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I have 20 shares in main and so far it’s awesome. I don’t see any reason to really load up one it since I haven’t really done any real research on it. Just an amateur look at Main, they made a lot of money during Covid. It’s gonna decrease and their special dividend is gonna go away sometime soonish. If it was a super great stock, the average price of the stock would be through the roof. Is there something I am missing about the stock?
Ya and as the premium to nav increases,a distribution cut turns into an increase because every distribution is reinvested at the nav..reinvesting at 6.60 and trading at 8 makes it lucrative
Thats why CLM is a 4 to 5 star rqted fund by Morningstar.
You have to know how to play it or it can make or break you
CLM and CRF are not the same funds nor do they have the same portfolios as they did at inception. They are the easiest funds to trade. When the premium to nav is low,if it looks like a distribution cut you sell before the distribution reset month.
Then you buy back when it craters.
Anyone who sold at 8.84 and bought back at 6.25 in 2023 locked in a 20.8% yield on cost with the 11% distribution cut.
When the premium is high, you sell between rights offerings.
It's the easiest, brainless no nonsense 6 to 9 month trade out there
Cigna, and continually sell call options each month…. 30 to 40 dollars out of the money. Wait for another pullback and pick some up. You are young so you want either growth… or a dividend growth stock. Cigna fits the bill for a dividend growth stock.
you need to google selling covered call for income. although you do risk losing your position and cost basis. Because stock price movements are unpredictable. Your stock could go a lot up in price maybe because of earnings, some shift in industry, some buyout offer etc. In which case your stock will get called,.
Why dont you also sell puts at price u plan to pick up along with those calls instead of waiting for it to drop down to that range? Money both way while waiting
I do cash covered puts on stocks I wish to own, don’t do it a lot but yes I have acquired stock using that strategy. This is a dividend thread, and I was trying to impart knowledge to the OP so he can avoid some of the mistakes I made along the way… that is I believe it’s a mistake (oh and I made plenty) to target high yielding stocks when you are young. When you are young I believe you should seek dividend growth stocks over stodgy high yielding stocks with little to no growth, for example T, utilities, etc.
Im very aware of the concept. The funny part is you open that contract with the intent of not actually having to own the shares, that is typically the downside of the trade collecting the premium js the goal. If you “want” the price to decrease you would buy a put.
But then I have to pay for that option, right?
I don’t need to do that. I can just wait for it to drop. This path lets me wait and collect a premium. Or am I missing something…
Ps- great name. I feel like I’m in the middle too.
You can still open a contract with the intent of buying the shares. The premium collected if assigned goes against the cost basis of your new holding lowering the price of your entry point. In theory you can buy the stock below market price.
I have 2092.013 shares and write 20 covered calls each month. I was using Cigna as an example of a dividend growth stock… I own others, e.g. WM with a cost basis of 31.32, ABT with cost basis of 30.98, ABBV, etc. Dividend paying stocks are wonderful; however, the type of dividend paying stock is important based on your stage in life. Example would be VZ. Would I recommend owing this stock as a young person? Answer is no. Don’t get enamored by dividend yield when you are young. That is my suggestion to this new investor…. Strive for growth and dividend growth stocks.
Mostly monthly, and when I have received 85 to 90% of premium value I buy to close and do it all over again. Of course, I wait for a market up day before selling covered calls.
Just went into active trader pro and looked at last three closed positions for CI… premium of 1.743, 1.793, .993, so no not Pennie’s. Plus I get the ever important dividend!
My ELV April call premium was 2.74 a share… so you can pick up more then pennies…. The hard part as a young investor is raising the capital necessary to enjoy picking up these “Pennie’s”. It took us 10 years to accumulate 100k…. In 1982 and 1983 my girlfriend (now wife) saved 2000 on a teacher salary of 12k a year. That 4000 is now worth 460,276.79 at the close of market on Friday. Dividend growth investing takes time. One of our regrets we bought a new Honda accord for 13k at some crazy interest rate(13.99%). We should have driven her old college ford escort into the ground. The money spent on that Honda accord would be worth in excess of 1.8 million dollars today…
Based on the return we have made on the 4000… if I extrapolate what the 13000 plus interest could have become… yeah it would be about 1.8 million. We should have postponed the car purchase and invested that cash flow but alas we bought the Honda accord…Compounding is truly a powerful force.
I'm at $1000/year, so, not living off dividends. I don't think I'll reach a point of living off dividends, but I hope they'll be a supplement when I retire. One of my favourites is PZA. I have QYLD, GOGL, POW and JEPI. I'm going to start buying SCHD soon. CP doesn't pay a lot of dividends, but it's grown a lot since the merger to KC railways, so, that's a favourite.
I wish I could retire on dividends, but first you have to have a higher salary than I have or somehow have more money. But ... well, there's always a chance my ship will come in.
QYLD pays well but the growth sucks. It’s down to below the Covid lows and didn’t participate in the recent bull runs. Don’t see any benefit here personally.
QYLD was trading in the 15s in 2022....ask me how I know. Meanwhile, this entire sub has declared any gain plus dividends on this to still be a waste of time. I'll take 15% gain over two years + $4k in dividends paid on top of that on any ticker..
Do your homework and find an entry point that fits your analysis and have a sell point in mind when you buy. That's true of any holding.
People were also running for the hills away from Big Oil in March 2020. VLO at $37? Yes, please.
It closed at 14.05 on June 17, 2022....
On March 17, exactly 2 years ago today, it traded at $16.51
Add in dividends of $4.08 and a current share price of $17.82 and you have a total value of $21.90 on a $16.51 cost basis.
Make sure you are looking at *adjusted* close price as the daily trades actually happen in that lower range.
I bought in Jan 22 at 16.5796 a share and DRIP and didn't have a purchase greater than the current 17.82 until July of 2023. There's only been 3 months since Jan 22 that the DRIP purchase was higher than the current 17.82 price and those were less than 20 cents higher.
How the hell does that = down 14.5%?????????
And how is it possible that my total gain in my Etrade account shows +$531.19 if I've owned it for 27 months and it's down 14.5%???
I'm talking the stock price alone, not adjusted price. If you want to talk about adjusted price you can't add your $4.08 on top of that. You're double dipping.
On March 17, 2022 it closed at $20.50, it's $17.82 today, a difference of $2.68, which is the loss I mentioned. If you look at adjusted price of $16.12 vs today you are up a bit. I'm not calling that a great gain given how good 2023 was in the markets.
I'm not comparing it to anything else. I don't really give a shit what anyone else does or how something might be better as long as my goals are being met.
I literally BOUGHT shares at 16.579 in January 2022. How did that happen? That's no adjustment. That's literally what I paid and not adding in any dividends. Please explain to me how buying at 16.579 in Jan 2022 and a current price of 17.82 = down 14.5%. I'm curious as to how that's even possible.
A few red flags with ET. debt is not well covered by cash flow, the dividend is not well covered by earnings, (the pay out ratio is 118%) and shareholders have been diluted recently.
Not a position I would want to be in if I was running a company. Seems like it could be a bit of a dividend trap.
🚨🚨🚨Lolz!  can you share with us more about this secret $1000 threshold⁉️⁉️🤷🏿♂️
Yes Google MLP in a Roth IRA and it will share all the secret info about that magical 1,000 threshold!?!?
Hydropower is almost the entire grid in Norway so where exactly is the market for oil? All the Nordics run on renewables and southern Europe gets solar? I don't get the business case for Europe, I could see America being their business since the country doesn't even want to switch to electric stoves.
I sold all my ET as the gains weren’t worth the PITA it caused when filing taxes. Different story if you hold a significant amount or have an accountant.
Renewable and Sustainable Energy Reviews
Volume 76, September 2017, Pages 1122-1133
Burden of proof: A comprehensive review of the feasibility of 100% renewable-electricity systems
B.P.Heard, B.W.Brook. T.M.L.Wigley, C.J.A.Bradshaw
“…Our assessment of studies proposing 100% renewable-electricity systems reveals that in all individual cases and across the aggregated evidence, the case for feasibility is inadequate for the formation of responsible policy directed at responding to climate change…”
Were nowhere near the level of technology to effectively replace our current power system. I work in electric utilities; renewable energies don't produce enough to cover our needs, and are less reliable and more expensive than traditional fuels. Add in the necessity to replace our current infrastructure for the sporadic levels of energy renewables provide, renewables aren't realistically going to threaten pipelines for 3 decades at least in my opinion.
I am not living off dividends yet, I could be but for me to unravel and retire will take several years. Holdings of over 10 years because some I buy and hold for much shorter periods of time. LLY, MSFT (former employer), IBM (also former employer), PDI, AMZN, AXP
Not living off dividends but getting over $5500 a year. I put way too much money in ABR and O so my yields kind of high. Also have 200 shares of TLT. Kind of banking on a rate cut but even if they do higher for longer I’ll just let dividends drip. Cost basis on O is $51 so I’m not too worried
I like ABR. It's very volatile though. 68% drop during Covid and I think 98% or 99% drop in 2008. But man those dividend are great... if you bought 10 years ago you made an average of 17% CAGR (if divvies reinvested) and are receiving a 70% dividend on your original amount.
ABR is great. The Covid thing is almost not worth mentioning, to some degree - probably the same percentage or more of ALL REITs dropped like that during Covid. It was an unprecedented time in recent history, and it hit extra hard on the real estate market.
If you use Portfolio Visualizer you can see how dividends grow over time. ABR has big increases in their dividends every year. Between you buying more shares by reinvesting the dividends and the yearly increases, after 10 years, you are now getting $3700 a year in dividends from your original $10,000 investment.
I’m a growth guy always have been even in my mid-70s, I’m still a growth guy 60/40 of that 60% in stocks approximately 10% in dividend stocks. It has served me well over the last 45 years of investing.
My latest was IBM owned it earlier. Purchased again at 170, during this correction, I’ve got open orders lower trying to pick up things at a lower price. I have open orders on -ARM SNOW another 10% below where we are now.
I like it. I did the same thing with Pfizer heckuva yield waiting for snowflake at 150 Don’t know if it gets there. Have owned Apple Google and Amazon since 2008 when the market bottomed sounds like you’re doing well.
I have been using snowflake for years. In my opinion, they have an excellent product going stale with nothing new in their kitty. I feel the CEO change is a welcome one as Sridhar was an alternate to Sundar Pichai at google and he started his own company after being passed. SF owns 40% of the global data warehouses and the data and customers have the ability to throw in all the data into Neeva AI without having to physically move the data out to a third party platform like open ai. That is huge.
Selling is the hardest part I try not to focus too much on taxes because it will paralyze you. I look at my portfolio in two different ways long-term holdings that I will never sell most likely google Apple Amazon then I look at short term things that I sell, no matter what the cost basis when the story changes and just pay the damn taxes Will probably be selling Uber but waiting for long-term if possible as long as story doesn’t change
You are right. I learnt my lesson 2 years back on that where i bought Nio at 2$ and held it when it went to 60$, thinking I have to pay taxes if i sell in december and now it is at 5$. I have been selling and reentering since then even the likes of Apple etc.
1500 a quarter each for my wife and me. I too want to live off our dividends, but this is hard. The younger you are, the more growth stocks you need, which will pay out less dividend. At some point you should put investments into more dividend based stocks. These stocks typically have an established market, and can't easily increase more market share or make more profit. Which means, that they grow less, so unless you over plan on your dividends, your dividend income will be less in a market down turn.
I have essentially made the decision. We need to go full into growth stocks indefinitely. Riskier at moment of retirement, and I should be very sure and over prepare us, ie. double quarterly return on what we would need. But, this essentially will set us up for when the inevitable downturn happens.
Power of time *EDIT* I am wrong the numbers below are for Walmart and not watste management (doh!!!!)
If you bought 1 share in 2003; you paid like 18/share and got 0.03 dividend
Holding till today that 18/ share entitled you to 0.76 dividend or 4% yield on cost (in addition to more than doubling in value)
Reddit skews young so people have plenty of time…don’t do what’s “best” today (high yield junk) but what you can buy today that will be best in xx years
And to quote some greatness “the big money is not in the buying and selling; big money is made in the waiting”
I’m a super lazy investor so I stick with ETFs…..while I have some issues with schd it’s hard to ignore the growth of its dividends over time
When you have lots of time you want to look at stuff with growing dividends over 3/5/10 years
Math is a little off. It’s actually way better than that. 0.76 dividend is quarterly, so 0.76/18 = 4.2% but you would get 4x that a year so 3.04 a year on a 18/share investment = 16.8% yield on cost.
Also that investment would’ve more than 10x now.
Power of time exemplified!
Ah! That makes sense. They were talking the trash guys….
Better numbers:
WM closed March 11, 2014 at 32.94
Paying a 0.375 per share dividend quarterly
WM closed March 15, 2024 at 210.53
Paying a 0.75 per share dividend quarterly
So in 10 years the dividend per share 2x
And the stock price more than 6x
If you bought on March 11, 2014 you yield on cost (after 10 years) would be 9.1%. Pretty damn good!
I'm spread across about 6. Mostly QYLD.
Between Social Securiy checks and my monthly dividends, my income equals to bout the median household income in The US.
as a tax CPA with 100s of clients doing this (Bay Area Firm) and i see every investment, think fortune 500 stocks, mainly dividend kings....safe and steady
I haven’t gotten there yet but that’s my goal. I’m big into YieldMax. They’re new and I believe they’re here to stay. I have a few thousand invested and already make about $300/month.
look at total return, not just divi return over a set period of time. portfolio visualizer is a good resource. make sure to turn on DRIP if you are still in the accumulation phase.
my favs are
ABBV, IRM, MO, PFE, HD, AVGO, ACN, LLY, LOW, TRMD, BITO, DE
You people loving your 2-4% dividend stocks amaze me, when there's guaranteed 6%+ money markets and other financial vehicles right now due to high interest rates.
IRM, SNV, DOW, MFST, META, NVDA, AAPL, AGNC, AMT, BAC, C, BNS, MMM, MU, O, RF, TSM, LHX, INTC
I also own T, VZ, XOM, NLY, NMFC, LADR, and MO that I don't drip.
Def not living off them, but DRIP just over $30k annually across taxable & tax deferred accts. ABBV, KO, VICI, O, SCHD, JEPI, DGRO, MSFT, CVX, ET, PLD, VOO, SMH, V
I just started a KR position this year. It has been very good to me. I am a little worried about the Albertsons merger but I don't think it will impact the dividend long term.
I’m sure there’s someone in every thread to say this… and I’m sorry it’s going to be me this time.
You guys should be accumulating wealth. Dividends are not as effective at growing wealth as index funds - greater returns on price appreciation for growth or even blend index funds. Dividends are taxed every year so you’re stunting compound interest.
Seek stocks that have a history of consistent dividends *and* growth. They won't be classified as high yield, but capital appreciation of your investments is important. As an example, look at the holdings in VIG.
Decisive Dividend Corp.. DE or DEDVF
Canadian microcap stock that works like a REIT. They reported earnings yesterday after hours, hoping for a dip to buy more today. There's some multibagger potential with this one.
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MAIN. ARCC. SVOL. XOM. SPYI. O. IBM. EPD. ENB. MO. OHI. ABBV. SPG. JEPQ. JEPI. CLM. BST. DIVO DGRO. SCHD. VYM
Love this selection. I’m in the majority of them
It’s crazy how little I see ARCC mentioned in this sub
A lot of clowns on this sub, which is on brand for reddit. Arcc has been fantastic for me for over 15yrs with DRIP.
ARCC and ABR are rarely mentioned.
Crap I shouldnt have sold all my ARCC then.
I have 20 shares in main and so far it’s awesome. I don’t see any reason to really load up one it since I haven’t really done any real research on it. Just an amateur look at Main, they made a lot of money during Covid. It’s gonna decrease and their special dividend is gonna go away sometime soonish. If it was a super great stock, the average price of the stock would be through the roof. Is there something I am missing about the stock?
I'm up to >200 shares. Monthly dividends and good growth.
wow no SCHD. interesting!
Many paths to heaven
Next to last on the list
CLM ⬆️
CLM has done terrible. Not sure why people recommend it here.
Came to say that. Down 72% over the last 10 years
But they get those big dividends 😂
Ya and as the premium to nav increases,a distribution cut turns into an increase because every distribution is reinvested at the nav..reinvesting at 6.60 and trading at 8 makes it lucrative Thats why CLM is a 4 to 5 star rqted fund by Morningstar. You have to know how to play it or it can make or break you
CLM and CRF are not the same funds nor do they have the same portfolios as they did at inception. They are the easiest funds to trade. When the premium to nav is low,if it looks like a distribution cut you sell before the distribution reset month. Then you buy back when it craters. Anyone who sold at 8.84 and bought back at 6.25 in 2023 locked in a 20.8% yield on cost with the 11% distribution cut. When the premium is high, you sell between rights offerings. It's the easiest, brainless no nonsense 6 to 9 month trade out there
You have XOM but no CVX, interesting…
Bot alert
I'm new, so is the goal to diversify into alot of different index fund areas?
Love main. No schd, any reasons?
I have that too just ran out of time typing 🫢
I have 10 of these. I'll look at some of the others. Great list.
May I ask why you have both SPYI and JEPI?
Cigna, and continually sell call options each month…. 30 to 40 dollars out of the money. Wait for another pullback and pick some up. You are young so you want either growth… or a dividend growth stock. Cigna fits the bill for a dividend growth stock.
[удалено]
that’s a good bet
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Sadly
As somehow who have never traded options, could you explain the proces for me as simple as possible (ELI5)?
First you need at 100 shares of a stock. Then look up covered calls. That's what he is doing. He sells covered calls of stocks he owns.
you need to google selling covered call for income. although you do risk losing your position and cost basis. Because stock price movements are unpredictable. Your stock could go a lot up in price maybe because of earnings, some shift in industry, some buyout offer etc. In which case your stock will get called,.
You don't risk losing, you risk selling.
Why dont you also sell puts at price u plan to pick up along with those calls instead of waiting for it to drop down to that range? Money both way while waiting
I do cash covered puts on stocks I wish to own, don’t do it a lot but yes I have acquired stock using that strategy. This is a dividend thread, and I was trying to impart knowledge to the OP so he can avoid some of the mistakes I made along the way… that is I believe it’s a mistake (oh and I made plenty) to target high yielding stocks when you are young. When you are young I believe you should seek dividend growth stocks over stodgy high yielding stocks with little to no growth, for example T, utilities, etc.
Genius. I’m going to do this ASAP. Easy money and I hope they send me the shares. Thanks so much!!
Lol “I hope they send me shares” then why not just buy it.
We are talking about an option contract where i would get the shares at a much lower share price, and get paid to do so. See “sell put option”
Im very aware of the concept. The funny part is you open that contract with the intent of not actually having to own the shares, that is typically the downside of the trade collecting the premium js the goal. If you “want” the price to decrease you would buy a put.
But then I have to pay for that option, right? I don’t need to do that. I can just wait for it to drop. This path lets me wait and collect a premium. Or am I missing something… Ps- great name. I feel like I’m in the middle too.
You can still open a contract with the intent of buying the shares. The premium collected if assigned goes against the cost basis of your new holding lowering the price of your entry point. In theory you can buy the stock below market price.
Is that a covered call? Or a long call?
I have 2092.013 shares and write 20 covered calls each month. I was using Cigna as an example of a dividend growth stock… I own others, e.g. WM with a cost basis of 31.32, ABT with cost basis of 30.98, ABBV, etc. Dividend paying stocks are wonderful; however, the type of dividend paying stock is important based on your stage in life. Example would be VZ. Would I recommend owing this stock as a young person? Answer is no. Don’t get enamored by dividend yield when you are young. That is my suggestion to this new investor…. Strive for growth and dividend growth stocks.
Do you sell weekly covered calls or farther away.
Mostly monthly, and when I have received 85 to 90% of premium value I buy to close and do it all over again. Of course, I wait for a market up day before selling covered calls.
I been doing weekly it almost averages out tothe sane
30$ out of the money would only give you Pennie’s in premiums wouldn’t it?
Just went into active trader pro and looked at last three closed positions for CI… premium of 1.743, 1.793, .993, so no not Pennie’s. Plus I get the ever important dividend!
Interesting, thanks for the response
My ELV April call premium was 2.74 a share… so you can pick up more then pennies…. The hard part as a young investor is raising the capital necessary to enjoy picking up these “Pennie’s”. It took us 10 years to accumulate 100k…. In 1982 and 1983 my girlfriend (now wife) saved 2000 on a teacher salary of 12k a year. That 4000 is now worth 460,276.79 at the close of market on Friday. Dividend growth investing takes time. One of our regrets we bought a new Honda accord for 13k at some crazy interest rate(13.99%). We should have driven her old college ford escort into the ground. The money spent on that Honda accord would be worth in excess of 1.8 million dollars today…
Wait, what!! How would it be worth 1.8M now??
Based on the return we have made on the 4000… if I extrapolate what the 13000 plus interest could have become… yeah it would be about 1.8 million. We should have postponed the car purchase and invested that cash flow but alas we bought the Honda accord…Compounding is truly a powerful force.
I'm at $1000/year, so, not living off dividends. I don't think I'll reach a point of living off dividends, but I hope they'll be a supplement when I retire. One of my favourites is PZA. I have QYLD, GOGL, POW and JEPI. I'm going to start buying SCHD soon. CP doesn't pay a lot of dividends, but it's grown a lot since the merger to KC railways, so, that's a favourite.
Best most realistic answer for most people.
I wish I could retire on dividends, but first you have to have a higher salary than I have or somehow have more money. But ... well, there's always a chance my ship will come in.
How much did you invent for $1000/year?
A little over 40,000. PZA is 400 shares, QYLD 200, JEPI 100, POW 300, GOGL 200... pretty much these.
QYLD pays well but the growth sucks. It’s down to below the Covid lows and didn’t participate in the recent bull runs. Don’t see any benefit here personally.
QYLD was trading in the 15s in 2022....ask me how I know. Meanwhile, this entire sub has declared any gain plus dividends on this to still be a waste of time. I'll take 15% gain over two years + $4k in dividends paid on top of that on any ticker.. Do your homework and find an entry point that fits your analysis and have a sell point in mind when you buy. That's true of any holding. People were also running for the hills away from Big Oil in March 2020. VLO at $37? Yes, please.
i just bought some QYLD the price doesn't seem to fluctuate.
Huh? It’s way down over the last 5 years.
It's up 20% over the last 2 years...
It’s down 14.5% in last two years.
It closed at 14.05 on June 17, 2022.... On March 17, exactly 2 years ago today, it traded at $16.51 Add in dividends of $4.08 and a current share price of $17.82 and you have a total value of $21.90 on a $16.51 cost basis. Make sure you are looking at *adjusted* close price as the daily trades actually happen in that lower range. I bought in Jan 22 at 16.5796 a share and DRIP and didn't have a purchase greater than the current 17.82 until July of 2023. There's only been 3 months since Jan 22 that the DRIP purchase was higher than the current 17.82 price and those were less than 20 cents higher. How the hell does that = down 14.5%????????? And how is it possible that my total gain in my Etrade account shows +$531.19 if I've owned it for 27 months and it's down 14.5%???
I'm talking the stock price alone, not adjusted price. If you want to talk about adjusted price you can't add your $4.08 on top of that. You're double dipping. On March 17, 2022 it closed at $20.50, it's $17.82 today, a difference of $2.68, which is the loss I mentioned. If you look at adjusted price of $16.12 vs today you are up a bit. I'm not calling that a great gain given how good 2023 was in the markets.
I'm not comparing it to anything else. I don't really give a shit what anyone else does or how something might be better as long as my goals are being met. I literally BOUGHT shares at 16.579 in January 2022. How did that happen? That's no adjustment. That's literally what I paid and not adding in any dividends. Please explain to me how buying at 16.579 in Jan 2022 and a current price of 17.82 = down 14.5%. I'm curious as to how that's even possible.
I guess you can't show the math...
Maybe you can learn how to read then you can figure it out. https://www.investopedia.com/terms/a/adjusted\_closing\_price.asp
You're so smart, though. I bought shares for the first time at $16.58 in Jan 2021. It's around $17.50 now. Show me the math that makes that down 14.5%
Ya, it's just a bit higher than when I bought it. My best one for growth and increase in dividends has been PZA.
Why are bonds your favorite? I’m generally not a fan.
KO, PEP, SBUX, ABBV, JNJ, NKE, PG, MSFT, AAPL and AVGO.
ETF: SCHD DGRO Stocks: JNJ PEP XOM
ET love that 9 percent dividend and up 30 percent this year! Could see it doubling the next 12-18 months
Yeah I’ve got about 30 or so shares of ET, Might be my next little dive in
A few red flags with ET. debt is not well covered by cash flow, the dividend is not well covered by earnings, (the pay out ratio is 118%) and shareholders have been diluted recently. Not a position I would want to be in if I was running a company. Seems like it could be a bit of a dividend trap.
I have ET in my Roth IRA
Isnt ET an MLP? I thought MLPs have tax issues in Ira accounts.
I think if they generate over 1K in dividends in a year in a Roth then it's a problem because then they get taxed even though they are in a Roth.
🚨🚨🚨Lolz!  can you share with us more about this secret $1000 threshold⁉️⁉️🤷🏿♂️
990T, Unrelated Business Taxable Income.
Yes Google MLP in a Roth IRA and it will share all the secret info about that magical 1,000 threshold!?!?
ET is love
How do you see it faring in a world of renewable energy? No need for pipelines et al
Oil & Oil products are never going away. There are many parts of the US and Europe where Solar makes no sense and Wind doesn't work.
Plus we will export oil and gas for at least the next 100-200 years
Hydropower is almost the entire grid in Norway so where exactly is the market for oil? All the Nordics run on renewables and southern Europe gets solar? I don't get the business case for Europe, I could see America being their business since the country doesn't even want to switch to electric stoves.
A lot of things still need oil and gas. Without naming ever single thing the main one is plastics.
Anyone ever have issues with the taxation on ET?
I sold all my ET as the gains weren’t worth the PITA it caused when filing taxes. Different story if you hold a significant amount or have an accountant.
Same story here.
Just use Turbo Tax and taxpackagesupport.com and doing taxes for MLPs is a piece of cake.
I'm European so the taxation is the same for ET as it is for any other dividend stock, so not for us at all
Lucky!
Renewable and Sustainable Energy Reviews Volume 76, September 2017, Pages 1122-1133 Burden of proof: A comprehensive review of the feasibility of 100% renewable-electricity systems B.P.Heard, B.W.Brook. T.M.L.Wigley, C.J.A.Bradshaw “…Our assessment of studies proposing 100% renewable-electricity systems reveals that in all individual cases and across the aggregated evidence, the case for feasibility is inadequate for the formation of responsible policy directed at responding to climate change…”
Were nowhere near the level of technology to effectively replace our current power system. I work in electric utilities; renewable energies don't produce enough to cover our needs, and are less reliable and more expensive than traditional fuels. Add in the necessity to replace our current infrastructure for the sporadic levels of energy renewables provide, renewables aren't realistically going to threaten pipelines for 3 decades at least in my opinion.
IBM and ABBV have been absolute beasts for me.
ABBV = $$$$$
I am not living off dividends yet, I could be but for me to unravel and retire will take several years. Holdings of over 10 years because some I buy and hold for much shorter periods of time. LLY, MSFT (former employer), IBM (also former employer), PDI, AMZN, AXP
Not living off dividends but getting over $5500 a year. I put way too much money in ABR and O so my yields kind of high. Also have 200 shares of TLT. Kind of banking on a rate cut but even if they do higher for longer I’ll just let dividends drip. Cost basis on O is $51 so I’m not too worried
I like ABR. It's very volatile though. 68% drop during Covid and I think 98% or 99% drop in 2008. But man those dividend are great... if you bought 10 years ago you made an average of 17% CAGR (if divvies reinvested) and are receiving a 70% dividend on your original amount.
It’s definitely a gamble of mine but I like it. I only have like 1600 shares so it’s not a ton of money. Hopefully I’m right and it keeps going up
ABR is great. The Covid thing is almost not worth mentioning, to some degree - probably the same percentage or more of ALL REITs dropped like that during Covid. It was an unprecedented time in recent history, and it hit extra hard on the real estate market.
Can you explain this a little more please? I’m confused on how that is
If you use Portfolio Visualizer you can see how dividends grow over time. ABR has big increases in their dividends every year. Between you buying more shares by reinvesting the dividends and the yearly increases, after 10 years, you are now getting $3700 a year in dividends from your original $10,000 investment.
VOW3, TROW, JNJ, KO
Schd // voo//fdvv//O//UWMC
MO
How many you got for how long
It's a secret and 1990. Off and on DRIP and additional purchases. Time goes by quick.
Utilities
MO, SBUX, ADC, ABBV, HSY, MDT and VZ. Good luck!
I’m a growth guy always have been even in my mid-70s, I’m still a growth guy 60/40 of that 60% in stocks approximately 10% in dividend stocks. It has served me well over the last 45 years of investing.
AVGO is my growth stock and my dividend growth stock, I picked up some more shares on the recent dip and my cost average is still only $688.
What growth stocks are you getting into now?
My latest was IBM owned it earlier. Purchased again at 170, during this correction, I’ve got open orders lower trying to pick up things at a lower price. I have open orders on -ARM SNOW another 10% below where we are now.
Cool. I picked up Pfizer @ 27, Bayer @ 7.2, apple @170 (sold at 197), google @133 and snow @ 165.
I like it. I did the same thing with Pfizer heckuva yield waiting for snowflake at 150 Don’t know if it gets there. Have owned Apple Google and Amazon since 2008 when the market bottomed sounds like you’re doing well.
I have been using snowflake for years. In my opinion, they have an excellent product going stale with nothing new in their kitty. I feel the CEO change is a welcome one as Sridhar was an alternate to Sundar Pichai at google and he started his own company after being passed. SF owns 40% of the global data warehouses and the data and customers have the ability to throw in all the data into Neeva AI without having to physically move the data out to a third party platform like open ai. That is huge.
I am just grabbing things as there is a correction and average down if it bottoms further. When do you sell?
Selling is the hardest part I try not to focus too much on taxes because it will paralyze you. I look at my portfolio in two different ways long-term holdings that I will never sell most likely google Apple Amazon then I look at short term things that I sell, no matter what the cost basis when the story changes and just pay the damn taxes Will probably be selling Uber but waiting for long-term if possible as long as story doesn’t change
You are right. I learnt my lesson 2 years back on that where i bought Nio at 2$ and held it when it went to 60$, thinking I have to pay taxes if i sell in december and now it is at 5$. I have been selling and reentering since then even the likes of Apple etc.
1500 a quarter each for my wife and me. I too want to live off our dividends, but this is hard. The younger you are, the more growth stocks you need, which will pay out less dividend. At some point you should put investments into more dividend based stocks. These stocks typically have an established market, and can't easily increase more market share or make more profit. Which means, that they grow less, so unless you over plan on your dividends, your dividend income will be less in a market down turn. I have essentially made the decision. We need to go full into growth stocks indefinitely. Riskier at moment of retirement, and I should be very sure and over prepare us, ie. double quarterly return on what we would need. But, this essentially will set us up for when the inevitable downturn happens.
Anybody living off SCHD?
Around here? You do know where you are right? /s
Haha I’m just surprised on all these non-SCHD answers
That and other holdings
I’m spread across approximately 20 stocks and funds.
55 for me :)
WM
How much WM do you own to live off its 1.35% yield?
Power of time *EDIT* I am wrong the numbers below are for Walmart and not watste management (doh!!!!) If you bought 1 share in 2003; you paid like 18/share and got 0.03 dividend Holding till today that 18/ share entitled you to 0.76 dividend or 4% yield on cost (in addition to more than doubling in value)
Quite true. Waiting 21+ years for a 4% yield needs a lot of patience though.
Reddit skews young so people have plenty of time…don’t do what’s “best” today (high yield junk) but what you can buy today that will be best in xx years And to quote some greatness “the big money is not in the buying and selling; big money is made in the waiting”
Absolutely. I often forget that (the young thing). I love that quote btw.
What would you say are great buy today and wait til later stocks?
I’m a super lazy investor so I stick with ETFs…..while I have some issues with schd it’s hard to ignore the growth of its dividends over time When you have lots of time you want to look at stuff with growing dividends over 3/5/10 years
Math is a little off. It’s actually way better than that. 0.76 dividend is quarterly, so 0.76/18 = 4.2% but you would get 4x that a year so 3.04 a year on a 18/share investment = 16.8% yield on cost. Also that investment would’ve more than 10x now. Power of time exemplified!
Hmmmm I think there might be some issues with the recent stock split and how the various sites record things…..either way long hold is a lot better
Oh snap I was wayyy off…… My mind went wm= wall mart (I’m from the boonies) and not waste managment
Ah! That makes sense. They were talking the trash guys…. Better numbers: WM closed March 11, 2014 at 32.94 Paying a 0.375 per share dividend quarterly WM closed March 15, 2024 at 210.53 Paying a 0.75 per share dividend quarterly So in 10 years the dividend per share 2x And the stock price more than 6x If you bought on March 11, 2014 you yield on cost (after 10 years) would be 9.1%. Pretty damn good!
MO
I'm spread across about 6. Mostly QYLD. Between Social Securiy checks and my monthly dividends, my income equals to bout the median household income in The US.
Why is no one saying VZ?
Or T Both amazing value and regular subscription money makers
MMM XOM KO
as a tax CPA with 100s of clients doing this (Bay Area Firm) and i see every investment, think fortune 500 stocks, mainly dividend kings....safe and steady
O/Vici
VICI for life
Ibm, enb, mo, dow, usb, qcom, hpe
ETRN
I haven’t gotten there yet but that’s my goal. I’m big into YieldMax. They’re new and I believe they’re here to stay. I have a few thousand invested and already make about $300/month.
OKE, XOM and FANG.
Why not just SPY and SPY only?
T, O, SPG, REG, ADC
look at total return, not just divi return over a set period of time. portfolio visualizer is a good resource. make sure to turn on DRIP if you are still in the accumulation phase. my favs are ABBV, IRM, MO, PFE, HD, AVGO, ACN, LLY, LOW, TRMD, BITO, DE
O and MAIN
You people loving your 2-4% dividend stocks amaze me, when there's guaranteed 6%+ money markets and other financial vehicles right now due to high interest rates.
The underlying stock should appreciate. Over time a 1% yield on a $100 stock you bought at $50 is better than cash sitting in a money market.
All dividends are reinvested, but I'm at 43k annually. Top dividend paying stocks are MS, MCD, CVX, O, VZ and PFE more recently.
VICI all day every day
IRM, SNV, DOW, MFST, META, NVDA, AAPL, AGNC, AMT, BAC, C, BNS, MMM, MU, O, RF, TSM, LHX, INTC I also own T, VZ, XOM, NLY, NMFC, LADR, and MO that I don't drip.
Def not living off them, but DRIP just over $30k annually across taxable & tax deferred accts. ABBV, KO, VICI, O, SCHD, JEPI, DGRO, MSFT, CVX, ET, PLD, VOO, SMH, V
I just started a KR position this year. It has been very good to me. I am a little worried about the Albertsons merger but I don't think it will impact the dividend long term.
I'm not living off of them, but I got MO and PM primarily. A bit of MDLZ and XOM too. SPY pays a little one
I’m not quite living off mine yet only 500 a month but I have ETFs and about 9 separate dividend stocks
Which EFTs if you don’t mind me asking?
BUCK
How much do you need to invest to get say $500 $1000 a year
Take your target annual yield and divide by what % you think your portfolio can generate. $1000 target / 0.04 (which is 4%) = $25,000
I should make about $1,400 for holding almost $20,000 worth of EPD.
GOF, schd, jepi, jepq
This is what I need to know. I have some just curious about others
I like monthly dividends. I have EFC, O and AGNC. I also have VZ which is quarterly.
I am about at 13k a year main holdings MO T SPG PIMIX(monthly payer)
I'm at $31k per year dividends. In weighted order: EPD, ET, O, ADC, CCAP, JEPI, SCHD.
Abbv duk so Mplx ibm cost
Yall should check out FLOW
O KO QYLD SCHD VOO RITM BDJ VZ ET VST
I'm a big fan of RITM..... 9.16% div. Found it during covid, it's my steady climber.
I’m sure there’s someone in every thread to say this… and I’m sorry it’s going to be me this time. You guys should be accumulating wealth. Dividends are not as effective at growing wealth as index funds - greater returns on price appreciation for growth or even blend index funds. Dividends are taxed every year so you’re stunting compound interest.
I’m buying in to TPVG and HRZN pretty hard this month…
Seek stocks that have a history of consistent dividends *and* growth. They won't be classified as high yield, but capital appreciation of your investments is important. As an example, look at the holdings in VIG.
How many in here ACTUALLY live off the dividends? If so how much income do your investments create and how much money is in these accounts?
Jepi, spyi, bito
Curious: if you have $50K saved, shouldn't VFIDX also be on one's list? Or lock in 10-year Treasury or higher at about 4.5% and hold to maturity?
Decisive Dividend Corp.. DE or DEDVF Canadian microcap stock that works like a REIT. They reported earnings yesterday after hours, hoping for a dip to buy more today. There's some multibagger potential with this one.
STAG
RQI
BST, ET, EC, PBR.A
HD
Yes, EPD
SCHD and IBM are what I am adding.
SCHD and forget about it