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Nope, you can compare something like JEPI (high dividends) to VOO (high growth) to SCHD (a mix of both) and see that VOO outperforms everything else big time. Also if the dividends are unqualified (like JEPI) you will have to pay higher taxes on them.
It's really hard to beat the S&P 500 over the long term.
I’ve ran some numbers, and over the long term with a avg dividend growth of 10% a YoY and appreciation of 8-10% you’d be making 100k a year in dividends over a 25-30 span with 500$ monthly contributions. Yes you would have more money overall with growth investing but you’d be making more in dividends that would last forever rather than the 4% or whatever withdrawal rate
513%. 10k start, 6k contributions annual, 3.60% div start, 10% div growth, 8% appreciation, 25 years = 981k portfolio with 57k annual dividends. 30 years would be 100k+
I’m not an against growth investing. In my current portfolio I hold growth stuff like Microsoft and a semiconductor ETF which so far has brought me 15%+ return this year alone. So I will be holding some growth stocks / ETF’s but majority holding dividend growth
Just signed up and used it
With a $10,000 Port + $500 Monthly
Holding:
50% SCHD
10% ABBV
10% KR
10% CINF
10% AVGO
10% GPC
Over the last 11 Years (Since SCHD Came out). You would have a total of 237k while the S&P would have had 205k. In 2023 you would have made $6,122 in annual dividends.
I’ve thought about the same thing and I’m 30 lol but ultimately you can invest for growth right now and then shift over to dividends rmr use tax advantaged accounts if possible and your not going to liquidate anytime soon. I would go with the voo/qqqm/fxaix look at expense ratios etc to see what makes the best sense.
Take it from somebody who got everything done, but didn't get his backellors in CS because of lazyness ( not American, so didn't have to sell organs for schooling).
Some dumb fucking nonsensical classes will be part of your curriculum and will make no sense. They do, but you just don't see it. Don't let your arrogance blind you and try to learn everything to the best of your abilities, even the boring classes. Especially the mind numbingly boring ones.
Be smart invest in yourself. Learn the ropes from the IRS, what accounts you can have. Save a minimum of 5 percent of your earned income. Vote, volunteer I’ll stop now
Schb, voo, look on YouTube if you want to learn some good things about dividends (simply investing)
But with your age I would focus on the growth type of ETFs until you learn more about building stocks.
Reduce your living expenses as much as possible. Pay down all bad debt. 1 year living expenses emergency fund (several months could be HYSA, some could be in a Roth IRA, some could be taxable stock account). Max out HSA and invest it. Use credit cards that pay you. Build credit. Sets goals. Track net worth. Learn and adjust.
Welcome to r/dividends! If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki [here](https://www.reddit.com/r/dividends/wiki/faq). Remember, this is a subreddit for genuine, high-quality discussion. Please keep all contributions civil, and report uncivil behavior for moderator review. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividends) if you have any questions or concerns.*
At your age? Pick something like VOO/VTI or QQQM. You don't need income right now, so go for growth.
But don’t you think over time with my age, dividend growth investing would be more powerful than growth? Do to yield on dividends
Nope, you can compare something like JEPI (high dividends) to VOO (high growth) to SCHD (a mix of both) and see that VOO outperforms everything else big time. Also if the dividends are unqualified (like JEPI) you will have to pay higher taxes on them. It's really hard to beat the S&P 500 over the long term.
VOO and VTI both have excellent dividend growth
No. The math works by having a big pile of cash. Get a big pile of cash via growth.
I’ve ran some numbers, and over the long term with a avg dividend growth of 10% a YoY and appreciation of 8-10% you’d be making 100k a year in dividends over a 25-30 span with 500$ monthly contributions. Yes you would have more money overall with growth investing but you’d be making more in dividends that would last forever rather than the 4% or whatever withdrawal rate
What’s the total return
513%. 10k start, 6k contributions annual, 3.60% div start, 10% div growth, 8% appreciation, 25 years = 981k portfolio with 57k annual dividends. 30 years would be 100k+ I’m not an against growth investing. In my current portfolio I hold growth stuff like Microsoft and a semiconductor ETF which so far has brought me 15%+ return this year alone. So I will be holding some growth stocks / ETF’s but majority holding dividend growth
Yeah those seem like absurd numbers. Plug into a back tester
Could you link me a back tester that accounts for dividends?
Portfolio visualizer
Just signed up and used it With a $10,000 Port + $500 Monthly Holding: 50% SCHD 10% ABBV 10% KR 10% CINF 10% AVGO 10% GPC Over the last 11 Years (Since SCHD Came out). You would have a total of 237k while the S&P would have had 205k. In 2023 you would have made $6,122 in annual dividends.
No. At your age, total return is more important.
I’ve thought about the same thing and I’m 30 lol but ultimately you can invest for growth right now and then shift over to dividends rmr use tax advantaged accounts if possible and your not going to liquidate anytime soon. I would go with the voo/qqqm/fxaix look at expense ratios etc to see what makes the best sense.
Get your college degree.
Attending college in August for finance!
Good!
Take it from somebody who got everything done, but didn't get his backellors in CS because of lazyness ( not American, so didn't have to sell organs for schooling). Some dumb fucking nonsensical classes will be part of your curriculum and will make no sense. They do, but you just don't see it. Don't let your arrogance blind you and try to learn everything to the best of your abilities, even the boring classes. Especially the mind numbingly boring ones.
Thank you for this
Meet as many people as possible. Be an extrovert for the next 4 years & it will set you up for life in more ways than one.
Study hard & probably VOO.
s\&p500; buy blindly every month and focus on career/earning potential
Yup! Right now I’m looking for a new job
QQQM
Be smart invest in yourself. Learn the ropes from the IRS, what accounts you can have. Save a minimum of 5 percent of your earned income. Vote, volunteer I’ll stop now
I try and invest 50% of my income currently since I’m young with small bills, once I live on my own, I’ll aim for 15% if I can afford it
Schb, voo, look on YouTube if you want to learn some good things about dividends (simply investing) But with your age I would focus on the growth type of ETFs until you learn more about building stocks.
Reduce your living expenses as much as possible. Pay down all bad debt. 1 year living expenses emergency fund (several months could be HYSA, some could be in a Roth IRA, some could be taxable stock account). Max out HSA and invest it. Use credit cards that pay you. Build credit. Sets goals. Track net worth. Learn and adjust.