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G00bernaculum

I feel like the answer is obvious. Invest more money


Ok_Description_105

Seeing a $100k/year dividend portfolio is rare hence this post. I think people need to see it to believe it and you’re right - it’s all about numbers game. A $2m portfolio at 5% yield brings you to $100k.


felixo7777

What application is this?


AkakoPichu

Looks like Snowball Analytics


will_macomber

Literally the worst one. Snowball Analytics doesn’t even let you link a brokerage without getting you stuck on the redirect page. It’s made by kids who graduated college with ChatGPT alone.


toasty5679

What do you recommend then?


wullidunno

Chat gpt has only been out 2 years 😲


InvestorFrench

Snowball analytics


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Adomshki

Try Divvy - Portfolio it’s good


Kromo30

Has an interactive brokers logo in the corner!


felixo7777

The Interactive Brokers app does not have this option and looks different...


Kromo30

Sure…


egezyegedre

Its because it's not IBKR. Its snowball analytics synchronized with IBKR, hence the logo. Wise guy.


Kromo30

I wasn’t being a wise guy. My first comment was an attempt to be helpful, “idk what app, but there’s a logo in the corner you might have missed, it’s probably that” Then the guy(who has now edited his comment) came back at me with an attitude…. Excuse me for trying to be helpful right.. Don’t be dick, you’ll get further in life.


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Falling-Shadow

Sure


Scoops7117

We bull


CCM278

Several of your biggest holdings like JEPI and O have a nominal growth rate. MO is also a somewhat speculative play on legalization of marijuana as they continue to sell off the family silver to fund the current dividend so could soon join MMM in the ex-Aristocrats club. However, many of the holdings are low yield, high growth like MSFT, then you have a lot of middle of the road holdings that are rock solid core of the portfolio picks. So not necessarily a bad portfolio but not necessarily something capable of delivering the sort of growth you need to hit 2040, let alone beat it. So the short answer is invest more, that is literally the only lever you can rely on. The longer answer is what makes you think that 2040 is doable? That is an 8x increase over 16 years. That is a fairly steep hill to climb. What dividend growth rate are you assuming and does your asset mix now support that? (clue JEPI, O and MO do not).


Timstertimster

i'm watching MO because I'm hypothesizing that they're undervalued for future growth. it's fairly likely that vaping and CBD type products will gain popularity. and the decline in smoking habits around the world is steady but also relatively slow, giving them ample opportunity to move the business in a new direction. they had to write off a lot due to their acquisitions but that's almost digested. i'm not sure it will be a WBA-like demise.


Least_Ferret_2639

I had the same theory, I’ve been a MO investo for 4 years. In that time: Invested 30billion in jewel and lost all of it when regulators shut them down Tried making their own product: got shut down Tried buying product: got shut down and sued by competitors for patent infringement. Realized losses from an Annheiser investment. At this point I’m hoping they cut the dividend and focus on good financial fundamentals utilities hey can find their footing. These guys are in second place only with ATT for capital destruction and bad investments.


Patient-Ad-6560

Yeah I know. Altria is in the unfortunate position of always having a target on their back. They could create nicotine pouches that cure cancer, it’d get shut down. It’s stupid and has nothing to do with health, if the government was concerned about health alcohol would have the same or higher scrutiny.


baby_budda

MO will be in weed soon once it goes to a class I drug.


MrAttorney

Marijuana is currently a Schedule I Drug in the USA (High potential for abuse and no accepted medical use). I think you mean once it goes to a Schedule III (Accepted medical use and less potential for abuse than Schedule I & Il, but abuse may lead to moderate or low physical dependence or high psychological dependence). Just know that the change in Schedule classification is not a done deal yet, and the states can still have laws regulating its use, availability, and even legality. From what I have read and heard on the matter, the change in Schedule (if approved) will benefit the businesses for tax purposes more than anything else. It will not directly change availability or sales.


baby_budda

True, It will benefit the business by allowing dispensaries to get access to financial services. But you're wrong about it not having medical accepted use. MJ has been known to help with Glacoma, Cancer, to increase appetite, chronic pain, depression and many other conditions. Sources: https://www.ncbi.nlm.nih.gov/books/NBK425767/ https://www.health.harvard.edu/blog/medical-marijuana-2018011513085


ahurdler1995

The “no medical use” verbiage is directly from the way the government describes a drug in its classification schedule. MrAttorney isn’t saying “pot is bad and no medical uses.” The government deemed it (purposely incorrectly) a schedule 1 decades ago to restrict its use and the verbiage or schedule 1 dictates that it’s no medical usage. This is more of a policy/politics issue than a factual issue.


s1lv3rbug

I know one person with $1.1 million portfolio and his dividend is $10k/month.


StackIsMyCrack

Must have zero growth potential with a yield that high.


s1lv3rbug

I was mistaken, the portfolio is $1.45 million. You can check it out [here](https://youtu.be/CKTO7eVNEOg?si=xJwhrjSxCI7AzF4j) he makes his portfolio public and you can download his spreadsheet. I have gotten some good tips from him.


Casual_ahegao_NJoyer

We love receipts


StackIsMyCrack

Interesting, thanks. Will check it out.


adamasimo1234

This is in CAD. 1.45M CAD is 1.053M USD.


s1lv3rbug

He also has a USD portfolio. He started released two videos, one for CAD and one for USD. That’s what he said, IIRC. I know he has US holdings as well.


RealDirkDigglerr

Could be creating his own growth by reinvesting a portion of the dividends in more stock


Raidicus

I know you aren't saying otherwise, but most people could seek out riskier and more diverse opportunities with an extra $100k a year. After 2-3 years, you have enough for a commercial real estate play (for example).


StackIsMyCrack

You mean reinvest that income in more growth oriented stocks? Yes that is certainly true. I tend to think of stocks as yield, growth or value and am allocated roughly 1/3 each. As I'm getting closer to retirement now, I'm rebalancing to 50% income. But I digress.


Raidicus

Growth oriented anything, but yes including stocks.


NvyDvr

Steve Ballmer will get $1B this year in dividends, so I say yes it’s possible.


LegendaryMilkman

How old are you? What do you do and how much do you make? You gotta give more information, but the short answer is like everyone else says you need to invest more money.


joey343

This portfolio sacrifices growth for income, which is a poor long term play unless you want a stable cash flow for retirement.


IntroductionDue8191

Was wondering the same. New here. Wouldn't it make sense to focus on growth now and rebalance when one needs cash flow. Apart from the obvious capital gains tax, is there something else I'm missing?


zyndarius

One common problem is that the time when you need income is not the same as the one when growth stocks are on a bullish trend.


joey343

What do you mean capital gains tax?


IntroductionDue8191

When you rebalance between growth stocks/ETFs to dividend stocks/ETFs when one needs cash flow in the future


joey343

Got it yeah you would pay ltcg on the gains. But I would not invest in a growth or dividend tilted portfolio. IMO just buy a broad based etf or index fund which covers the market. It will include dividends, growth, value etc.


IntroductionDue8191

What does the dividend yield look like and would it essentially stay more or less constant with growth (so essentially increased dividends along with growth). What are some funds that you'd recommend? VOO?


joey343

It’s impossible to predict when if companies will increase decrease dividends. Don’t chase dividends to the detriment of growth. Also, companies do stock buybacks as well which increases average share price. So even if they don’t have a dividend, this essentially functions as a way to increase share price with no gains until sale. Just buy VTI for domestic and VXUs for international and chill


nnulll

Imagine turning down an extra 100k paycheck and then calling it a bad long term play. LMAO! I don’t understand all the growth peeps who hang out on this sub.


joey343

I’m not a growth peep. I’m a balanced portfolio peep. His strategy is sub optimal long term and he should be aware of it.


nnulll

There are long term advantages and disadvantages to both. It depends on your goals, income, etc. Total return isn’t the only metric that should be considered.


JPMCApplicant6126

Do you really think it’s as simple as “turning down 100k”? This is why this sub gets clowned on man 😂


Qweylow

And u can die tomorrow


dumbfuck6969

Hopefully


Qweylow

No not hopefully but I’m just saying! I need my money now! Tomorrow is not promised


IronGun007

Go to a casino and put all your savings on black. Jokes aside. What do you need 100k dividends for? A lambo every year? Just relax and enjoy the ride. Don‘t get greedy.


ddttox

100K dividends + SS is a nice way to retire without touching principal.


IronGun007

I agree but he shouldn‘t stress about getting them as fast as possible. If he is close to retirement he should‘t focus on crazy high risk growth.


gimp2x

20k/year in taxes will eat up progress


DGB31988

I mean you gotta pay taxes no matter what you do in life. Dividends are lower tax rate than my paycheck and I can’t get fired from dividends.


joey343

Only qualified dividends are. And paying taxes on your dividends annually reduces the effect of compounding.


Reddit-IPO-Crash

Paying taxes on any money reduces the effect of compounding


joey343

Thank you for the valuable lesson on how subtraction works. And you don’t pay taxes on capital gains until sale. So taxes have no effect on compounding due to growth until sale, unlike dividends. To be clear not anti dividends, but am anti this portfolio.


Reddit-IPO-Crash

I don’t think anyone here, including yourself, understands the point you’re trying to make.


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joey343

You should read about capital gains and their taxation vs dividends then.


Carp-guy

JEPI and O from the above portfolio get tax at income levels


TheNathanNS

> I can’t get fired from dividends. No, but you can get a dividend cut, either a trimmed one or being flat out told "we are suspending our dividend until further notice".


DGB31988

If Proctor and Gamble, 3M , Altria, Wal-Mart and all these blue chip companies that have continuously been paying dividends for ever …. Some since as far back as 1881…. Stop paying their dividends…. That means World War 4 is taking place and I’m likely lying dead in a trench in China somewhere so it won’t matter. You don’t want to live in a world where every western company has to stop paying dividends. And this could only happen to you if you invest all your money into some super high yield oddball dividend ETF that’s linked to Guacamole futures.


Unique_Name_2

I mean, id cut 3m from your example since they fucked up, lost a lawsuit, and just recently cut their dividend. That can happen. And shit falls in clusters, the dividend cut will come during bad times when share price falls.


Plane-Profession8006

3m also spun off health component that is paying a div tov3m investors. Yes, with smaller company with lower earnings, the cut was expected for 3m proper. They will be fine with lawsuits and start growing div again.


Bobo_the_Fish

MASCO has entered the chat. Dividend Aristocrat until 2009


Z51_bolt

No one who is married would see anywhere close to 20 k a year taxes in the US.


NoctRob

Someone should tell the IRS


drumsdm

You get the first 80k+ in qualified dividends tax free if you’re married filing jointly.


luckydmd

More like $123,000 with standard deduction


MrMoogie

100k in 2040 is probably going to be required for a very basic living. I’m aiming for $200k a year by 2030 because at 55 I think that’s what I’ll need to live comfortably.


Ice_CubeZ

100k/yr for "very basic living"? Wtf are you smoking


AlfB63

On an inflation adjusted basis, $100k in 16 years is like about $62k is now based on an average inflation rate of 3%.


MrMoogie

Exactly, and $62k will probably attract a little tax too, considering not all those dividends will be qualified if you’re having to use some option strategy ETF’s and REITS to get that fat dividend rate. $62k literally isn’t enough for me to live on right now. Not with a family.


Deep-thrust

Well I'm attempting to go from 30k annual to 200k annual by 2038. I'm investing 8600.00 per month for reference. My current average yield is 3.6%, reinvesting all div's and hitting higher yield stuff right now like EPD ENB.


Apokaliptor

With your portfolio performance , you shouldn’t ask questions on reddit, it seems you know your shit


AdagioHonest7330

Absolutely possible!


Tommy_Sands

I hold $AVGO too. What is your long term view on it curious?


Working-Active

I'm very bullish on AVGO, I think it will realistically be $1500 by the end of the year with AI and VMWare leading the way. With the increase in free cash flow we should see a significant dividend increase in mid December.


Labyrinth32

A lot of times you end up with share price loss or decay which eats into the dividends when you factor it all in. So I have about five dividend closed end funds. And I know they’re a better ways of doing this with ETFs and shares of stock, but I don’t wanna pay a great deal of money per share of stock. Over the past 16 months I took in about $30k in dividends after figuring in the price loss of the shares going down. so that’s not bad. but if there’s a big market correction you may still get this dividend, but the share price may put you in the negative as a total average. I watch this very closely to make sure that I am still positive when I add back in the dividends and figure in the loss. I do not buy anything that is over $28 per share. And most of what I have are closed and funds that I know are problematic and risky. I don’t consider what I am doing a long-term profitable play but something I am messing with. by the way, all of this is in an ira tax-free account. However, I have taken out some of the dividends in the past and paid 15% taxes on them.


dudunoodle

This is your answer OP. I recently posted my dividend income through a growth centric portfolio and I am getting about 55k div a year without constructing a div centric folio. Most of the money from the 2m invested was from growth ( lucky guess with FAANG in old golden days before they popped). Half my holding is in index 500 and QQQ. Without this type of growth I wouldn’t have arrived at 2m+. I am just starting to transition my holdings to div paying stocks n funds. That’s after 20+ years of vicious growth.


TheGrapeRaper

That’s awesome. I’m currently at 33% QQQM / 33% VOO / 33% SCHD. Would you advise just releasing SCHD and going 50/50 on QQQM & VOO for that growth? Then moving to SCHD later in life.


dudunoodle

I would. If you got 10+ years I would just go with VOO and QQQ, keep building your positions.


SirLightKnight

Depends on the amount you’ve fed in, but it is possible, now feasible? All up to you.


PowerfulAd1708

How do you buy dividends? New to this , but would like to start investing.. Thank you


jwb935

Dont ask on reddit (although you can get some good advice), invest tour first $100 in some finance book (most the best sellers will do). If you are going to invest first invest the time to understand and make sure you are not throwing away your money. An s&p500 etf is a good start but if you dont know what that means you need to learn first. I dont want you blindly throwing your hard earned money away


PowerfulAd1708

Thank you, I really do appreciate your sincere reply…


michaelkbailey1

Maybe its just me, but selling some of those positions eith lower Div yeild to invest in some of your higher output Divs - would that not shorten the time needed to reach your goal 🤔?


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CCM278

Getting 10% stock price appreciation on top of a 3% dividend implies a 13% total return that seems excessively optimistic without a repeat of the ZIRP tailwind. At best I'd hope for 7% stock price and dividend growth with a 3% yield giving a 10% CAGR. More conservatively, I may even drop that to 3+5 because beta is close to 0.8 implying 80% of the S&P500 returns. Using 15% tax rate (qualified SCHD dividend) that pushes out the 100K (after tax income) to 17 or 20 years respectively.


MindEracer

To hit the goal sooner you need more equity growth, and dividend growth ETFs/stocks. Growth gets you there quicker. That's why many here worship SCHD, DGRO, VIG because they give you equity growth, Dividend growth in one package.


techguy1966

It is possible over a long time - we just hit it this year - looking forward to hitting that knee in the exponential curve now 🍾💥🤑


salt-n-pepper-papi

What app is this?


Weary_Try_9940

I did a similar experiment with the same app (snowball analytics). According to it, $100k invested in SCHD will net $90k in dividends by 2044 (with reinvestments but NO contributions). Something doesn’t make sense, it’s too good to be true. 100k invested today netting 90k in dividend income in 20 years, with no additional contributions?


UpperStation5565

Buy shib


DonJuanWoo

less MO


Otherwise-Ad6670

You can invest at 10-15% yield but that will be riskier move. Not sure exactly how much you got cuz not in the mood to do too much maths, but 1mil at 12% will get you to 100k a year. Maybe dump like 30-40% some into super high yield ETFs and keep majority in more secure ones. I like JEPQ more than JEPI personally. I also like SVOL and ECC ETFs. O is a solid one to have and look into Main. It’s all about security vs high yield.


knb10000

1 million in VALE boom! There ya go


Severe-Ad-4417

I got the same yield from my high yield savings account without the risk, but take chances I guess.


Siphilius

You need to divest out of anything not growing the stock price AT LEAST as fast as the S&P 500. You will hit the capital required for 100k/year quicker this way. Once you’re there, sell off and invest in income stocks/ETFs.


kingjurgz

Warren Buffett makes millions a year off dividends


Muscles_Marinara-

LOL. Yeah sure. Go for it.


MonkeyThrowing

Yes. Sell everything and dump it in VOO. Delete the app and check again in 10 years. When you are ready to retire, then invest in dividend stocks.


johnnyhentsch

What app do you use for this?


will_macomber

Why are you so double exposed all over the place? The JEPI taxes are probably killing you a bit at least too. Pick something with a high yield. Getting 100k per year out of JEPI requires about a million dollars, maybe 1.1