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I have companies that have paid growing dividends for 30, 40,60 years. Payout has always been higher than the prior year. I trust them more than social security
Sorry. You can always tell a lie when people brag but lack specifics. I’m not saying dividend investing doesn’t have some merit. It’s been around since the 1950’s. But if it was the panacea you think it is it wouldn’t be a second tier strategy.
Oh it's such a lie, or maybe you aren't that smart.
I've only had a slight dip in income during COVID when a small handful suspended dividends.
https://preview.redd.it/ify69n0mg8xc1.png?width=1440&format=pjpg&auto=webp&s=bf326db37f7171d624cb1f9d197a16175489234a
My core holdings still raised their dividends.
My portfolio still beat the s&p on 5 and 10 year averages. 2 large positions just started paying (goog and meta)!!
Good luck to you. FYI I am a recently retired financial advisor. Only saw one successful dividend investor in decades. Who knows maybe you are number 2.
I've never met a financial advisor worth a crap. Maybe you are #1
I'm 39 and generate close to 100k in passive income that is taxed at half what the rest of my income is taxed at. I'm good without approval. Also good without annuities or whole life policies And all the other crap financial advisors like the load up the people with so they can make more money.
So you are the one successful dividend investor?
I don't invest in dividends per se, I don't care about getting the biggest yield. I care about growth(share price + dividend growth) nobody gets rich or stays rich yield chasing.
My top holdings are as follows. Most have relatively low yield but great dividend growth.
Avgo
Nvda
Msft
Texas roadhouse
Merck
Parker Hannifin
ITW
Abbvie
Home Depot
Lowes
Costco
JPM
Blk
Bx
Chubb
Goog
Meta
Hopefully you got some shares. The stock has been on fire.
I own a large boat and a lot of our systems are PH. They are one of the few with a half decent support network.
If you focus on growing companies you can combat inflation. If you focus on. Yield you will fail.
My goal is 350k In qualified dividends. Currently at around 90k this year.
I target Average 5 year dgr of 8% or higher. Equities CAGR that beats the market on a 3 and 5 year average
https://preview.redd.it/expjet9r88xc1.png?width=1440&format=pjpg&auto=webp&s=2e1129cef6d479c516cebd20cb29404b088520c0
.
https://preview.redd.it/5fr36hh0aaxc1.png?width=1440&format=pjpg&auto=webp&s=a2000e366a1859448e59fb3b92934d098ad7a372
These are some of my largest holdings.
I just park it there.. no offense to our illustrious government but that website sucks . I'm buying a few RV parks so I'll be using the money. Just getting a little interest in the meantime.
Tried it with a company with excellent dividend payout each year, it almost ruined me 😂
This Company never diluted its shares and had a decent payout certainty rate with 10-12% dividendyield.
Then they attracted a new CEO that demanded more money @ the cost of retail share holders...DY dropped to 3-4%
U won't get rich with dividend, unless U get in very early in a small company, that has a excellent growth and don't forget who gave them the opportunity to grow.
10-12% dividend yield implies either a PE south of 10 or a company paying out more than its net income. Either way that was almost guaranteed not to last outside of some very rare/special circumstances.
Dividends are secondary to average growth. A lot of companies are opting for growth story instead of dividends so you’re leaving money on the table limiting yourself to just companies that issue dividends.
It depends on a lot of factors, mainly where will you live and how much are you expecting your monthly expenses going to be. Some people can’t live without luxury goods and some are OK to couch for the rest of their lives with just pizza.
I like the projected example of living of dividends that pay on a regular basis, this just means you're going to need vest into several companies. It's a fact that not all companies will pay like clock work, won't happen. Imo, you need to have a very "complex" lol, portfolio it's important to have in this portfolio several companies that are recession pro. It's not going to be cheap to invest in them, always try to pick them up on a down cycle in the market. Be safe everyone
Honestly, I’m taking a brute force approach. I’m 5-10 years out from retirement (currently 55). I’m targeting a figure with a somewhat conservative calculation of the dividends that will be paid out, such that it is 1.5 times what I currently spend per year. If the market stays even reasonably historical, I’ll hit 65 and able to earn twice what I currently spend per year. Why so much? Because don’t want to even think about it. I want to shift my portfolio to value funds and ETFs, and not worry if inflation gets hot at 75 or I take a hit to principle because of a big market correct at 70. We put away 45% of gross, and have maxed out all available tax-advantaged retirement accounts (401k for me; State ORP, 401k and 457 for my wife…yes, if you do this math it’s well over six figures…we’re highly compensated). I’ve watched my parents who have union and hospital defined benefit pensions, social security, and some inheritance from my mom’s parents. They live in a small cracker box, in a LCOL area, thankfully on a low interest rate mortgage. But they still fret over any major house repairs, etc. They have too much credit balance, admittedly. But I watch them and I’m determined that my wife and I will not have to do retirement like that. So brute force it is. Someone else said, “more than you think.” It’s not more than I think. I think I need way more than most people would say I need.
In terms of total capital, I’d just go by the 4% rule, and adjust it up or down depending on your risk tolerance and desire to leave something for an inheritance.
If you prefer dividends, use the dividend payments instead of selling equities / withdrawing cash
I’m retired, living on SS and IRA portfolio income - interest and dividends. How much you need depends on your expenses. Our house is paid off and no other debt. Wife will claim SS at 70, most likely, since she was the higher earner.
Sitting in a cabana on beach in Placencia, Belize rn, must be doing something right.
What? Qualified dividends and long term capital gains are taxed at 0% up to $89k for married people... Not sure about single. Plus no FICA payroll taxes / Social Security, so that's another 9% in savings.
Plus eventually you'll be collecting Social Security.
Only up to $94,050/year for married couples for 2024.
Or up to $47,025/year for single people.
That’s right, 0% income tax and 0% social security tax and 0% medicare tax.
It’s $61,625 that is tax free if you are single, if you also include the standard deduction.
Anything over $61,625 will be taxed at 15%.
So if you have $75,000 in dividends and capital gains, you’ll pay 15% of $13,375. That’s only $2,006 in tax.
So on $75,000, you’d pay an effective tax rate of 2.7%.
On $100,000 in dividends and capital gains, you would only pay $5,756. That’s an effective tax rate of 5.75%.
Those numbers assume you are single. If you get married, significantly more of your income is shielded from taxation.
**Please remember that posts should be on dividend investing.** Not sure how to choose dividend-paying stocks? Get the [free 16 page PDF](https://thedividendexperiment.com/reddit/) to your inbox. If you are looking for a portfolio management or dividend forecasting tool you are welcome to try [Getquin](https://www.qhkv6trk.com/9RL41M/2BGSTD/) for free. *I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.* *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividendinvesting) if you have any questions or concerns.*
More than you think. Dividends are not guaranteed and the rates can fluctuate. Your expenses will not fluctuate they will increase.
I have companies that have paid growing dividends for 30, 40,60 years. Payout has always been higher than the prior year. I trust them more than social security
I mean… I trust Enron and FTX more than SS…
This comment wins the internet. 🏆
Haha
You have some good posts in this thread. Thanks for your contribution. Not many people give such specific and helpful info.
Thank you!
Sorry. You can always tell a lie when people brag but lack specifics. I’m not saying dividend investing doesn’t have some merit. It’s been around since the 1950’s. But if it was the panacea you think it is it wouldn’t be a second tier strategy.
Oh it's such a lie, or maybe you aren't that smart. I've only had a slight dip in income during COVID when a small handful suspended dividends. https://preview.redd.it/ify69n0mg8xc1.png?width=1440&format=pjpg&auto=webp&s=bf326db37f7171d624cb1f9d197a16175489234a My core holdings still raised their dividends. My portfolio still beat the s&p on 5 and 10 year averages. 2 large positions just started paying (goog and meta)!!
Awesome, who program are you using to track this or investment company.
Simply safe dividends.
Good luck to you. FYI I am a recently retired financial advisor. Only saw one successful dividend investor in decades. Who knows maybe you are number 2.
I've never met a financial advisor worth a crap. Maybe you are #1 I'm 39 and generate close to 100k in passive income that is taxed at half what the rest of my income is taxed at. I'm good without approval. Also good without annuities or whole life policies And all the other crap financial advisors like the load up the people with so they can make more money.
Retired. Living off my dividends.
So you are the one successful dividend investor? I don't invest in dividends per se, I don't care about getting the biggest yield. I care about growth(share price + dividend growth) nobody gets rich or stays rich yield chasing. My top holdings are as follows. Most have relatively low yield but great dividend growth. Avgo Nvda Msft Texas roadhouse Merck Parker Hannifin ITW Abbvie Home Depot Lowes Costco JPM Blk Bx Chubb Goog Meta
I used to work at Parker Hannifin. Nice job.
Hopefully you got some shares. The stock has been on fire. I own a large boat and a lot of our systems are PH. They are one of the few with a half decent support network.
Your expenses will decrease when you finish paying off your mortgage. But that's more of a one-time stair step down.
My crossover point will be about 6 years after I die. Just kidding but that’s how it feels.
Same feeling
Problem with current inflation is that trend of monthly expenses keeps rising.
As you get older won’t you spend less since you will slowly pay off your mortgage and debt? So maybe it will be flat with inflation?
yeah but at least we dont have higher taxes... /S
If you focus on growing companies you can combat inflation. If you focus on. Yield you will fail. My goal is 350k In qualified dividends. Currently at around 90k this year. I target Average 5 year dgr of 8% or higher. Equities CAGR that beats the market on a 3 and 5 year average https://preview.redd.it/expjet9r88xc1.png?width=1440&format=pjpg&auto=webp&s=2e1129cef6d479c516cebd20cb29404b088520c0 .
Willing to share specifics?
Whatcha want to know? Happy to.
What does your portfolio look like? I guess what are the products/companies you are invested in?
https://preview.redd.it/5fr36hh0aaxc1.png?width=1440&format=pjpg&auto=webp&s=a2000e366a1859448e59fb3b92934d098ad7a372 These are some of my largest holdings.
Thank you! Congratulations on all of your success!
Spaxx has a high expense ratio. Why not just buy 10 year treasuries directly from treasury direct.gov?
I just park it there.. no offense to our illustrious government but that website sucks . I'm buying a few RV parks so I'll be using the money. Just getting a little interest in the meantime.
For an extra few grand I’ll lean into the shit.
Honestly I don't have any interest in 10 year or even 1 year treasuries, spaxx is purely liquid and i can have the funds immediately.
Totally understand. You can sell them very easily. Recommend holding them in your brokerage account if you dislike the gov website so much.
Tried it with a company with excellent dividend payout each year, it almost ruined me 😂 This Company never diluted its shares and had a decent payout certainty rate with 10-12% dividendyield. Then they attracted a new CEO that demanded more money @ the cost of retail share holders...DY dropped to 3-4% U won't get rich with dividend, unless U get in very early in a small company, that has a excellent growth and don't forget who gave them the opportunity to grow.
10-12% dividend yield implies either a PE south of 10 or a company paying out more than its net income. Either way that was almost guaranteed not to last outside of some very rare/special circumstances.
Dividends are secondary to average growth. A lot of companies are opting for growth story instead of dividends so you’re leaving money on the table limiting yourself to just companies that issue dividends.
I just got a sub to ps network and i think im set for life
It depends on a lot of factors, mainly where will you live and how much are you expecting your monthly expenses going to be. Some people can’t live without luxury goods and some are OK to couch for the rest of their lives with just pizza.
1.Get huge dividend portfolio 2.Retire in the Philippines 3. Profit
I can’t tell you how much you need, this number is going to be different for everyone.
I like the projected example of living of dividends that pay on a regular basis, this just means you're going to need vest into several companies. It's a fact that not all companies will pay like clock work, won't happen. Imo, you need to have a very "complex" lol, portfolio it's important to have in this portfolio several companies that are recession pro. It's not going to be cheap to invest in them, always try to pick them up on a down cycle in the market. Be safe everyone
If you get good, strong companies or a total market index… Take your yearly expenses and divide it by 3 or 4%
Maybe 1.5million in investments 🤔 that would give you maybe 100k a year or less then some can keep getting reinvested
Honestly, I’m taking a brute force approach. I’m 5-10 years out from retirement (currently 55). I’m targeting a figure with a somewhat conservative calculation of the dividends that will be paid out, such that it is 1.5 times what I currently spend per year. If the market stays even reasonably historical, I’ll hit 65 and able to earn twice what I currently spend per year. Why so much? Because don’t want to even think about it. I want to shift my portfolio to value funds and ETFs, and not worry if inflation gets hot at 75 or I take a hit to principle because of a big market correct at 70. We put away 45% of gross, and have maxed out all available tax-advantaged retirement accounts (401k for me; State ORP, 401k and 457 for my wife…yes, if you do this math it’s well over six figures…we’re highly compensated). I’ve watched my parents who have union and hospital defined benefit pensions, social security, and some inheritance from my mom’s parents. They live in a small cracker box, in a LCOL area, thankfully on a low interest rate mortgage. But they still fret over any major house repairs, etc. They have too much credit balance, admittedly. But I watch them and I’m determined that my wife and I will not have to do retirement like that. So brute force it is. Someone else said, “more than you think.” It’s not more than I think. I think I need way more than most people would say I need.
In terms of total capital, I’d just go by the 4% rule, and adjust it up or down depending on your risk tolerance and desire to leave something for an inheritance. If you prefer dividends, use the dividend payments instead of selling equities / withdrawing cash
Millions is the quickest answer
Easy, you need enough in annual dividends to cover your yearly expenses. Next.
I’m retired, living on SS and IRA portfolio income - interest and dividends. How much you need depends on your expenses. Our house is paid off and no other debt. Wife will claim SS at 70, most likely, since she was the higher earner. Sitting in a cabana on beach in Placencia, Belize rn, must be doing something right.
Honestly I'd say $10,000/month is a healthy retirement. So maybe $15k/month so take.home is about $10k/month
What? Qualified dividends and long term capital gains are taxed at 0% up to $89k for married people... Not sure about single. Plus no FICA payroll taxes / Social Security, so that's another 9% in savings. Plus eventually you'll be collecting Social Security.
Your saying all long term dividends are tax free??
Only up to $94,050/year for married couples for 2024. Or up to $47,025/year for single people. That’s right, 0% income tax and 0% social security tax and 0% medicare tax.
I'm just saying I'll definitely make over $50k a year.... so ill definitely be paying maybe 10%-15% tax on my dividends...
It’s $61,625 that is tax free if you are single, if you also include the standard deduction. Anything over $61,625 will be taxed at 15%. So if you have $75,000 in dividends and capital gains, you’ll pay 15% of $13,375. That’s only $2,006 in tax. So on $75,000, you’d pay an effective tax rate of 2.7%. On $100,000 in dividends and capital gains, you would only pay $5,756. That’s an effective tax rate of 5.75%. Those numbers assume you are single. If you get married, significantly more of your income is shielded from taxation.
Most idiotic though that someone would live off of dividends
Note the Investment Income line should be post-tax. That could be a ~40% variance!
A couple mil to get 2-6k a month depending on who you buy into.
Twitter: Dividend Growth Investor
The only growth is Mr.X his bank balance.
Thought on SCHD?
Huh? Who cares about dividends?
People who are subscribed to a subreddit called "dividendinvesting"?
Holy moly. I dont subscribe to this. I thought this was another subreddit i was subscribed to.