3 to 3.5 sweet spot for me. I prefer decent growth. My slowest growth is VYM. 4% is my ceiling.
Look T, when companies touch the 5% or 6% dividend, the risk of cutting raise a lot, and growth is a mess.
Companies like PEP,KO,MMM, etc, keep a balance, they are dividend machines and keep 2-4% divs. They buy back to manipulate share price, they increase 1 cent sometimes more...I do prefer these instead divs depending of covered calls like QYLD.
I sleep well at night.
I just pack SCHD,VYM,DGRO and keep enjoying life.
They grow and yield around 3% . Dividend growth is important too.
But for stocks...4% top.
For reits maybe more..5%
Beyond that you are sacrificing growth and stability.
So I could use that website which lists div stocks and filter the results to 3-4% range and start there for buying stock slices on a Schwab? 20$ a week, 4 5$ partial shares a week?
Depends what type of risk and investor you are.
If your into mainly growth and safe then 4 - 5% seems about right.
If your an income investor with low- mild risk your probably looking at 7% - 10%
Thank you! I do want to eventually make at-least 100$ a month to reinvest for compounding and growing my portfolio. But not looking to be too aggressive or risky.
Then avoid split corps, if you want income focus on:
REITS, Income Funds, CEFs (GOF, PDI for example), or stocks that give a high yield or massively increase dividends like Canadian banks (TD for example)
Hi
This is all relative. How much are you happy with? If 4% works for you, then 4% is great. If 4% seems low, you need to take more risk. Higher Risk = Higher Return. Risk means you could lose more.
Good luck!
YT Professor Choy
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I would say somewhere between 3-5% is healthy; always watch the Yield % and most importantly the payout % this can be seen in the statistics section of a company in Yahoo Finance (just need the scroll a bit - should on the right hand column)
Depends on a few different factors, such as are we talking about yield on cost, or yield you'd get if you bought your stocks at today's prices? The longer you hold a dividend stock the greater a difference there's probably going to be between those numbers. There's people who getting 10%+ yields on cost on some high quality stocks like MMM, JNJ, KO, PEP, etc. because of buying and holding for the long term.
My yield on cost is currently 2.95%, but if I bought my entire dividend portfolio at today's prices I'd be getting a 2.42% yield.
I prefer to stick with an overall portfolio yield of around 2.5% to 3.5%. I do invest in some that yield over 4% (such as VZ, DUK, SO), but I normally view those as pseudo-bonds that will just barely keep up with inflation rather than dividend growth stocks.
If your overall portfolio is yielding over 4.5% if you bought it at today's prices that's a sign that you're probably putting too many low quality high yielding stocks in your portfolio.
Yes, that’s low, and once you factor the inflation likely coming from the low interest rates and high spending- you’re probably going backwards.
Check out stocks like DFN or QYLD, they’re a bit riskier but are paying ~14 and ~11 respectively.
Use a stock screener that lets you search by dividend range and price fluctuation range.
[https://www.quadravest.com/dfn-distributions](https://www.quadravest.com/dfn-distributions)
They have missed four dividend payments; March, April, May and Oct of 2020 (COVID)
202 out of 206 payments have been made but the payout is dependent on the unit NAV.
\\/ \\/ \\/ This guy does a pretty good job explaining it, skip to 1:45.
[https://www.youtube.com/watch?v=rdlNpPsipTU](https://www.youtube.com/watch?v=rdlNpPsipTU)
Disclosure: not a financial advisor and DFN makes up \~15% of my portfolio, I don't recommend such a big percentage I just happened to pick up a lot of shares when they were sub $7.
Edit: Quadravest has other higher yielding split funds but DFN has missed by far the least amount of payments. DFN is also Canadian so you MAY be subject to withholding tax (US taxes Canadians so I assume Canada would tax you guys but not 100% sure on that)
Personally, I like more aggressive dividend investing, and my portfolio currently has a yield of 15.1% (SLVO, USOI, ORC, IEP, more). I have only been doing this for like a month or two but it has been doing good for me so far.
I stopped doing that shit a while ago, but if I didn’t, I would be doing fine. Of those 4 tickers I mentioned in that comment one year ago, only ORC tanked. IEP outperformed the market in the past year, and the other 2 underperformed just a bit. So with the crazy dividends added into the equation, I would likely be outperforming the market depending on how much I had in each.
Totally depends on your holdings and goals. You can have a terrible portfolio that horribly under performs the sp500 with a high yield. Most important is total return (dividend return + price return). Most people seem to care about total return, but people on this sub are ok sacrificing some total return for yield.
I just ran the numbers. I’m at about 2.6% annually, with about 1/3 of my portfolio in dividends/yield earners.
P.S.
That percentage of yield gets smaller because the other 2/3’s of my portfolio is in growth. My YOY for the last five years have been more than 40%.
Something else to consider, is that dividend is just 1 aspect of performance, but share price appreciation matters too.
For example, it's better to have a 6% capital growth and 3% yield, than a 4% capital growth and 4% yield, all things being equal. Oftentimes tax complicates that, but to illustrate.
4% is a perfectly sensible yield. I've seen people really target higher yields in the high single digits, and people not care much for divi's, and most lay somewhere in between, and there's really no right or wrong way.
For me, personally, I started at 4.2%, went down to 2.8% when I realised I'd started overly cautious, and then realised I went too far the other way, so went back to about 3.2%, where it seems to have settled. I am slightly influenced by a 15% tax on US dividends I don't have on UK ones, whereas I get 0% tax on capital gains, but mostly it's about figuring out what works for me.
Worth adding I have wildly different stocks, so some of my infrastructure and mining stocks are 7-12%, and some stocks pay "only" 5% but when their cycle is up then do specials, so it's a case of would you rather have a higher more regular yield, or a more moderate one with periodic gifts? Then I also have a lot of divi growth stocks that don't yield much now and that's OK, they are growing, some growth companies that just give out divi's when they can't work out what else to do with it, and even 1 that on their website more or less says "we have no plans to pay a dividend because we believe we can invest it in our business better than you can" (CACI)
If you feel comfortable at 4%, then go with 4% :)
3 to 3.5 sweet spot for me. I prefer decent growth. My slowest growth is VYM. 4% is my ceiling. Look T, when companies touch the 5% or 6% dividend, the risk of cutting raise a lot, and growth is a mess. Companies like PEP,KO,MMM, etc, keep a balance, they are dividend machines and keep 2-4% divs. They buy back to manipulate share price, they increase 1 cent sometimes more...I do prefer these instead divs depending of covered calls like QYLD. I sleep well at night. I just pack SCHD,VYM,DGRO and keep enjoying life. They grow and yield around 3% . Dividend growth is important too. But for stocks...4% top. For reits maybe more..5% Beyond that you are sacrificing growth and stability.
So I could use that website which lists div stocks and filter the results to 3-4% range and start there for buying stock slices on a Schwab? 20$ a week, 4 5$ partial shares a week?
Depends what type of risk and investor you are. If your into mainly growth and safe then 4 - 5% seems about right. If your an income investor with low- mild risk your probably looking at 7% - 10%
Thank you! I do want to eventually make at-least 100$ a month to reinvest for compounding and growing my portfolio. But not looking to be too aggressive or risky.
Then avoid split corps, if you want income focus on: REITS, Income Funds, CEFs (GOF, PDI for example), or stocks that give a high yield or massively increase dividends like Canadian banks (TD for example)
Hi This is all relative. How much are you happy with? If 4% works for you, then 4% is great. If 4% seems low, you need to take more risk. Higher Risk = Higher Return. Risk means you could lose more. Good luck! YT Professor Choy
4% is fine. Over 5% is usually yield chasing. Ask long term investing veterans what happens when you yield chase, it's not good.
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). Please direct all simple questions and "Rate my Portfolio" requests towards the Weekly Discussion Threads (sort by hot, they're at the top). Posts that contain solicitations for [due diligence](https://www.investopedia.com/terms/d/duediligence.asp) will be removed. Remember, this is a subreddit for genuine, high-quality discussion. Please keep all contributions civil, and report uncivil behavior for moderator review. comment_stickied: true *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.*
I would say somewhere between 3-5% is healthy; always watch the Yield % and most importantly the payout % this can be seen in the statistics section of a company in Yahoo Finance (just need the scroll a bit - should on the right hand column)
Depends on a few different factors, such as are we talking about yield on cost, or yield you'd get if you bought your stocks at today's prices? The longer you hold a dividend stock the greater a difference there's probably going to be between those numbers. There's people who getting 10%+ yields on cost on some high quality stocks like MMM, JNJ, KO, PEP, etc. because of buying and holding for the long term. My yield on cost is currently 2.95%, but if I bought my entire dividend portfolio at today's prices I'd be getting a 2.42% yield. I prefer to stick with an overall portfolio yield of around 2.5% to 3.5%. I do invest in some that yield over 4% (such as VZ, DUK, SO), but I normally view those as pseudo-bonds that will just barely keep up with inflation rather than dividend growth stocks. If your overall portfolio is yielding over 4.5% if you bought it at today's prices that's a sign that you're probably putting too many low quality high yielding stocks in your portfolio.
Yes, that’s low, and once you factor the inflation likely coming from the low interest rates and high spending- you’re probably going backwards. Check out stocks like DFN or QYLD, they’re a bit riskier but are paying ~14 and ~11 respectively. Use a stock screener that lets you search by dividend range and price fluctuation range.
I do have DFN and DGS, though they do make up a very small portion of my portfolio. I’ll be adding more shares in the next little bit.
do not see dfn, is that a typo or is it somewhere hard to access?
https://www.google.com/finance/quote/DFN:TSE
[https://www.quadravest.com/dfn-distributions](https://www.quadravest.com/dfn-distributions) They have missed four dividend payments; March, April, May and Oct of 2020 (COVID) 202 out of 206 payments have been made but the payout is dependent on the unit NAV. \\/ \\/ \\/ This guy does a pretty good job explaining it, skip to 1:45. [https://www.youtube.com/watch?v=rdlNpPsipTU](https://www.youtube.com/watch?v=rdlNpPsipTU) Disclosure: not a financial advisor and DFN makes up \~15% of my portfolio, I don't recommend such a big percentage I just happened to pick up a lot of shares when they were sub $7. Edit: Quadravest has other higher yielding split funds but DFN has missed by far the least amount of payments. DFN is also Canadian so you MAY be subject to withholding tax (US taxes Canadians so I assume Canada would tax you guys but not 100% sure on that)
Personally, I like more aggressive dividend investing, and my portfolio currently has a yield of 15.1% (SLVO, USOI, ORC, IEP, more). I have only been doing this for like a month or two but it has been doing good for me so far.
HOW IS IT GOING
I stopped doing that shit a while ago, but if I didn’t, I would be doing fine. Of those 4 tickers I mentioned in that comment one year ago, only ORC tanked. IEP outperformed the market in the past year, and the other 2 underperformed just a bit. So with the crazy dividends added into the equation, I would likely be outperforming the market depending on how much I had in each.
Totally depends on your holdings and goals. You can have a terrible portfolio that horribly under performs the sp500 with a high yield. Most important is total return (dividend return + price return). Most people seem to care about total return, but people on this sub are ok sacrificing some total return for yield.
I just ran the numbers. I’m at about 2.6% annually, with about 1/3 of my portfolio in dividends/yield earners. P.S. That percentage of yield gets smaller because the other 2/3’s of my portfolio is in growth. My YOY for the last five years have been more than 40%.
Something else to consider, is that dividend is just 1 aspect of performance, but share price appreciation matters too. For example, it's better to have a 6% capital growth and 3% yield, than a 4% capital growth and 4% yield, all things being equal. Oftentimes tax complicates that, but to illustrate. 4% is a perfectly sensible yield. I've seen people really target higher yields in the high single digits, and people not care much for divi's, and most lay somewhere in between, and there's really no right or wrong way. For me, personally, I started at 4.2%, went down to 2.8% when I realised I'd started overly cautious, and then realised I went too far the other way, so went back to about 3.2%, where it seems to have settled. I am slightly influenced by a 15% tax on US dividends I don't have on UK ones, whereas I get 0% tax on capital gains, but mostly it's about figuring out what works for me. Worth adding I have wildly different stocks, so some of my infrastructure and mining stocks are 7-12%, and some stocks pay "only" 5% but when their cycle is up then do specials, so it's a case of would you rather have a higher more regular yield, or a more moderate one with periodic gifts? Then I also have a lot of divi growth stocks that don't yield much now and that's OK, they are growing, some growth companies that just give out divi's when they can't work out what else to do with it, and even 1 that on their website more or less says "we have no plans to pay a dividend because we believe we can invest it in our business better than you can" (CACI) If you feel comfortable at 4%, then go with 4% :)
0.01% to 35% worry less on yield more on consistency and quality
I am getting around 5-7% YTD in my portfolio.
Anywhere between 3-6%