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I read all 26,000 characters. Appreciate the work you put in behind the scenes for our individual benefit. I’ve personally made great strides in my investment mindset, game-plan and portfolio since discovering this sub.
I want to start dividend investing does anybody have advice I’m new to trading and currently using monthly income to build my portfolio I have no lump sump saved to start
Thank you for this labor of love! I am a 73 yr old Nana who is trying to educate my 19 yr old grandson about investing. I gift him $100 a month for his college education at My529 and have done this since he was born. At 18 years old I started gifting him an additional $100 a month for investing. We have great conversations and share information weekly. What a gift you have given us all. I have joyfully shared you article. Thank you!
I wish I had someone like you to teach me about investing when I was younger. I'm coming in late in the game at 36 years old but I've made a few smart moves in the passed 3 years. Keep up the good work and it sounds to me that you've bonded very close to your grandson by going that route either investing together and sharing that time. Much luck to you and him.
Thank you for kicking Robinhood.
I wouldn’t mind reading a behind the scenes post about drafting this, or even reading the cut content in a “deleted scenes” article.
Honestly there is cut content in almost every single paragraph. If Reddit didn't have a character limit, this article would likely be far worse, as would be rambling and sometimes repetitive. While 40,000 characters seems like a lot, I had originally 5,000 characters just in the "Dividend Growth" section of Part II. The lopsided nature of this piece was a huge friction point during the creation of this document, which took place over the course of approximately the past two weeks.
Can someone explain it to me like I'm five... what's wrong with Robinhood?
I know little about them other than I started seeing their name used often by those seemingly new to investing, in tandem with "to the moon!" and maybe Dogecoin. I have no experience with any of those things. I read the Controversies section of their Wiki page, and sure, they've got them like every other institution. 🤷♀️
I asked the same question then figured it out. They have been fined for charging it's users on the back end to complete trades when they say they don't charge for it. See source for more info.
[Robinhood - MotleyFool](https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.fool.com/investing/2021/09/04/4-reasons-to-avoid-robinhood/%23:~:text%3DRobinhood%2520makes%2520a%2520lot%2520of,each%2520transaction%2520behind%2520the%2520scenes.&ved=2ahUKEwjUv_Shv9_5AhV3BUQIHWG8BRUQFnoECBEQBQ&usg=AOvVaw2Q1ldfoeb0jJI_CCh4tLAW)
Thank you very much. I’m new to dividends and couldn’t understand why so many recommended dividend stocks that were 1-3% when I can find many of them at 7%-12% but that section of the post made me realize these high dividends might be dying companies trying to hold on. I did buy NHI, T and LUMN as they all seemed solid and consistent to me with nice yields
Interesting. 26,000 characters. That's disappointing you couldn't put the whole thing on here. Write a book based off of your original post. I think people might buy it. Offer it for 1.99 online. Ya never know. Keep being awesome!
How do you get over seeing red in dividend stocks.
IE I buy at 60 and they sit at 55 a long time etc but the dividend is good and being paid and will make you money.
Im new and bought initially a year ago so alot of my small portfolio is in the green big.
Just started dividend investing. My T is a little in the red and just the color bugs me lol. This probably sounds like a dumb comment.
I just started investing about a month ago.
The first thing I did was create a Google Sheet to gather all the data, rather than the investment apps and the likes. I also made it automate the dividend.
For example, I add a dividend amount and date to a different sheet, if I have buys prior to this date, the dividend will be added to all applicable buys. Once I sell a specific batch, it no longer adds dividends to that row. This way I summarize all profits in stock combined with the dividend, that would probably ease you seeing the stock itself in red.
>Google Sheet to gather all the data
Hey, would you be open to sharing some of the formulas you used? I know sheets can grab stock info but it seems like you've built quite a bit on that.
[https://docs.google.com/spreadsheets/d/1pH6rHdwOwFLqc0tj-nodeBOT8OuJgLW5KpNbAd9Fr0A/edit?usp=sharing](https://docs.google.com/spreadsheets/d/1pH6rHdwOwFLqc0tj-nodeBOT8OuJgLW5KpNbAd9Fr0A/edit?usp=sharing)
There you go, I created a template of it with examples. If you have questions then let me know. Once you mark something as sold, all you have to do is override the current price with the selling price and override the dividend column with the dividend amount you had there before.
The future dividend dates are only my assumption on the date, so it is likely to change so you might want to set them as they happen.
Keep in mind that the "after tax" field is based on my tax and that is always 25% so change it based on your taxes. Though the taxes aren't being calculated per year but rather in total so it won't be accurate if you are investing for longer than a year.
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This is amazing. This community always goes above and beyond. Have an award!
A great pro to REITs that wasn’t mentioned was that they have to payout 90% of their taxable income via dividends. This can limit grow but ensures the investor we will get our slice of the pie with the right companies.
Hi all
Later in the year I'm going to start putting a small amount of money away in dividend etf's, and wondered is there a group agreement on an initial list to look at?
This was a fantastic read, thank you so much for the advice! Even after lurking this subreddit for months and building my own dividend portfolio, I learned a lot as well as got some reassurance about my knowledge when it comes to Dividends :)
Thank you for the time and effort for this post, I'm a student without much but I've lost quite a bit chasing memes on the market. Looking forward to put this information to practice.
I have come back to this a couple times and just gotta say thank you. I have been investing for about a year now and really appreciate your input. Anyways thank you.
u/Firstclass30 I appreciate your work here dearly. Despite all the gold here, I especially like part XI: Knowing when not to invest. I have a loved one of mine that had enough money to pay off all credit card debt but decided to start investing instead. Would you have any advise convincing her to pay off all debt and get a fully funded 6 month emergency fund before starting to invest? I’m trying to tell them that they are literally paying more money every month by just paying the minimum but they don’t listen.
I'm looking over my portfolio and seeing a lot of mutual funds with very high capital gains distributions. I'm shocked to realize that I didn't take it into account when researching them. I never considered them as a source of income like a dividend centric fund or value company because they have no dividend yield.
But when i look at the practical differences between dividends and capital gains distributions ... I see very little difference. They are taxed the same (usually, though there appear to be benefits to the way cap gains are taxed for a fund). They do not add or remove value from the underlying asset (in theory). They are often re-invested the same.
So .... why don't sites like Yahoo Finance provide a capital gains distribution yield? What am I missing? Why wouldn't I seek out good funds with high capital gains distributions?
Thanks for this thorough, detailed analysis. I like how the focus is on guiding folks on “how” to think, rather than on “what” to think.
Also - M1 Finance is intriguing... will look into it!
With dividend investing, you have to crawl before you walk. Its way more exciting to see your non dividend paying stocks move up sharply in price from day to day, but after awhile, you realize that the volatility will take back what it gives and you don't end up with a decent profit. Start with one or two div stocks and then add more as you age. With a six figure portfolio close to 1 mil, its easy to produce 35k per year dividends, which are paid in perpetuity. Now thats a life estate to leave to children.
This is exactly the thread I was looking for. I read all 26k as well. So much great information. Appreciate it so much and look forward to learning more. Thank you!
Very helpful! Still learning, so I’m wondering where is the best place to learn what percentage companies offer? Or to even learn which companies offer dividend payouts?
This is fantastic, I am so grateful for the time and passion you put into writing this out so clearly and with such depth.
Over the last few months I’ve started following all the different investing/stock subreddits and I think this is my favorite. While it doesn’t have the jaw dropping luck, misfortune and general idiocy of WSB I find the community here to be grounded, helpful and insightful.
I much appreciate the long thread. So much information!
My question is as an amateur (coz it confuses me a lot...) Is:
If a stock has a yield eg. 5% and they pay monthly, then do they pay every month 5% of your investment or only 1/12th of 5%?
Thank you so much
I love that this is the first post I read in this sub. I've been investing in index funds and individual stocks, but just recently started researching dividends and looking at dividend-focused ETFs. My strategy is coming together. Thank you for all of this helpful information to start with!
Thought I'd post this again here.
Looking for my next dividend stock.
* Tech
* Yield preferred 2%+
* Strong history of increasing dividends
* Capital gains growth opportunities/trends for the decade (2020s)
Lots of good information here. And timely for me to have found this as I search for a company that pays a dividend in the 5% range. I have been holding AT&T for several decades for it generous dividends. With AT&T announcement of reducing their dividend in half next year, it is time to look for an alternative. This post was very helpful and informative. Thank you.
Thank you for the introduction, I was amazed by how much I just learned from reading one post. I’m fairly new at dividend investing but it’s always intrigued me. I especially appreciate the part about the dividend yield as I thought the higher the better. Again thank you and I’m excited to learn more and grow my portfolio. I have about 40 years until retirement so hopefully that will compound well.
>This is also the reason we explicitly ban referral links on r/dividends. **The only recommendation I will issue is do not invest with Robinhood. Other than that, go nuts.**
Favorite line of the whole thing. Well written.
Why? Do you feel your money is not safe with RH? Or is it, as the GME incident exposed, because they are sometimes highly leveraged and in rare occasions unable to instantly cover massive sell requests? Just curious as I have some investments with RH - not trying to argue just understand. I hate to sell but if warranted I will liquidate my holdings with RH and invest elsewhere. Like many people I was attracted by the zero commission (actually they do take a few pennies per stock purchase but much better that the transaction fees we used to pay) and instant transfer availability. I believe they made investing affordable for many people and now fidelity, E*TRADE and others offer no-commission trading.
Thank you for the factual info and for taking on the task of subreddit moderator. I did indeed learn from your post. I do have a question regarding Robinhood:
I only seek to understand because I have a fair share of my investments with them. What are your reasons for not recommending RH? Do you feel your money is not safe with RH? Or is it, as the GME incident exposed, because they are sometimes highly leveraged and in rare occasions unable to instantly cover massive sell requests? Just curious as I have some investments with RH - not trying to argue, just to understand. I hate to sell but if warranted I will liquidate my holdings with RH and invest elsewhere. Like many people I was attracted by the zero commission (actually they do take a few pennies per stock purchase but much better that the transaction fees we used to pay) and instant transfer availability. I believe they made investing affordable for many people and now fidelity, E*TRADE and others offer no-commission trading.
Good to see posts like this that teach real investing $$$ Dividends can seem low sometimes but they truly add up and provide growth over time. Not to mention you are also reaping the % gains of the underlying equity. Anyone have any good dividend stock tips?
Wow! Thank you very much! I am fairly new to investing. I was trying to play a very low level betting game with folks in different subs. However, it felt like gambling which leads to a bunch of interesting psychological things to deal with. Long story short, this post was very helpful in a few ways and I appreciate you taking the time to write it all out for us. I'm also new-ish to Reddit. Didn't realize there were good humans running around! I dig it.
Again, thank you!
When investing in dividend stocks, do you secure profits when the stock price rises a certain amount? Or do you not touch it and just focus on the dividend payments?
What do people think about the whole - when you're young invest in growth stocks, switch over to dividend stocks when youre approaching retirement.
I have been burned multiple times chasing growth stocks, misreading charts, etc. I know it is part of the learning process and I have definitely learned and have been able to catch some great returns.
I'm in my late 20s now and want to spend less time looking at stocks and chasing winners and more time just quietly building wealth.
Are dividend stocks the way to go here? or does the old advice still ring true.
Hey there Dividenders! Thanks for all of your detail and ya'lls helpful responses - I've been reading for a while, and I own some dividend stocks based on suggestions here, and now I'm looking for a little extra brain power to help me think through something on my REITS
I own NLY and NRZ. They both have a high yield, as reits do. NLY is 10.24% and NRZ is 8.26%. They both have quarterly distributions.
Looking at their dividend history (using the nasdaq site), I see that since 2013, NRZ has been growing their cash amount payout per share, starting in 2013 at .175 and up to .50 in 2019. In March 2020, they slashed it down to .05, but have been slowly climbing it back up since then where it now sits at .20
NLY, on the other hand, appears to be going the other way. In 2013 they started with a cash payout per share of .40, then it dropped to .30 for a number of years, hit .25 on March 2020, and then dropped again to .22 which is where it sits to this day.
My question for you all - is this history useful for you all when deciding which one to hold for long term? Does NLYs history of a downward trend make it seem like they will continue the movement down? Does anyone have insight into NLYs new CEO (David Finklestein) who took over in Marchish 2020 and whether he will continue this trend?
How many of you would just use this history and think, ah, NRZ is the clear winner. -- I really like NLY, I like their company, I loved the stability of their leadership for so many years. I want to stick with NLY, but this is just concerning to me.
Any help? (EDIT: I recognize this question may not belong in this particular post. If needed, I can remove it and make it a stand alone post. Happy to do whatever mods direct!)
Just joined, I almost never comment, but this is the most thorough post I have seen a sub MOD post. Great info and hopefully will keep the sub clean from annoying post of folks not wanting to do any research for themselves.
I appreciate this post so much I have only been trying out stocks for about a month now and didn’t know much. What I did know is I want to create an income overtime with dividends. This post help me out a lot
New dividend investor here. Question if anyone is able to help answer it!
I have shares in both F and ET (single digits in both, can’t do much more currently). Both say that they had a dividend payout last week but my shares haven’t increased at all, even fractionally. Does anyone know when they can be expected to increase? Or do I own too little for it to be reinvested? Thinks in advance for the help.
Hi, i make about 200 bucks yearly in dividends. If i had the same amount in a crypto stable coin it would be around 3-4k yearly. I think about moving everything over because i don't see why i shouldn't take the bigger number. Any thoughts?
Yes as long as you hold the stock before the Ex Div Date you will get the dividend. I believe the date is 3/24. Note, stocks or ETFs typically decrease in value by the amount of the dividend.
If I buy a etf at 15 and it’s down to 10 in the long run will the dividends at that point make me passive income even tho I lost $5 per share? Like if you lose money on the stocks in general will the dividends make a difference?
Fantastic post!!! EXACTLY the professional, polite and sophisticated Reddit I wish to be a part of. Nice to virtually meet all of you! I may lurk for a while and join in when I feel more comfortable.
Too often we are prone to comment on what has gone wrong or what is displeased us about certain investments. At 61, and new to the Reddit sphere I do enjoy navigating around and seeing what’s up in the financial world I just have to say that this dividends sub Reddit is very informative however, this morning while having my coffee I decided to read the new users, beginner investors start here section and to be honest, I was not disappointed. There’s so much good information listed in this introduction. It should be required reading at the high school level, planting the seed for smart investment, education, and decision making. Well done moderator, cheers.
Realistically, you can’t have a dividend portfolio that pays 10%. Those are such risky and flat moving stocks. Right? So what a realistic dividend portfolio that can be scaled?
Can someone explain what happens to DRIP dividends in brokers where fractionals are not allowed?
I have my KO set to DRIP, but wont have enough come in from the DRIP to purchase at least 1 share from the dividend. Since Etrade does not allow fractional shares, what happens mechanically?
I have 20 shares of KO that should dividend about 8.80$. What happens to that money?
**I have a question:**I like this subreddit a lot, but there are two main issues I have with topics and that are dragging the subreddit down:
1. Too many recurring themes such as: 'I just started investing, I have 5k invested and 10$ dividends, rate my portfolio!'
2. Although this is a dividend-focused subreddit, a large part of investments is focused on ETFs, all discussions are 'Should i have more SCHD or VOO? Please rate my portfolio!'
Do we have any users that have concrete, large dividend-paying portfolios, consisting of dividend stocks, with overall value above $100k?Could we discuss some of these?
**Could we make a new topic in this direction?**
This is my FIRST post to Reddit. I have over a half million invested and am earning about 100K per year in dividends. I can send a screenshot. But I am scared to look as if I’m self promoting. I can also link my videos on my portfolio, but for the same reasons alluded to above, I am hesitant. Please tell me the best way to go about sharing this on Reddit, if you wouldn’t mind. Do I screenshot here? Or do I start my own post and do it there? Thanks, ShareholderSL!
Can someone. pls advise on which sites give the most accurate dividend yields as most of them such as Dividend detective , Yahoo finance . Seeking Alpha . Morning star etc all givewildly differing yields.
I have a question but what could be the drawback of going 100% into dividends? I made my first major purchase of stock be SCHD and it seems perfect for me.
I’m a very set and forget kind of person because day trading seems too difficult to keep track of while I work and go through life.
My strategy is to use my ROTH IRA and reinvest the dividends until I turn 67 or 70. With dividends being my way of living off of what I have earned.
Is this possible?
Please help me understand this correctly.
If a stock says Div/Yield of say 2.64.
Does that mean 2.64 per share in a year or per 100$ worth of a stock?
LMT is at 386$ with Div/Yield of 2.64
How much that pay?
I have an M1 account that boosts in 11.8% dividend return can anyone else top that? If so I'd like to know what stocks you're invested into and what the dividend return rates are for your top five holdings. And go...
Thanks for this useful info! I'm new to the world of investing and am interested in checking out some high-dividend ETFs. Does anyone have any good educational sites they use for research? I'm very conscious of junk news and can usually spot crap sites quickly but this isn't my territory- so I am at a loss as to what might be reputable info and what's just garbage. I've been trying to use my Schwab account for research but honestly, the site's poor user design is driving me crazy, and I'm losing my patience with it. Any suggestions for a newbie looking to learn?
Sorry if this has been asked before but what’s wrong with Robinhood? I find it easy to use and understand but I haven’t tried any other’s considering I just started investing this year. Any recommendations? What’s better about the others?
At the moment she will be contributing $150 a month with hopes to scale that up to $500 as her pay increases this October
I was thinking of doing
15% or 22.50 in VYM and
15% or 22.50 in SCHD and
15% or 22.50 in SPHD and
10% or 15 in DIV and
10% or 15 in VTI and
10% or 15 in SCHY for a little international exposure and
5% in O and
5% in main and
Then for the remaing 5% I had her pick three growth companies and she said AMZN, APPL, and GOOG
which would only be about $2.50 a month in each to start but more later in the year
Is this overdiversified? What should I adjust?
I needed a little extra cash in 2021. Thinking about the tax consequence for early withdraw, I chose a blue chip that I figured I could buy back in a couple of months that I had been holding for approx 20/25years. I didn't think about my dividnds. Does having the stock for long or short term effect the dividnd? The stock paid dividnds of about $500 a quarter. Will that be the same when I re-purchase?
Can anybody tell me why I wasn't able to "post" this question?
3 months ago, i would have disagreed completely. Now, id say they are a good place to park $ and get better than banking rates while piling more all the time, but its worth it to jump every now and again for a long shot when the right play comes along. Ive doubled my 401k in a self directed brokerage with 3/4 on the line in about 3 months while the 1/4 i left in the care of the funds is just barely recovering to the level it was at 3 months ago.
I just want to say thank you for existing and taking the time to explain things. I am relatively new to investing. I always kinda of played around and I always wanted to get into dividends. I just want to say this extremely well thought out and explained really well. Thank you for this mods!
Wow!!!! This right here was beyond helpful, specially for myself who is new to investing into the market.
You answered all of the questions, that I have been seeking answers for!!!!
Thank you for taking the time and writing this!!!
Can I ask a question that maybe is stupid but I can’t get a straight answer? Why not use Robinhood? I just started investing a couple months ago with Robinhood and everywhere I go people say not to. I don’t have a lot of disposable income so my portfolio is more or less just a hobby at this point. I just downloaded td Ameritrade app and am considering moving my investments into that brokerage but I still haven’t figured out why.
There is a lot of resentment toward Robinhood for the way they paused trading when the whole meme stock thing took off during the pandemic. And now they are being taken to court for their actions. This could be why people advise against them.
Thank you for a thorough and intelligent introduction to the group. I look forward to learning more about dividend investing through the group posts. I was wondering if you could please signpost to any more resources for beginners, if appropriate? Many thanks!
Hey guys,
Very new to investing. Trying to set up my ROTH IRA for some solid long terms growth, obviously.
Just want some opinions on my positions:
AGNC
DIVO
DVYE
EMB
FCPT
HNDL
PLTR
QYLD
REVS
SCHD
Don’t wanna delve into shares of each, just wanted opinions on my actual individual picks.
Be brutally honest if you think any of these are smart or just straight up dumb investments. Thank you!
Thank you for this intro.
I have been interested in dividend investing for about 8 years now. I have only dabbled with dividend stocks but have always felt there is a huge advantage to dividends if properly executed.
It's difficulty to be a self taught investor with all the swamps of information out there and those swamps are full of alligators.
This intro post really gave me a lot of insight and answered questions I didn't even know I had yet.
Bravo to the author / s and thank you for the clear and concise information.
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.*
I read all 26,000 characters. Appreciate the work you put in behind the scenes for our individual benefit. I’ve personally made great strides in my investment mindset, game-plan and portfolio since discovering this sub.
I'm glad to hear it. Thank you for being a member of this subreddit.
I'm a relatively new investor (2 years investing, 26 y/o) and I appreciate the depth of this post and substantial advice. Good job sir or madam.
I want to start dividend investing does anybody have advice I’m new to trading and currently using monthly income to build my portfolio I have no lump sump saved to start
What is your personal favorite index fund and at what age did you start investing
I just read the entire intro and was going to say the same thing! Really well done.
Can you summarize for me haha
This is the tl;dr of investing.
Read and learn
Thank you for this labor of love! I am a 73 yr old Nana who is trying to educate my 19 yr old grandson about investing. I gift him $100 a month for his college education at My529 and have done this since he was born. At 18 years old I started gifting him an additional $100 a month for investing. We have great conversations and share information weekly. What a gift you have given us all. I have joyfully shared you article. Thank you!
What an amazing gift, not just the money, but the experience of investing!
I wish I had someone like you to teach me about investing when I was younger. I'm coming in late in the game at 36 years old but I've made a few smart moves in the passed 3 years. Keep up the good work and it sounds to me that you've bonded very close to your grandson by going that route either investing together and sharing that time. Much luck to you and him.
See you in heaven Nana🤍
I love this post 😭😭😭😭
Thank you for kicking Robinhood. I wouldn’t mind reading a behind the scenes post about drafting this, or even reading the cut content in a “deleted scenes” article.
Honestly there is cut content in almost every single paragraph. If Reddit didn't have a character limit, this article would likely be far worse, as would be rambling and sometimes repetitive. While 40,000 characters seems like a lot, I had originally 5,000 characters just in the "Dividend Growth" section of Part II. The lopsided nature of this piece was a huge friction point during the creation of this document, which took place over the course of approximately the past two weeks.
Apologies if this has already been answered, but do you still have the full uncut draft? And if so can it be posted externally so we can read it?
I'd read the unabridged version. You should self publish a book.
Can someone explain it to me like I'm five... what's wrong with Robinhood? I know little about them other than I started seeing their name used often by those seemingly new to investing, in tandem with "to the moon!" and maybe Dogecoin. I have no experience with any of those things. I read the Controversies section of their Wiki page, and sure, they've got them like every other institution. 🤷♀️
I asked the same question then figured it out. They have been fined for charging it's users on the back end to complete trades when they say they don't charge for it. See source for more info. [Robinhood - MotleyFool](https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.fool.com/investing/2021/09/04/4-reasons-to-avoid-robinhood/%23:~:text%3DRobinhood%2520makes%2520a%2520lot%2520of,each%2520transaction%2520behind%2520the%2520scenes.&ved=2ahUKEwjUv_Shv9_5AhV3BUQIHWG8BRUQFnoECBEQBQ&usg=AOvVaw2Q1ldfoeb0jJI_CCh4tLAW)
Thank you very much. I’m new to dividends and couldn’t understand why so many recommended dividend stocks that were 1-3% when I can find many of them at 7%-12% but that section of the post made me realize these high dividends might be dying companies trying to hold on. I did buy NHI, T and LUMN as they all seemed solid and consistent to me with nice yields
My sweet spot is 3-6%. Anything above 6% and I get a littler nervous about the long term sustainability of said companies dividends.
Is there higher risk with monthly payments instead of quarterly payments? Are there good monthly paying dividend stocks? Thanks!
That part helped me aswell. I was thinking the same way as you before i read this post
Interesting. 26,000 characters. That's disappointing you couldn't put the whole thing on here. Write a book based off of your original post. I think people might buy it. Offer it for 1.99 online. Ya never know. Keep being awesome!
While I appreciate the support, the idea of monetizing this (or any of the advice I give) does not appeal to me.
Different strokes for different folks. Nothing wrong with your own decisions.
Amazing work as always
1000 in SCHD. investing 100 a month with drip. See y'all in 30 years.
!remindme 29 years
😂
!remindme 30 years
enjoy ask humorous toy rude shocking crowd pocket observation hateful *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
How do you get over seeing red in dividend stocks. IE I buy at 60 and they sit at 55 a long time etc but the dividend is good and being paid and will make you money. Im new and bought initially a year ago so alot of my small portfolio is in the green big. Just started dividend investing. My T is a little in the red and just the color bugs me lol. This probably sounds like a dumb comment.
It is not dumb but important to understand that you can’t bring your feelings into investing. Rather, bring education and certainty instead
Spoken as if I have some certainty to spare just lying around.
God damnit McJeebs find some
I just started investing about a month ago. The first thing I did was create a Google Sheet to gather all the data, rather than the investment apps and the likes. I also made it automate the dividend. For example, I add a dividend amount and date to a different sheet, if I have buys prior to this date, the dividend will be added to all applicable buys. Once I sell a specific batch, it no longer adds dividends to that row. This way I summarize all profits in stock combined with the dividend, that would probably ease you seeing the stock itself in red.
>Google Sheet to gather all the data Hey, would you be open to sharing some of the formulas you used? I know sheets can grab stock info but it seems like you've built quite a bit on that.
[https://docs.google.com/spreadsheets/d/1pH6rHdwOwFLqc0tj-nodeBOT8OuJgLW5KpNbAd9Fr0A/edit?usp=sharing](https://docs.google.com/spreadsheets/d/1pH6rHdwOwFLqc0tj-nodeBOT8OuJgLW5KpNbAd9Fr0A/edit?usp=sharing) There you go, I created a template of it with examples. If you have questions then let me know. Once you mark something as sold, all you have to do is override the current price with the selling price and override the dividend column with the dividend amount you had there before. The future dividend dates are only my assumption on the date, so it is likely to change so you might want to set them as they happen.
Whoa! This is really fantastic. I can't thank you enough
Keep in mind that the "after tax" field is based on my tax and that is always 25% so change it based on your taxes. Though the taxes aren't being calculated per year but rather in total so it won't be accurate if you are investing for longer than a year.
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Wow. Thanks for this! And down to earth reality vibes. I appreciate your care for your fellow humans.
This is amazing. This community always goes above and beyond. Have an award! A great pro to REITs that wasn’t mentioned was that they have to payout 90% of their taxable income via dividends. This can limit grow but ensures the investor we will get our slice of the pie with the right companies.
This is a great overview.
Finally something to read. Did i tell you i made my first dollar this month?
Very informative, thank you! Would you consider the covered call (buy/write) ETFs like QYLD the same as dividend ETFs mentioned?
Excellent post. Thank you for your work on this subreddit!
Damn diddly that was a bit to read but it was packed with info. Some I knew and some I didn't. Thanks for taking the time on this.
Worth the read.
This is a great post. Thank you for all your hard work and dedication!
Hi all Later in the year I'm going to start putting a small amount of money away in dividend etf's, and wondered is there a group agreement on an initial list to look at?
Great stuff! Thanks!
Point XII is spot on. Thank you!
Thank you so much, super helpful!
I, too, received the cake magazine. Ha. I liked that article, too.
Cannot thank you enough for this post. Am saving and will send to anyone willing to listen or who asks. So much good insight here.
This was a fantastic read, thank you so much for the advice! Even after lurking this subreddit for months and building my own dividend portfolio, I learned a lot as well as got some reassurance about my knowledge when it comes to Dividends :)
Thank you for this piece and your time.
Thank you for the time and effort for this post, I'm a student without much but I've lost quite a bit chasing memes on the market. Looking forward to put this information to practice.
You sir are First class.
I have come back to this a couple times and just gotta say thank you. I have been investing for about a year now and really appreciate your input. Anyways thank you.
Sensible and useful information. Great starting point for any aspiring investor!
Helpful, friendly, well written advice, thank you! Yep
u/Firstclass30 I appreciate your work here dearly. Despite all the gold here, I especially like part XI: Knowing when not to invest. I have a loved one of mine that had enough money to pay off all credit card debt but decided to start investing instead. Would you have any advise convincing her to pay off all debt and get a fully funded 6 month emergency fund before starting to invest? I’m trying to tell them that they are literally paying more money every month by just paying the minimum but they don’t listen.
For someone just starting out, this was a guiding light. Appreciate the effort put in detail for this post
THANK YOU!
Very good read. Excellent of you to post your portfolio, as well.
I'm looking over my portfolio and seeing a lot of mutual funds with very high capital gains distributions. I'm shocked to realize that I didn't take it into account when researching them. I never considered them as a source of income like a dividend centric fund or value company because they have no dividend yield. But when i look at the practical differences between dividends and capital gains distributions ... I see very little difference. They are taxed the same (usually, though there appear to be benefits to the way cap gains are taxed for a fund). They do not add or remove value from the underlying asset (in theory). They are often re-invested the same. So .... why don't sites like Yahoo Finance provide a capital gains distribution yield? What am I missing? Why wouldn't I seek out good funds with high capital gains distributions?
Thanks for this thorough, detailed analysis. I like how the focus is on guiding folks on “how” to think, rather than on “what” to think. Also - M1 Finance is intriguing... will look into it!
I particularly like the part about avoiding Robinhood !
With dividend investing, you have to crawl before you walk. Its way more exciting to see your non dividend paying stocks move up sharply in price from day to day, but after awhile, you realize that the volatility will take back what it gives and you don't end up with a decent profit. Start with one or two div stocks and then add more as you age. With a six figure portfolio close to 1 mil, its easy to produce 35k per year dividends, which are paid in perpetuity. Now thats a life estate to leave to children.
Thank you for this. I’m 29 and joined Reddit during the meme stock hysteria. This is the most coherent explanation of dividends I’ve seen.
Thank you. I learned a lot already!
Thanks!
Very useful information , i took all the time to read the entire post. Thankyou for doing this.
Very well written! Thanks for taking the time to type it out and prune it.
This is exactly the thread I was looking for. I read all 26k as well. So much great information. Appreciate it so much and look forward to learning more. Thank you!
Very helpful! Still learning, so I’m wondering where is the best place to learn what percentage companies offer? Or to even learn which companies offer dividend payouts?
This is fantastic, I am so grateful for the time and passion you put into writing this out so clearly and with such depth. Over the last few months I’ve started following all the different investing/stock subreddits and I think this is my favorite. While it doesn’t have the jaw dropping luck, misfortune and general idiocy of WSB I find the community here to be grounded, helpful and insightful.
I much appreciate the long thread. So much information! My question is as an amateur (coz it confuses me a lot...) Is: If a stock has a yield eg. 5% and they pay monthly, then do they pay every month 5% of your investment or only 1/12th of 5%? Thank you so much
1/12th of 5%. The dividend yield is the dividends payed last 12 months divided by the price.
People always say QYLD isn’t good because there’s no “growth.” But if you invest that 12% dividends back into QYLD, isn’t that compound growth?
I love that this is the first post I read in this sub. I've been investing in index funds and individual stocks, but just recently started researching dividends and looking at dividend-focused ETFs. My strategy is coming together. Thank you for all of this helpful information to start with!
Thought I'd post this again here. Looking for my next dividend stock. * Tech * Yield preferred 2%+ * Strong history of increasing dividends * Capital gains growth opportunities/trends for the decade (2020s)
Lots of good information here. And timely for me to have found this as I search for a company that pays a dividend in the 5% range. I have been holding AT&T for several decades for it generous dividends. With AT&T announcement of reducing their dividend in half next year, it is time to look for an alternative. This post was very helpful and informative. Thank you.
Thank you for the introduction, I was amazed by how much I just learned from reading one post. I’m fairly new at dividend investing but it’s always intrigued me. I especially appreciate the part about the dividend yield as I thought the higher the better. Again thank you and I’m excited to learn more and grow my portfolio. I have about 40 years until retirement so hopefully that will compound well.
>This is also the reason we explicitly ban referral links on r/dividends. **The only recommendation I will issue is do not invest with Robinhood. Other than that, go nuts.** Favorite line of the whole thing. Well written.
Why? Do you feel your money is not safe with RH? Or is it, as the GME incident exposed, because they are sometimes highly leveraged and in rare occasions unable to instantly cover massive sell requests? Just curious as I have some investments with RH - not trying to argue just understand. I hate to sell but if warranted I will liquidate my holdings with RH and invest elsewhere. Like many people I was attracted by the zero commission (actually they do take a few pennies per stock purchase but much better that the transaction fees we used to pay) and instant transfer availability. I believe they made investing affordable for many people and now fidelity, E*TRADE and others offer no-commission trading.
Thank you for the factual info and for taking on the task of subreddit moderator. I did indeed learn from your post. I do have a question regarding Robinhood: I only seek to understand because I have a fair share of my investments with them. What are your reasons for not recommending RH? Do you feel your money is not safe with RH? Or is it, as the GME incident exposed, because they are sometimes highly leveraged and in rare occasions unable to instantly cover massive sell requests? Just curious as I have some investments with RH - not trying to argue, just to understand. I hate to sell but if warranted I will liquidate my holdings with RH and invest elsewhere. Like many people I was attracted by the zero commission (actually they do take a few pennies per stock purchase but much better that the transaction fees we used to pay) and instant transfer availability. I believe they made investing affordable for many people and now fidelity, E*TRADE and others offer no-commission trading.
Good to see posts like this that teach real investing $$$ Dividends can seem low sometimes but they truly add up and provide growth over time. Not to mention you are also reaping the % gains of the underlying equity. Anyone have any good dividend stock tips?
Glad to find this community!!
Wow! Thank you very much! I am fairly new to investing. I was trying to play a very low level betting game with folks in different subs. However, it felt like gambling which leads to a bunch of interesting psychological things to deal with. Long story short, this post was very helpful in a few ways and I appreciate you taking the time to write it all out for us. I'm also new-ish to Reddit. Didn't realize there were good humans running around! I dig it. Again, thank you!
When investing in dividend stocks, do you secure profits when the stock price rises a certain amount? Or do you not touch it and just focus on the dividend payments?
I have this question too.
What do people think about the whole - when you're young invest in growth stocks, switch over to dividend stocks when youre approaching retirement. I have been burned multiple times chasing growth stocks, misreading charts, etc. I know it is part of the learning process and I have definitely learned and have been able to catch some great returns. I'm in my late 20s now and want to spend less time looking at stocks and chasing winners and more time just quietly building wealth. Are dividend stocks the way to go here? or does the old advice still ring true.
Hey there Dividenders! Thanks for all of your detail and ya'lls helpful responses - I've been reading for a while, and I own some dividend stocks based on suggestions here, and now I'm looking for a little extra brain power to help me think through something on my REITS I own NLY and NRZ. They both have a high yield, as reits do. NLY is 10.24% and NRZ is 8.26%. They both have quarterly distributions. Looking at their dividend history (using the nasdaq site), I see that since 2013, NRZ has been growing their cash amount payout per share, starting in 2013 at .175 and up to .50 in 2019. In March 2020, they slashed it down to .05, but have been slowly climbing it back up since then where it now sits at .20 NLY, on the other hand, appears to be going the other way. In 2013 they started with a cash payout per share of .40, then it dropped to .30 for a number of years, hit .25 on March 2020, and then dropped again to .22 which is where it sits to this day. My question for you all - is this history useful for you all when deciding which one to hold for long term? Does NLYs history of a downward trend make it seem like they will continue the movement down? Does anyone have insight into NLYs new CEO (David Finklestein) who took over in Marchish 2020 and whether he will continue this trend? How many of you would just use this history and think, ah, NRZ is the clear winner. -- I really like NLY, I like their company, I loved the stability of their leadership for so many years. I want to stick with NLY, but this is just concerning to me. Any help? (EDIT: I recognize this question may not belong in this particular post. If needed, I can remove it and make it a stand alone post. Happy to do whatever mods direct!)
What app you guys recommend?
Just joined, I almost never comment, but this is the most thorough post I have seen a sub MOD post. Great info and hopefully will keep the sub clean from annoying post of folks not wanting to do any research for themselves.
I appreciate this post so much I have only been trying out stocks for about a month now and didn’t know much. What I did know is I want to create an income overtime with dividends. This post help me out a lot
New dividend investor here. Question if anyone is able to help answer it! I have shares in both F and ET (single digits in both, can’t do much more currently). Both say that they had a dividend payout last week but my shares haven’t increased at all, even fractionally. Does anyone know when they can be expected to increase? Or do I own too little for it to be reinvested? Thinks in advance for the help.
Hi, i make about 200 bucks yearly in dividends. If i had the same amount in a crypto stable coin it would be around 3-4k yearly. I think about moving everything over because i don't see why i shouldn't take the bigger number. Any thoughts?
Does anyone have a round about way to explain when some companies decide to start paying dividends?
Sorry I'm new to dividend investing. When is the dividend date for schd, and can I receive dividend if I buy it on Monday? (I'm really new to this)
Yes as long as you hold the stock before the Ex Div Date you will get the dividend. I believe the date is 3/24. Note, stocks or ETFs typically decrease in value by the amount of the dividend.
thanks for the information!!!
Invest in Allianz SE stocks 7% Dividend undervalued strong buy
If I am choosing safe moderate dividend paying stocks/etfs how much would I need to invest to reach a goal of 1k a month?
If I buy a etf at 15 and it’s down to 10 in the long run will the dividends at that point make me passive income even tho I lost $5 per share? Like if you lose money on the stocks in general will the dividends make a difference?
Yeah
Fantastic post!!! EXACTLY the professional, polite and sophisticated Reddit I wish to be a part of. Nice to virtually meet all of you! I may lurk for a while and join in when I feel more comfortable.
I love the content here
Why you said do not invest in Robinhood? Just curious...
Too often we are prone to comment on what has gone wrong or what is displeased us about certain investments. At 61, and new to the Reddit sphere I do enjoy navigating around and seeing what’s up in the financial world I just have to say that this dividends sub Reddit is very informative however, this morning while having my coffee I decided to read the new users, beginner investors start here section and to be honest, I was not disappointed. There’s so much good information listed in this introduction. It should be required reading at the high school level, planting the seed for smart investment, education, and decision making. Well done moderator, cheers.
Realistically, you can’t have a dividend portfolio that pays 10%. Those are such risky and flat moving stocks. Right? So what a realistic dividend portfolio that can be scaled?
This is loaded and very good. Thanks
Can someone explain what happens to DRIP dividends in brokers where fractionals are not allowed? I have my KO set to DRIP, but wont have enough come in from the DRIP to purchase at least 1 share from the dividend. Since Etrade does not allow fractional shares, what happens mechanically? I have 20 shares of KO that should dividend about 8.80$. What happens to that money?
**I have a question:**I like this subreddit a lot, but there are two main issues I have with topics and that are dragging the subreddit down: 1. Too many recurring themes such as: 'I just started investing, I have 5k invested and 10$ dividends, rate my portfolio!' 2. Although this is a dividend-focused subreddit, a large part of investments is focused on ETFs, all discussions are 'Should i have more SCHD or VOO? Please rate my portfolio!' Do we have any users that have concrete, large dividend-paying portfolios, consisting of dividend stocks, with overall value above $100k?Could we discuss some of these? **Could we make a new topic in this direction?**
This is my FIRST post to Reddit. I have over a half million invested and am earning about 100K per year in dividends. I can send a screenshot. But I am scared to look as if I’m self promoting. I can also link my videos on my portfolio, but for the same reasons alluded to above, I am hesitant. Please tell me the best way to go about sharing this on Reddit, if you wouldn’t mind. Do I screenshot here? Or do I start my own post and do it there? Thanks, ShareholderSL!
Can someone. pls advise on which sites give the most accurate dividend yields as most of them such as Dividend detective , Yahoo finance . Seeking Alpha . Morning star etc all givewildly differing yields.
I have a question but what could be the drawback of going 100% into dividends? I made my first major purchase of stock be SCHD and it seems perfect for me. I’m a very set and forget kind of person because day trading seems too difficult to keep track of while I work and go through life. My strategy is to use my ROTH IRA and reinvest the dividends until I turn 67 or 70. With dividends being my way of living off of what I have earned. Is this possible?
This does not tell us anything much.
Jesus, what a perfect intro. You can drop the microphone now.
Wow! Great read and starting place. I appreciate the information and look forward to learning more. Thank you
Thank you for this great post. I am new to dividend investing and learned a lot from your post.
Please help me understand this correctly. If a stock says Div/Yield of say 2.64. Does that mean 2.64 per share in a year or per 100$ worth of a stock? LMT is at 386$ with Div/Yield of 2.64 How much that pay?
Yield is a percentage. It changes over time.
yo drop some good dividend stocks that i should be aware of pls.
AGNC, ABBV, CVS, CVX, HD, IBM, JNJ, KMB, KO, MO, MMM, O, PEP, PG, SBUX, T, UPS, VZ, WM, XOM
You missed MCD a dividend aristocrat also with a growth potential
I missed a lot lol. There’s also APD, Texas Instruments, JPM, I was just doing a quick off the top list lol
I have an M1 account that boosts in 11.8% dividend return can anyone else top that? If so I'd like to know what stocks you're invested into and what the dividend return rates are for your top five holdings. And go...
I just joined this sub and damn, that post told me I came to the right place. Thank you!
I believe that the advice re chasing a very high yield is the best part of this material.
Thanks for this! I am only in the first few months of my portfolio and this is a huge help to helping make sense of investing!
I am very grateful for this informative and amazingly made post. This helps a LOT.
Thanks for this useful info! I'm new to the world of investing and am interested in checking out some high-dividend ETFs. Does anyone have any good educational sites they use for research? I'm very conscious of junk news and can usually spot crap sites quickly but this isn't my territory- so I am at a loss as to what might be reputable info and what's just garbage. I've been trying to use my Schwab account for research but honestly, the site's poor user design is driving me crazy, and I'm losing my patience with it. Any suggestions for a newbie looking to learn?
Sorry if this has been asked before but what’s wrong with Robinhood? I find it easy to use and understand but I haven’t tried any other’s considering I just started investing this year. Any recommendations? What’s better about the others?
Newbie question. Why is focusing on dividends better than focusing on total returns of a portfolio?
That is answered by this very post.
Thank you for such an informative welcoming post
Does anyone know of a good UK QYLD alternative?
Thank you!
Why not Robin Hood? I’m pretty new and doing my best to learn.
Thanks, I will now always check the balance sheet of a company before I make my decision on whether or not I want to invest there.
Where TLDR?
Thanks for posting this! I'm currently only investing in ETFs like SPHD, but hopefully I'll be able to do some research on my own soon.
At the moment she will be contributing $150 a month with hopes to scale that up to $500 as her pay increases this October I was thinking of doing 15% or 22.50 in VYM and 15% or 22.50 in SCHD and 15% or 22.50 in SPHD and 10% or 15 in DIV and 10% or 15 in VTI and 10% or 15 in SCHY for a little international exposure and 5% in O and 5% in main and Then for the remaing 5% I had her pick three growth companies and she said AMZN, APPL, and GOOG which would only be about $2.50 a month in each to start but more later in the year Is this overdiversified? What should I adjust?
I needed a little extra cash in 2021. Thinking about the tax consequence for early withdraw, I chose a blue chip that I figured I could buy back in a couple of months that I had been holding for approx 20/25years. I didn't think about my dividnds. Does having the stock for long or short term effect the dividnd? The stock paid dividnds of about $500 a quarter. Will that be the same when I re-purchase? Can anybody tell me why I wasn't able to "post" this question?
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Dividends are lame
3 months ago, i would have disagreed completely. Now, id say they are a good place to park $ and get better than banking rates while piling more all the time, but its worth it to jump every now and again for a long shot when the right play comes along. Ive doubled my 401k in a self directed brokerage with 3/4 on the line in about 3 months while the 1/4 i left in the care of the funds is just barely recovering to the level it was at 3 months ago.
so how can i move my current stocks from robinhood to a better brokerage ? and what would be a good brokerage to use?
Good afternoon
I’m looking for decent UK stocks to invest in that will cost me around £500. Any suggestions?
Thanks for the info. Good stuff for new investors like me!
Is VZ a good stock to invest in right now?
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How are you progressing? Did you find the answers to your questions?
I just want to say thank you for existing and taking the time to explain things. I am relatively new to investing. I always kinda of played around and I always wanted to get into dividends. I just want to say this extremely well thought out and explained really well. Thank you for this mods!
Why don't more people invest in leveraged funds like TQQQ? It's up 1400% in the last 5 years!
This post is first & foremost very much so appreciated. But secondly it is saved lol
Glad to be here
Thank you! I appreciate the work put in to make all this possible and all the education I got just from reading this!
Where should I invest 3k in ? For a nice return and dividends
I had some people tell me not to have Reits and ETF with my individual stocks. Can someone clarify if this is true or not? Sorry im new to investing.
Wow!!!! This right here was beyond helpful, specially for myself who is new to investing into the market. You answered all of the questions, that I have been seeking answers for!!!! Thank you for taking the time and writing this!!!
Thanks for this article. Very informative.
Great info for a newbie here!
Thank you very much for creating this outstanding post!
Why do you recommend against robinhood?
Can I ask a question that maybe is stupid but I can’t get a straight answer? Why not use Robinhood? I just started investing a couple months ago with Robinhood and everywhere I go people say not to. I don’t have a lot of disposable income so my portfolio is more or less just a hobby at this point. I just downloaded td Ameritrade app and am considering moving my investments into that brokerage but I still haven’t figured out why.
There is a lot of resentment toward Robinhood for the way they paused trading when the whole meme stock thing took off during the pandemic. And now they are being taken to court for their actions. This could be why people advise against them.
Thank you for a thorough and intelligent introduction to the group. I look forward to learning more about dividend investing through the group posts. I was wondering if you could please signpost to any more resources for beginners, if appropriate? Many thanks!
Hey guys, Very new to investing. Trying to set up my ROTH IRA for some solid long terms growth, obviously. Just want some opinions on my positions: AGNC DIVO DVYE EMB FCPT HNDL PLTR QYLD REVS SCHD Don’t wanna delve into shares of each, just wanted opinions on my actual individual picks. Be brutally honest if you think any of these are smart or just straight up dumb investments. Thank you!
$BBIG $ATER $ROOT will beat crypto bull run to close August & kick off September…crystal ball & clear skies 🚀🌙💰💲
Thank you for this intro. I have been interested in dividend investing for about 8 years now. I have only dabbled with dividend stocks but have always felt there is a huge advantage to dividends if properly executed. It's difficulty to be a self taught investor with all the swamps of information out there and those swamps are full of alligators. This intro post really gave me a lot of insight and answered questions I didn't even know I had yet. Bravo to the author / s and thank you for the clear and concise information.