual funds. Top holdings are SCHD, VWELX & VWINX. I also hold VTI & XLU. This makes up 152k of the 169k total. Would like to see a similar comparison using these funds. I am 57 so I am close to retirement. Team mix here.
Great discussion would like to see it expanded on in a future installment. Dustin always happy when you point out portfolio volatility. Feel this topic outside of your channel doesn’t get covered enough! Now on to my personal thoughts. I am a dividend growth investor and I’m sure creating a few test portfolios would be tough because of the items that need reviewed. DGI requirements include annual dividend increases. Also focused on the average percent increase. Another factor is how many years in a row that dividend has been increasing. Dividend yield is not as important as a company that is increasing that dividend at a high rate year in and year our creating a great yield on cost. I’ll give you two example stocks on a bit opposite ends of the DGI spectrum which both are great choices JNJ and DHI
Dividends are definitely part of my retirement strategy. I am in for the long-term
I’ve maxed out my Roth IRA and 401K. Index/growth focused.
Started a dividend portfolio in summer 2021 with extra cash as an experiment and for fun.
Got about $30,000 in there now and get around $225/mo in dividend payments.
That's a pretty high dividend return
Mid 50s - team high growth now with a small part in dividends. Switching to higher dividend growth in retirement. Hopefully getting more moved over into the Roth accounts. Team Jacob and Edward!! Great info.
What if the dividend is being reinvested? How does that compare to the S&P 500 etc.?
I personally love dividends, with that said I’m about 85% dividends and the rest growth.
Hey, guys, have you made a video about how to "transition" out of a primarily growth portfolio into a more stable one when you get to retirement? I'm talking mainly about in a taxable account. What's the most tax efficient way to transition the portfolio in retirement?
⬆️⬆️⬆️
For More knowledge.,
I'm in my mid 50s and most of my holdings are for growth but I took a portion of my nest-egg to focus on high-yield high-dividend stocks. If I can manage to have dividends add up to somewhere near or above $12,000/year ($3,000/month would be ideal) that'll be a nice bonus and I won't have to sell my holdings to live off.
⬆️⬆️⬆️
For More knowledge.,
Hey guys, doesn't having a near-term "bucket" and longer term "buckets" help "stomach" the volatility?
Did your charts include dividends being reinvested?
No mention on the tax benefits of dividends either. I own 85% of dividend payers, and 15% on a S&P 500 growth. Taxes are a big part of retirement too
Dividends don’t offer any benefit from a tax perspective. They actually hurt you in a taxable brokerage account. The tax rate for dividends and selling shares after owning them for one year is the same. But getting dividends is forced taxation even if you reinvest them.
You have to beat SPY after accounting for that tax drag.
@@CalmerThanYouAre1 As a business owner I cherish my dividends in my brokerage account. It means I can reduce 1 employee or decrease the amount of money my business has to generate each year. Also my brokerage dividends are not subject to FICA taxes as my wages are from my business. I pay myself a draw as a pass through LLC owner.
How about a portfolio thats partial dividend stocks and growth etfs? I'm bad at picking stocks but SCHG has the good boys
Team dividend for early retirement! I don't like the idea of selling shares. Is it giving up some total return? Probably. Is it the most tax efficient? Nope. Do I care? Not at all.
Re Twilight: It was Team Jacob vs. Team Edward. I have neither seen the movies nor read the books, but, somehow, that piece of pop culture seeped into my brain.
Maybe it was all for this moment to help the algorithm. 🤷🏽
Dustin,
What stock screener are you using in this podcast ?
I've tried to replicate it, but the stock screeners I find don't have the Total Return Field.
Thank you in Advance.
Philip Masse
Crosshairs that exceed the Margins of a Computerized Application meant Open-ended, if not the Knowledge of Infinity.
How do you shift to a dividend portfolio at retirement without getting hammered by taxes. For example have a growth focused portfolio while you’re young then when you retire you’d have to sell and buy dividend funds. Is there a way to do that without paying a large amount of taxes?
Put it in a taxed advantaged from the start?
Excellent Jazz, thanks !! by the total annual returns on the dividend stocks scenario you mean you are including the monthly/quarterly dividends?
⬆️⬆️⬆️
For More knowledge.,
I believe a best-case dividend portfolio actively managed with Wavetech or Portfolio Xpert software would provide superior results! I know the sales pitch may not be welcome, but as a customer, I don't think I'm wrong on this.
p.s. I really do love your insights. But I love managing (or trying to manage) my portfolios myself.
Surprised you guys didn’t run the comparison with some obvious dividend growth index funds like SCHD, DGRO or VIG. SCHD is beating SPY in total return over all periods since its inception. And with a much higher starting yield and a much higher dividend CAGR.
Living on a reliably growing stream of dividend income in retirement is the best risk-adjusted and “emotion-adjusted” investment strategy you can follow. VIG saw a 4% dividend cut in the depths of the 2008 financial crisis when the market fell 54%.
There is also substantial peace of mind in having a 1-fund approach. No need to rebalance or worry about what the news is saying. Just keep buying until the dividend stream exceeds your expenses.
I like that he has a coffee cup in his hand but a bottle of wine 2 feet away. Mmmmhhhhmmmm
Now do ETFs/CEFs instead of being a stock picker, with dividend growth. I can tell you I have done better with those than trying to pick stocks.
Constructive criticism: When talking about younger investors it is intellectually dishonest to not include the dividends being reinvested on the long term charts comparing it to the s&p. It would paint a different picture. If those charts included drips I apologize however it does not appear as though they do.
Or even the growth of the dividend itself each year.
@@ZeIose yes hopefully a future video can deep dive into DGI performance
yall need JEPI and JEPQ
Mostly dividends and small percentage of growth.
The 1sr EVER 1 Trillion Dollar MC, The 1st EVER 2 Trillion Dollar MC, The 1st EVER 3 Trillion Dollar MC. Would You call that Growth? They ALSO are a Dividend KING in the Making.
Thanks Dustin good info.
50% of ALL GAINS in the Stock Market over the Last 50 years have been What???..........Thats right Dividends
Great stuff, keep it up
Dude totally didnt include dividend raises over time to the individual dividend holding stocks
Was the Dividend Portfolio Driping? Thats what I thought
Lucky people only enjoy life when they retire, majority suffer....
💯
Team Jacob vs Team Edward 😊
I'm team total return
Eric quit playing with Dustin Toys!
It's my third month being retired now. And life hasn't been so difficult as I thought basically because I put my head down and made ways for other source of Income. I'm a huge fan of earning more money, and I think everyone should have a side hustle. Side hustling can allow you to earn that little bit of extra money that can help you achieve your financial goals faster - whether it's paying off student loans or saving for retirement. Thanks to my CFA Karen Marie Emma.
Karen has been doing a lot for many retirees in my district, a very honest and reliable woman.
I wish I could like this comment million times. I always tell people that it's better late than never. Therefore, If you want the chance to maximize your income, you will need to explore investing your money.
I just checked Karen Marie Emma out, her stats is really impressive.
I have 37% of my portfolio in dividend growth. But, my top holdings are ETF'S and mutual funds. Top holdings are SCHD, VWELX & VWINX. I also hold VTI & XLU. This makes up 152k of the 169k total. Would like to see a similar comparison using these funds.
I am 57 so I am close to retirement. Team mix here.
Do you have it set up for dividend reinvest or not?
@@rcdyer Sure do.
Thats chart is SO Flawed, may be more that your Analysis.
Flawed Analysis, Do you ever Randomly pick Clients Portfolios? Thats what I thought
You also need to factor in the type of tax you'll have on the dividend.
Great discussion would like to see it expanded on in a future installment. Dustin always happy when you point out portfolio volatility. Feel this topic outside of your channel doesn’t get covered enough!
Now on to my personal thoughts. I am a dividend growth investor and I’m sure creating a few test portfolios would be tough because of the items that need reviewed. DGI requirements include annual dividend increases. Also focused on the average percent increase. Another factor is how many years in a row that dividend has been increasing. Dividend yield is not as important as a company that is increasing that dividend at a high rate year in and year our creating a great yield on cost.
I’ll give you two example stocks on a bit opposite ends of the DGI spectrum which both are great choices JNJ and DHI
Dividend Investors DO NOT Randomly Pick Stocks
It doesn't show how dividends can surpass in yr 40 if you have the time horizon...dislike
Team monthly dividend at 49 years young.
Your Telling the 20 year Warren Buffet Not to buy KO. By the way he makes Hundreds of Millions from KO every Year. Dont you look Dumb