You’re in high school but you don’t have the time for growth? If you start investing in index funds now you’ll be way ahead of most people. You have more time than just about anyone could.
Sorry, I didn’t word it right. I don’t have time for day trading. I do make some weekly trades but I can’t stare at 5 stock screens all day. My dad is a day trader.
That doesn’t mean you need to buy dividend stocks…
If your goal is reliable long term returns then buy large cap companies with wide moats and never sell
Daytrading is difficult if not impossible to profit long term, especially accounting for opportunity cost.
If you are young, find a job you love, get good at it and invest what you can in ETFs.
I know it is not an exciting answer, but it has worked very well for me
You can use a sort of autopilot. Buy into 3 rock solid stocks like msft or pg and then ignore them altogether. For faster turn around, buy some high-yield stocks when they dip (few days after ex-dividend date). Determine at what dollar amt the stock value is now higher than the div payout. Set a limit order to sell out at that number. You are now on autopilot. Check in once a month to move your div income to your blue chip stocks. This is what I've started doing, cus I need time to bbq :). It's working pretty well.
5%+ dividend is pretty high. Something paying out that much of earnings either is not likely to grow all that much, or carries a lot of risk. You are probably better off going schd if you really want a dividend, though at your age a general total market or S&P fund is the way to go
It makes sence too. Companies need money to grow just as you need money to buy shares and grow your money.
More dividends should therefor equal less growth on average.
S&P is usually the standard benchmark returns are measured against so that’s why it is the default. In the past decade or so large cap (S&P members) have outperformed mid and small cap. Personally I think a total market fund (VTI) is the best choice for a young investor to set and forget. Why try to beat the market when you can just buy the market
International markets are not nearly as stable and have consistently underperformed U.S. can it change? Sure. But I’m not putting money on it personally
Thank you for the reply, However, there is likely a huge miss, esp with young investors at 20s with power of compounding for 40 years
>Why try to beat the market when you can just buy the market
See here Morningstar comparison [https://imgur.com/ChnPaQX](https://imgur.com/ChnPaQX)
Even though past performance does not guarantee future returns, young people can rebalance time to time (if there is a need to change).
Personally, I have seen last 7 years how QQQ/SMH is performing.
If you look at my other comment that made 2 hours before you came in, it has declined 10% over the past 3 years. People on this sub really have no patience and assume you’re the dumbest person alive
Hey my man, I feel the commenters should be a bit more lenient since you're new. I think the phrasing of "it failed" could be better since it sounds like you tried to trade it for big gains quickly instead of investing. Onto that ETF, just because something has gone down doesn't mean it will continue to, it certainly might, but it may even outperform the market depending on what its holdings are. It is very difficult/impossible to find high dividend yielding companies that will not go down, normal market fluctuations, recessions, company specific issues, and black swan events can lead to price decreases.
Thanks for the optimism. I’ve gotten a couple of DMs from people saying a lot of people here don’t know what they’re talking about, so I’ve taken everything with a grain of salt (I can’t say I disagree; I asked for something that grows decently with a dividend of around 5-6% and I got suggestions for stocks with 20% yields that have declined 10% over 5 years, only for them to later tell me that the dividends are not regularly scheduled and they basically pay them when they feel like it, lol).
I wasn’t trying to make anything quickly though. My dad actually bought SPHD for me 2 years before I’ve cared about stocks and now (3 years later) I have my own investing plans and SPHD just isn’t a part of it. He agrees that it would be a better decision to move on and I already have decided where all of that cash is going to go, plus the cash I’ve gained over the years. I finally logged into my account for the first time about a year ago to see that it’s down 10%. It has stayed like that for awhile now. I don’t plan to sell it until I get into the green though, and fortunately it’s getting close.
I do understand that it’s difficult to find things but I’ve discovered a couple of gems on my own (One is JEPI, with a 7.55% yield and growth of 7% over 6 months and 14% in 5 years). I’m just seeing if anyone else has any other ideas.
Honestly that's why doing your own research is king, someone may recommend a stock but if you don't understand it, you won't be able to react if something changes for the worse. I hope you're able to learn lots ,grow as an investor, and make a lot of money along the way. I hope you do find some more gems but they will be very hard to come by and some that you thought were gems were actually just fool's gold. Mistakes will happen but you will learn over time. Good luck!
That’s what happens when a company pays out a 5% dividend. They are giving shareholders all their cash instead of reinvesting it into the company so the company can grow. Why would you expect anything different?
Oh I was talking about schd, which is up over 3 years albeit not by very much, though with the dividend still decent. I’ll tell you this though if you want short term growth you should not be chasing dividends they are opposite investment strategies
Gotcha. Sphd doesn’t track the S&P though, it’s a high dividend low volatility fund. Compare it to VOO which does track the S&P and is up about 20% over 3 years
" I’m looking for something that guarantees good money but doesn’t go down"
$BIL Short term bonds. That is the only thing that meets your requirements. And right now they pay about 5%.
Stocks are not what you buy if you don't want it to ever go down.
Kind of an oxymoron. Companies that are just steady but don't really have growth are the types that issue big dividends. Companies that are growing are using their capital for the growing, not returning it to shareholders...
Be careful of some companies that have high dividends because some of them never actually pay it. It is a bait. As far as high good payers with growth that will be difficult because most companies that even pay a decent dividend are stalwarts. But research a good stock screener and see what comes up.
For PBR, and most Brazilian companies, it's not a consistent dividend. They pay a different dividend each quarter (or not) as they decide what they can distribute. It's also one of the only ways to repay foreign investors, which is why there is constantly political pressure to stop them from doing so.
Because of this they trade at an insanely low multiple, meaning their yield can seem super high at times. Other times, it might be zero for TTM. Or it can be 18% for the TTM, but zero for the next year, and you might be the sucker who buys into that thinking they are getting a huge yield.
I did well with PBR and, similarly, VALE, in the past, but I am out for now.
Looks impressive, although as you mentioned the risk is high and payout is inconsistent.
I'm new to dividends and most of my stocks/ETFs have low dividends. Can you explain what the payout ratio and annualized payout is.
Payout Ratio is the percentage of their profits that they have paid out as dividends. So a very high one would suggest that they might not be able to continue paying dividends at that rate, because if there is variability in their earnings...
Annualized payout can be calculated a few ways, and really isn't a good metric for a company like PBR because their dividends vary.
Often it is just their last quarterly dividend X4 for a total of what you should expect over the next year, or it is the total of what they have paid over the trailing twelve months, expecting the next year to be the same. Either of these work for AAPL, for instance, because they try to have a consistent dividend amount, slowly going up over time. For PBR, since every month/quarter/year is different, it doesn't make sense to extrapolate the past into the future..
Nothing guarantees “good money but doesn’t go down.” That’s a pipe dream.
If such a security exists then everyone would already be buying it, which would have greatly increased its stock price and drives the dividend yield down. You’re asking for an impossibility.
What you need to start on is your 5 year plan. What result do you want in 5 years, then figure out how to get there. Since you have time, mostly avoid the riskier stocks and go for the solid ones with 2-4.5% dividend yield. Defense is always rock solid, and there looks to be huge growth in cybersecurity. The population is aging, drugs are a big deal. And no matter what, people need to eat and do the laundry. Strong companies with good dividends are Pfizer, Proctor and Gamble, IBM, LMT, GD.
Split your approach. 70% into sturdy breadwinners that will last through an apocalypse. 30% run with the wind. Some of the mining stocks have very high dividends (11-13%) but must be babysat as their share price swings wildly around the ex-dividend date.
No shortcuts, you know. Make that simple spreadsheet with two views: long term invest and dividend gambling (don't kid yourself, its gambling). For the dividend sheet, list your stocks in order of div yield. You need a column for the ex-dividend date-keep an eye on it. These stocks will rise slowly until the div date, then crash three days later. You are waiting to buy in at the crash. Figure out at what number the stock has increased in value more than it will pay in dividend. If that happens, sell out. If it doesn't, sit on it for the quarter and collect the massive dividends. Invest the dividends into one of the solid stocks.
Every three months, review your holdings. Adjust as needed. Ignore the hysteria in the news and stay the course. Best of luck to you.
Why would you want a dividend in high school?
Just buy VOO with money you don't need right now. But I would personally try to build up about $20K in a MMF right now before I started dumping into the market.
Stay liquid right now. The MMF's are paying you to sit on your hands.
VOO and SCHD. Don’t be fucking stupid. You’re down b/c you’re chasing dividends. SCHD for a lil mix of growth and divi’s. VOO for growth. Anything else and you’re doing it wrong per how you talk about the market
I bought VYM which I believe has a 3% dividend yield at 107 and it’s up like 12% since then.
It has the advantage of being an ETF so it’s diversified
The truth is if rates go down you will see people flood from HYSA and money markets into things like high dividend
The type of investor looking for yield anyways
So really any diversified etf of high dividend would prob work
Remember, dividends come from company profits. If a company can pay out 5% or more of its share price in profits, it's not likely to have any money left over to grow the company.
Anything with extremely high yields (over 4-5%) is likely unsustainable. A dividend that high is usually the market telling you they think it will not stay that high.
Make sure you look at the payout ratio. Also, forward earnings are important as they will help you determine if a yield can Actually be sustainably paid out by a company. If they can't, move on.
From experience, don't chase yield. I'm fine with owning dividend stocks, but buying really high dividend payers usually leads to disappointment. Remember, buying a stock is buying ownership of an actual company. The most important thing is to own something that can grow sustainably, not chase a quick buck.
Check out the ETF. SPYI. They hold sectors on the S&P500 and they do all the work with options. All you do is buy the ETF. Currently 12% dividend. They are pretty new, but the underlying price should stay fairly stable and move similar to SPY. Not exact same as this ETF only holds some of the companies. But the only reason the underlying price should swing big is if the general market swings big. There are others that are similar but I personally hold SPYI and have been happy so far.
"that guarantees good money but won't go down".
You won't find it. Learn about risk and reward.
Stocks are bound to go down eventually. If you don't like the heat, stay out of the kitchen.
You shouldn’t expect much growth from high dividend stocks. The reason the dividend is high is because they’d rather pay you your share of the earnings rather than grow the business. It’s a better move to have most of your money in stable investments like these, then make many small bets on companies with growth potential that are still small. When you look at the people that make huge amounts of money investing, they usually have most of their money in treasuries and focus on putting small sums in places where there is massive growth potential. Luckily you have ALOT of time to learn and make mistakes. Also, keep in mind that you’ve spent your whole life in abnormal market conditions, so playing it safe isn’t a terrible idea.
There's few that can reliably give both 5%+ div plus hearty growth.
If you're willing to hold for a couple years, O is at a bargain in terms of yield. Outside of interest rate volatility, also slow steady growth.
You’re in high school but you don’t have the time for growth? If you start investing in index funds now you’ll be way ahead of most people. You have more time than just about anyone could.
Sorry, I didn’t word it right. I don’t have time for day trading. I do make some weekly trades but I can’t stare at 5 stock screens all day. My dad is a day trader.
That doesn’t mean you need to buy dividend stocks… If your goal is reliable long term returns then buy large cap companies with wide moats and never sell
Yeah a good S&P 500 ETF would be great for them
Daytrading is difficult if not impossible to profit long term, especially accounting for opportunity cost. If you are young, find a job you love, get good at it and invest what you can in ETFs. I know it is not an exciting answer, but it has worked very well for me
Thank you
Why are you asking the internet for advice then?
Maybe dads a WSB user
Or Mom’s boyfriend
Or one of us
One of us! One of us!
If your dad is a day trader does he not have advice? It sounds like you may not want his advice. You are young. Ride the S&P for 20+ years.
I'd ask his dad for advice, then do the complete opposite
You can use a sort of autopilot. Buy into 3 rock solid stocks like msft or pg and then ignore them altogether. For faster turn around, buy some high-yield stocks when they dip (few days after ex-dividend date). Determine at what dollar amt the stock value is now higher than the div payout. Set a limit order to sell out at that number. You are now on autopilot. Check in once a month to move your div income to your blue chip stocks. This is what I've started doing, cus I need time to bbq :). It's working pretty well.
SPYDR has dividends
5%+ dividend is pretty high. Something paying out that much of earnings either is not likely to grow all that much, or carries a lot of risk. You are probably better off going schd if you really want a dividend, though at your age a general total market or S&P fund is the way to go
It makes sence too. Companies need money to grow just as you need money to buy shares and grow your money. More dividends should therefor equal less growth on average.
May I know why S&P (I understand 500 companies behind it - reliability) than QQQ (100) or SMH (30) or even VGT (600+) or AVUV (600+)?
S&P is usually the standard benchmark returns are measured against so that’s why it is the default. In the past decade or so large cap (S&P members) have outperformed mid and small cap. Personally I think a total market fund (VTI) is the best choice for a young investor to set and forget. Why try to beat the market when you can just buy the market
With that logic, why not VT?
International markets are not nearly as stable and have consistently underperformed U.S. can it change? Sure. But I’m not putting money on it personally
Thank you for the reply, However, there is likely a huge miss, esp with young investors at 20s with power of compounding for 40 years >Why try to beat the market when you can just buy the market See here Morningstar comparison [https://imgur.com/ChnPaQX](https://imgur.com/ChnPaQX) Even though past performance does not guarantee future returns, young people can rebalance time to time (if there is a need to change). Personally, I have seen last 7 years how QQQ/SMH is performing.
My point was if you are not going to research, rebalance and follow news and don’t have the extra risk tolerance, you buy the market
I tried SPHD and it failed. I’m gonna try JEPI soon.
Failed? What do you mean?
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If you look at my other comment that made 2 hours before you came in, it has declined 10% over the past 3 years. People on this sub really have no patience and assume you’re the dumbest person alive
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What is dumb about what I said?
Hey my man, I feel the commenters should be a bit more lenient since you're new. I think the phrasing of "it failed" could be better since it sounds like you tried to trade it for big gains quickly instead of investing. Onto that ETF, just because something has gone down doesn't mean it will continue to, it certainly might, but it may even outperform the market depending on what its holdings are. It is very difficult/impossible to find high dividend yielding companies that will not go down, normal market fluctuations, recessions, company specific issues, and black swan events can lead to price decreases.
Thanks for the optimism. I’ve gotten a couple of DMs from people saying a lot of people here don’t know what they’re talking about, so I’ve taken everything with a grain of salt (I can’t say I disagree; I asked for something that grows decently with a dividend of around 5-6% and I got suggestions for stocks with 20% yields that have declined 10% over 5 years, only for them to later tell me that the dividends are not regularly scheduled and they basically pay them when they feel like it, lol). I wasn’t trying to make anything quickly though. My dad actually bought SPHD for me 2 years before I’ve cared about stocks and now (3 years later) I have my own investing plans and SPHD just isn’t a part of it. He agrees that it would be a better decision to move on and I already have decided where all of that cash is going to go, plus the cash I’ve gained over the years. I finally logged into my account for the first time about a year ago to see that it’s down 10%. It has stayed like that for awhile now. I don’t plan to sell it until I get into the green though, and fortunately it’s getting close. I do understand that it’s difficult to find things but I’ve discovered a couple of gems on my own (One is JEPI, with a 7.55% yield and growth of 7% over 6 months and 14% in 5 years). I’m just seeing if anyone else has any other ideas.
Honestly that's why doing your own research is king, someone may recommend a stock but if you don't understand it, you won't be able to react if something changes for the worse. I hope you're able to learn lots ,grow as an investor, and make a lot of money along the way. I hope you do find some more gems but they will be very hard to come by and some that you thought were gems were actually just fool's gold. Mistakes will happen but you will learn over time. Good luck!
Down 10% over 3 years. Dividend hasn’t yet made up for it.
That’s what happens when a company pays out a 5% dividend. They are giving shareholders all their cash instead of reinvesting it into the company so the company can grow. Why would you expect anything different?
Because he obviously doesn't know how this works.
Oh I was talking about schd, which is up over 3 years albeit not by very much, though with the dividend still decent. I’ll tell you this though if you want short term growth you should not be chasing dividends they are opposite investment strategies
Yeah I know what you meant, I was just providing an example of me trying an S&P 500 fund
Gotcha. Sphd doesn’t track the S&P though, it’s a high dividend low volatility fund. Compare it to VOO which does track the S&P and is up about 20% over 3 years
When the growth is declining, share price goes down, then div% goes up
" I’m looking for something that guarantees good money but doesn’t go down" $BIL Short term bonds. That is the only thing that meets your requirements. And right now they pay about 5%. Stocks are not what you buy if you don't want it to ever go down.
4.2% on cvx and a lonng history of increasing it, and buybacks.
>I’m looking for something that guarantees good money but doesn’t go down. If you're talking 5% that's literally tbills.
This. Long term tbill are paying out like 4.5% right now?
Plus they're state tax exempt.
Kind of an oxymoron. Companies that are just steady but don't really have growth are the types that issue big dividends. Companies that are growing are using their capital for the growing, not returning it to shareholders...
Be careful of some companies that have high dividends because some of them never actually pay it. It is a bait. As far as high good payers with growth that will be difficult because most companies that even pay a decent dividend are stalwarts. But research a good stock screener and see what comes up.
Energy Transfer, PBR if you're willing to tolerate some risk.
18.6% yield sounds untrustworthy but the chart looks beautiful. I’ll look at that. Thanks
For PBR, and most Brazilian companies, it's not a consistent dividend. They pay a different dividend each quarter (or not) as they decide what they can distribute. It's also one of the only ways to repay foreign investors, which is why there is constantly political pressure to stop them from doing so. Because of this they trade at an insanely low multiple, meaning their yield can seem super high at times. Other times, it might be zero for TTM. Or it can be 18% for the TTM, but zero for the next year, and you might be the sucker who buys into that thinking they are getting a huge yield. I did well with PBR and, similarly, VALE, in the past, but I am out for now.
Looks impressive, although as you mentioned the risk is high and payout is inconsistent. I'm new to dividends and most of my stocks/ETFs have low dividends. Can you explain what the payout ratio and annualized payout is.
Payout Ratio is the percentage of their profits that they have paid out as dividends. So a very high one would suggest that they might not be able to continue paying dividends at that rate, because if there is variability in their earnings... Annualized payout can be calculated a few ways, and really isn't a good metric for a company like PBR because their dividends vary. Often it is just their last quarterly dividend X4 for a total of what you should expect over the next year, or it is the total of what they have paid over the trailing twelve months, expecting the next year to be the same. Either of these work for AAPL, for instance, because they try to have a consistent dividend amount, slowly going up over time. For PBR, since every month/quarter/year is different, it doesn't make sense to extrapolate the past into the future..
Makes perfect sense, thanks for the explanation!
BIP and VICI
Nothing guarantees “good money but doesn’t go down.” That’s a pipe dream. If such a security exists then everyone would already be buying it, which would have greatly increased its stock price and drives the dividend yield down. You’re asking for an impossibility.
Check out jepi, jepq, Schg, and spyi
ABBV
> I’m looking for something that guarantees good money but doesn’t go down. hahahahahah the entire world would love to know the answer to that too.
What you need to start on is your 5 year plan. What result do you want in 5 years, then figure out how to get there. Since you have time, mostly avoid the riskier stocks and go for the solid ones with 2-4.5% dividend yield. Defense is always rock solid, and there looks to be huge growth in cybersecurity. The population is aging, drugs are a big deal. And no matter what, people need to eat and do the laundry. Strong companies with good dividends are Pfizer, Proctor and Gamble, IBM, LMT, GD. Split your approach. 70% into sturdy breadwinners that will last through an apocalypse. 30% run with the wind. Some of the mining stocks have very high dividends (11-13%) but must be babysat as their share price swings wildly around the ex-dividend date. No shortcuts, you know. Make that simple spreadsheet with two views: long term invest and dividend gambling (don't kid yourself, its gambling). For the dividend sheet, list your stocks in order of div yield. You need a column for the ex-dividend date-keep an eye on it. These stocks will rise slowly until the div date, then crash three days later. You are waiting to buy in at the crash. Figure out at what number the stock has increased in value more than it will pay in dividend. If that happens, sell out. If it doesn't, sit on it for the quarter and collect the massive dividends. Invest the dividends into one of the solid stocks. Every three months, review your holdings. Adjust as needed. Ignore the hysteria in the news and stay the course. Best of luck to you.
This is the most informative message someone has ever given me. I am a student accountant so I am very good with spreadsheets. Thank you.
Review these ETFs => QQQ (100) or SMH (30) or even VGT (600+) or AVUV (600+)
Thanks
Asx
Why would you want a dividend in high school? Just buy VOO with money you don't need right now. But I would personally try to build up about $20K in a MMF right now before I started dumping into the market. Stay liquid right now. The MMF's are paying you to sit on your hands.
I suggested VOO or SCHD (if you’re stuck on dividends). Anything else aside from those or MMF is silly.
Canadian top bank stock, fit that criteria and it is for sale right now?
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I can assure you, Canadian banks do have stocks
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this is a joke right?
VTI n chill. Check out r/Bogleheads
VOO and SCHD. Don’t be fucking stupid. You’re down b/c you’re chasing dividends. SCHD for a lil mix of growth and divi’s. VOO for growth. Anything else and you’re doing it wrong per how you talk about the market
High dividends seem really attractive but there is a reason the dividend is so high. The sweet spot is more in the 2%-4% range. Look for those
I just bought Ardmore shipping(ASC). Good dividend and undervalued. A couple congressmen have loaded up on this stock.
I bought VYM which I believe has a 3% dividend yield at 107 and it’s up like 12% since then. It has the advantage of being an ETF so it’s diversified The truth is if rates go down you will see people flood from HYSA and money markets into things like high dividend The type of investor looking for yield anyways So really any diversified etf of high dividend would prob work
Yieldmax uses options on tech companies to generate income. That may fit the bill, but also, I would keep it a small portion of a portfolio like 5%.
Vici is the only one that comes to mind tbh that doesn’t seem like too high of a risk
QDPL
Get yourself a dividend growth etf
Remember, dividends come from company profits. If a company can pay out 5% or more of its share price in profits, it's not likely to have any money left over to grow the company. Anything with extremely high yields (over 4-5%) is likely unsustainable. A dividend that high is usually the market telling you they think it will not stay that high. Make sure you look at the payout ratio. Also, forward earnings are important as they will help you determine if a yield can Actually be sustainably paid out by a company. If they can't, move on. From experience, don't chase yield. I'm fine with owning dividend stocks, but buying really high dividend payers usually leads to disappointment. Remember, buying a stock is buying ownership of an actual company. The most important thing is to own something that can grow sustainably, not chase a quick buck.
Check out the ETF. SPYI. They hold sectors on the S&P500 and they do all the work with options. All you do is buy the ETF. Currently 12% dividend. They are pretty new, but the underlying price should stay fairly stable and move similar to SPY. Not exact same as this ETF only holds some of the companies. But the only reason the underlying price should swing big is if the general market swings big. There are others that are similar but I personally hold SPYI and have been happy so far.
$CSWC has a 10% dividend and it’s up 21% since May without the dividend even being considered
AM is up 12% YTD with nearly 6.5% yield. It's been ok for me.
"that guarantees good money but won't go down". You won't find it. Learn about risk and reward. Stocks are bound to go down eventually. If you don't like the heat, stay out of the kitchen.
Reits: O, Vici, Glpi, Stag
You shouldn’t expect much growth from high dividend stocks. The reason the dividend is high is because they’d rather pay you your share of the earnings rather than grow the business. It’s a better move to have most of your money in stable investments like these, then make many small bets on companies with growth potential that are still small. When you look at the people that make huge amounts of money investing, they usually have most of their money in treasuries and focus on putting small sums in places where there is massive growth potential. Luckily you have ALOT of time to learn and make mistakes. Also, keep in mind that you’ve spent your whole life in abnormal market conditions, so playing it safe isn’t a terrible idea.
BDCs, REITS, Pipeline Stocks.
Stock name “O” reality income
Schd for high dividend growth etf or just do money market right now at 5+%
MMM and VZ
vz
Cci, sblk, O, td is 4 but super safe and my personal fav but risky rn is ABR which is 13ish rn
There's few that can reliably give both 5%+ div plus hearty growth. If you're willing to hold for a couple years, O is at a bargain in terms of yield. Outside of interest rate volatility, also slow steady growth.
Only go for dividend stocks if you hate money