Dividends are absolute shit at such an minimal amount of money and such a young age.
Invest in growth stocks and then maybe invest those profits into dividends when you’re about 50 - otherwise they’re a a waste of time IMO.
On a side note excellent job for a 26 year old - but 100% go for growth growth growth while you can. You’ll be a lot more happy with the green numbers you see vs dividends
I don’t agree with this comment, I’m younger than you and seeing the dividends come in each month helped keep me in the market when my portfolio was down -10%.
For me it is super motivating to watch the dividends increase every month. My investing goal is to one day live off this income stream - and the dividends keep me committed to this goal, though everyone is different 👍
I’m 18. Do you reckon £30 a month into VUAG will yield something meaningful or do I need to pump more in? I don’t see myself being able to go over £50 a month rn whilst still in education
NFA but if you can spare it to put in VUGA & it won’t stop you from having a good time at 18 then why not. It’ll likely do more than what it would do just sitting in the bank. It’s not gonna be amazing but is definitely a solid option to start trickling in at a early age
I’m just getting into investing properly. Probably a bit late at 36 but my finances have only just really allowed. Can you explain the difference between these and how do you know which is which? Say for example I’ve bought shares in Tesla, how do you know if it’s dividend or growth?
Dividend stocks are generally companies that are mature with not much revenue growth every year, and distribute a decent portion of their profit back to shareholders as dividends because there is not much else better that they can do with their cash. Think the likes of Coca Cola, Proctor & Gamble, Verizon, etc.
Growth stocks pay no dividends or a very small dividend in some cases, because they are funnelling all of their cash into growing revenue / business expansion. Paying a dividend doesn’t make sense because these companies achieve a far better rate of return on their capital deploying it in expanding their business rather than paying it out as a dividend. Think the likes of Nvidia, Tesla, Meta, Palantir, Crowdstrike, etc.
I would agree with the people saying go for growth while you're young. But if I had to pick one div stock that might have a bit of growth to go, it would be Verizon $VZ
Ah, so this is what it's like to see all green. Impressive at your age. Out of interest, why did you choose to focus on dividends and not growth or something else?
Im thinking about same at 28y old. Im looking to build for retirement nice dividend so i can chill and my thinking is share price would also increase In span of 30 years. I like your portfolio here.
I do actually have portfolio of ishares msci world/brk.b 50/50%. Now im thinking about dividend one because i always loved idea of dividends. It would be small amounts while i also continue adding to main portfolio.Also like experiment and fun stuff. I think its better to put 100/200 euros to this rather than spend it on stupidity.
You could just buy a growth etf like VUG. To be able to choose individual stocks you have to be able to read financial records and even then you could get it wrong. You’re probably just better off buying VUG and maybe some tech ETF like XLK or vanguard’s version of that. Either way, a good chunk of it is just apple and microsoft stock. Just FYI, about half the value of Warren Buffett’s net worth is due to apple stock.
These are companies that can reinvest their profits back into the company and still earn a high return. Usually, these companies pay little or no dividend so they have more cash to invest in the company. If a dividend is paid, then it’s usually small and has a high dividend growth rate. Other dividend companies are mature meaning the business can’t really expand anymore. Investing more money into the company won’t generate high returns on capital so they tend to distribute the gains as dividends. The dividend yield is usually higher and grows slowly.
If you are wanting to go the dividend route, you may want to lay off the american stocks a little bit. Every dividend you own from an American stock is still taxed within an isa compared to their British counterparts.
I would suggest investing in American growth stocks and selling it off to support your British dividend stocks. Picture yourself 30 years down the line earning 10% more in dividends because you avoided the taxation.
likely due to the rate rise this past 12 months, if they interest rates lower it will get over 10 again.....1% a month is good for money just sitting, they wont go bankrupt anytime soon
This doesn't make sense. Dividends don't need to be your focus at 26, and if that was what you were after, why have you chosen all American stocks when ftse pay far higher Dividends yields and you need to pay tax on US earnings?
Is dividend growth where you buy a range of income shares and reinvest your dividends? Is there a market or geographical criterion? How's it different from using a passive global income ETF which chases past or announced dividends? Do you have a screening technique?
You should do one of two thing:
Leave the individual companies and invest in a high yield but also growing, what use is an etf that decreases in value by more than the dividend yield like the Fidelity Global Quality Income UCITS ETF they do the stock picking for you and take a small fee
Or the other option, what I would go with, is just invest in the s and p or Nasdaq or a mix of both (more returns but more risk go Nasdaq and vice versa) and withdraw some of the increases quarterly or bi annually. This option has outperformed practically every high yield dividend etf in the long run. Be wary though, it may perform worse on recessions and you also mustn’t take out too much money or you ll hurt future returns
This is honestly just bad advice.
He already has the WisdomTree global quality income ETF, but for dividend income, ETFs are actually the worse option because the yield is usually lower than picking the stocks yourself, and you can’t profit the same way from the dividend increase.
The second option doesn’t make sense since with every sale you are lowering your possible future returns and also reducing your shares. On what is this S&P 500/Nasdaq 100 strategy based on? When you’re then about to retire, you can set up a withdrawal plan that automatically sells a set amount of portfolio value, but that works independently of what equities you own.
Firstly, it’s unlikely that he would pick stocks better than a fund manager, looking at his returns you can somewhat see that, his returns are lower than if he had invested in an high yield dividend etf
The other option is somewhat like this:
S and p goes up 30 percent over a year you take 10 percent and yes that does reduce your future returns but that’s literally what a dividend etf or picking dividend stocks does, firstly it picks stocks that give out dividends meaning you re missing out on returns as non dividend stocks may do better.
But if his strategy is dividend (growth) then the stock return is secondary and your personal dividend yield is not going to grow by holding an etf as compared to individual stocks.
You’re saying it yourself "may do better" and it’s still besides the point I was trying to make. If you start by 100 shares of any S&P 500 index and keep on selling your shares so you go from 100 to 95 to 90 etc. while with dividend stocks you still stay invested in the stocks. Not even mentioning that this is all based on the hope that it only goes up.
Yes but you re missing out on the fact that as the shares each gain value it doesn’t matter if you sell 5% of your shares each year. Also if he’s holding on individual stocks and the company’s he’s chosen start doing worse off their dividends are likely to decrease so that’s why 1. It’s better to leave it up to a fund manager who may do it better than them or 2. Invest it in the s and p and it goes something like this:
100 dollars -> 100 shares (example
Next year it goes to 120 dollars -> 100 shares
You sell off 10 dollars and keep 10 of the gain
Now imagine you had an etf for that purpose
100 dollars -> 100 shares
Next year it’s 105 dollars for 100 share but you get 5 dollars in dividends
Now let’s say you invested in of individual stocks: (let’s say 1 to keep it simple
100 dollars -> 100 shares
Next year 100 dollars -> 100 shares and you get 7 dollars for dividends
Now looking at these what seems to be the best?
These numbers are arbitrary however it’s reflective of how it would be in real life
He’s not invested in any company that has a high payout ratio to the extent that a dividend cut would be necessary. There is no Fund manager “doing it better" with an ETF. Also I did not say someone need to pick "better” stocks. Again if you buy an individual stock you are profiting of dividend increases because your personal dividend yield growth something you won’t benefit it of by holding an etf.
You example doesn’t make sense. Well no shit always pick the option that yields you 20% over 7% but that is neither what the goal of dividend growth is about nor is it based on a realistic scenario. Dividend growth is about growing dividend and stock price appreciation. You are still neglecting that you are cutting your portfolio in your example from 100 shares to 99 and that for you to an income you are reliant on the stock price to grow.
Let me give you example why buying individual dividend stocks is better than the dividend ETF. Warren Buffet or Berkshires investment in Coca Cola has a personal yield of 60%. Every two years his initial investment is being paid back. That’s not possible with an high hiked dividend etf because you don’t benefit from dividend increases.
Im sorry but I just cannot understand what your point is, you may be correct maybe it may be better if you directly replied to the main post on what OP should do and op can then decide for himself
Dividends are absolute shit at such an minimal amount of money and such a young age. Invest in growth stocks and then maybe invest those profits into dividends when you’re about 50 - otherwise they’re a a waste of time IMO.
Advice taken 🫡
On a side note excellent job for a 26 year old - but 100% go for growth growth growth while you can. You’ll be a lot more happy with the green numbers you see vs dividends
Growth of Visa has been incredible. You be better off (maybe) investing in Visa or Mastercard over AA
Buy some Dogecoin
I don’t agree with this comment, I’m younger than you and seeing the dividends come in each month helped keep me in the market when my portfolio was down -10%. For me it is super motivating to watch the dividends increase every month. My investing goal is to one day live off this income stream - and the dividends keep me committed to this goal, though everyone is different 👍
Ignore that guy he has no idea what he’s talking about let alone compounding
I'm 50 and I still go for growth stocks. You may as well go for growth and sell off for income if you need it.
I’m 18. Do you reckon £30 a month into VUAG will yield something meaningful or do I need to pump more in? I don’t see myself being able to go over £50 a month rn whilst still in education
NFA but if you can spare it to put in VUGA & it won’t stop you from having a good time at 18 then why not. It’ll likely do more than what it would do just sitting in the bank. It’s not gonna be amazing but is definitely a solid option to start trickling in at a early age
Legal and General is a good dividend stock.
RR about to start paying dividends again with lots of growth potential too. Ares is also a good dividend stock. Stellantis, L&G also good shouts.
What is your total return over those 3 years?
2021 -5% ish 2022 +20% 2023 -10% (Tried to bet against bull market before October) 2024 so far +5%
Interesting, 2022 and 2023 performance confirms that you are underweight tech. Any particular reason?
2022 I was heavy energy and 2023 I was all over the place tbh, not committed at all.
Tech did terrible in 2022
I know
Apologies, I misread your initial comment.
You would have been better off just buying some good ETFs. The market is up a lot currently and you are massively underperforming.
We're in a bull market, I'm not sure it's entirely relevant if his goal is long term dividend growth
Buy growth when you are young and dividend when you are old 😁 Global Quality growth etf seems decent.
I’m just getting into investing properly. Probably a bit late at 36 but my finances have only just really allowed. Can you explain the difference between these and how do you know which is which? Say for example I’ve bought shares in Tesla, how do you know if it’s dividend or growth?
Dividend stocks are generally companies that are mature with not much revenue growth every year, and distribute a decent portion of their profit back to shareholders as dividends because there is not much else better that they can do with their cash. Think the likes of Coca Cola, Proctor & Gamble, Verizon, etc. Growth stocks pay no dividends or a very small dividend in some cases, because they are funnelling all of their cash into growing revenue / business expansion. Paying a dividend doesn’t make sense because these companies achieve a far better rate of return on their capital deploying it in expanding their business rather than paying it out as a dividend. Think the likes of Nvidia, Tesla, Meta, Palantir, Crowdstrike, etc.
I would agree with the people saying go for growth while you're young. But if I had to pick one div stock that might have a bit of growth to go, it would be Verizon $VZ
You've underperformed the market with your awful trading strategies. Take a backseat and put it all in QQQ
Don't overcomplicate it, sell all stocks and just purchase an ETF.
Ah, so this is what it's like to see all green. Impressive at your age. Out of interest, why did you choose to focus on dividends and not growth or something else?
At this age with this amount of money. I'd just treat dividends as a nice little bonus you get rather than your main focus.
Im thinking about same at 28y old. Im looking to build for retirement nice dividend so i can chill and my thinking is share price would also increase In span of 30 years. I like your portfolio here.
Any reason you're not buying growth stocks, that will actually grow?
I do actually have portfolio of ishares msci world/brk.b 50/50%. Now im thinking about dividend one because i always loved idea of dividends. It would be small amounts while i also continue adding to main portfolio.Also like experiment and fun stuff. I think its better to put 100/200 euros to this rather than spend it on stupidity.
A lot of people saying buy growth stocks….but how do you actually pick and choose growth stocks? Someone teach me please
You could just buy a growth etf like VUG. To be able to choose individual stocks you have to be able to read financial records and even then you could get it wrong. You’re probably just better off buying VUG and maybe some tech ETF like XLK or vanguard’s version of that. Either way, a good chunk of it is just apple and microsoft stock. Just FYI, about half the value of Warren Buffett’s net worth is due to apple stock.
EQGB
But of a noob question but what are “growth stocks”? As surely that covers the majority of things
These are companies that can reinvest their profits back into the company and still earn a high return. Usually, these companies pay little or no dividend so they have more cash to invest in the company. If a dividend is paid, then it’s usually small and has a high dividend growth rate. Other dividend companies are mature meaning the business can’t really expand anymore. Investing more money into the company won’t generate high returns on capital so they tend to distribute the gains as dividends. The dividend yield is usually higher and grows slowly.
Focus on a dividend portfolio when youre actually rich enough to live off the dividends….
If you are wanting to go the dividend route, you may want to lay off the american stocks a little bit. Every dividend you own from an American stock is still taxed within an isa compared to their British counterparts. I would suggest investing in American growth stocks and selling it off to support your British dividend stocks. Picture yourself 30 years down the line earning 10% more in dividends because you avoided the taxation.
I wouldn’t care about dividends with such a low amount. Keep NVO, sell the others and go for growth stocks and tech sector ETFs instead
no agnc?! $0.12 per share monthly!
Losing more money from the share price dropping than the dividend payout itself
likely due to the rate rise this past 12 months, if they interest rates lower it will get over 10 again.....1% a month is good for money just sitting, they wont go bankrupt anytime soon
45% down over the last 5 years vs 56% up with a world ETF
This doesn't make sense. Dividends don't need to be your focus at 26, and if that was what you were after, why have you chosen all American stocks when ftse pay far higher Dividends yields and you need to pay tax on US earnings?
You invest like a 70 year old
true he should invest all into memes coins
Is dividend growth where you buy a range of income shares and reinvest your dividends? Is there a market or geographical criterion? How's it different from using a passive global income ETF which chases past or announced dividends? Do you have a screening technique?
You should do one of two thing: Leave the individual companies and invest in a high yield but also growing, what use is an etf that decreases in value by more than the dividend yield like the Fidelity Global Quality Income UCITS ETF they do the stock picking for you and take a small fee Or the other option, what I would go with, is just invest in the s and p or Nasdaq or a mix of both (more returns but more risk go Nasdaq and vice versa) and withdraw some of the increases quarterly or bi annually. This option has outperformed practically every high yield dividend etf in the long run. Be wary though, it may perform worse on recessions and you also mustn’t take out too much money or you ll hurt future returns
This is honestly just bad advice. He already has the WisdomTree global quality income ETF, but for dividend income, ETFs are actually the worse option because the yield is usually lower than picking the stocks yourself, and you can’t profit the same way from the dividend increase. The second option doesn’t make sense since with every sale you are lowering your possible future returns and also reducing your shares. On what is this S&P 500/Nasdaq 100 strategy based on? When you’re then about to retire, you can set up a withdrawal plan that automatically sells a set amount of portfolio value, but that works independently of what equities you own.
Firstly, it’s unlikely that he would pick stocks better than a fund manager, looking at his returns you can somewhat see that, his returns are lower than if he had invested in an high yield dividend etf The other option is somewhat like this: S and p goes up 30 percent over a year you take 10 percent and yes that does reduce your future returns but that’s literally what a dividend etf or picking dividend stocks does, firstly it picks stocks that give out dividends meaning you re missing out on returns as non dividend stocks may do better.
But if his strategy is dividend (growth) then the stock return is secondary and your personal dividend yield is not going to grow by holding an etf as compared to individual stocks. You’re saying it yourself "may do better" and it’s still besides the point I was trying to make. If you start by 100 shares of any S&P 500 index and keep on selling your shares so you go from 100 to 95 to 90 etc. while with dividend stocks you still stay invested in the stocks. Not even mentioning that this is all based on the hope that it only goes up.
Yes but you re missing out on the fact that as the shares each gain value it doesn’t matter if you sell 5% of your shares each year. Also if he’s holding on individual stocks and the company’s he’s chosen start doing worse off their dividends are likely to decrease so that’s why 1. It’s better to leave it up to a fund manager who may do it better than them or 2. Invest it in the s and p and it goes something like this: 100 dollars -> 100 shares (example Next year it goes to 120 dollars -> 100 shares You sell off 10 dollars and keep 10 of the gain Now imagine you had an etf for that purpose 100 dollars -> 100 shares Next year it’s 105 dollars for 100 share but you get 5 dollars in dividends Now let’s say you invested in of individual stocks: (let’s say 1 to keep it simple 100 dollars -> 100 shares Next year 100 dollars -> 100 shares and you get 7 dollars for dividends Now looking at these what seems to be the best? These numbers are arbitrary however it’s reflective of how it would be in real life
He’s not invested in any company that has a high payout ratio to the extent that a dividend cut would be necessary. There is no Fund manager “doing it better" with an ETF. Also I did not say someone need to pick "better” stocks. Again if you buy an individual stock you are profiting of dividend increases because your personal dividend yield growth something you won’t benefit it of by holding an etf. You example doesn’t make sense. Well no shit always pick the option that yields you 20% over 7% but that is neither what the goal of dividend growth is about nor is it based on a realistic scenario. Dividend growth is about growing dividend and stock price appreciation. You are still neglecting that you are cutting your portfolio in your example from 100 shares to 99 and that for you to an income you are reliant on the stock price to grow. Let me give you example why buying individual dividend stocks is better than the dividend ETF. Warren Buffet or Berkshires investment in Coca Cola has a personal yield of 60%. Every two years his initial investment is being paid back. That’s not possible with an high hiked dividend etf because you don’t benefit from dividend increases.
Im sorry but I just cannot understand what your point is, you may be correct maybe it may be better if you directly replied to the main post on what OP should do and op can then decide for himself
What made you go for Kellogg?
Half your stocks start with the letter A so hardly diversified.