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Dividends ETFs

3,029 Views | 30 Replies | Last: 12 days ago by Jabin
Yukon Cornelius
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Any comments, recommendations, concerns etc with specific dividends ETFs?

permabull
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I am not a fan of dividends. It's basically just forced selling which makes it harder to optimize your taxes. I know human psychology loves dividends in that they generate income and the number of shares never go down, but companies cut their dividend all the time so they are hardly guaranteed. You are better off holding quality companies and selling a small number of shares when you need the income. Yes the number of your shares will go down but your total account balance won't.

If you compare holding SPY vs SPYD and selling a few fractional shares of SPY every quarter so you get the same income as if you had SPYD, the SPY portfolio will have a much higher value after a decade.
Yukon Cornelius
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I appreciate the thoughts however this thread is not meant to be a debate or discussion on dividends vs non dividends.

I'm looking for feedback on any specific dividend ETFs people like or hate
permabull
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My apologies I was sharing my concerns with dividend ETFs such as SPYD so I believe I was on topic
Yukon Cornelius
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You make a valiant point but IF you are going to get one which one?
Brian Earl Spilner
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Just curious, why the need to receive dividends?
Brian Earl Spilner
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Yukon Cornelius said:

I appreciate the thoughts however this thread is not meant to be a debate or discussion on dividends vs non dividends.

I'm looking for feedback on any specific dividend ETFs people like or hate
I mean you asked for comments or concerns about dividend ETFs. Perma's response qualifies as such.
CC09LawAg
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No, he asked for comments or concerns about SPECIFIC dividend ETFs.
Yukon Cornelius
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I'm not opposed to a debate about dividends or no dividends and what role they may or may not play in a portfolio. And like I said he made valid point in favor of no dividend.

But that's a different conversation than the one I'm hoping for right now
CC09LawAg
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I'm interested in this as well. What % do you typically expect/hope for in dividend ETFs?
12thMan9
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https://pictureperfectportfolios.com/mbox-etf-freedom-day-dividend-strategy-review/

This is where I'm at. MBOX up almost 25% YTD.

Simplicity is the key.
Ronnie '88
El Chupacabra
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JEPI JEPQ are the current flavor of the month dividend ETFs.
Yukon Cornelius
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I'll take a look. Any idea of the fee off top of your head?
El Chupacabra
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AMLP
SJNK
JEPI/JEPQ
SDIV
VYM
12thMan9
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Yukon Cornelius said:

I'll take a look. Any idea of the fee off top of your head?


Less than 1% I think. It's discussed in the link.
Ronnie '88
bmks270
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XLK pays dividends. I like that it's a low dividend so less is taxed. And holds a lot of successful and cutting edge tech companies.
gggmann
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For qualified dividends w/ good dividend growth:
SCHD
DGRO
DGRW

For CC type ETFs with either return of capital or non-qualified dividends:
JEPQ
JEPI
ISPY
SPYI
QQQI

There are a bunch more, but you need to be careful of nav erosion w/ the ones w/ extremely high yield.
FinalCylon
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Dividends to use as income or to DRIP?

Yukon Cornelius
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Ones that would be Drip for the next 5-10 years then switch to income
Ragoo
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Why not just buy SPY? It has yield and you get full market participation.
clobby
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A little in VIG, no real reason other than I want to.
jamey
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I'm in SCHD, they look for a history of increasing dividends as I recall as a reason I picked them
FinalCylon
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I just read about AMLP. 7% plus yield and from what I read is treated as return of capital or qualified dividends. So tax benefits of MLP's without K-1 tax forms. You could DRIP for 5-10 years then start taking it as income.

Or you could do VOO/SCHG in a Roth for the 5-10 years then just convert all of it to JEPQ/SPYI….don't hate me bro-ski…
FinalCylon
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I've been wanting to get into MLP's but I might just go with that ETF. It owns all the ones I wanted to buy plus others.

Not to hijack but from those of you who know more:
Is there any advantage to owning ET, EPD, MPLX and WES with 20-25K in each versus 100K in this ETF?
Yukon Cornelius
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I appreciate all the replies! I've got some homework to do researching all the recommendations, which I greatly appreciate it.

Are there any sector specific dividend ETFs like energy or what not?
SPIaggie
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I am in retirement so set up a portfolio of dividends for my 4% yearly withdrawals. ET has been my best performer this year.
Kansas Kid
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FinalCylon said:

I've been wanting to get into MLP's but I might just go with that ETF. It owns all the ones I wanted to buy plus others.

Not to hijack but from those of you who know more:
Is there any advantage to owning ET, EPD, MPLX and WES with 20-25K in each versus 100K in this ETF?

If it is a taxable account, you can get tax deferral using the individual companies. Buying the funds means you will pay more tax (via fund expenses) because they have owned a lot of their shares for a long time so they have lower tax basis to use for the depreciation shield. That said, you then need to deal with the K1s which some people don't like.

If it is a non taxable account, UBTI is a major issue with owning the individual names. In that case, buy the finds only.
techno-ag
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CONY if you want some income.
Trump will fix it.
txag614
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I do a 50% split of SCHD & DGRO

Also looking into CGDV.
Aggie Dad 26
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Yukon Cornelius said:

Any comments, recommendations, concerns etc with specific dividends ETFs?




I wish I knew more about your situation. Are you planning on holding for 20+ years?

For what it's worth, I'm poor.. so i deal in poor-people mutual funds and ETFs

From what I read online outside texags, a common theme is to do both SCHD and SCHG because they compliment each other

Most of my funds are in SCHD, and I have my fiance on SCHG. SCHB gets a lot of love
Jabin
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PDI
FSCO
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