Dividend Stocks - Good Piece Here
Comments
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When do you anticipate retiring?godawgst said:Thanks Baseman. Another fantastic example of a great index fund that will beat 95% of all active fund managers with half the risk.
last 14 years you have average 8.3% in it, add the 3% dividend and bang. Wash rinse repeat.
If the Gov't would simply take 4k when every child is born and put it into funds like this, not let it be touched by them (or the gov't which will be the hard part) until retirement the social security funding problem is gone.
Will absolutely make that part of my portfolio going forward. -
I have another 14 years best case scenario.Baseman said:
When do you anticipate retiring?godawgst said:Thanks Baseman. Another fantastic example of a great index fund that will beat 95% of all active fund managers with half the risk.
last 14 years you have average 8.3% in it, add the 3% dividend and bang. Wash rinse repeat.
If the Gov't would simply take 4k when every child is born and put it into funds like this, not let it be touched by them (or the gov't which will be the hard part) until retirement the social security funding problem is gone.
Will absolutely make that part of my portfolio going forward.
Have you run a comparison vs. the SDY to see which one has performed better. Expense ratios on both are negligible so don't really have to factor those in?
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SPY?godawgst said:
I have another 14 years best case scenario.Baseman said:
When do you anticipate retiring?godawgst said:Thanks Baseman. Another fantastic example of a great index fund that will beat 95% of all active fund managers with half the risk.
last 14 years you have average 8.3% in it, add the 3% dividend and bang. Wash rinse repeat.
If the Gov't would simply take 4k when every child is born and put it into funds like this, not let it be touched by them (or the gov't which will be the hard part) until retirement the social security funding problem is gone.
Will absolutely make that part of my portfolio going forward.
Have you run a comparison vs. the SDY to see which one has performed better. Expense ratios on both are negligible so don't really have to factor those in? -
Remembering past results aren't predictable of future results, you might want to look more at QQQgodawgst said:
I have another 14 years best case scenario.Baseman said:
When do you anticipate retiring?godawgst said:Thanks Baseman. Another fantastic example of a great index fund that will beat 95% of all active fund managers with half the risk.
last 14 years you have average 8.3% in it, add the 3% dividend and bang. Wash rinse repeat.
If the Gov't would simply take 4k when every child is born and put it into funds like this, not let it be touched by them (or the gov't which will be the hard part) until retirement the social security funding problem is gone.
Will absolutely make that part of my portfolio going forward.
Have you run a comparison vs. the SDY to see which one has performed better. Expense ratios on both are negligible so don't really have to factor those in?
572% the last 10 years vs. VYM's 264%. (all my numbers don't include dividend reinvestment because I allocate dividends to the most attractive investment at the time)
The SP 500 is up 305%
I use VOO which carries a lower expense ratio than SPY (see the difference this makes over time below)
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QQQ is to tech heavy aggressive for me, although last ten years was absolutely place to be.
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When I see VYM and QQQ, I don't think oh that's too aggressive (QQQ) for a retiree or near retiree. I think abundance. Or why not both?godawgst said:QQQ is to tech heavy aggressive for me, although last ten years was absolutely place to be.
I guess what I am saying is I don't plan on being retired for only a year or two which is the amount of time that the djia has stayed down.
Split your retirement money into aggressive and safe buckets - if you want to maximize your return. Or not.
I will. -
I am gun shy about the QQQ's. I lived thru and watched it go down from it's high in 2000, and then took 15 years to get back to it.EwaDawg said:
When I see VYM and QQQ, I don't think oh that's too aggressive (QQQ) for a retiree or near retiree. I think abundance. Or why not both?godawgst said:QQQ is to tech heavy aggressive for me, although last ten years was absolutely place to be.
I guess what I am saying is I don't plan on being retired for only a year or two which is the amount of time that the djia has stayed down.
Split your retirement money into aggressive and safe buckets - if you want to maximize your return. Or not.
I will. -
You didn't appreciate WebVan and Ariba?godawgst said:
I am gun shy about the QQQ's. I lived thru and watched it go down from it's high in 2000, and then took 15 years to get back to it.EwaDawg said:
When I see VYM and QQQ, I don't think oh that's too aggressive (QQQ) for a retiree or near retiree. I think abundance. Or why not both?godawgst said:QQQ is to tech heavy aggressive for me, although last ten years was absolutely place to be.
I guess what I am saying is I don't plan on being retired for only a year or two which is the amount of time that the djia has stayed down.
Split your retirement money into aggressive and safe buckets - if you want to maximize your return. Or not.
I will. -
That is fair. I haven't owned it (QQQ) in a few years.godawgst said:
I am gun shy about the QQQ's. I lived thru and watched it go down from it's high in 2000, and then took 15 years to get back to it.EwaDawg said:
When I see VYM and QQQ, I don't think oh that's too aggressive (QQQ) for a retiree or near retiree. I think abundance. Or why not both?godawgst said:QQQ is to tech heavy aggressive for me, although last ten years was absolutely place to be.
I guess what I am saying is I don't plan on being retired for only a year or two which is the amount of time that the djia has stayed down.
Split your retirement money into aggressive and safe buckets - if you want to maximize your return. Or not.
I will. -
Related question: are you at all waiting with any cash you have in hand to jump back in expecting a downturn? Or do you go in regardless of market and let time take care of it? Said more succinctly, would you go in now or wait for the dip? Assuming, that is, that you believe a dip is coming.Baseman said:
Yes. Again VYM is a swell instrument for someone nearing or beginning retirement. I wouldn't recommend for someone 10 or more years out who should be in quality growth stocks. You can always roll into VYM las you near retirement.creepycoug said:
We've talked about that here ... somebody has to really "beat" to hurdle and justify 1%. Of course, the way they talk most people into is the standard:Baseman said:
No. I'm further out playing catch-up because of kids and commerical RE downturn in 2009. I have conservative stocks but have gone heavier into growth the past few years.creepycoug said:
That is some good content. You honor your old board.Baseman said:Easter Freebie
VYM is an exceptional ETF for those nearing retirement and looking for income and growth. This fund comes close to the 4% withdrawal yardstick without touching the principal and you get growth. You could look at a strategy of 80% dividend stocks and mix in some REITS and or bonds (horrible investment ask Warren Buffett) and approach 4% without having to dip into principal
Here's a good view of the holdings --notice the weighting percentage column. Lots of familiar stable companies. 3.1% current yield. Historically it usually hovers at 3.3 -3.4% yield.
The beauty here is you get 411 stocks under one roof at a minuscule expense rate of 0.06%. If you're paying a money manager 1% to make your picks they better deliver alpha. Most don't.
Dividends, year-over-year. Notice they've more than doubled in 10 years and the principal has, too.
Even more sweet is this assumes you spent the dividends. Had you reinvested you'd end up with more shares and hence more income. If your goal is compounding there are better ways to go but this is a great vehicle for income with moderate growth.
For more on VYM, click here: https://investor.vanguard.com/etf/profile/portfolio/vym
@creepycoug your welcome.
It's chintresting your point about the 1% AUM. I struggle with justifying that ... a lot. Right now all my "stuff" is at Morgan Stanley. A guy who took over my account after the last big crash made a deal with me: move my portfolio "back" over there, and he wouldn't charge me any fees until he started doing the buying. Good chunk of company stock there that I also insisted I'm not paying an AUM for because he's not going to "manage" a stock I know much more about than does he.
Anyway, there's another Morgan Stanley group based in Cali ... forget where ... and they have a few guys in Bellevue. Their WHOLE pitch is putting together the dividend portfolio for people like me who are interested in that approach to retirement. The sample portfolio they showed me looked similar to those holdings. So, yeah, why do I need to pay 1% for the same return.
Question: are you taking this approach - yield that is - as a primary "real retirement fund" investment approach, with the individual speculative play a one off here and there? Or do you think yield isn't enough?
It all depends on your time horizon for retirement and what your needs are. $100k a year your first year of retirement requires $3 million in VYM. If historical trends continue, in year 10 the dividend income is over $200k per year, you haven't touched the principal and the starting amount ($3 million) in VYM has doubled.
the QQQ is up 572% over the past 10 years compared with 305% for the SP (dividends not reinvested)
Current composite of QQQ
I have some money with a private advisor due to a former partnership and I've beaten his returns over the past ten years, a lot of it because of their firm's ~1% yearly mgmt. fee.
1. "You don't have time to do this. We analyze the market all day, have access to research you don't, ...."; and
2. It's not always about return ... it's also loss avoidance. We know when it's time to exit an investment (implication - you don't).
I have some liquidity now ... I really am going to check to this out. I assume this is available through the discount and self-directed shops (TD, Schwab, etc.)?
As someone who has somewhat followed the dividend market, that is a very good lineup. And the fund manager is worth something there because they will watch cash flow, analyze the non-GAAP free cash flow markers for bullshit and the liquidity disclosure ... all the things that portend a dividend cut.
Most the companies in VYM continued paying dividends throughout the 2008-2009 crisis, except for the banks.
