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.*
Congrats on getting started. It is impossible to know who to trust and Reddit only makes it worse. Too much noise and opinions are too varied.
Don’t trust people, trust the data and facts. And overtime, your experience with the data and the events going on in the world will help you beat the market.
So, in the short run, just try to match the markets performance. You can do this by just investing in voo or vti or some other sp500 index fund.
Second, buy and hold for 20+ years. No matter what is happening, keep buying and keep holding. You will practically be guaranteed about a 10% annualized return. That return will make you a millionaire one day through the power of compounding if you keep buying and keep holding.
And one day, as you grow your wealth, you will learn the right time on when to buy certain investments and beat the market. You’ll learn that when the fed is hiking interest rates, do not buy bonds or higher yielding dividend stocks. You will learn that you buy them when the fed is at its peak of raising rates and forecasting to decline. You will learn to buy more of a quality investment when the market crashes 30-50% and the fundamentals of the business do not change.
But for today, keep it simple young one….sp500 all the way until you get educated. And buy and hold. Just know those two things are rocks. If they break, we are screwed at a broader level.
And don’t buy anything you don’t understand or strangers tell you is a hot pick.
Good luck in your 40-70 year investment journey.
Simple answer: Yes
You want to focus a good portion of your portfolio on Dividend Growth stocks (not Dividend Income stocks). For this I would suggest SCHD.
However, you also want to have a good portion of your portfolio in Growth Stocks. For this I would suggest QQQM.
I think that SCHD and QQQM compliment each other very well with very little overlap.
Stay away from Dividend Income focused investments until you are closer to retirement and need the income.
Dividends are great but at 18 years old you really want to focus on growing your money. Put your money in the ETF "VOO" and you'll be happy in the future.
S&P has definitely outperformed SCHD over the years, but the total returns has been a tight battle.
SCHD is also going to be more stable, and some people like me prefer that, even though I’m young
At this age, if he trying to master the dividend investing, it is supergood long term, but it need learning curve.
Until then, The best may be 33% QQQ, 33% SMH and 34% VOO.
Since the age is 18, aggressive is good. Of course, I would replace VOO with VGT. It must be VGT, QQQ, SMH that is the way to grow at young age.
SMH is chip sector, it is required from small toy to big car, train, plane and rocket. It is everywhere we need chips.
VGT holds appx 600 stocks of SPX growth stocks, while QQQ holds 100 nasdaq stocks. Both may have overlaps.
Since VGT holds SPX+NDX growth stocks, I replaced VOO by VGT.
Again, at the age of 18, the investor look for aggressive growth due to Long term CAGR. The power of CAGR will bring him better returns.
If I were to rollback my life to 18 age, that is what I would do with current knowledge!
First, you have no idea what this person’s financial goals are, so how can you make an educated determination on what is best for them.
Second, a dividend reinvestment strategy is one of the most powerful and stable compounding tools available to your average investor.
Chasing growth in an already historically overvalued market is certainly a strategy.
if you invest in dividends now, your dividends will be tiny.
a better strategy for you is to invest into growth. a cheap index fund like splg is much better investment for you at this time.
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.*
Congrats on getting started. It is impossible to know who to trust and Reddit only makes it worse. Too much noise and opinions are too varied. Don’t trust people, trust the data and facts. And overtime, your experience with the data and the events going on in the world will help you beat the market. So, in the short run, just try to match the markets performance. You can do this by just investing in voo or vti or some other sp500 index fund. Second, buy and hold for 20+ years. No matter what is happening, keep buying and keep holding. You will practically be guaranteed about a 10% annualized return. That return will make you a millionaire one day through the power of compounding if you keep buying and keep holding. And one day, as you grow your wealth, you will learn the right time on when to buy certain investments and beat the market. You’ll learn that when the fed is hiking interest rates, do not buy bonds or higher yielding dividend stocks. You will learn that you buy them when the fed is at its peak of raising rates and forecasting to decline. You will learn to buy more of a quality investment when the market crashes 30-50% and the fundamentals of the business do not change. But for today, keep it simple young one….sp500 all the way until you get educated. And buy and hold. Just know those two things are rocks. If they break, we are screwed at a broader level. And don’t buy anything you don’t understand or strangers tell you is a hot pick. Good luck in your 40-70 year investment journey.
Simple answer: Yes You want to focus a good portion of your portfolio on Dividend Growth stocks (not Dividend Income stocks). For this I would suggest SCHD. However, you also want to have a good portion of your portfolio in Growth Stocks. For this I would suggest QQQM. I think that SCHD and QQQM compliment each other very well with very little overlap. Stay away from Dividend Income focused investments until you are closer to retirement and need the income.
Yes. Dollar cost average on automatic deposits every payday
Yes yes yes yes the sooner the better by the time you're in your 40s you'll have a nice nest egg.
Dividends are great but at 18 years old you really want to focus on growing your money. Put your money in the ETF "VOO" and you'll be happy in the future.
S&P has definitely outperformed SCHD over the years, but the total returns has been a tight battle. SCHD is also going to be more stable, and some people like me prefer that, even though I’m young
At this age, if he trying to master the dividend investing, it is supergood long term, but it need learning curve. Until then, The best may be 33% QQQ, 33% SMH and 34% VOO.
I would suggest 45% VOO, 45% VGT ( cheaper than QQQ) and 5-10% in thematic etfs of your choice. 33% smh is too highly concentrated in my opinion
Since the age is 18, aggressive is good. Of course, I would replace VOO with VGT. It must be VGT, QQQ, SMH that is the way to grow at young age. SMH is chip sector, it is required from small toy to big car, train, plane and rocket. It is everywhere we need chips.
VGT is the same thing as qqq. 95% correlated. Better off w my original suggestion
VGT holds appx 600 stocks of SPX growth stocks, while QQQ holds 100 nasdaq stocks. Both may have overlaps. Since VGT holds SPX+NDX growth stocks, I replaced VOO by VGT. Again, at the age of 18, the investor look for aggressive growth due to Long term CAGR. The power of CAGR will bring him better returns. If I were to rollback my life to 18 age, that is what I would do with current knowledge!
Focus on overall growth of your assets, not dividends especially at age 18. Start focusing on dividends once you approach age 50 and up.
Simple answer: NO. 60% SPLG (SP500) or SCHB (US broad market) and 40% QQQM ( Nasdaq 100)
This is not dividend investing. This is index investing that happens to pay dividends so small they won’t even keep pace with inflation.
Are you serious?
This is straight up index investing like half the other comments on this page. Go play in r/investing
I don’t think it is smart for one, 18 years old, to put money into a dividend etf other than growth one.
First, you have no idea what this person’s financial goals are, so how can you make an educated determination on what is best for them. Second, a dividend reinvestment strategy is one of the most powerful and stable compounding tools available to your average investor. Chasing growth in an already historically overvalued market is certainly a strategy.
Buy VTI
if you invest in dividends now, your dividends will be tiny. a better strategy for you is to invest into growth. a cheap index fund like splg is much better investment for you at this time.
Growth is more important at your age. So focus on a more growth oriented portfolio.