Dividend investing general /dig/

[Anonymous No.56411634]

PepsiCo edition

In this thread we will discuss dividend investing strategies and the companies who dominate that world
>check dividend history, dividend growth history, payout ratio etc.
https://www.financecharts.com/
>dividend calendar
https://www.nasdaq.com/market-activity/dividends
>dividend growth calculator
https://dividendathlete.com/dividend-investing-calculator/

[Anonymous No.56411635]

Welcome to the inaugural /dig/. Feel free to spitball different links that you thinks should be in the OP

[Anonymous No.56411648]

>>56411634
Burn BlackBerry to the ground.

[Anonymous No.56411653]

>>56411635
I don't have links but lists of dividends aristocrats and dividend kings should be in there. Once you know companies that have been raising for years, just diversify into them.

[Anonymous No.56411663]

I’m a dividend growth investor. That means I focus on companies that grow their dividend instead of going for the largest starting yield I can find. I’ll use Costco as an example. It has a low starting yield of .72% but a five year CAGR (dividend growth annually) of 13% and a payout ratio of only 26%. This means that Costco only pays out a quarter of its earnings to the dividend leaving them plenty of room to grow their business and dividend well into the future.

Why is dividend growth so important? Well check out this chart. If you were to buy Costco today and hold it for 20 years you could expect a yield on cost of 12%. Say you made a $100,000 initial investment and never reinvested dividends. That investment would be earning $12,000 annually in 2 decades. Pretty incredible

[Anonymous No.56411665]

>>56411653
Good call. I’m going to add dividend achievers(10 + years) to the next thread

[Anonymous No.56411679]

>>56411634
Do you consider REITs dividends? They pay like 4% annually

[Anonymous No.56411742]

>>56411665
Cool, also need to know what a qualified dividend is.
https://www.investopedia.com/terms/q/qualifieddividend.asp

[Anonymous No.56411748]

>>56411679
Yes I do. I have a large O position that the starting yield is about 6% right now and it’s a dividend aristocrat. The dividend growth is slow but that’s ok if the starting yield is high.

[Anonymous No.56411756]

The rule of 72 is an important one for a DGI. Take 72 and divide it by the dividend growth rate.

Say a company is yielding 2.7% and has an 8% average dividend growth record over the last ten years.

72/8= 9

It will take 9 years for that dividend to double so your yield on cost for that initial investment will be 5.2%

[Anonymous No.56411775]

>>56411663
>just hold for 20 years to get 12%
Lmfao

[Anonymous No.56411812]

Let’s talk portfolio construction. I break it up into a few different baskets high yield, low yield high growth, and core.
>high yield
These are companies paying 5% or above in my opinion. They are the most at risk for a dividend cut so be weary.
What would a high yield basket be used for?
An older investor might use it for income that is to be used right away. Younger investors can utilize high yield too but it’s important not to overdo it. High yield will make your earned income grow rapidly but once fresh capital runs out that growth slows to a crawl and worst case gets cut. A younger investor might use the dividends from the high yielders to fund low yield or core postions. Try not to let this category exceed 10% of your portfolio
>low yield high growth
These are companies that have a low starting yield but high dividend growth. These dividends are usually very safe because the companies paying them will have a low payout ratio and a history of high growth. There’s are great for younger investors. Feel feee to apply rule 72 to a stock yielding .9% with a growth rate between 15% and 20%. Think companies like MSFT, V, UNH, and COST. Try not to let this category exceed 20% of your portfolio
>core
These are your dividend aristocrats, the sleep well at night forever hold stocks. These are well established companies with a proven track record of raising dividends through economic hardships. Some of these companies have been through major market corrections and recessions. As of the time of my writing this many of these companies are on sale and yielding up to 3.5% with 7% dividend growth rates. Think companies like JNJ CAT PEP NEE DUK ABT etc

[Anonymous No.56411824]

>>56411775
Well I dividend invest in my Roth IRA so I don’t plan on taking contributions for another 29 years. Also you seem to think that the 12% number is total return for some reason when it would be the I I send yield on cost for that year alone. Holding Costco for 20 years would bet you dividends and share price increase, not that dividend growth investors care about share price over growing our income.

[Anonymous No.56411944]

Realty income has been beaten down over the past year due to rising interest rates but the company is sound. Most of its tenants are big, well established companies like 7/11, CVS, Walmart, Home Depot etc. it’s in my high yield basket and with 120 shares it’s dividend buys more than half a share a month. Plus I have $10 biweekly buys for it making it a full new share procured every month

[Anonymous No.56411949]

>>56411775
your principle would be like 1 million dollars tho

[Anonymous No.56411961]

why would i want to hand pick companies and continuously rebalance instead of buying a dividend aristocrats etf?

[Anonymous No.56411972]

Tentative new set of links

>dividend aristocrats
https://www.nasdaq.com/stocks/investing-lists/dividend-aristocrats
>dividend achievers (10 year dividend increase history)
https://www.marketbeat.com/dividends/achievers/
>check dividend history, dividend growth history, payout ratio etc.
https://www.financecharts.com/
>dividend calendar
https://www.nasdaq.com/market-activity/dividends
>dividend growth calculator
https://dividendathlete.com/dividend-investing-calculator/
>what are qualified dividends and how are they taxed
https://www.investopedia.com/terms/q/qualifieddividend.asp

[Anonymous No.56411980]

>>56411961
Because if you’re alert you can find some really great deals on some sleep well at night companies. But yes ETFs are great. SCHD is one of my core positions

[Anonymous No.56412002]

>>56411972
Add some REIT info. I don't have any but I like REITs and it would be good to have something. Personally invested in VNQ and yeah it's gotten rocked recently as the bond yields increase but I've held it long enough that the dividends/payments have flattened out the losses on a portfolio basis. I may buy more as a sub for bonds. Any anon have an opinion?

[Anonymous No.56412014]

>>56412002
>dividend aristocrats
https://www.nasdaq.com/stocks/investing-lists/dividend-aristocrats
>dividend achievers (10 year dividend increase history)
https://www.marketbeat.com/dividends/achievers/
>check dividend history, dividend growth history, payout ratio etc.
https://www.financecharts.com/
>dividend calendar
https://www.nasdaq.com/market-activity/dividends
>dividend growth calculator
https://dividendathlete.com/dividend-investing-
calculator/
>what are qualified dividends and how are they taxed
https://www.investopedia.com/terms/q/qualifieddividend.asp
>REITs
https://www.reit.com/what-reit

I need some anons to save the links because I will not always be around to bake

[Anonymous No.56412047]

>>56412014
Thanks. Create a notepad thing on the online whatever for easy bakes. You know the one, or if you don't some anon will

[Anonymous No.56412056]

About to start dumping everything i have into the following:
PBR+PBR.A
XOM
PEP
CVX
O
ET
CHRD
DVN
INTC
SCHD


I do think im a bit too heavy into the gas.

Left over would be LINK + various shit.

[Anonymous No.56412102]

>>56412056
Be careful if you’re holding ET in a tax advantaged account. It’s a limited partnership so any distributions over $1000 will have tax implications even in a tax free account like a Roth. Also look into the power of dividend growth. I’ll add this to the Op links
https://www.investopedia.com/articles/basics/04/072304.asp

[Anonymous No.56412109]

>>56411634
reminder that if you're nervous about starting nothing says you can't just be an index fag
there are inexpensive vanguard etfs build round dividend appreciation as well as the dividend aristocrats

also the global stock market itself is over 2% right now

[Anonymous No.56412120]

>>56412002
>but I've held it long enough that the dividends/payments have flattened out the losses on a portfolio basis
part of that is because rates are high and reits are swapping to selling stock to raise capital instead of taking out expensive loans

its a good thing because they are way less likely to go tits up but they'll crab until this recession is over

[Anonymous No.56412142]

Dividend investing can be slow to start out and rather boring. I didn’t really start to notice the power of compounding until my divvy portfolio was 2 years old already. Just enable DRIP and make regular contributions with fresh capital. Once you start noticing the snowball effect it starts to speed up.

[Anonymous No.56412155]

>>56412102
thank you

[Anonymous No.56412187]

Heads up JNJ has a starting yield of 3% and a 6% average dividend raise history over the last 5 years. Now would be a good time to start building a core postion. PEP would be another core. It’s yielding 3.15% and boasts a 7% average annual dividend growth rate.

[Anonymous No.56412212]

Deal alert. NEE is a stable dividend aristocrat that’s been beaten down this year. It’s currently yielding 3.5% with a 10% average dividend growth rate and only a 46% payout ratio.
Attached is a chart showing average dividend yield for NEE. Because the price has fallen by so much the yields are at a historic high. I used the link from the OP to find this info.
https://www.financecharts.com/stocks/NEE/dividends

[Anonymous No.56412218]

>>56412212

[Anonymous No.56412249]

Anyone else in on BXMT or AGNC? I’m low income so these are more doable I feel but I could be making a mistake.

[Anonymous No.56412257]

>>56412249
Even low income you should be focusing on a mix of dividend growth and higher yields. Work on growing your income first and foremost. Hell I even sold plasma to fund dividend purchases. The important thing is to just get the ball rolling so your money can start making money

[Anonymous No.56412305]

>>56412120
We're describing the same thing I think as the value of future cashflows being discounted reduces the price of dividend heavy companies. That's why they are down this year (eg KO) and why bond etfs have also crashed

[Anonymous No.56412310]

>>56411634
You shouldn't own dividend stocks unless you're close to retirement.

thread not needed

[Anonymous No.56412332]

>>56412142
I just started last month. My positions include VYM, SCHD, and O in my brokerage. I also have a couple put positions on AAL and BAC for the premium.

I have SCHD, QQQM and VOO in my Roth. I'm maxing out my Roth first before I add to my brokerage for dat tax advantage. But I'm always a little salty about my Roth contributions because I feel like they're not mine. I'd like to retire early and the Roth makes me feel like I won't be able to retire until I can access the returns from it.

[Anonymous No.56412341]

>>56412310
Yeah what we really need is another Link shill thread.

[Anonymous No.56412347]

>>56412310
Completely wrong. Letting dividends grow is an incredibly powerful investing tool. Personally my divvy portfolio is my Roth IRA. My taxable is in voo and VTI until such time that I can convert it to high yielding dividend payers and stop working. Then when I’m 59 and I can take my Roth dividend in tax free

[Anonymous No.56412359]

>>56412332
Roth is to bolster your retirement. Don’t ever feel bad about making yourself a cozy safety net. Max the Roth and then try and retire early using a taxable account.

[Anonymous No.56412377]

>>56411634
Why should I invest in dividend stocks now when money market rates are so high? I can get like 5% APY with next to 0 risk so what's the point?

[Anonymous No.56412400]

>>56411634
Any thoughts on Whirlpool? They pay a $1.75 div, and they are the largest appliance manufacturer in North America. However I know they basically gave away their European manufacturing to a Turkish company (I think they still own 20%). Any cause for concern there

[Anonymous No.56412410]

>>56412377
How many years will it pay you 5% and will the payout grow annually?

[Anonymous No.56412418]

>>56412377
With interest rates at a high point right now, and with bonds finally being useful, people look at the measly 3-4% dividends that companies issue and wonder why even bother? Why settle for a lower return with risk than short or long-term government bonds that have no risk?

The bet is that these companies will increase their dividends. When you add the current yield to the projected growth in that yield, you get the expected long-term return of the asset class. What’s the growth in the yield of bonds? (absolute numbers, not percentages). Zero. And that’s why dividend stocks are still worth it compared to government bonds.

[Anonymous No.56412432]

>>56412400
I don’t know anything about their business to be honest. You’d have to do a deep dive to figure out if it’s worth it. Maybe someone else in here could be of more help

[Anonymous No.56412462]

>>56412400
Billions in debt, losing money every year, competitive industry. There must be something better.

[Anonymous No.56412487]

dividends are irrelevant. they do make your brain feel good, though.

https://www.youtube.com/watch?v=f5j9v9dfinQ
https://www.youtube.com/watch?v=4iNOtVtNKuU

[Anonymous No.56412492]

>>56412487
https://www.bhagwad.com/blog/2023/personal/financial-matters/dividends-are-not-irrelevant-when-a-stock-becomes-an-nft.html/

[Anonymous No.56412494]

>>56412418
>>56412410
Ok so from what I'm gathering, it's the long-term return of dividend investing and payout growth specifically that makes it worth it even if bonds are paying slightly more today. Thanks.

[Anonymous No.56412512]

>>56412494
Exactly right. Google dividend yield on cost

[Anonymous No.56412516]

>>56412462
>Loosing money every year
To the best of my knowledge they only reported one or two quarterly losses but that was during the pandemic
>Debt
I wasn't aware of this but how does that debt fair to other competitors? I tried looking at Samsung and LG but it's hard to see where their appliance sector stands since they do more than appliances

[Anonymous No.56412593]

How can I be a dividend ROCKSTAR?

[Anonymous No.56412661]

>>56412593
Start buying today

[Anonymous No.56412696]

HappySCHD day to all that celebrate!

The ETF was started on October 20, 2011.

Total return since inception - 292%
Average annual return - 12.07%
Average Dividend growth - last 5 years - 13.69%

[Anonymous No.56412729]

>>56412492
i'm sorry but the first thing the article does is give you a hypothetical about google deciding to just delist from the nasdaq to prove it's point. if you have to imagine an impossible scenario to make your argument, your argument probably sucks.

[Anonymous No.56412762]

>>56412729
Yea hypotheticals are like that. Had you not given up on the article so early you’d have a better understanding of why dividends are incredibly relevant.

[Anonymous No.56412771]

>>56412492
If any stock I hold becomes an nft I would literally market sell 10 seconds after the announcement and never do business with them again

[Anonymous No.56412814]

>>56412771
If you own any stocks that don’t pay a dividend then those are NFTs

[Anonymous No.56413047]

>>56412771
What's the functional difference between a stock that doesn't pay dividends that you hold until you sell it and an NFT that you hold until you sell it?

>>56412492
Super interesting post. I'm going to have to come back to it a few times because it's so long and in depth.

My big question is this: where do you source the variables for the Gordon equation? Specifically the cost of equity capital in the denominator, given by

[Anonymous No.56413075]

>>56413047
The equation suggests you can calculate an investment's expected return by combining two numbers: the income generated by the investment and the expected growth rate in that income.

[Anonymous No.56413136]

Great thread. Thank you, bear market /biz/

[Anonymous No.56413169]

>>56413047
an nft is a crypto scam that has nothing to do with stocks

i have no idea what any of you morons are trying to say equating non-dividend paying stocks with crypto shit

non-dividend paying stocks are generally better because capitol gains is taxed lower than income. Even a profitable company could choose not to pay dividends and instead do stock buy backs to pump the share price. This is really basic shit

[Anonymous No.56413185]

>>56413169
Stock buybacks can be abused for managements gain at the expense of the shareholder. Buying back when the market is up to meet arbitrary EPS targets so management can dilute the shareholders by being rewarded with stock based compensation. It’s covered here >>56412492

[Anonymous No.56413199]

>>56413185
so stop buying companies with corrupt management. Thats part of your job doing dd. And as a shareholder (owner) if youre being taken advantage of, vote the bums out. You literally own the company, start acting like it.

[Baggie !!2wgod7RQeJh No.56413214]

>>56411635
https://sprc.org/

[Anonymous No.56413232]

>>56413169
that means that you have to sell out if you want your returns. In addition to buybacks tending to happen when the company has done well and the stock is at its most expensive. Buybacks are mostly a racket to cover dilution from new shares they compensate executives with.

[Anonymous No.56413238]

>>56413199
Some companies like Google either offer shares with no voting rights or shares with 1/10 the voting rights of shares that aren’t publicly available. The corruption runs deep

[Anonymous No.56413249]

>>56413238
Wow, how could I possibly avoid this situation. I have a gun to my head and MUST buy corrupt FAANG stocks!

[Anonymous No.56413250]

divies are for gomosexuals. prove me wrong

protip: you cant

[Anonymous No.56413263]

>>56412696
Thanks for bringing this stock to my attention anon

[Baggie !!2wgod7RQeJh No.56413266]

>>56411653
you know they have etfs for that right?
NOBL and the covered call KNG, just let them do the research and buy their holdings ffs. do we even need a whole thread circle jerking about the same 50 companies?

[Anonymous No.56413269]

what's a good free site/software to track your dividend portfolio income? I want to easily see how much and when I get paid per year, it's shit to do it manually with a big portfolio

[Anonymous No.56413293]

Is JEPI dead in the water?

[Anonymous No.56413297]

>>56413269
I haven’t found one yet. Let me know if you do

[Anonymous No.56413313]

>>56413293
I’m not that into JEPI because they have no way to reliably grow that dividend. And from what I recall the last time I checked into the distribution payment was trending downward.

[Anonymous No.56413329]

SCHD under $70. Deal alert

[Anonymous No.56413386]

>>56413250
I'm into dividends and I fucked your mom
You're theory has been deboonked

[Baggie !!2wgod7RQeJh No.56413395]

>>56413329
let me know when it's under $60

[Anonymous No.56413527]

>>56411634
Divi anon reporting in!! Only startd investing i. Dividends in june.

[Anonymous No.56413547]

What do you think about O?

[Anonymous No.56413663]

>>56413547
Id wait for the crash before doing anything with reality

[Anonymous No.56413683]

Hello, I dont necessarily believe in the divvy meme but FMG BHP RIO are my tickers. For the ausfags in this thread franking credits makes RDV a fairly attractive proposition

nigger

[Anonymous No.56413688]

>>56413547
I like it. It’s not as vulnerable to vacancies as other REITs because of its tenant list

[Anonymous No.56413745]

>>56413663
how many more weeks until the crash?

[Anonymous No.56413757]

>>56413745
It's not a question of weeks but days
14

[Anonymous No.56414006]

>>56413745
We’re in it

[Anonymous No.56414079]

>>56413169
>NFT has a value determined by what people are willing to pay for it and value for the holder can't be realized until the NFT is sold. The actual value may differ vastly from the sale price and is almost impossible to gauge.

>Stonk has a value determined by what people are willing to pay for it and value for the holder can't be realized until the stonk is sold. The actual value may differ vastly from the sale price and is almost impossible to gauge.

Do you see the similarity there? The argument is not that they are fundamentally identical things, but the method by which their value is realized to the holder is the same.

[Anonymous No.56414104]

whats the prod/cons of dividends over just holding regular stocks?

[Anonymous No.56414115]

>>56414104
*pros

[Anonymous No.56414138]

>>56414104
Reliable income. For someone who has to sell stock to realize gains they are absolutely fucked by market downturns. Dividends don’t really care and pay out anyway.

[Anonymous No.56414199]

>>56414138
what is the risk factor in having a dividend?

[Anonymous No.56414213]

>>56414199
The company pays out instead of reinvesting in itself

[Anonymous No.56414250]

>>56414199
The risk is that it could be cut
>>56414213
Is cope because most divvybstocks reinvest into the business. Thankfully we aren’t retards here like the gentleman in >>56414213 and we realize mature companies with massive FCF would be wasting money trying trying to inefficiently reinvest it all back into the company.

[Anonymous No.56414276]

Anyone else holding MO?

[Anonymous No.56414304]

>>56414250
>The risk is that it could be cut
and you cant make back your initial investment?

[Anonymous No.56414326]

>>56414304
I guess it would depend on the situation. Much less risk in divvy stocks than in growth stocks as dividend paying stocks are more mature companies

[Anonymous No.56414328]

>>56414250
I have dividend etfs so I'm not coping. You don't have to pretend dividend investing has no downside. IBM slowed down div growth to reinvest and it worked well for them

[Anonymous No.56414359]

>>56414326
ok thanks for answering my qu's
will look into it more

[Anonymous No.56414374]

>>56414213
why is that bad for the investor tho?

[Anonymous No.56414397]

>>56414374
It’s not unless the dividend payout ratio is abnormally high. Well established companies don’t need to put as much money back into their business. They would be hard pressed to find an efficient way to reinvest all of the money earned. Management would love to waste that money on consultants and nap pods but the dividend keeps them from doing so

[Anonymous No.56414408]

>>56414213
reinvesting retained earnings is a risk, too, you know. Just because they're reinvested, it doesn't mean that management's plans will work out and that it'll increase profitability more than the retained earnings they spent. This is especially noticeable when a company blows a bunch of money on an acquisition that works out poorly, but it's the case whatever they retain the earnings for.

>>56414328
Yeah, sometimes it does. Nice when it happens. But you don't know its going to happen ahead of time, do you.

[Anonymous No.56414415]

>>56413293
I hope not as I’m in with them for like 8@k


What are the general thoughts about doing it in a taxable brokerage? I have my Roth IRA managed elsewhere and just use excess capital to buy JEPI in my taxable brokerage.

I understand I will pay income tax on it through the years which can also be a positive if I need to qualify for more income on a mortgage etc. later, but will there be some other equalizer benefit to have it being taxed through the years as well? Or am I simply and objectively losing money by having it in a taxable account

[Anonymous No.56414418]

>>56413136
Enjoy comfy bear market /biz/ whilst it lasts

[Anonymous No.56414420]

I'm all for you guys making it. But /SMG/ has had 10x the number of posts as you guys here.

[Anonymous No.56414430]

>>56414420
And 1/10 the level of discussion. Most of /smg/ is ai art and people buying short dated options

[Anonymous No.56414445]

>>56411634
Good thread for once on /biz/, well done OP.

[Anonymous No.56414454]

>>56414420
its interesting to have this thread tho, never seen divs really discussed on biz, im learning

[Anonymous No.56414461]

>>56414420
This is what passes for discussion in /smg/

[Anonymous No.56414472]

>>56414079
A stock with earnings has a price floor. If the buybacks stop working and the share price tanks the shareholders can vote themselves a dividend and cash out.

Very childish and stupid comparison

[Anonymous No.56414479]

I liked these books about dividends:
>The Single Best Investment (Lowell Miller)
>Getting Back to Business (Daniel Peris)
>The Strategic Dividend Investor (Daniel Peris)
>The Income Factory (Steven Bavaria)

[Anonymous No.56414511]

Thoughts on keeping dividend stocks in a taxable account instead of Roth/ IRAs?

[Anonymous No.56414512]

>>56414472
>vote
And how would Google shareholders win that vote when class b shares (that aren’t publicly traded) have 10x the voting power.

[Anonymous No.56414553]

>>56414461
LOL! I am one of those posters. Guess which one.
>>56414454
Yeah, this has much more value than /SMG/ just not as fun. But why can't I keep my Roth and 401 in a balanced fund for another 20 years and just rotate to DGI when I'm ready to retire? Wouldn't I end up with a larger portfolio, than holding low growth divides the entire time?

[Anonymous No.56414554]

>>56414511
It’s valid.
>but taxes
Ok so? Earned money is taxed.

[Anonymous No.56414558]

>>56414511
It depends.
Qualified or unqualified?
What's your income tax bracket?

[Anonymous No.56414565]

>>56414512
Well, I guess that settles it. I have no alternative but to invest in this corrupt tech megacorp while completely ignoring the literally millions of other companies. It is impossible for me to do any research prior to investing my hard earned dollars

[Anonymous No.56414572]

>>56411634
The 20 year treasury is at 5.28%
In addition to the tax efficiency of treasuries, do dividends have an advantage atm?
Hard to beat that yield, and the rising rates will probably cause valuations to lower.

[Anonymous No.56414585]

I've been pondering a carousel strategy with divis. How much risk is there with hopping from stock to stock based on higher yielding divs with upcoming ex-dates? So long as sell-offs are higher than the buy-in. Is this viable?

[Anonymous No.56414589]

>>56414415
>>56414511
depends on what you want

if you're trying to do the FIRE thing yeah you need to have a pile of money in a taxable account and there's no ways around it, you need to live off the investment income. It's also entirely sensible to say "well, I'm getting my employer match/maxing out the allowed contributions to my tax-sheltered accounts, but I want to save/invest more money than that", and so you put it in taxable. Or you have some long-term goal so you don't want your money just in cash or the like, but not so long term that you'll be retirement age; e.g. you're 25 and you wanna buy a house in about a decade. It boils down to a matter of whether you want your investment to pay you before the statutory retirement age, for whatever reason.

[Anonymous No.56414591]

>>56412310
Well I for one plan to retire young, so this thread is relevant to me

[Anonymous No.56414592]

>>56414553
> But why can't I keep my Roth and 401 in a balanced fund for another 20 years and just rotate to DGI when I'm ready to retire?
You could but you’d miss out on years and years of dividend growth. Nothing wrong with waiting though and going for a 60% high yielder 40% core divvy portfolio during retirement

[Anonymous No.56414602]

>>56414572
Yes see >>56412418

[Anonymous No.56414622]

>>56414585
I'm not sure what the point would be. The stock price reflects the upcoming dividend, but it also reflects a lot of randomness. And you'd have to pay the bid-ask spread and other trading costs. It might have tax effects too.

[Anonymous No.56414624]

>>56414592
I know that in a taxable account I can't do that because the capital gains would kill me. So maybe this is the angle I should be taking there. Wonder how far down the bottom is from here.

[Anonymous No.56414658]

>>56412142
>>56412257
The climb up to a $100k port is the really hard part for sure. Putting in $1,000 and seeing it spit back out 50 bucks is just sad. Once you get there though it actually starts moving the needle.

>>56412377
Good dividend stocks increase their dividend over time and their share price also increases over time because the underlying company makes more money. In the long run even a slow growing company usually outpaces bonds and because of the way yield on cost works you also eventually end up with a higher "interest rate" too.

Today JNJ's dividend yield is an apparently measly 2.5%. But if you bought JNJ in November 2016 for $116 you'd have had +32% in capital gain (4.6% per year) plus $27.54 in dividends (3.4% per year). Is 8% from holding JNJ worth the risk vs. a bond at 5%?

The cherry on top is that since you only paid $116 per share the current yield on what you paid isn't 2.5%, it's 4.1%. Effective yield growth will probably continue since JNJ has raised their dividend every year for the last 60 years. If you bought it 15 years ago it'd probably be yielding over 10% for you now. And it's very hard to beat "JNJ but the yield is 10%" as an asset today.

[Anonymous No.56414672]

>>56414624
You could always invest in growth and when you hit your price target for retirement convert to divvies. Hell even if you get enough to make most of your expenses covered by divvies and get 2 day a week job

[Anonymous No.56414698]

>>56414658
Good post. JNJ is slow growing but it has a better credit rating than the US govt. here’s a look at possible yield on cost if you buy today into the future. Again I used one of the links in OP
https://www.financecharts.com/stocks/JNJ/dividends

[Anonymous No.56414750]

>>56414658
>>56414698
yield-on-cost doesn't take into account the time value of money though. you could handwave this when inflation never went above the high 1.something percent range but you can't anymore. "dividend growth" is just "growth", you're prognosticating that the company's prospects will be rosier in the future and that things will work out well, when you don't know that, because it hasn't happened yet. Ben Graham had a telling line in the Intelligent Investor when he mentioned that when he got his start in the 1910s and 1920s, growth prospects were regarded as something to look for but never to pay for.

[Anonymous No.56414821]

>>56414750
Even a slow growing dividend of 3% annually is enough to beat inflation (usually)

[Anonymous No.56414927]

>>56414750
This is true, the yield ultimately depends on the company doing well. Just because JNJ's dividend has increased for 60 years doesn't mean that will continue, or even that they won't go bankrupt tomorrow.

On the other hand, the US government might also not be around in however many years to pay your bond back. Or its value could be destroyed by hyperinflation just as surely as JNJ's could. Everything has some kind of risk.

JNJ's risk is higher than a treasury bond but it also stands to pay more. It may not in practice. It may even go to $0. But then again so can a bond. It's not as likely, but it could happen.

So: is the extra risk tolerable? Is the potential downside worth the potential upside? Ultimately that's a question that must be answered by each man for himself. But anon wanted to know why someone might choose to invest in a dividend stock rather than a 5% bond and that's the answer: the risk doesn't seem significantly greater compared to the expected benefit.

[Anonymous No.56414950]

>>56414821
If it grows. That's the point, you're just a growth investor, for it to turn out well, the future growth you're hoping for has to actually materialize. What's the market, and broader economy, going to look like in five years? I don't fucking know, and neither do you. We might be over the moon, we might be in the next great recession, we might be living under the overlordship of the Eternal Crab.

Dividends are (or should be) first and foremost a value thing, not a growth thing. You should be able to say "well, even if the economy is kinda shitty, this company should be able to stick around and get by and maintain its cashflow". The dividend is as much a market of a management culture of returning cash to shareholders as anything, as opposed to wanting it for themselves to spend on grand plans, when they have no more idea what the world will look like in five years than you or I do.

You want to buy something inexpensive with good cashflow that pays you lots of that cash and will probably be okay, not something expensive that you hope might possibly, if things go well, grow its cashflow and then choose to possibly pay you in the future. The former is a lot less risky than the latter. If they aren't paying you a good yield now, well, then, what's the hold up? Why am I gambling on what you say you hope will happen in the future? Sure, you're unlikely to make a 500% profit doing that, but if that what you wanted to try for you'd be in /smg/ screaming about your 0dte options.

[Anonymous No.56415183]

>>56414589
Thanks anon and yes, after maxing out the others it’s basically a storage spot. I do agree with the earlier retirement piece as I can’t imagine forcing myself to wait until 60 to use my money, fucking scam that is when you think about it

[Anonymous No.56415350]

>>56411634
>>dividend growth calculator
>https://dividendathlete.com/dividend-investing-calculator/
This is broken.

>Expected Annual Dividend Increase
>Expected Annual Share Price Appreciation
One slider moves the other.

>Expected Annual Share Price Appreciation
Can't enter negative values. MO is 43% off the high, stuff goes down.

[Anonymous No.56415415]

>>56415350
None of these are valid criticisms.

[Anonymous No.56415418]

>>56412762
They're not though. But keep coping

[Baggie !!2wgod7RQeJh No.56415442]

Alrgith /dig/ tell it to me strait. Are dividends your friends, or are dividends irrelevant? I've heard people post about them in /smg/ using monopoly chance and community chest cards, and I'm not sure which school of thought is accurate.

[Anonymous No.56415443]

>>56415418
yep. Right there in black and white. Extremely relevant investing tool. No substitute for dividends

[Anonymous No.56415484]

>>56415442
How long is a piece of string?

[Baggie !!2wgod7RQeJh No.56415488]

>>56415443
I never understood why I should trust my money in a company that pays distributions of their profits instead of reinvesting the capital back into the business for further growth? Like if I wanted the money back I would just sell the fucking stock.

[Anonymous No.56415508]

>>56414472
>price floor
Fancy term for "people will buy this NFT if other people sell enough of it"

>vote themselves a dividend
So, a dividend paying stock is advantageous over a non-dividend paying stock?

[Anonymous No.56415511]

>>56415443
Dividends are one tool in a large tool box for extracting your money from companies you own

[Anonymous No.56415512]

>>56415488
Shareholders getting paid is important. Plus after a certain point reinvesting back into the company becomes burning money for minimal growth. There’s a reason dividends are wildly popular

[Baggie !!2wgod7RQeJh No.56415560]

>>56415512
>burning money for minimal growth
maybe if they're retarded, but there is always room for horizontal or vertical integration as a means to trim costs, or cut out competition. dividends just seem to be a company's way of admitting they're out of ideas.

[Anonymous No.56415579]

>>56415560
Nah after a certain point you reach the point of diminishing returns. That money is much better when distributed to shareholders. Kind of a staple of investing. You invest for ROI, dividends are a part of that

[Anonymous No.56415588]

>>56415511
I'm pretty new to investing, so I've got to ask: what's another tool for extracting money from a company you own?

>sell stock

Sounds like "extract money from someone else using the ticker symbol that you used to own," but maybe I'm misunderstanding something.

Options trading is extracting money from someone else to hold or sell ticker symbols, but doesn't involve the traded company.

What am I missing?

[Baggie !!2wgod7RQeJh No.56415601]

>>56415579
Hypothetically if coca-cola never paid a dividend they would have had enough cash to just buy out all of their competition and would be in a position to make even more money through larger market share...

[Anonymous No.56415626]

>>56415601
May I see the source for this? What’s to stop 100 other companies from popping up after Coca Cola bought out the competition? How would they deal with sham companies pretending to sell soft drinks with the intent to be bought out by Coca Cola. You really didn’t think this through even a little bit

[Anonymous No.56415651]

>>56411634
Fuck u dividend niggas

You like the yield even if it comes by destroying the principal, a payout ratio over 90% or just plain old dillution.

You like being taxed forcibly by that yield.
Yet don't understand that it means that the company doesn't know what to do with that money.

You fail miserably to understand that if companies left the cash in the company, you wouldn't get taxed, plus you can always create the yield by selling (fractional) shares.

Disgusting subhumans that don't look at the total return.

You boomer div niggas disgust me.

[Baggie !!2wgod7RQeJh No.56415668]

>>56415626
patents

[Anonymous No.56415675]

>>56415651
>just sell your shares in great companies
kek no, why the fuck would I do they

[Anonymous No.56415686]

>>56415668
You can parent a recipe but someone could have the same ingredients and change a single step and the patent would be worthless.

[Baggie !!2wgod7RQeJh No.56415688]

>>56415675
that's basically all a dividend is, after the dividend comes out, the share value drops by the dividend amount anyway.

[Anonymous No.56415697]

>>56415651
>You fail miserably to understand that if companies left the cash in the company, you wouldn't get taxed, plus you can always create the yield by selling (fractional) shares.

what is capital gains tax

[Anonymous No.56415701]

>>56415688
>bid ask
Sorry pal you lost again

[Anonymous No.56415702]

>>56415688
Finally someone that gets it.

Thank you, your dubs are in your reasoning

[Anonymous No.56415714]

>>56415702
When you have to look to baggie for backup you know you’re on the wrong side of the argument.

[Anonymous No.56415716]

>>56415697
Companies pay corporate tax if they give the dividend or if they keep the cash.

Is net income for the company either way.

[Anonymous No.56415732]

I know an Aussie boomer who is all div stocks in the Aussie market. can't dividends just be cancelled at any time? If you're relying on this paying a yearly income isn't there a chance you'll get fucked. Also it seems many stocks that may not pay dividends outperform

[Anonymous No.56415747]

>>56411663
the dividend growth was a result of the company growing massively during that time
it's folly to assume costco is going to grow another 12x over the next 20 years

[Anonymous No.56415753]

>>56415732
Dividends are extremely reliable if you invest with the right companies. All of these companies are well known and have raised dividends through multiple market downturns, a recession, covid, etc. growth stocks are much, much, much more vulnerable to the downside. In a down market dividend investors feast because there’s a fire sale on income generating stocks.

[Baggie !!2wgod7RQeJh No.56415757]

>>56415714
even a broken clock is right twice a day retard

[Anonymous No.56415786]

What is the benefit of doing this compared to just taking the boglehead pill and holding a bunch of ETFs?

[Anonymous No.56415824]

>>56415747
Generally as companies mature they increase the percent of earnings that becomes dividends because reinvesting it offers less potential upside. If a company had a dividend of 50 cents for EPS of $1 with earnings growth of 10% that dividend would grow 5 cents a year. If growth slowed to say 8% that could be compensated for by distributing 52% of earnings instead to make up the difference.

Obviously you can't give a +25% dividend growth forever because no company can grow that much that long but it tapers off more slowly than you might think.

[Anonymous No.56415829]

>>56415786
i invest in dividend stocks for income diversity and offsetting costs. i hold...
25k in utility companies, which pays my electric bill
25k in telcos, which pays my cell/internet bill
20k in oil companies, which pays my gasoline costs
etc.

the goal is to have all my bills paid for my companies in those sectors, so that if one bill increase a lot, i'm likely invested in companies that will benefit

[Anonymous No.56415879]

>>56415786
there's a gorillion equity-income ETFs anon
you want to own a diversified fund? Great, any of a dozen companies will give you a variety of them based on more or less whatever you like. Yield? Dividend increases? Length of continuous payouts? Various other "value" criteria? Sure. Or you can get international funds, EM funds, preferred shares, etc etc.

[Anonymous No.56415887]

>>56415829
Not sure about whether that's optimal for gains but that sounds comfy af to make companies effectively pay their own bills.

[Anonymous No.56416025]

>>56411634
Thoughts on JPM? Do i hold until the end of the month then dump it to free up some capital or do i keep it?
I have about 20 shares

[Anonymous No.56416034]

>>56416025
*hold until end of month to recieve the divvy then dump is what i meant to say

[Anonymous No.56416047]

>>56416025
personally, i'm avoiding all banks
there's way too many 3% loans out there, which they're losing on

[Anonymous No.56416059]

>>56416025
on that amount, isn't the dividend only going to be like $25?

[Anonymous No.56416108]

>>56415588
Well when you say dividend theres a couple different types, this thread is mostly discussing ordinary dividends but theres also special dividends, where the company has a surplus of cash and the shareholders vote to take that cash. You could also do a share buyback, or have the company reinvest that cash. Theres also what I would call "hostile" dividends where you basically squeeze all the cash out of a company against their wishes and basically gut them.

But yeah, youre right in that dividends are the most direct way to get cash out of the company. Your other alternatives are to sell your position, write calls against it, or loan your shares.

[Anonymous No.56416149]

>>56416108
and of course lending against your shares ala elon musk
>0 income
>have billions of dollars
dividends cant do that for you

[Anonymous No.56416162]

>>56416059
It would depend entirely on the stock. For example I have 120 shares of O for like $6000 that pay $30 a month

[Anonymous No.56416178]

>>56416149
That’s ok. I don’t need billions of dollars. Do a lot of growth investors make billions?

[Anonymous No.56416283]

>>56415588
In addition to >>56416108, there's also the possibility your company is bought out by another or taken private for a premium on a per share basis. See recently Twitter, Activision, Pioneer Resources.

>>56416025
I saw them building up cash in 2022 and bought around $130. After they snapped up First Republic in the banking fiasco this past spring, I sold them for $143. The divvy is a bit low for my risk tolerance. They are the largest bank in the US, so their shares have a hefty safety premium. They also said they're not looking to grow after First Republic, which regulators had to bend the depositor share cap limitation to get them to acquire. The "buyout failing competitors play" has played out for me, and think they have more medium term risk with all the shady stuff they do spoofing commodities futures, especially with gold looking ready for its next leg. I'm accumulating a different bank more heavily involved with Fednow integrations. Study the big boys carefully. Fed looks ready to pause on rates, so net interest margins seem like they'll stop growing.

[Anonymous No.56416353]

Eurofag here.

What is the NOBL ticker equivalent accessible for European investors? All I can find is S&P500 HIGH YIELD indexes, no real dividend aristocrat ETFs mimicking the NOBL one.

[Anonymous No.56416359]

>>56416178
Over the past few decades growth stocks have done tremendously well and outperformed divvie stocks by a pretty wide margin.

Im pretty heavily in divvie stocks btw, Im only disputing the false narrative that growth stocks are worthless and divvies are the only way

[Anonymous No.56416449]

>>56416359
> Im only disputing the false narrative that growth stocks are worthless and divvies are the only way
Brother, I’m only disputing the false narrative that divvy stocks are worthless and growth is the only way

[Anonymous No.56416477]

>>56416353
S&P Global has a "Euro 350 Dividend Aristocrats" index. According to justetf.com, State Street has a euro etf called DIST. Try looking around for that.

[Anonymous No.56416814]

Been buying arlp
https://finviz.com/map.ashx
The Jews have all weekend to kill.
That is all.

[Anonymous No.56418128]

Can dividend general be a general where we post about stocks we like?

[Anonymous No.56418162]

DRIP or reallocate the funds yourself?

[Anonymous No.56418287]

>>56418162
I don't like drip because it's not self-consistent. If I wanted a company that automatically reinvested my dividends in growth I would just invest in a growth company that does that.

If the company feels that money is best returned to me as a dividend I'm going to take their word for it. If reinvesting it in their company is a screaming good deal right now I might do that but I'm definitely not going to automate it.

[Anonymous No.56418293]

lots of dividend stocks are down in the dumps, might be a good entry point if you have patience.. on the other hand rates could be high for years and years now

[Anonymous No.56418304]

>>56418128
Sure, what stocks do you like?

[Anonymous No.56418319]

>>56418287
Your expanding the equity that you're getting the dividend percentage on though, compounding.

[Anonymous No.56418320]

>>56418304
got in to VZ at like 31

[Anonymous No.56418344]

I can reach true neet status by
100% JEPQ
but I am doing
100% SCHD

am I shooting myself in the foot? I want to get away as soon as possible

[Anonymous No.56418352]

>>56415829
Kek. This is the NEET way of divvies.

[Anonymous No.56418368]

>>56411634
for legal reasons I am not allowed to have individual stocks in my portfolio
(weird how the rules are stricter for me because of my spouse's position than people actually making the laws for these companies)
so I can only hold ETFs and Mutual Funds for dividend portfolios, hwat are some top picks?

[Anonymous No.56418379]

>>56418319
Sure. Or you could buy a different company's equity. Or anything else you wanted to do.

My point is that if I'm purchasing dividend stocks I'm doing it because they issue me a dividend I can spend on anything I want. I'm not going to give up that liquidity and flexibility by locking myself in to reinvesting in them automatically. If I wanted a company that reinvested my share of the profits in itself automatically I'd buy a growth stock. I MIGHT reinvest my dividend in that company if that's the best use I can find for that money but I'm not going to automate it.

[Anonymous No.56418413]

>>56418344
SCHD is the way to go. Fuck any of the covered call strategies. No room for dividend growth, constant dividend cuts, one of those yield max funds was a couple of days late paying out their dividend last week

[Anonymous No.56418422]

>>56418162
I've seen some benefits to DRIP with certain companies that offer exclusive DRIP discounts. But I let divvies build in cash until I see a good opportunity.

>>56418287
Companies have many options of what to do with earned capital. Not every project is worth it. Suppose a company has 5 potential Capex projects: 1 high roi, 3 medium roi, and 1 low roi. They opt to forgo the bad project and return the capital as a dividend. By reinvesting in the company, you are trusting that the company's choice of capital allocation.

Imagine the hypothetical improvement of returns on Google if instead of spending capital on Google Glass, Google+, and Stadia, they had returned that capital as a dividend. By reinvesting you will be putting your capital back into management's judgement for higher return projects. It's a high case-by-case analysis, but with a growth company you are trusting that every project management is spending on has a better roi for shareholders than letting them reinvest at their discretion.

I'm not dismissing growth here, but the faster roi is because of the higher risk involved in management's decision making about where their capital should go. Growth and value both have their function in a portfolio. Some macro environments growth is easier, and in others it struggles.

[Anonymous No.56418424]

i can only do vinix/vimax in my 401k, but my ira and hsa are mostly vig

[Anonymous No.56418432]

>>56418379
Fair enough. I’m at the stage that I’m just letting my divvies ride and DRIP. Eventually when my O position is where I want it to be I’ll use the monthly divvy to buy into my other stocks but for now I figure time in the market instead of timing the market is what I want to do. DRIP and automatic recurring contributions is how I’m rolling

[Anonymous No.56418434]

>>56418424
and for international, i have a little vigi and vymi, but not very much

[Anonymous No.56418472]

>>56418344
See >>56418413, and also covered call income is never qualified divvies so it's taxed at marginal income bracket rather than long term cap gains.

>>56418413
I've had SCHD on my watch list for a while, waiting for a good entry. But while waiting I was doing research on their index methodology. According to some breakdowns I've seen on seeking alpha, for a stock to enter SCHD, it has to enter the top 100 of Dow Jones dividend index, but for a stock to fall out of SCHD, it has to fall out of top 200. This can lead to some laggards slowing down the fund. I've seen COWZ mentioned as an alternative, which focuses on free cash flow growth. It's not dividend focused, but it's positive since the 2022 rate hike cycle started, unlike SPY and SCHD. My gut tells me to bogglemaxx and split between the funds.

[Anonymous No.56418515]

>>56414658
Yeild on cost is just something to make you feel good. It's meaningless. If the yeild of my portfolio is 3%, then it is 3% of my current balance. Do you calculate yield on cost in a savings account? UFB is paying over 5% now (yes, I know the growth argument that you are proposing). How about a CD ladder now that they are becoming a thing again. Or how about a single 1 year CD that you keep rolling over? Yeild on cost? No, JUST yeild or APY. This is like the English system of giving total returns (to and 10 year, sometimes longer) rather than annual ones for investments. The number is huge, it's awesome. But it's pretty meaningless to say something has returned 72% in 10 years. It makes it harder to compare to other investments.

[Anonymous No.56418529]

threadly reminder that dividend-focused investing is for fucking retards and the irrelevance of dividend policy to shareholder returns has been empirally proven by M&M

screening first and foremost by dividend yield is a masterclass in adverse selection and I strongly advise against doing so.

[Anonymous No.56418547]

>>56418529
nah

[Anonymous No.56418553]

>>56418547
my favourite dividend stock is Constellation Software

[Anonymous No.56418566]

>>56418515
I agree that it just makes you feel good, but I don't think that's meaningless. That's why I said it's a cherry on top.

As you say, gains are gains. If you took your $153 of JNJ out (which used to be $116) and realized your gains and mixed it all around with all your other money then re-bought a share of JNJ at $153 you wouldn't know the difference. You'd still own $153 of JNJ and receive your $4.76 every year.

But thinking this way ("look how efficient that investment was!") encourages a long-term value-oriented mindset that's important for buy and hold investing in the kinds of companies that issue strong, consistently increasing dividends. Yield on cost is to dividend investing what "a gun is always loaded" is to gun safety. It's technically irrelevant but practically vital.

[Anonymous No.56419401]

>>56411634
What is everyone buying monday?

[Anonymous No.56419429]

>>56416814
>ARLP
>almost 12% yield and only 41% payout ratio
Hot, that's good shit

[Anonymous No.56419471]

>>56419401
I'll continue to DCA onto PNC and SCHD

[Anonymous No.56420300]

>>56419429
My favourite coal stock is Whitehaven
15% yield and 22% payout ratio. Just acquired two new mines from BHP at a bargain price. May or may not make sense to prefer aus stocks depending on your location and tax situation.

[Anonymous No.56420336]

>>56415732
Yes, but their reputation as a reliable dividend stock will be tarnished just for halting an increase of their dividend (at least by dividend fundamentalists) and the stock price might end up being punished for it.
People look back at the great financial crash and corona etc. to see which companies could pay or even increase their divvy and suspended their divvy.

[Anonymous No.56420861]

>>56415732
You also want a diversified portfolio so that if any of your holdings halt or even suspend dividend, it should only affect a smaller percentage of the total and not be detrimental to your income. That gives you time to revaluate your position.

Don't got married to your stocks, or at least don't be afraid to divorce them.

>>56413238
probably because they're deep with the glowniggers since the beginning and don't want foreign powers having any control.

[Anonymous No.56420999]

>>56419401
If anything I’ll add to my recently opened NEE position.

[Anonymous No.56421594]

>>56418529
I'm glad the market consensus is something like what you're saying because that means I get the benefits of contrarianism just by doing what I want to do anyway

[Anonymous No.56421611]

>>56411634
I recommend ADN.TO. Lumber company from Canada that owns its land and trades its carbon credits. 7% yield before taxes

[Anonymous No.56421616]

/dig/'s thoughts on BDC's? Like REIT's they have to pay out most of their profits and often have a high yield around 10%.
At least some of them have proven themselves to weather the storms.

A few popular ones:
Main street capital (monthly payouts)
Ares capital
Hercules capital
Barings (new management since a few years, discard past poor performance).
Sixth street speciality lending (one of the most conservative and lower risk loans, but do better when there's lower rates).
Blue owl capital group

[Anonymous No.56421636]

>>56421616
If you have a properly diversified REIT then I would say you should be fine. I.e. compare MAIN vs MED. MED is struggling for the last 2 years and its dividend doesn't seem to be safe unless they change their strategy.

[Anonymous No.56421646]

is there a SCHD alternative for us europoors or are we left out again (as always)?

[Anonymous No.56422214]

>>56421616
BDC & REIT divvies are always taxed as ordinary income, never qualified divvy status. I would only put money into them in a tax advantaged account personally. I've been watching ARCC, waiting for this credit event to occur before adding in my HSA. But its parent, ARES, seems like a solid traditional divvy growth candidate for a taxable account.

>>56421646
See >>56416477

[Anonymous No.56422271]

>>56418368
VIG, VYM, SCHD, SDY, DVY, NOBL. Per https://www.bankrate.com/investing/best-dividend-etfs/

[Anonymous No.56422374]

I love how dividend stocks always attract butthurt gamblers. It just so happens that dividend stocks quite often represent companies with healthy balance sheet and cash flow (not counting value traps using debt to finance divvies). It's a legitimate way of building portfolio and getting returns on your investment. And in my opinion it's quite comfy compared to trying to time your buy / sells constantly.

[Anonymous No.56423425]

>>56422374
This whole thread is a sell signal. IT IS OVER FOR PEDOS IN POWER. imagine giving your money to these freaks that hate you.

[Anonymous No.56423477]

I have about 300k in SCHD and 120k JEPI
too much hustle to care about individual stocks.

[Anonymous No.56423738]

>>56414420
>/SMG/ has had 10x the number of posts as you guys here
What is the point? Tons of generals of shitcoins which went to zero had even more posts, kek.

[Anonymous No.56423787]

What do you guys think about CGDV? I don't particularly like Capital Group, those returns are impressive.

[Anonymous No.56423799]

What is your dividend portfolio strategy and goals? My first goal was building a portfolio paying out 365 a year. Next goal is to get 365 every quarter of the year (only $300 away form that goal). The hardest goal is to build to 365 a month. What makes it hard is that I want it to be actual pay per month and not an avarage. I think if I reach that goal than the dividend train will be running full steam because I am adding my dividend earnings back into more dividend.

[Anonymous No.56423894]

>>56414420
And I barely have time to read through one thread before a new one is created. How many /smg/ are made every day on average?

[Anonymous No.56423945]

>>56423799
When I consider small-cap stocks that reliably make money but are illiquid, dividends are somewhat important because they allow me to partly cash out without having to trade (thereby paying the bid-ask spread).

[Anonymous No.56423995]

>>56423738
>What is the point?
More engagement, more entertainment, and most importantly, more eyeballs on the questions I have. And quicker answers. As I said earlier, this general is higher quality. I think the scope is a little too narrow though. I'd rather see an investing general. More about growing wealth using the stock market.
>>56423894
I would guess around 5. But it really depends on market conditions. I usually scroll down to the bottom quarter of the thread to get caught up. I don't read every post.

[Anonymous No.56424119]

>>56423799
>What makes it hard is that I want it to be actual pay per month and not an avarage.
almost everything pays quarterly. Preferred shares usually pay monthly but not many companies issue them, mostly financials and a few industrial companies. There's always bonds, of course.

[Anonymous No.56424120]

>>56423995
who gives a fuck what you want to see, you cock sucking shill? stop giving money to people that hate you.

[Anonymous No.56424161]

>>56411634
gg to anybody profiting off amerilards

[Anonymous No.56424196]

>>56421616
ARCC is the one I'm using in my Roth. Rock solid share price rarely deviates from $15-$20 over past 10 years and pays 10%. Their parent company Ares also recently hit an all time high. Generally seems like a well-managed bunch with a solid history.

>>56423799
I'm still building my portfolio so I use dividend stocks as a form of liquidity. I check in every few weeks to see which dividends I've received and which companies on my watchlist are a good deal right now. If none of them are then I just put it in SPY.

My play right now is primarily in a few oil/gas companies that also happen to pay big dividends, so mostly I'm investing / reinvesting into those.

Goal is to get the account to 6 digits. Currently in the low 5 digits. I think 10% / year is a reasonable return from stocks without having to day trade / swing trade, and $10k/year would really make a difference for me.

[Anonymous No.56424248]

Divvies are fucking retarded when long term treasury yields at over 5%

[Anonymous No.56424291]

>>56424248
Lurk moar

[Anonymous No.56424315]

>>56424291
You’ll learn the hard way

[Anonymous No.56424317]

Nice glownigger thread
Do you desperately need bagholders?

[Anonymous No.56424364]

>>56424315
You asked a question that was asked twice already in this thread. You do need to lurk. Such a baby brained question too

[Anonymous No.56424366]

>>56424364
I did not ask anything

[Anonymous No.56424393]

>>56424366
Sorry you’re right. You made an implication that was discussed twice previously when other newer investors asked the questions

[Anonymous No.56424410]

>>56411634
Explain to me how growth niggas aren’t an enemy if exit strategies are wars

[Anonymous No.56424428]

>>56424393
Noone is buying your bags, glowie

[Anonymous No.56424450]

>>56424428
kek yes they are. The companies I invest in are extremely popular.

[Anonymous No.56424485]

Here’s what happens to dividendfags who have only witnessed a zirp QE market.
>economic downturn
>dividend cut or frozen
>underlying stock crashes
Enjoy bagholding

[Anonymous No.56424492]

>>56424450
continue to finance your enemies, cock sucker. i won't participate in any of that.

[Anonymous No.56424535]

>>56424248
Then otherwise good companies will sell at a discount. The market corrects automatically. Nigger faggot.

[Anonymous No.56424537]

shills SEETHING that i'm getting paid to do nothing

[Anonymous No.56424544]

>>56424485
Buying during crashes "blood in the streets" then bag holding is the ultimate way to huge gains, "made it" gains. My time horizon is over 10 years, bring it.
>>56424492
Who are my enemies? WTF are you going on about?

[Anonymous No.56424596]

>>56424492
I can't tell if you're implying the US government is my enemy or if big companies are my enemy

[Anonymous No.56424618]

WBA div safe? Bankruptcy?

[Anonymous No.56424676]

>>56424618
No Walgreens scares me

[Anonymous No.56424714]

>>56411634
problem with pepsico is overtime they kill their customers.

[Anonymous No.56424732]

>>56424676
buy when there is blood in the streets... or maybe it will go bankrupt lol

[Anonymous No.56424743]

>>56424714
Not my problem. They still get a lot of use out of a consumer.

[Anonymous No.56424932]

>>56411634
Great thread friend, I hope to see more of these.

For me I have been enjoying BDC, I am in ARCC and HGTC.
Also, I know /smg/ has been squawking alot about oil and I have since been doubling down. Energy will always be required and in demand. I have been slowly buying shares of XOM.

Another related stock has been DHT, Dual Hull Tankers is in the shipping of natural gas. They have a fleet of relatively new ships and have been quite busy as of late. Their share price hovers around $9-10 and they pay a nice dividend. The only problem is the amount can be inconsistent.

Please like, share, and subscribe to my blog. I hope to see many more /dig/s in the future.

[Anonymous No.56425178]

>>56424119
For now have dividend payments in jan, march, april, May, Jun, july, sep, oct and december. Only need feb, aug and nov to complete.

[Anonymous No.56425398]

>>56425178
ABT, ABBV, Clorox, and hormel foods.

[Anonymous No.56426474]

Dividends

[Anonymous No.56426788]

Assertions like
>management would use hoarded cash unprofitably
>CEOs use share buybacks to manipulate metrics in order to make the company's performance appear better and to improve their personal compensation
>financial results can be false; dividends provide evidence that there's a genuinely profitable business
do not necessarily mean dividend stocks are better investments. Assuming those assertions are true, other investors know them too and adjust their bid and ask prices to account for them.

[Anonymous No.56426854]

I also like WM, where my garbage truck baggies at

[Anonymous No.56426859]

>>56426788
The average dividend stock does actually have a higher price than the average stock overall by about 10%. It's something to keep in mind when evaluating what a fair price should be for a stock vs. its competitors.

[Anonymous No.56428029]

>>56425398
Thanks anon, will add to my watch list

[Anonymous No.56428677]

>XOM
>CNQ

[Anonymous No.56428695]

>>56424485
This thread is made by the same guys that made the "index fund" threads.
Meanwhile the stock market is lower than it was two years afo.
They desperately need retail bag holders.
Reminder that companies like Coca Cola have zero growth and are about to fall off a cliff

[Anonymous No.56428723]

Thoughts on $MO and $IRM? These have been two of my biggest positions since 2020

[Anonymous No.56428750]

>>56428723
>MO
Little growth potential, not a bad hold if you just want the yield
>IRM
Not familiar, but looks solid at a glance. Good growth and no dividend cut during coofid

[Anonymous No.56428761]

>>56428695
This is why you go for the oil companies

[Anonymous No.56430412]

Dividends

[Anonymous No.56431244]

Chainlink (ticker: LINK) is my dividend stock choice, you crazy kids just wouldn't shut up about it!

[Anonymous No.56431794]

Any body hold KR? I like the company

[Anonymous No.56431988]

>>56431794
I don't, but apparently Berkshire Hathaway likes the stock too, since they own a lot of it.

[Anonymous No.56433233]

>>56431988
More like NFTshire NFTaway

[Anonymous No.56433280]

>>56433233
If you suspect non-dividend-paying stocks like BRK.B are overvalued, you should short them long-term. You'll make a lot of money if you're right.

[Anonymous No.56433833]

>>56433280
I don’t touch options unless I’m selling extremely conserative calls

[Anonymous No.56433869]

Speaking of which. How do you guys feel about selling covered calls on your divvy positions

[Anonymous No.56433880]

>>56433833
I didn't say anything about options. Just short the non-dividend stocks and long the dividend stocks.

[Anonymous No.56433914]

>>56433869
Feels good as an extra way to get some value added on certain stocks as long as you're careful about selling under basis and getting assigned due to ex-div shenanigans. Insurance has always been a profitable business as long as you're willing to take the occasional haircut from volatility.

[Anonymous No.56435336]

>>56433869
Something to remember about options is that they disqualify qualified divvy status for the underlying.

[Anonymous No.56435773]

I have QQQX if yall care. 7 percent and it gets taxed like futures and it has gains like a normal ETF. only dividend play in my porty desu

[Anonymous No.56435842]

>>56435773
Covered call funds aren't dividend stocks and I'm sick of pretending otherwise

[Anonymous No.56435909]

>>56435842
Tell me what boomer fund should i invest in? I dont believe in putting my money in singular dividend stocks, thats only a growth thing.

[Anonymous No.56435955]

>>56435909
SCHD is the classic choice

[Anonymous No.56435966]

>>56435909
>>56435955
Check out VIG and VYM too.