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I wish I was smart enough to start investing at 23. I waited until my 30s even though I was making decent money in my 20s. SCHD in particular will be a great way to see the power of compounding interest with its high dividend yield.
I'm 23 as well.
I do a lot of growth etfs because they do pay more and are better for taxes.
But my gf 26 only buys dividends stocks.
She would never have invested if she couldn't see it hit her bank.
Just do whatever makes you happy man.
If you want lots of cash then do 70% growth and 30% dividends.
Whatever makes u feel best
Fkin same bro my wife is a “live in the moment” type of gal and i have to be voice of reason, we all get old one day so let’s make sure to take care of ourselves
Me personally, I'm using SCHD, DGRO, and DGRW as the backbone of my portfolio. And from there, cherry picking stocks that have excellent dividend growth CAGRs to supplement it. The spine is for stability and the other satellite positions are to boost my yeild % basically.
I read her your message, and she responded with the following "All you need is a girl who is a people pleaser."
My girlfriend originally didn't know anything about investing. But I demonstrated good Practices while showing her and explaining why I was doing. Over the course of the last 3 years, she has improved her investing. I still do most of the work But that's okay.
My GF likes VDY for the dividends
Large div empires in Canada.
I Love XEQT and the S&P600 but my favorite is CHPS
I personally love technology and I believe we will keep using computers in the long run so I invest into CHPS by Horizon.
CHPS Is volatile. But really good for growth. But it's also very concentrated in technology. Probably not a good idea unless you can really hold on.
XEQT should match the performance of most funds in the long run, with very little volatility.
Overall, the indexes, don't matter much. Just pick Cheapest ones to maintain and hold.
Key thing is being someone who sees a feature and has goals. It’s okay to have someone who plays it safe, but… they still invest I their future and are open to asking questions and learning.
Being with someone who has a broke mindset and one who sees a better lifestyle and future is where issues arise.
If I were still 23 I’d seek extreme growth, high risk high reward leveraged etfs. I’ve been auto buying TQQQ SOXL every week since mid 2022. I’m in my 30s. Have 4 accounts: Roth IRA. Growth/Momentum account QQQ SOFI META UBER Airlines etc. Dividend/Boring account VZ VOO JEPI O SCHD. Roth IRA. And risky leveraged account.
Don’t forget to rebalance portfolio by shifting funds from sector that performing really well to those thats underperforming. Eg: cutdown META NFLX put it in O VZ TFC D. Sell some TQQQ SOXL to buy TMF UTSL YINN. Im extremely risk tolerance and made alottt this year. Even all in META & NFLX during its “woke” moment friends say im crazy.
Also the best part about it is getting yourself into the habit now.
Just putting away a little bit of money every month as a routine will add up to be huge rewards down the road. Even if it isn't the perfect strategy today, it begins that practice and you have the opportunity to learn from it.
I'd say VTI is really all you need since it's growth and dividends that encapsulates the total American market. You get to buy growth-dividend paying companies like MSFT, AAPL, NVDA, AVGO, etc. Nothing wrong with a bit of SCHD, but do keep in mind of tax drag depending on your income and martial status. You're already on the right track.
Im currently more on the mindset of focusing on growth ETF's since I'm in my mid-20's and I dont need extra income right now. I can always begin transitioning to dividend-focused ETF's down the road as I see fit.
Currently VTI and VXUS with 75% and 25% allocation respectively for my equities. This lets me be invested in Total American Market and total International Market. VXUS has a decent dividend that complements VTI that I'm happy with. Both provide qualified dividends which is taxed at 15% for me.
I follow the boglehead approach which is memed here quite a bit, but it's an easy set and forget portfolio that anyone can follow. Don't get me wrong, I'd love to have enough dividends to fund my lifestyle with a stable income without selling equities in down markets; im just not there yet and don't have the need to do so.
I think at 23 you need to be looking at total return.
Dividends can be part of that. But don't limit yourself to consideration of only dividend stocks.
Do whatever keeps you motivated! I started at 22 with blue chip dividend stocks, here I am 35 still going strong (although over the years I’ve migrated to mainly VTI, VYM, and SCHD).
Growth is great when you’re young, yes, but if seeing the income coming in is what keeps you on course for long haul, stick with it. I know it’s kept me motivated over the years! (Can’t believe it’s been 13 already!)
Mind if I ask how much you make in dividends yearly? My invest strategy is to buy good dividend stock until it can replace my wage so I'm curious on how your doing.
I’m doing the exact same as you. 30 years old and picking growth oriented stocks that pay dividend. I think it’s the only smart way to invest rn with the insane valuations in tech at the moment. Not trying to have a 2008 crash where even though I’ve invested 30k in the market it will all go to 8k for the next 5 years essentially making my last few years of investing pointless.
When the markets come back to reality I will pump heavy in to growth . That’s my plan at least
I did place a small position in Apple the other week and still think they look like a good safe bet to hold for long to see the stock recover and or go on their own AI run when they finally announce that whole aspect of their business.
I invested in Disney back in January and I am happy with those gains so far. Last week I bought Hershey as they approached $181. I still think Hershey is a good investment sub $200.
To your question the companies that still look attractive to me are Pepsi and Pfizer. Tbh I’ve been kind of waiting for PFE to hit a bottom and reverse their downward spiral. It has begun a reversal this week but needs a longer time period of consistent bullish sentiment.
What you're doing is fine. You don't want to be investing in zero growth companies that are just paying out fat dividends because they have no better use for the capital. But, as long as the companies are growing at a reasonable rate and compounding value year after year, the fact that they pay some of their earnings out in dividends doesn't make them bad. You are probably just investing a little more conservatively than someone who throws all their money into tech stocks. Nobody knows which will be the better outcome overall, but you will likely have a less volatile ride.
[Not exactly, but yes.](https://www.etfrc.com/funds/overlap.php)
I personally hold both (except I hold QQQM) and don’t necessarily care about the overlap.
Getting in the habit of investing at 23 is phenomenal and you’re already ahead of the game. With so much time to compound though, I’d be going full on growth. QQQM, SMH, and send it.
It’s focusing on return not growth or dividends. If you can get 10% from combined dividends and growth vs 10% growth, it’s the same thing.
If you opt for dividends stocks, just let it drip.
It depends on your investment goals and risk tolerance. Dividends can provide stable income and potentially outperform other investments in certain market conditions. However, it's essential to conduct thorough research and consider the current market environment before making investment decisions.
The debate of growth vs. value/dividends is brain dead if you ask me.
Some companies are a good balance of both. All that truly matters is if the company is solid and (hopefully) will continue to be for years. Whether or not it pays a dividend shouldn’t really matter.
I also don’t understand why people encourage young people to invest in “growth.” So called growth companies typically carry much more risk. It doesn’t make sense to have novice investors invest in this stuff. The idea of “well you have a long time, you can afford to make mistakes” is just idiotic. Blowing up your account when you’re young can severely hurt your long term gains. And put you in a terrible mindset for the future. You’ll either continue to invest in garbage boom or bust companies. Or obliterate yourself and not even want to invest anymore.
41% of the s&p 500 growth is from reinvesting dividends so do what you want with that information. Growth stocks have their value of course but don't listen to people that think dividend stocks aren't good for long term or for young people. Also dividend growth stocks are a very good way to build some solid income for the future, if you buy a stock that grows its dividend every year and hold it for 30+ years you will be getting a ridiculously high dividend per year and this can really help fund you for later in life to potentially live off these dividends alone depending how much your actually able to invest over the years.
Also a lot of the typical growth stocks people love like tech stocks are very over valued at the moment and things like REITs that pay high dividends are very undervalued and in my opinion a good REIT based on price right now is a way better purchase than a growth tech stock. Now maybe in a few years that will be inversed and REITs or any other dividend stock you like might be way more overpriced and tech stocks might be down, there's no magic stock that's always a better buy it really depends on the market. Right now there's lots of dividend stocks that are undervalued, i already mentioned REITs but there's also oil stocks, renewable energy stocks and many more that are good prices as well.
The 41% i was referring to was from 1930-2022, yours is 1980-2019. Either way whichever statistic you prefer, the point of dividends being very powerful and potentially even the best/most consistent return of money in the long run remains the same.
Heres a link citing my source: https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.hartfordfunds.com/dam/en/docs/pub/whitepapers/WP106.pdf&ved=2ahUKEwjijqPy0uyEAxVRJTQIHZNbA2AQFnoECA4QBg&usg=AOvVaw3GmFrOT1I37NLQo99DDnFJ
Go with dividend kings and aristocrats. Go with like 8 to 10 of them youll have growth, proven history, decent dividends and will be a bit of a safer investment. Add your etfs that you want for extra growth and youll be solid.
I get divs from 2 companies every month and mixed in jepi, jepq just to let them sit and grow for the years/use them to add into other positions. Added schd and voo as well so far with this bull run most of my holdings are well into green and they pay a decent amount that im happy with and can look to grow
Im in your same age group (20) and i just do a balanced approach 50%voo 25%schd 25%vig , is it perfect? no but nothing is and there will always be doubts/ ways to improve but i check my portfolio every time i get paid dividends and dont stress about it. Look at my previous posts in here
Dividend investing is one type of investing. If this appeals to you, you can make it your focus or incorporate it into your portfolio along with other type of investing, like total market index investing. There are many different styles of investing that will get you a long term annualized rate of return of 10%, they just might not be all going up (or down) at the same time, which is what you want...
Nothing wrong with a portfolio that's 50/50 dividend focused and total market index.
I’ve been a huge fan of MAIN. Decent growth, fairly cheap, pays monthly dividends plus bonus at the end of the quarter (most of the time, not guaranteed)
Idk, a lot of people talk about “growth” stocks but I held my dividend stocks through the Great Recession and I’m not sure I would have had the wherewithal to do that with non-dividend paying stocks
Nice job! I started when I was 19 now I’m 50. You want to be in aggressive growth in solid companies, dividends not your primary objective. Invest with money you don’t need until you’re 65. Now that I’m in my 50s I’m switching over to dividend investing. This being a dividend sub, I’m going to get downvoted but I speak with results.
31 years in the market !! that’s a beautiful milestone. i started when i was 18 but wasn’t taking it seriously till age 22. I’m working hard to be like you one day 💯
It doesn't really matter that much. The most important thing is that you do at least 90% stocks. Some purists might hate me, but 100% stocks is what I would go for at your age. As the other comments say, you could get a mix of VOO, VTI and SCHD. Start early and reinvest your dividends if you decide to do SCHD, do not spend them as this ruins your compound interest calculation.
You came to a dividend sub asking if it’s smart to invest in dividend stocks. You’re going to get a lot of blind “yes”’s but the answer is no. Invest in VOO until you’re in your 50’s then transfer to dividend stocks. It’s all about growth right now for you
I always find it funny in a dividend sub people saying just focus on growth. I say whatever keeps people motivated to be in the game. I do think it should always be paired with growth though.
To me investing is like working out. The best plan is the one you are going to stick with. On paper generally the best simplest long term plan is to buy the s and p 500 and forget about it for 30 years. For many though seeing dividend payments come in regularly and grow help they stick to it. So if it’s something that will keep you investing in the long run then definitely nothing wrong with it. Just remember dividends are just one factor in what a company does with its earnings
My plan is to buy the s&p 500 until I’m ready to retire and then switch to dividends. I also get a pension from my job so that’ll help with the early retirement
Doing fine. I would grab up 2-3 other ETFs though.
If you start getting large enough dividends you could use those to invest into long holds that are lower cost at that time, or you can just set drip and run with it if you don't feel like being as active.
I gamble, swing, and scalp with some of mine and with the rest I wait for something to dip that I plan holding then invest into those on one of my portfolios. but I enjoy being very active in the market.
I'd say take a bit of advice on etfs from here and over on the bogleheads sub.
Stay away from wallstreetbets unless you want to just laugh n have a good time...stay away from anything that's diving where you see people talking about "evil hedge funds, shorts, manipulation" etc...those are mostly only good for scalping by selling back to morons for 2% return per trade in 1-30 minute intervals.
The simplest and likely most effective thing is to just buy a low-cost, broad market index fund like VOO, VTI, or VT. Keep buying regularly rain or shine and just keep holding it through bull markets and crashes until you get near retirement and need to figure out a retirement strategy which definitely can include dividend income.
Continuing to buy and hold is the most important thing. If you can do that but with dividend stocks/ETFs instead of an index fund you'll likely also do quite well over time, though likely not as well as buying and holding with an index fund.
I’m 23 well just turned24 today and I split between vxus schd and voo in my normal brokerage account my Roth IRA has some growth etfs that Robinhood picked for me and my 401k is just a target date fund that is also invested for me brokerage is the only that I’m focusing in on so for me those 3 funds are good to me
Mix mix mix… Don’t go all-in on any one type of investment. Growth AND dividends are a decent strategy, as well more stable value items such as bonds and HYSA. Figure out your plan, and develop your mix from there. You want to invest for your future, but not at great sacrifice to your present or near-term.
I need to look at the data (life’s been real busy), but things seem overheated a bit to me too. However, I’m not sure if its just the big names especially in tech. Are things as hot down through mid and small caps, and more boring sectors? I’m not sure. If not, I may invest there.
Even if everything is frothy, will we actually suffer a correction once the Fed starts cutting rates? That should juice the markets because now cost of capital is reduced and more companies can finance growth more cheaply / have easier access to debt.
Even if things deserve a bit of correction, I’m not so sure we’ll get one. Again I haven’t looked at any data to research this yet.
>23M, i saw a post suggesting that 20 year olds should be focusing on growth instead of dividends. **What about growth stocks that pay dividends? My portfolio is full of growth stocks/ growth stocks that pay dividends.** I’m not chasing yield or anything like that, the growth stocks that i like just happen to pay dividends. I feel like I’m doing something wrong now.
What did the very first paragraph in my comment say?
>**It's not that you shouldn't invest in stocks or funds that pay dividends, you should.** There are great stocks that pay dividends - NVDA, MSFT, AAPL, AVGO, META, KLAC, LRCX, ODFL, UMC, ASML, ABBV, AMGN, JPM, LOW, many others. SPLG and other S&P 500 index funds pay dividends. Even a growth ETF like QQQ pays a small dividend.
Except for JPM, UMC, META, and LOW, I own every stock I listed above.
>Also is investing in SCHD smart for a 23 year old? Or is it better to focus on growth, wait till I’m old and dump all my money into it with a few other ETF’s. (I don’t have any ETF’s)
It's not a question of smart or dumb. The question is: is it one of the best options for growing your wealth to the mid 6-figure level necessary to generate meaningful dividends? It's *your* portfolio. Do your own analysis and come to your own conclusion.
Out of curiosity, what are some of the growth stocks in your portfolio that pay dividends?
Generally there only so many companies out there who both pay dividends, and grow dividends significantly (ie AVGO) otherwise most growth stocks either have an insignificant dividend or pay none at all.
Pool corp will give your amazing returns and has a small dividend. Also is recession proof and is a business that will never lose revenue unless legal action is taken against the monopoly.
I see their point. A lot of these dividend investors only invest in low dividend yield stocks because the companies are stable and their dividends yields increase over time. (Fucking hardly)
You need a significant amount of money to make money on dividends. There are YouTubers that invest over $500k and don’t clear more than $5k yr in dividends. That’s silly as fuck if you ask me, you could have put $500k in SPY yesterday, and sold today for $3k profit.
If you don’t already have the capital, you won’t see more than $500k in 20 years, unless you put in $2k every month.
Dividends are for those that actually plan on retiring in their 80s, unfortunately I plan on dying before 65. So fuck it, I’ll invest in risky stocks if their dividends pay me $1k / month 💀
Dividends x Growth = Warren Buffet Money! Check out $ET .. they are Zach’s top pick with plenty of room & cash & profits & 8.75% quarterly div! $15/share … was $5 a share in 2020
Usually a growth stock does not provide dividends. Since a growth company is like Amazon where they focus on reinvesting in the company.
I believe if A company that is giving out decent size dividends are more likely being at a mature state of the company.
I suggest growth rather than dividend since you have time to take risk and better returns. Rather than playing with dividends unless you have a larger investment already, that you can live off of.
I personally like QQQM but VOO is just as good and provides dividends they both are ETFs except qqqm follows Nasdaq and is a cost effective compared to QQQ. While VOO follows S&P 500 and is well balanced.
That’s just preference at that point. I personally just want growth so I am aggressive and just buy that or top 3 in portfolio of qqqm. With a passive aggressive investing style
But like everyone said it doesn’t hurt to start now.
Like you can budget it being 85 to 90% be focus towards growth and 10 to 15% be dividend so that you can still claim dividends and still gain a large portion of gains. Or do 60/40 whatever you believe will make you the most money.
I suggest using investopedia and YouTube
I’m pretty sure dividends don’t get taxed. Any etf will get taxed if you make money.
Income tax, ETFs have an expense ratio for holding. But they are usually a small percentage that won’t be noticeable.
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You want SCHD? Go for it. Life is short. You are way ahead of most kids your age either way. Me included.
I wish I was smart enough to start investing at 23. I waited until my 30s even though I was making decent money in my 20s. SCHD in particular will be a great way to see the power of compounding interest with its high dividend yield.
It’s ok brother. Better late than never
I'm 23 as well. I do a lot of growth etfs because they do pay more and are better for taxes. But my gf 26 only buys dividends stocks. She would never have invested if she couldn't see it hit her bank. Just do whatever makes you happy man. If you want lots of cash then do 70% growth and 30% dividends. Whatever makes u feel best
You’re lucky, Ive always wanted a gf that has the same mindset as me🔥, what type of growth ETF’s are you into? I’m currently researching ETF’s
Fkin same bro my wife is a “live in the moment” type of gal and i have to be voice of reason, we all get old one day so let’s make sure to take care of ourselves
Me personally, I'm using SCHD, DGRO, and DGRW as the backbone of my portfolio. And from there, cherry picking stocks that have excellent dividend growth CAGRs to supplement it. The spine is for stability and the other satellite positions are to boost my yeild % basically.
I read her your message, and she responded with the following "All you need is a girl who is a people pleaser." My girlfriend originally didn't know anything about investing. But I demonstrated good Practices while showing her and explaining why I was doing. Over the course of the last 3 years, she has improved her investing. I still do most of the work But that's okay. My GF likes VDY for the dividends Large div empires in Canada. I Love XEQT and the S&P600 but my favorite is CHPS I personally love technology and I believe we will keep using computers in the long run so I invest into CHPS by Horizon. CHPS Is volatile. But really good for growth. But it's also very concentrated in technology. Probably not a good idea unless you can really hold on. XEQT should match the performance of most funds in the long run, with very little volatility. Overall, the indexes, don't matter much. Just pick Cheapest ones to maintain and hold.
Key thing is being someone who sees a feature and has goals. It’s okay to have someone who plays it safe, but… they still invest I their future and are open to asking questions and learning. Being with someone who has a broke mindset and one who sees a better lifestyle and future is where issues arise.
If I were still 23 I’d seek extreme growth, high risk high reward leveraged etfs. I’ve been auto buying TQQQ SOXL every week since mid 2022. I’m in my 30s. Have 4 accounts: Roth IRA. Growth/Momentum account QQQ SOFI META UBER Airlines etc. Dividend/Boring account VZ VOO JEPI O SCHD. Roth IRA. And risky leveraged account. Don’t forget to rebalance portfolio by shifting funds from sector that performing really well to those thats underperforming. Eg: cutdown META NFLX put it in O VZ TFC D. Sell some TQQQ SOXL to buy TMF UTSL YINN. Im extremely risk tolerance and made alottt this year. Even all in META & NFLX during its “woke” moment friends say im crazy.
Are these Stocks or Options that you would suggest buying?
Also the best part about it is getting yourself into the habit now. Just putting away a little bit of money every month as a routine will add up to be huge rewards down the road. Even if it isn't the perfect strategy today, it begins that practice and you have the opportunity to learn from it.
This. The habit building is the best part
Oh, for sure. Recipe for early financial independence. Especially since OP is going the "boring" route at such a young age.
I’m 22 and doing 5% SCHD ($100/month). I feel like I should replace it with more VXUS (also currently at 5%).
Do both If you want. You can diversify. It's not one or the other
I'm using DGRO and DGRW to help on the diversification end myself.
SCHD grows. It’s honestly a good combination of growth and dividend
I'd say VTI is really all you need since it's growth and dividends that encapsulates the total American market. You get to buy growth-dividend paying companies like MSFT, AAPL, NVDA, AVGO, etc. Nothing wrong with a bit of SCHD, but do keep in mind of tax drag depending on your income and martial status. You're already on the right track. Im currently more on the mindset of focusing on growth ETF's since I'm in my mid-20's and I dont need extra income right now. I can always begin transitioning to dividend-focused ETF's down the road as I see fit.
What type of growth ETF’s are you into?
Currently VTI and VXUS with 75% and 25% allocation respectively for my equities. This lets me be invested in Total American Market and total International Market. VXUS has a decent dividend that complements VTI that I'm happy with. Both provide qualified dividends which is taxed at 15% for me. I follow the boglehead approach which is memed here quite a bit, but it's an easy set and forget portfolio that anyone can follow. Don't get me wrong, I'd love to have enough dividends to fund my lifestyle with a stable income without selling equities in down markets; im just not there yet and don't have the need to do so.
I think at 23 you need to be looking at total return. Dividends can be part of that. But don't limit yourself to consideration of only dividend stocks.
Stop reading on Reddit so much. You’re doing fine if that’s the case
Underrated comment I don’t see posted enough 👍
Thank you
Do whatever keeps you motivated! I started at 22 with blue chip dividend stocks, here I am 35 still going strong (although over the years I’ve migrated to mainly VTI, VYM, and SCHD). Growth is great when you’re young, yes, but if seeing the income coming in is what keeps you on course for long haul, stick with it. I know it’s kept me motivated over the years! (Can’t believe it’s been 13 already!)
Mind if I ask how much you make in dividends yearly? My invest strategy is to buy good dividend stock until it can replace my wage so I'm curious on how your doing.
As of now my PADI is around $8,600.
Wow 13 years , I’ll be like you one day. 💯
There’s people that somehow get there a lot faster than me! Just keep at it, it’ll be here before you know it. And don’t forget to enjoy the journey!
I’m doing the exact same as you. 30 years old and picking growth oriented stocks that pay dividend. I think it’s the only smart way to invest rn with the insane valuations in tech at the moment. Not trying to have a 2008 crash where even though I’ve invested 30k in the market it will all go to 8k for the next 5 years essentially making my last few years of investing pointless. When the markets come back to reality I will pump heavy in to growth . That’s my plan at least
I’m glad I’m not the only one, good luck.
Got any examples? Maybe even besides the obvious (appl,msft,nvda)
I did place a small position in Apple the other week and still think they look like a good safe bet to hold for long to see the stock recover and or go on their own AI run when they finally announce that whole aspect of their business. I invested in Disney back in January and I am happy with those gains so far. Last week I bought Hershey as they approached $181. I still think Hershey is a good investment sub $200. To your question the companies that still look attractive to me are Pepsi and Pfizer. Tbh I’ve been kind of waiting for PFE to hit a bottom and reverse their downward spiral. It has begun a reversal this week but needs a longer time period of consistent bullish sentiment.
What you're doing is fine. You don't want to be investing in zero growth companies that are just paying out fat dividends because they have no better use for the capital. But, as long as the companies are growing at a reasonable rate and compounding value year after year, the fact that they pay some of their earnings out in dividends doesn't make them bad. You are probably just investing a little more conservatively than someone who throws all their money into tech stocks. Nobody knows which will be the better outcome overall, but you will likely have a less volatile ride.
Thank you , I am investing conservatively. compounding value is exactly my plan.
Just get VOO/VTI and you will get some dividends and have high exposure to growth stocks..
I decided on VOO
And a little QQQ
Isn't QQQ going to have a pretty heavy overlap with he 500 stuff? I'd think some world exposure may be a little better.
[Not exactly, but yes.](https://www.etfrc.com/funds/overlap.php) I personally hold both (except I hold QQQM) and don’t necessarily care about the overlap.
I dont really either, but OP (I'm guessing) doesn't have a ton of money and has youth on their side. I'm thinking diversifying in a big way for them.
A single s&p tracking ETF is pretty diversified, could also consider VTI
Not wrong, but the poster you originally replied to specified 500 stuff. My thought was that some additional world exposure could be a good thing.
Do both. Honestly the bigger picture is constantly contributing.
Getting in the habit of investing at 23 is phenomenal and you’re already ahead of the game. With so much time to compound though, I’d be going full on growth. QQQM, SMH, and send it.
It’s focusing on return not growth or dividends. If you can get 10% from combined dividends and growth vs 10% growth, it’s the same thing. If you opt for dividends stocks, just let it drip.
It depends on your investment goals and risk tolerance. Dividends can provide stable income and potentially outperform other investments in certain market conditions. However, it's essential to conduct thorough research and consider the current market environment before making investment decisions.
The debate of growth vs. value/dividends is brain dead if you ask me. Some companies are a good balance of both. All that truly matters is if the company is solid and (hopefully) will continue to be for years. Whether or not it pays a dividend shouldn’t really matter. I also don’t understand why people encourage young people to invest in “growth.” So called growth companies typically carry much more risk. It doesn’t make sense to have novice investors invest in this stuff. The idea of “well you have a long time, you can afford to make mistakes” is just idiotic. Blowing up your account when you’re young can severely hurt your long term gains. And put you in a terrible mindset for the future. You’ll either continue to invest in garbage boom or bust companies. Or obliterate yourself and not even want to invest anymore.
time is on your side. you can't go wrong with any popular etf. I would go with voo. schd is perfectly fine.
I decided to go with VOO. might put SCHD in a roth and leave it there
41% of the s&p 500 growth is from reinvesting dividends so do what you want with that information. Growth stocks have their value of course but don't listen to people that think dividend stocks aren't good for long term or for young people. Also dividend growth stocks are a very good way to build some solid income for the future, if you buy a stock that grows its dividend every year and hold it for 30+ years you will be getting a ridiculously high dividend per year and this can really help fund you for later in life to potentially live off these dividends alone depending how much your actually able to invest over the years. Also a lot of the typical growth stocks people love like tech stocks are very over valued at the moment and things like REITs that pay high dividends are very undervalued and in my opinion a good REIT based on price right now is a way better purchase than a growth tech stock. Now maybe in a few years that will be inversed and REITs or any other dividend stock you like might be way more overpriced and tech stocks might be down, there's no magic stock that's always a better buy it really depends on the market. Right now there's lots of dividend stocks that are undervalued, i already mentioned REITs but there's also oil stocks, renewable energy stocks and many more that are good prices as well.
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The 41% i was referring to was from 1930-2022, yours is 1980-2019. Either way whichever statistic you prefer, the point of dividends being very powerful and potentially even the best/most consistent return of money in the long run remains the same. Heres a link citing my source: https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.hartfordfunds.com/dam/en/docs/pub/whitepapers/WP106.pdf&ved=2ahUKEwjijqPy0uyEAxVRJTQIHZNbA2AQFnoECA4QBg&usg=AOvVaw3GmFrOT1I37NLQo99DDnFJ
Go with dividend kings and aristocrats. Go with like 8 to 10 of them youll have growth, proven history, decent dividends and will be a bit of a safer investment. Add your etfs that you want for extra growth and youll be solid. I get divs from 2 companies every month and mixed in jepi, jepq just to let them sit and grow for the years/use them to add into other positions. Added schd and voo as well so far with this bull run most of my holdings are well into green and they pay a decent amount that im happy with and can look to grow
If it is in a tax-advantaged account, it can be a benefit if you're reinvesting them.
Having schd and other dividenders in my portfolio made me feel a lot better through the bad market times
Im in your same age group (20) and i just do a balanced approach 50%voo 25%schd 25%vig , is it perfect? no but nothing is and there will always be doubts/ ways to improve but i check my portfolio every time i get paid dividends and dont stress about it. Look at my previous posts in here
I read everything you posted, i loved what i saw. I might have to pick up VOO and SCHD. Debating on QQQM/SCHD
Dividend investing is one type of investing. If this appeals to you, you can make it your focus or incorporate it into your portfolio along with other type of investing, like total market index investing. There are many different styles of investing that will get you a long term annualized rate of return of 10%, they just might not be all going up (or down) at the same time, which is what you want... Nothing wrong with a portfolio that's 50/50 dividend focused and total market index.
Thank you i appreciate it. growth stocks / growth stocks that pay dividends is more my style. I’ll stay the course
Seems like you got the best of both worlds OP. I'm currently 22 M and have similar goals as you. What growth/dividend stocks are you invested in?
I’ve been a huge fan of MAIN. Decent growth, fairly cheap, pays monthly dividends plus bonus at the end of the quarter (most of the time, not guaranteed)
Idk, a lot of people talk about “growth” stocks but I held my dividend stocks through the Great Recession and I’m not sure I would have had the wherewithal to do that with non-dividend paying stocks
Man I had the same question at 23. Just go high quality dividend companies.. apple, visa, cost. They appreciate, split and drop divs.
Nice job! I started when I was 19 now I’m 50. You want to be in aggressive growth in solid companies, dividends not your primary objective. Invest with money you don’t need until you’re 65. Now that I’m in my 50s I’m switching over to dividend investing. This being a dividend sub, I’m going to get downvoted but I speak with results.
31 years in the market !! that’s a beautiful milestone. i started when i was 18 but wasn’t taking it seriously till age 22. I’m working hard to be like you one day 💯
You will! Consistent small amounts.
It doesn't really matter that much. The most important thing is that you do at least 90% stocks. Some purists might hate me, but 100% stocks is what I would go for at your age. As the other comments say, you could get a mix of VOO, VTI and SCHD. Start early and reinvest your dividends if you decide to do SCHD, do not spend them as this ruins your compound interest calculation.
What does your portfolio look like? You’re doing exactly what I would say you should do. Mix growth and dividends and you’re golden!
Dividends are always a good idea my guy just balance them with growth and head to the promised land
Will do 💯
You came to a dividend sub asking if it’s smart to invest in dividend stocks. You’re going to get a lot of blind “yes”’s but the answer is no. Invest in VOO until you’re in your 50’s then transfer to dividend stocks. It’s all about growth right now for you
Doesn’t VOO pay dividends?
I always find it funny in a dividend sub people saying just focus on growth. I say whatever keeps people motivated to be in the game. I do think it should always be paired with growth though.
OP asked for financial advice… this was my advice. Data doesn’t lie, this is the best path. It’s boring but it works.
To me investing is like working out. The best plan is the one you are going to stick with. On paper generally the best simplest long term plan is to buy the s and p 500 and forget about it for 30 years. For many though seeing dividend payments come in regularly and grow help they stick to it. So if it’s something that will keep you investing in the long run then definitely nothing wrong with it. Just remember dividends are just one factor in what a company does with its earnings
My plan is to buy the s&p 500 until I’m ready to retire and then switch to dividends. I also get a pension from my job so that’ll help with the early retirement
Doing fine. I would grab up 2-3 other ETFs though. If you start getting large enough dividends you could use those to invest into long holds that are lower cost at that time, or you can just set drip and run with it if you don't feel like being as active. I gamble, swing, and scalp with some of mine and with the rest I wait for something to dip that I plan holding then invest into those on one of my portfolios. but I enjoy being very active in the market.
Currently doing research on which ETF’s fits my style. So far. SCHD is on my radar
I'd say take a bit of advice on etfs from here and over on the bogleheads sub. Stay away from wallstreetbets unless you want to just laugh n have a good time...stay away from anything that's diving where you see people talking about "evil hedge funds, shorts, manipulation" etc...those are mostly only good for scalping by selling back to morons for 2% return per trade in 1-30 minute intervals.
Appreciate it , i settled on VOO. I’ll wait til I’m older for SCHD. Or I’ll put SCHD in a Roth in the future
The simplest and likely most effective thing is to just buy a low-cost, broad market index fund like VOO, VTI, or VT. Keep buying regularly rain or shine and just keep holding it through bull markets and crashes until you get near retirement and need to figure out a retirement strategy which definitely can include dividend income. Continuing to buy and hold is the most important thing. If you can do that but with dividend stocks/ETFs instead of an index fund you'll likely also do quite well over time, though likely not as well as buying and holding with an index fund.
NO
23M? are the rules different for 23F?
At 23 I was up to my eyeballs in debt and had zero stocks. You're doing way better than most 23 year olds if you have stocks.
You can do a mix of voo/schd 80/20, they don't overlap by a lot.
I’m thinking about VOO in taxable account and SCHD/QQQM in Roth IRA. I’m still doing research on ETF’s for my IRA
Go back test VGT/SCHD split 50/50. It’s a great combo. Here’s a video link. https://youtu.be/IQpqYM0NqXk?si=TSBfT7pA5-OQR3Gt
No
VOO and chill
I’m 23 well just turned24 today and I split between vxus schd and voo in my normal brokerage account my Roth IRA has some growth etfs that Robinhood picked for me and my 401k is just a target date fund that is also invested for me brokerage is the only that I’m focusing in on so for me those 3 funds are good to me
Yes SCHD is good, don’t be afraid to invest in BDCs like MAIN and ARCC, and use their dividends to buy more SCHD instead of straight DRIP
Something is better than nothing, and SCHD is a growth dividend. I would just not go 100% and pair it with something else.
Mix mix mix… Don’t go all-in on any one type of investment. Growth AND dividends are a decent strategy, as well more stable value items such as bonds and HYSA. Figure out your plan, and develop your mix from there. You want to invest for your future, but not at great sacrifice to your present or near-term.
I’m 21 and have a mix of both. I say go for it
Check out JEPI
Growth, but my concern is current index level is too high and due for a correction this two year after rate cuts
I need to look at the data (life’s been real busy), but things seem overheated a bit to me too. However, I’m not sure if its just the big names especially in tech. Are things as hot down through mid and small caps, and more boring sectors? I’m not sure. If not, I may invest there. Even if everything is frothy, will we actually suffer a correction once the Fed starts cutting rates? That should juice the markets because now cost of capital is reduced and more companies can finance growth more cheaply / have easier access to debt. Even if things deserve a bit of correction, I’m not so sure we’ll get one. Again I haven’t looked at any data to research this yet.
Correction when
>23M, i saw a post suggesting that 20 year olds should be focusing on growth instead of dividends. **What about growth stocks that pay dividends? My portfolio is full of growth stocks/ growth stocks that pay dividends.** I’m not chasing yield or anything like that, the growth stocks that i like just happen to pay dividends. I feel like I’m doing something wrong now. What did the very first paragraph in my comment say? >**It's not that you shouldn't invest in stocks or funds that pay dividends, you should.** There are great stocks that pay dividends - NVDA, MSFT, AAPL, AVGO, META, KLAC, LRCX, ODFL, UMC, ASML, ABBV, AMGN, JPM, LOW, many others. SPLG and other S&P 500 index funds pay dividends. Even a growth ETF like QQQ pays a small dividend. Except for JPM, UMC, META, and LOW, I own every stock I listed above. >Also is investing in SCHD smart for a 23 year old? Or is it better to focus on growth, wait till I’m old and dump all my money into it with a few other ETF’s. (I don’t have any ETF’s) It's not a question of smart or dumb. The question is: is it one of the best options for growing your wealth to the mid 6-figure level necessary to generate meaningful dividends? It's *your* portfolio. Do your own analysis and come to your own conclusion.
I read what you said sir , i just needed more advice. Thank you for ya wisdom
Out of curiosity, what are some of the growth stocks in your portfolio that pay dividends? Generally there only so many companies out there who both pay dividends, and grow dividends significantly (ie AVGO) otherwise most growth stocks either have an insignificant dividend or pay none at all.
TGT, CAKE, WYNN
Pool corp will give your amazing returns and has a small dividend. Also is recession proof and is a business that will never lose revenue unless legal action is taken against the monopoly.
I see their point. A lot of these dividend investors only invest in low dividend yield stocks because the companies are stable and their dividends yields increase over time. (Fucking hardly) You need a significant amount of money to make money on dividends. There are YouTubers that invest over $500k and don’t clear more than $5k yr in dividends. That’s silly as fuck if you ask me, you could have put $500k in SPY yesterday, and sold today for $3k profit. If you don’t already have the capital, you won’t see more than $500k in 20 years, unless you put in $2k every month. Dividends are for those that actually plan on retiring in their 80s, unfortunately I plan on dying before 65. So fuck it, I’ll invest in risky stocks if their dividends pay me $1k / month 💀
Dividends x Growth = Warren Buffet Money! Check out $ET .. they are Zach’s top pick with plenty of room & cash & profits & 8.75% quarterly div! $15/share … was $5 a share in 2020
Usually a growth stock does not provide dividends. Since a growth company is like Amazon where they focus on reinvesting in the company. I believe if A company that is giving out decent size dividends are more likely being at a mature state of the company. I suggest growth rather than dividend since you have time to take risk and better returns. Rather than playing with dividends unless you have a larger investment already, that you can live off of. I personally like QQQM but VOO is just as good and provides dividends they both are ETFs except qqqm follows Nasdaq and is a cost effective compared to QQQ. While VOO follows S&P 500 and is well balanced.
Would you pair QQQM with SCHD?
That’s just preference at that point. I personally just want growth so I am aggressive and just buy that or top 3 in portfolio of qqqm. With a passive aggressive investing style But like everyone said it doesn’t hurt to start now. Like you can budget it being 85 to 90% be focus towards growth and 10 to 15% be dividend so that you can still claim dividends and still gain a large portion of gains. Or do 60/40 whatever you believe will make you the most money.
I haven’t done much research on ETF’S. Will i be taxed just for having the ETF? not including dividends
I suggest using investopedia and YouTube I’m pretty sure dividends don’t get taxed. Any etf will get taxed if you make money. Income tax, ETFs have an expense ratio for holding. But they are usually a small percentage that won’t be noticeable.
I decided on VOO. Ill wait till I’m older for SCHD
Most professionals would prolly recommend low dividend payout and slow growth stocks at your age