/biz/ - Business & Finance

Thoughts on SCHD? It's looking pretty good to me, with decent growth too.

>>57726706
>Dividend investing general

What's the best Money Market fund I can park 7k in Fidelity? Another anon mentioned you can receive a debit card for the fund as well, should you need emergency liquidity.

>>57726736
That was me. I use FZFXX, but SPAXX is pretty similar, no idea about the difference. You can get the card for either of them. Also you can apply for the credit card which gives 2% unlimited cashback on anything. I also recently deposited a check to it, it works just like a normal bank account

>>57726733
Curious to know as well

>>57726750
Sweet, thanks fren.

>>57726734

>>57726760
>>57726733
I really like SCHD. I hate buying an index fund that’s like 10% apple and another 10% MSFT

>>57726706
dividend investing seems to good to be true. At this point I would imagine any company paying substantial dividends is overpriced so it would take a long time to even make your initial investment back. If it was so easy you could just google which companies to invest in and start raking in dividends everyone would be doing it. It's either fucked or there's some catch

>>57726858
>If it was so easy you could just google which companies to invest in and start raking in dividends
This is exactly how easy it is. A huge number of people do this

>>57726858
This is completely true. You're better off making more aggressive plays and after you made some nice money park it in dividend stocks.

>>57726858
You lose money because the stock price goes down

IEP is paying a yield of 20%. I got in at the lows of 25%+ yield. Too good to be true?

>>57726869
This is entirely false. You’re more likely to end up losing money making aggressive plays.

>>57726830
imma keep an eye on it and buy 100 shares when it feels slurpable

>>57726881
Which ones lose money

>>57726951
actually I'll try to sell a put today, I could keep getting premiums until the put executes, literally free money lmao

>>57727049
Good strat

>>57726858
I hate dividend "investor" retards, but "dividend" stocks that aren't dividend traps, are probably less likely to be overpriced because they have a more grounded business with less uncertainty, they're easier to value the fundamentals. Again, not talking about dividend traps like companies on the verge of bankruptcy or long term decliners. Those can be way overpriced like growth stocks and go to zero in a day.

>>57726916
Diversified growth will yield more in the long run, but with more volatility, because people pay a premium for less risk, so you are paying a premium on "dividend" stocks because they have less volatility than growth, but you will miss out on periods of growth that make growth stocks give higher long term returns.

>>57727049
>>57727060
30 free buckaroos. We'll see, maybe it executes.

>>57727232
Nice

>>57727175
bingo
>>57727232
complete waste of time unless you are running this through a retirement account where you won't have to report your transactions. Even then likely a waste of time since SCHD has fuck all volatility. Better off just buying and holding.

>>57727575
>waste of time
why? why wouldn't I keep doing this getting $30 per ~2 weeks until it executes and then I hold my shares?

>>57727589
Not to mention your cash is earning interest while it is uninvested. You’re collecting interest on cash + options premiums. Worst case scenario is that you’ll own 100 shares of a sold ETF

>>57727720
Exactly

>>57727589
If you ran a backtest of selling near ATM puts vs holding the underlying, you would find a similar return profile. Selling ATM puts is likely to outperform benchmark by a marginal amount (depending on net volatility of the benchmark) since, generally speaking, risk-averse market participants will overpay on implied volatility vs what is actually realized. Whatever alpha you collect above simply buying and holding is directly a result of this process. Since the net volatility of something like SCHD is low, the marginal excess return of selling puts is also likely low. I would guess somewhere below 1%. So you spend time doing it, generating taxable transactions which you may have to amend during tax reporting (tax software doesn't always handle options cost basis correctly), and giving up the possibility of qualifying for long term capital gains. On the whole, you actually *lose* money vs just holding, even if you captured some form of excess return, simply because you are guaranteed to be taxed at a higher rate. That wouldn't apply in a retirement account, nor would the potential tax reporting issues - but you'd still be spending a whole lot of time for something that only generates a small marginal return.

>>57727766
Wait what the fuck? If I get executed it's taxed at a short-term rate regardless of holding time?

>>57727793 (me)
No, that's not true. It's just like buying except offset by the put premium.

this site is practically unusable, no wonder I stopped posting

>>57727793
if you sell an option and close it/it expires before a full year, you pay short term on any premium. The clock for long-term only starts when you are assigned. The point I'm making is a pure option selling strategy will lock you into short cap gains in a non-retirement account. And the longer you run that strategy the longer you go getting taxed when all you have to do is buy and hold to pay no taxes.

>>57727943
I see. Ok that's fair but I think I'll try this anyway for a bit.

>tgif and Wkly liquidated
Fuck this gay sport

Dividends are fucking retarded unless you are so rich that you are too lazy to manually withdraw 3% on the sp500.

>>57728254
ok poorfag

>>57726858
>dividend investing seems to good to be true
It just takes time to see the real results from exponential compounding. You get payed, buy more shares and next time you get payed more and you can buy even more shares.

Select healthy companies with good cash flow and will remain relevant in +20 years. Avoid value traps that lose value and/or pay out unsustainable dividend.
Be careful with high yielders (double digit yield), I'd only recommend REITs and BDCs which are required to pay out the majority of their profit.

>>57728290
you are not rich enough for dividends

>>57728397
you have to pay taxes on every payment you get which is retarded vs accumulation etf have fun beating my ETF with stock picking stock dividends kekkity