klondike said:
Paid Renegade said:
Added $450 to the stock portfolio on Friday and bought more SCHD.
Why SCHD? Some real disgraceful shitcos in there.
If you're into dividend investing I encourage you to look into met and thermal coal, oil E&P's, and call-writing. Last year my PBR.A paid a 70% dividend + 5% on premiums, TNGRF paid 30%, even stuff like Consol and Whitehaven paid 10% + whatever the premiums were.
Lol that’s an interesting take, tbh I haven’t heard that before regarding SCHD. It’s generally considered one of the best, if not the best dividend growth etfs. Main reasons I like it are:
The growth rate of the dividend: 14% per year on average over the last 5 years. Important to have your income growing faster than inflation.
Significantly outperformed the S&P 500 over the last 1, 3, 5, and 10 years (total return). Also tends to have less downside during market declines.
The dividend yield of the fund is currently 3.3%, well above the 5 year average of 2.87%. Just means it’s a pretty good time to buy now if you like the fund.
The income produced by the fund is “qualified” meaning its taxed at the more favorable long term cap gains rate.
Due to the diversification/balance of the fund and the fairly conservative nature of the companies in it, it’s very safe. I can sleep soundly at night just dollar cost averaging in and not needing to spend time monitoring individual companies. This is why I’m moving more into ETFs for the time being even though most of my portfolio is still in individual stocks.
True, it’s not a high yield and if I were forced to retire and live of dividends today I would have to figure something else out, but since I’m in the accumulating phase of my investing I’m not as concerned with maximizing my current dividend income.
Appreciate you sharing those picks, tbh I own several covered call funds and have dabbled in options before. (Unfortunately my CC funds have performed horribly and I regret buying them despite the promising dividend yields. Classic yield trap.) I don’t know how far along you are with your investing and may really have it figured out better than I, just be careful bro lol. Often times those juicy dividend yields are just your own capital being returned back to you, like an annuity. Started looking into PBR a little bit, thanks for sharing that. My first impression is that it seems like it might be a really cool short term play and not as much of a buy and hold longterm but IDK.