NVDA, although I have made a lot of $$$ over the past four years on it going in and out at times, is a long-term hold that you want to be in for long haul. As the Fox business comment the other day, NVDA is a "generational buying opportunity"

I suspect you could put 75% of your investment money in NVDA now and in four to five years you will be very happy.

CC09LawAg said:

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For all of you long term dividend stock holders - what percentage of your overall portfolio do you have in dividend paying stocks?

For purposes of this discussion, obviously VOO pays a small dividend but I don't really consider it a stock that is held expressly for the purpose of generating income.

Not sure what the cutoff is - 3% or more?

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I'm no expert but I tend towards ETFs for dividend, spread the risk out, like SCHD. I think that dividend is currently 3.47%. I had some of this but got temped by AI so now my dividend holding is pretty much accidental. This was back when the market was supposed to broaden out and it did. I probably made more on NVDIA and other AI holdings though. If the market dips I'll probably buy some SCHD to hold onto long term


For individual stocks I'm mostly looking for long term upside and if its got a dividend that's more of a bonus.

aggiebrad16 said:

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Is your question- what percentage of your portfolio is dedicated to stocks whose primary focus is dividends and returning capital to shareholders?

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Yes - I am curious if anyone uses high dividend stocks to eventually form a passive stream of income for them down the line, and if they do, what percentage of their portfolio they allocate to that.

Thanks for your response.

CC09LawAg said:

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aggiebrad16 said:

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Is your question- what percentage of your portfolio is dedicated to stocks whose primary focus is dividends and returning capital to shareholders?

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Yes - I am curious if anyone uses high dividend stocks to eventually form a passive stream of income for them down the line, and if they do, what percentage of their portfolio they allocate to that.

Thanks for your response.

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At a later age I could see this being a bigger deal, but I'm not looking for a passive stream right now. Currently my perspective on dividend stocks is through the lens of compounding. If I can find mature companies that have a board that is dedicated to capital returns to shareholders while also focusing on share appreciation, that's a win for me. Examples I've held over the years are Waste Management, Pepsi, Coke, and to a degree Apple. Currently my big one is Energy Transfer.

I've heard people employ this strategy with stocks like SCHD, which is Schwabs S&P500 high dividend ETF.

My FIL is planning on rotating out of some of his growth stocks and into Energy Transfer.

The big risk I see in relying on dividend stocks for passive income is the reliance on the income. I just have this flashback to Covid when a huge portion of companies suspended their dividends and share prices were in free fall. It can turn quick.

The other negative to this strategy would be how actively managed it would need to be. Sure you may be clipping a 5% dividend but what if there's a negative catalyst or announcement and the company share price drops by 10%. Food for thought.

This may not be a negative for you if you enjoy this sort of thing like me (I don't wish this mentality on most people, ha)

I wonder whow a pile of dividend stocks like SCHD with a 3.4% dividend reinvested would compare to just going with bonds reinvested that are currently paying around 4%, also reinvested.


I guess the offset is you trade the larger share price gains and losses for something more stable.


A topic on this forum recently had me rethinking all of this and the idea of bonds as a percent of a portfolio in particular. The subject was it's not about the percentage of your portfolio so much as a dollar value needed to get thru a rough patch. Market drops 25% so how much money in bonds are needed to not need to dip into stocks that lost 25%

I ended up mostly ditching the dividend stock idea and going with 1-2 years worth of living expenses in investments bonds.

I parked a lot of money into VZ, IBM, and ABBV to collect dividends as a revenue stream. My plan was to ignore the stock price and just accumulate dividends over time. Mainly because my active trading just got me sideways and I was frustrated at buying stocks on the way down, selling them at my stop, and then immediately watching them sky rocket. I wanted to check out for a while, but still get dividends.

Backfired in a good way because the appreciation in these 3 stocks has been awesome and dwarfs the dividends - which are actually good.

Note: I have no idea what I'm doing. Just answering the question and not recommending anything.

Long term holder here my portfolio in my private brokerage account is

30% SCHD
20% DGRO
30% SPLG
20% SCHG

All ETFs , very diversified , all super low maintenance fees , I don't do individual companies anymore

Auto order buy daily for the past 4 years , auto orders take the emotion out of timing the market and it's more about building the habit of investing

I always say that " I'm in the market everyday that it is open"

Never sold a share

No stress , I'm 48 and not looking to change my strategy for the next 10-15 years

My only regret is not starting sooner I spent 2 years doing swing and day trading and while I came out a little ahead it wasn't worth the time and stress and I hated looking at charts throughout the day figuring out when to buy or sell

Now I look at my portfolio (401 K and private accts) once a day usually after trading hours

This is kind of my thought process and why I wonder what an appropriate percent of a portfolio might be to account for the risk you discuss - my plan would be to reinvest the dividends for at least a decade, and not use it as a passive income stream until later in life. That way if the stocks do go up or down, it's fine with me either way.

I want the money it generates to almost be "bonus" money that I'm not relying on, whether pre-retirement or after retirement, but to be a nice little "extra" every year that we can use for vacations and things so that it isn't something we have to budget for. And if we have a great year, it's a big awesome vacation, and if things are a little rough, we just do something a little more simple.

Thanks for the feedback.

This is the point I am getting to - I am getting close to a "set it and forget it" mindset. Maybe one day when I have less going on with kids and work and what not I'll dip back into trading, but for right now I think this seems like a better fit.

SCHD is a good dividend ETF (VYM not bad either) and the dividend growth way outpaces inflation which I like

DGRO doesn't have quite the dividend return percentage of SCHD but the dividend growth and share price growth potential is more due to a little more tech investment , mostly Apple and MIcrosoft

SPLG is investing in S&P 500 with a ridiculously low .02 % service fee

SCHG is tech heavy growth into the magnificent 7 companies

All these ETFs have service fees from .02 to .08 so really low

I don't do crypto but I don't hate on people who do unless it's more than 25% of your whole portfolio

Just my advice and experiences with trading,Im definitely on professional at this , but I'm totally committed to my strategy and sleep like a baby even in bear markets

when did you start? VZ has been a dog for quite a while now. Guess you could have entered a year ago.

Summer 2023. I picked up VZ around 33 per share, and IBM & ABBV around 140 or 150.

good timing.

buying at 30 year lows is usually a good plan.

didn't quite see this year coming

EliteZags said:

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didn't quite see this year coming

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Hopefully you didn't have to deposit $600k for your account to be up $500k.

Kidding. Nice job Zags!

Aside from the etf holdings, are y'all doing extensive fundamental analysis to pick the singular stocks in your portfolios?

I'm not sure what you consider extensive. If I get interested in a company, I immediately build a small position. I know that I need to do that to keep myself engaged. Then I listen to the most recent earnings call, flip through the 10k or 10q, and usually go on Stocktwits to hear sentiment… granted it's sometimes hard to filter through. I'll also see if I can find any analyst or ceo interviews.

If I get excited from all that, I keep building a position. If not, I sell that small position.

RKG_Ag said:

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Aside from the etf holdings, are y'all doing extensive fundamental analysis to pick the singular stocks in your portfolios?

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Not really. Right or wrong, I typically buy a stock based on something I read about a sector that will have promise. I then go find the top 3 or so companies in that sector and make a bet on one of them.

That is the extent of my analysis. I also don't own that many stocks. I do not go out of my way to buy them. They are more impulse buys when I stumble across some knowledge and get intrigued by it.

RKG_Ag said:

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Aside from the etf holdings, are y'all doing extensive fundamental analysis to pick the singular stocks in your portfolios?

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For singular stocks for me it's usually based on a sector like AI, which are my only current singular stocks.

ROKU was one i had long ago simply because I believed in the product

I try to avoid singular stocks but will get some for various reasons here and there

If PLTR falls significantly ill get more for example. Otherwise I already made some money on it and decided to sell it all

PunjabiAg said:

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Long term holder here my portfolio in my private brokerage account is

30% SCHD
20% DGRO
30% SPLG
20% SCHG

All ETFs , very diversified , all super low maintenance fees , I don't do individual companies anymore

Auto order buy daily for the past 4 years , auto orders take the emotion out of timing the market and it's more about building the habit of investing

I always say that " I'm in the market everyday that it is open"

Never sold a share

No stress , I'm 48 and not looking to change my strategy for the next 10-15 years

My only regret is not starting sooner I spent 2 years doing swing and day trading and while I came out a little ahead it wasn't worth the time and stress and I hated looking at charts throughout the day figuring out when to buy or sell

Now I look at my portfolio (401 K and private accts) once a day usually after trading hours

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This is where I am at finally. I dabbled for a few years and then tried to get serious. Even used this board. Turns out I just didn't have the time or even the passion to properly learn and pay attention to the markets at the rate I needed to make the moves I was wanting for myself. Got a few wins, broke even on most, lost my absolute ass on the rest. Broad based ETFs are my future for now. At least until I can devote more time to actually keep an eye on the markets. Only being able to peek once or twice a work day doesn't cut it. Who knew? What an idiot I was for even trying.

VOO
SPLG
SCHD
RVT

Still hold some F and GOOG that I'm paring down slowly but I'm much happier with the above spread. Mostly 80% VOO and SPLG and will flip flop percentages as I retire.

Started super late in life but this will give me the best chance at a decent life later on while maintaining my sanity now. So it works for me.

Smart though. If you aren't going to get in the weeds of trading then it's not worth it. Even if you do it's dangerous.

It's why I've never dabbled in it. Playing with fire. Hell, I can't even get basic limit functionality to work on Fidelitys platform so I gave up even trying to do that. lve tried countless times to set a price on stock to sell or buy it and nothing I've ever done has executed.

So all of my individual stocks are buy and hold except for one (PLUG) which I sold at Market and made a killing on.