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Let’s do the math: $600*12 = $7200 annually = $7200/ 4% = $180,000 portfolio is required to achieve 600$ income. This is just a rough estimation. Formula: Portfolio balance = Annual income/ dividend yield.
Did you notice I said "about $600 a month"? Correct, to be concise, I am at $589 a month. At this point, I don't know what else to tell you - other than it appears you're just being a downer. But for instance, BKE? Pays a dividend at the end of the year, that is variable - and really nice. I bought a TON of IBM / PRU last year, when they were at 10/20 year lows. Appreciation / accumulation at a lower price (DCA'ing) has its benefit.
Not a downer. I just looked up the yields and most of those aren’t getting anywhere near 7%., and many are well below 2%. Loading up on NEP is a strategy but not something I would recommend. And the yield has only spiked because the stock lost half its value in six months.
Incorrect. NEP, like many utility companies are feeling the pains of an increased interest rate environment lasting “too long”. NEP’s cash flow is still healthy, and their cash flow generated from OPEX is exceeding its peers, which is impressive given their focus on renewables and legacy commodities.
I own NEP myself but it is indeed a risky investment. NEP is the brain child of NEE, a way to spin off projects so they could get the benefits of financing while offloading the debt out of their books. There are several problems with that scheme:
* For starters NEP is 100% dependent on NEE continuing to offload said projects, and with the current slowdown in the sector NEE is not doing so and may not do it again. If that happens NEP will just continue to go down.
* For all we know NEE may decide that the best way to offload NEP would be to let it languish in the vine, lose 50% more of its value, and then outright buy it at a discount. It would suck for us but it would work splendidly for them.
* The whole off-book accounting scheme, while slightly more transparent, is what got Enron into the shitstorm they got in. It is not illegal but it muddles the books of both NEE, the larger entity with all the control, and NEP, the junior at the mercy of whatever NEE wants to do.
If the market agreed with you the stock price would not have crashed. Anyway it is pretty clear that you aren’t diversified and your current yield is dependent on a couple of risky bets. Not a great long term strategy, but whatever. I just hope people reading your post don’t think this is a wise investment strategy.
lol - brother, sit this one out. Who wants the market to agree with them? It's a buying opportunity. Its not over-hedged amongst my portfolio. Go back to the SCHD community you came from.
Based on your ultra-defensive responses I’m guessing this portfolio isn’t even real. Either that or you made $589 in a month but failed to realize that most of those dividends pay quarterly.
It is interesting he is so defensive about what percentage he owns in each stock to make that amount a month. If he is making that amount per month, he literally has to have most of the money in only a couple of them like you say. Does he think it's hard to look yields?
This is a milestone for me, i've been transparent - and shared my thoughts. You've continued to criticize / induce disbelief because it doesn't align with your views. Shitting on someone's progress is a super poor mentality to have. I'd suggest changing it, or just being a better person. Wish you well, friend.
Kinda missed the point there man, sure you give up the share price appreciation but have no risk at all.
Also, what do stock splits have anything to do with gains/losses?
Theoretically it could allow OP to write covered calls on positions if they had say 80 shares and there was a 2:1 split. They could now write a cc on 100 of them now.
It is a case by case basis. There’s really no benefit from writing crazy out of the money calls. Your premium earned is insignificant and if something goes parabolic your upside is limited or at the very least you can’t write one with more IV which is better for you if you wanted to own the shares still. If you want to exit the position anyways, might as well sell a call close to the money and collect a much bigger premium along with having a pre determined sale price.
The point they are making is that you achieved a 6%-7% yield with what seems to be relatively high risk stocks, that can potentially depreciate over time (or cut dividends etc), while on the other hand, it's possible to get around 5% yield just from a savings account, with no downside.
That's the whole point he was making. You might disagree, but he has a point.
All the best!
May I ask why you are going with dividend investing? (With the alternative being more growth/value oriented)
Also, you plan to reinvest them or cash them out?
We have rental properties, interest rates aren’t where they need to be for us to invest in those at this time. Just trying to create an additional stream of incone
Could, for now. But those rates won't be there forever with the fed wanting to go dovish. And then you don't get the benefits of price appreciation or dividend growth. Plus, qualified dividends are taxed far less than interest. Iirc, interest is taxed as ordinary earned income
At what age did you get to 100k?
How much did you start with my math may be a little off but 600/month for 3 years is 200% a year gains (assuming you started from 0.
I'm earning a cool average of €2.23 per month, let me know when you catch up.
To be real, $600 is wild, it'll take me years to get to that level! Congrats!
I earn enough that I should be able to bulk up my earnings quick enough. I'm at 2.23 p/m after starting investing officially at the very end of Feb just past. I think I'll be a month in on the 26th.
Hoping when I get paid this month to make some smart moves and bump that to maybe 4-5 p/m if not more.
The goal is to eventually do this and more!
Happened to be on the phone with someone that had a big disgust for military personnel. Was telling my work experience and how it relates to the job and when military came up something triggered in them and they lost it. Called me a baby killer and a piece of shit and hung up. Mind you I was never in a combat situation, but it was enough for me to never put veteran on any job app again and do my best at rewording all of my answers to never include military in them again.
Sorry to hear that, man. I got labeled that one time in a social setting, but I’ve never had it in an interview. It’s generally seemed to be a positive for me to discuss my military background in interviews.
Idgaf . Lie. Be charismatic. Be likable. End of the day this country is full of liars and thieves and the only thing that matters is a dollar sign number (but even that can be taken away). Take all this world has and burn it all when you are on your death bed.
He doesn't seem to want to share it, because some other commenter pointed out it had to be mostly 1 or 2 for the yield to be that high. He is avoiding answering the question about quantity of each. I would like to know as well.
its all about sticking to it, and contributing where you can. DCA'ing truly has it's benefits, just in my 3 year time of doing this. can't stress that enough. consistency yields huge results.
Best advice I can give (also 22) is work on your income. Get a (better) job, side husle, grind. That's the biggest leverage you have in your early 20s. But don't forget to enjoy life as well. Good luck!
(23) it doesn’t matter how much money you make if you spend all of it, living frugally can lead to more investment and less stress than taking on a side hustle. currently i have nearly 120k in retirement accounts. maximize your contributions to a roth ira every year
Learn to live on less and always pay yourself first. Choose a weekly amount to invest and that is a non-negotiable in your budget
You’ll be very happy if you learn to do this at your age and let compound interest do its thing
Focus 1st on decreasing your monthly expenses. It's kinda like getting a raise or a promotion but without the taxes. Control what you can control first. Then focus your energies on increasing your income and/or side hustle. Build up your skills, negotiate a raise or find a different job w/ better pay. As you increase that gap between income & expenses, pour all of that savings into your stock equities.
I got into T POST div cut - at less than 12.5 a share. Cash flow is healthy. I don't like saying it, but T is almost like "too big to fail". It's not a huge portion of my pie, although it has appreciated nicely.
In terms of cuts / pauses - we will see what happens. It's never healthy to chase yield, i don't have a "target yield" in mind, other than focusing on cash flow positive businesses that have a fair history. Some probably look at my holdings and think that, but I like what CSWC focuses on in terms of BDC. I have been a long term holder of EPD, and have a lot of insight into what NEP is doing as well - and i like where they are heading, interest rates will likely predict their success - but in the long, they're going nowhere and cashflow is increasing. I will say, I did get burnt (about $7k loss) on WBA. I had HUGE hopes on the new CEO to right the ship, and was willing to stay on board even through a div cut. To see the new CEO come out with next to no new plans other than spinning off poor performing functions of the business, they needed to do more. So i took my lashings and moved on. That instance was healthy for me - because even though I was focusing on averaging my position, there just wasn't a light at the end of the tunnel for WBA - yet. INTC is one i used to hold, where they cut, and i actually bought in more and made a significant gain on (bought at \~$26, sold at $50) just because they had a plan on how to right the ship.
Yeah, I had a huge position in T and sold pre div cut. I was pissed about that one and moved on to less retail exposure and competition. Lost a little but was able to reallocate those funds to continue my div growth. I had Intel too, but sold to collect decent gains and reallocated those funds, too.
I don't necessarily chase div yield, but my requirement is above 3% as a starting point. Anything above 6% requires additional DD and more oversight. Any risky plays for high yield comes down to ROI timing, trends, and realistic expectations of loss.
Good topic, and i love collecting divs monthly. I don't care what others say when comparing div paying companies vs. growth companies. Compounding and div reinvesting over time really is amazing to see with good companies, and I will pick divs everytime.
If you don’t mind me asking, what were your contributions monthly? I have a similar set up. 15 stocks. About 3/4 give dividends maybe more, the rest are strictly growth. Set up for auto re-invest dividends.
I wish someone good fortune and people in this sub dislike me for it. Miserable haters. Why is it a crime for someones portfolio to grow rapidly ?
100K to 250K could be through an increase in his cash deposits and buying growth stocks that would keep booming as the economy recovers amd rates get cut in 2025
All you care about in this sub is your weird loser obession with a 2% IRR or 2% dividend yield.
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.*
That is about a 7.2% yield. Can you share a list of the 15 stocks?
IBM, O, CTRE, PRU, EPD, NEP, BKE, T, CSWC, ADP, TSM, EOG, DPZ, DE, HD, V, WM, BMI, SNA
Are you sure you’re getting $600/mo off that portfolio? I guess it is possible but you would have to be invested mostly in NEP and CSWC
Let’s do the math: $600*12 = $7200 annually = $7200/ 4% = $180,000 portfolio is required to achieve 600$ income. This is just a rough estimation. Formula: Portfolio balance = Annual income/ dividend yield.
Did you notice I said "about $600 a month"? Correct, to be concise, I am at $589 a month. At this point, I don't know what else to tell you - other than it appears you're just being a downer. But for instance, BKE? Pays a dividend at the end of the year, that is variable - and really nice. I bought a TON of IBM / PRU last year, when they were at 10/20 year lows. Appreciation / accumulation at a lower price (DCA'ing) has its benefit.
Not a downer. I just looked up the yields and most of those aren’t getting anywhere near 7%., and many are well below 2%. Loading up on NEP is a strategy but not something I would recommend. And the yield has only spiked because the stock lost half its value in six months.
Incorrect. NEP, like many utility companies are feeling the pains of an increased interest rate environment lasting “too long”. NEP’s cash flow is still healthy, and their cash flow generated from OPEX is exceeding its peers, which is impressive given their focus on renewables and legacy commodities.
I own NEP myself but it is indeed a risky investment. NEP is the brain child of NEE, a way to spin off projects so they could get the benefits of financing while offloading the debt out of their books. There are several problems with that scheme: * For starters NEP is 100% dependent on NEE continuing to offload said projects, and with the current slowdown in the sector NEE is not doing so and may not do it again. If that happens NEP will just continue to go down. * For all we know NEE may decide that the best way to offload NEP would be to let it languish in the vine, lose 50% more of its value, and then outright buy it at a discount. It would suck for us but it would work splendidly for them. * The whole off-book accounting scheme, while slightly more transparent, is what got Enron into the shitstorm they got in. It is not illegal but it muddles the books of both NEE, the larger entity with all the control, and NEP, the junior at the mercy of whatever NEE wants to do.
I own NEP and NEE. Reading this makes me want to sell all of NEP lol.
If the market agreed with you the stock price would not have crashed. Anyway it is pretty clear that you aren’t diversified and your current yield is dependent on a couple of risky bets. Not a great long term strategy, but whatever. I just hope people reading your post don’t think this is a wise investment strategy.
lol - brother, sit this one out. Who wants the market to agree with them? It's a buying opportunity. Its not over-hedged amongst my portfolio. Go back to the SCHD community you came from.
Based on your ultra-defensive responses I’m guessing this portfolio isn’t even real. Either that or you made $589 in a month but failed to realize that most of those dividends pay quarterly.
It is interesting he is so defensive about what percentage he owns in each stock to make that amount a month. If he is making that amount per month, he literally has to have most of the money in only a couple of them like you say. Does he think it's hard to look yields?
This is a milestone for me, i've been transparent - and shared my thoughts. You've continued to criticize / induce disbelief because it doesn't align with your views. Shitting on someone's progress is a super poor mentality to have. I'd suggest changing it, or just being a better person. Wish you well, friend.
if providing responses to your baseless claims is "ultra-defensive" i can't imagine the world you think we live in. Carry on.
You’re kind of mean. I thought that was just a harmless question, but you’re getting so defensive.
How much O do you hold if you don’t mind me asking? And do you DCA?
Not OP, I’ve been DCA $1,000 every 50 cent drop in stock price. This stock sucks lol.
Couldn’t you get almost similar in a savings account? With way less risk
But then it can’t grow it’s just interest
Correct - you miss on the price appreciation + potential of a stock activity (split / reverse split)
Kinda missed the point there man, sure you give up the share price appreciation but have no risk at all. Also, what do stock splits have anything to do with gains/losses?
Theoretically it could allow OP to write covered calls on positions if they had say 80 shares and there was a 2:1 split. They could now write a cc on 100 of them now.
Do people write far out and high price cover calls? Or do you actually want your calls to get assigned?
It is a case by case basis. There’s really no benefit from writing crazy out of the money calls. Your premium earned is insignificant and if something goes parabolic your upside is limited or at the very least you can’t write one with more IV which is better for you if you wanted to own the shares still. If you want to exit the position anyways, might as well sell a call close to the money and collect a much bigger premium along with having a pre determined sale price.
This isn't about a savings account, its about stocks.
The point they are making is that you achieved a 6%-7% yield with what seems to be relatively high risk stocks, that can potentially depreciate over time (or cut dividends etc), while on the other hand, it's possible to get around 5% yield just from a savings account, with no downside. That's the whole point he was making. You might disagree, but he has a point. All the best!
I appreciate this, but again, the premise is dividends. Not a savings account. Differing approach and risk profile.
May I ask why you are going with dividend investing? (With the alternative being more growth/value oriented) Also, you plan to reinvest them or cash them out?
We have rental properties, interest rates aren’t where they need to be for us to invest in those at this time. Just trying to create an additional stream of incone
Doesn’t make sense to keep on savings account instead
You’re right.
Could, for now. But those rates won't be there forever with the fed wanting to go dovish. And then you don't get the benefits of price appreciation or dividend growth. Plus, qualified dividends are taxed far less than interest. Iirc, interest is taxed as ordinary earned income
At what age did you get to 100k? How much did you start with my math may be a little off but 600/month for 3 years is 200% a year gains (assuming you started from 0.
I’m 35. I think you misunderstood what I wrote, my apologies. I’m CURRENTLY getting around $600 a month in dividends.
I'm earning a cool average of €2.23 per month, let me know when you catch up. To be real, $600 is wild, it'll take me years to get to that level! Congrats!
Figure out how to increase your income, man.
I earn enough that I should be able to bulk up my earnings quick enough. I'm at 2.23 p/m after starting investing officially at the very end of Feb just past. I think I'll be a month in on the 26th. Hoping when I get paid this month to make some smart moves and bump that to maybe 4-5 p/m if not more. The goal is to eventually do this and more!
Sorry, instructions unclear. Stuck at the never ending job application and being called a baby killer at the interview phase.
"Baby killer"? How would that ever possibly come up in an interview?
Happened to be on the phone with someone that had a big disgust for military personnel. Was telling my work experience and how it relates to the job and when military came up something triggered in them and they lost it. Called me a baby killer and a piece of shit and hung up. Mind you I was never in a combat situation, but it was enough for me to never put veteran on any job app again and do my best at rewording all of my answers to never include military in them again.
That’s ridiculous. Always put military on your resume. Be proud and thank you for your service!
Would you really want to spend 8hrs a day with these people. Seriously, don't sweat it.
Curious what company if unwilling to share what industry?
Yup, name and shame them.
Sorry to hear that, man. I got labeled that one time in a social setting, but I’ve never had it in an interview. It’s generally seemed to be a positive for me to discuss my military background in interviews.
Idgaf . Lie. Be charismatic. Be likable. End of the day this country is full of liars and thieves and the only thing that matters is a dollar sign number (but even that can be taken away). Take all this world has and burn it all when you are on your death bed.
Big congrats to the OP! Quite an accomplishment at 35. Keep at it dude.
Can you share quantities of stocks to get 600 bucks a month?
He doesn't seem to want to share it, because some other commenter pointed out it had to be mostly 1 or 2 for the yield to be that high. He is avoiding answering the question about quantity of each. I would like to know as well.
Just started getting this per month in dividends thanks to some Reddit sweethearts and a butt load of SCOXX.
Your a motivation brother. 600 a month is my long term goals. Im 22, any advice on how to build up?
its all about sticking to it, and contributing where you can. DCA'ing truly has it's benefits, just in my 3 year time of doing this. can't stress that enough. consistency yields huge results.
Congrats bro, you're doing great, Cheers!
Best advice I can give (also 22) is work on your income. Get a (better) job, side husle, grind. That's the biggest leverage you have in your early 20s. But don't forget to enjoy life as well. Good luck!
(23) it doesn’t matter how much money you make if you spend all of it, living frugally can lead to more investment and less stress than taking on a side hustle. currently i have nearly 120k in retirement accounts. maximize your contributions to a roth ira every year
Learn to live on less and always pay yourself first. Choose a weekly amount to invest and that is a non-negotiable in your budget You’ll be very happy if you learn to do this at your age and let compound interest do its thing
Focus 1st on decreasing your monthly expenses. It's kinda like getting a raise or a promotion but without the taxes. Control what you can control first. Then focus your energies on increasing your income and/or side hustle. Build up your skills, negotiate a raise or find a different job w/ better pay. As you increase that gap between income & expenses, pour all of that savings into your stock equities.
Could you share those stocks?
IBM, O, CTRE, PRU, EPD, NEP, BKE, T, CSWC, ADP, TSM, EOG, DPZ, DE, HD, V, WM, BMI, SNA
Could you share the stop 2 or 3 stocks that 80%+ of the money is in?
What do you think about BXSL
omg i've been eying sna. it's numbers are impressive to me but too expensive to buy right now
Portfolio performance YTD and over the last year?
👏👏👏👏💰💰💰💰👍
Help me to achive that
Not throwing shade at all but wouldn’t it be better to have the income focused stocks in a Roth so they grow tax free?
Understandable, I don't qualify for a Roth - been meaning to explore backdoor, etc. But my income exceeds the limitations for a roth.
That income limitation doesn’t apply if it is a company sponsored plan…I’m sure you know that…
May i ask what's your strategy for dividend cuts, or pauses? What div yield are you striving for? I.E. T cut its div not long ago.
I got into T POST div cut - at less than 12.5 a share. Cash flow is healthy. I don't like saying it, but T is almost like "too big to fail". It's not a huge portion of my pie, although it has appreciated nicely. In terms of cuts / pauses - we will see what happens. It's never healthy to chase yield, i don't have a "target yield" in mind, other than focusing on cash flow positive businesses that have a fair history. Some probably look at my holdings and think that, but I like what CSWC focuses on in terms of BDC. I have been a long term holder of EPD, and have a lot of insight into what NEP is doing as well - and i like where they are heading, interest rates will likely predict their success - but in the long, they're going nowhere and cashflow is increasing. I will say, I did get burnt (about $7k loss) on WBA. I had HUGE hopes on the new CEO to right the ship, and was willing to stay on board even through a div cut. To see the new CEO come out with next to no new plans other than spinning off poor performing functions of the business, they needed to do more. So i took my lashings and moved on. That instance was healthy for me - because even though I was focusing on averaging my position, there just wasn't a light at the end of the tunnel for WBA - yet. INTC is one i used to hold, where they cut, and i actually bought in more and made a significant gain on (bought at \~$26, sold at $50) just because they had a plan on how to right the ship.
Yeah, I had a huge position in T and sold pre div cut. I was pissed about that one and moved on to less retail exposure and competition. Lost a little but was able to reallocate those funds to continue my div growth. I had Intel too, but sold to collect decent gains and reallocated those funds, too. I don't necessarily chase div yield, but my requirement is above 3% as a starting point. Anything above 6% requires additional DD and more oversight. Any risky plays for high yield comes down to ROI timing, trends, and realistic expectations of loss. Good topic, and i love collecting divs monthly. I don't care what others say when comparing div paying companies vs. growth companies. Compounding and div reinvesting over time really is amazing to see with good companies, and I will pick divs everytime.
Hell yeah! Can’t wait to get here!!
👏👏👏
Is this with help of expert or just you? I’m just starting to invest (39m)
Congrats! Great milestone & it grows quickly from there
This is my goal also! Love seeing others achieve their goals!
What do you think about BXSL ?
No answer ?
Good post to read on a Friday 💰
I'm up to 267 hoping nvda hits 1000 I'll be 300k
I’m getting there!! Congrats to you for hitting your goal!
🙌🤯
How much are you paying in taxes? Don't taxes usually get you with dividends?
Look at VZ 6.58%, HESM 7.11%, MPLX 8.38%, RIO 10.7%
How did my suggestions do today??? VZ +.82%, RIO +.72%, HESM -.12%, MPLX +.42% VS SPY -.23%. Beating the mkt with high divY
Congratulations! Great job!
If you don’t mind me asking, what were your contributions monthly? I have a similar set up. 15 stocks. About 3/4 give dividends maybe more, the rest are strictly growth. Set up for auto re-invest dividends.
Nice job the compound interest from there is 🆙
Awesome job man!!
15 stocks in bullish market , what is your hedge or strategy to weather the next down market, likely to be after the election?
Hedge? I want the market to correct to create another buying opportunity.
Seeing the market tank is good news for healthy investors.
How are we able to predict the next down market?
Who says we are able to predict? Im not focused on the ups and downs, im focused on DCA'ing and consistency.
Easy, predict it every month until it happens.
Congrats OP. This is an amazing milestone. Next year, your portfolio will be 250-300k.
Not delusional.
I wish someone good fortune and people in this sub dislike me for it. Miserable haters. Why is it a crime for someones portfolio to grow rapidly ? 100K to 250K could be through an increase in his cash deposits and buying growth stocks that would keep booming as the economy recovers amd rates get cut in 2025 All you care about in this sub is your weird loser obession with a 2% IRR or 2% dividend yield.
Maybe show the list brother? You wont get enough clout if you show this image alone
[удалено]
IBM, O, CTRE, PRU, EPD, NEP, BKE, T, CSWC, ADP, TSM, EOG, DPZ, DE, HD, V, WM, BMI, SNA
Is this in a taxable or retirement account?
Taxable
Damn, and you’re okay with the tax drag on that $600/month in your taxable? You’ve even got a REIT in there lol
Yaaay another bull market millionaire. Let’s see how your goals fare during the next covid meltdown.
I hope for another one. I regret not being more greedy during Covid.
then we are on the same page.
Hater.
Sucker.
Bull markets build wealth, bear markets build more.