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My favorite dividend investing methodology 

Dividend Growth Investing
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The core and satellite investing methodology is widely known when it comes to index investing. I personally really like this investing methodology because it takes away a lot of the risk that comes with individual stock picking. I strongly believe most people should consider the core & satellite investing approach or something similar. I subscribe to the notion that simpler is better.
My recommendation is pick an index in which you believe in and dollar cost average each week and month. My favorite indexes are the Dow Jones U.S. Dividend 100 Index (SCHD), FTSE High Dividend Yield Index (VYM), and Morningstar® US Dividend Growth IndexSM (DGRO). If you have a very long-term time horizon, for example 40+ years, I would suggest considering having the S&P 500 (VOO) or Total US Stock Market (VTI) as your largest core holding.
(1) Vanguard's guide to Core & Satellite investing 3:05
static.vgconte...
(2) Sample Portfolio ideas based on time horizon 8:43
Core & Satellite 5+ Years: m1finance.8bxp...
Core & Satellite 20+ Years: m1finance.8bxp...
(3) How I use the Core & Satellite investing approach with my portfolio 16:33
▸ Try M1 Finance: bit.ly/TryM1Fi...
▸ Seeking Alpha Premium (get 58% off): bit.ly/Seeking...
▸ Net Worth Tracker (Personal Capital): bit.ly/Persona...
How to transfer to M1 Finance: bit.ly/Transfe...
My dividend growth portfolio: bit.ly/M1portf...
I'm not a financial advisor and the content discussed today is merely my opinion and intended only for your entertainment. The content expressed in this video should not be considered as professional financial advice. Some of the links above are affiliate links and come at no cost to you.
#DividendGrowthInvesting

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26 сен 2024

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Комментарии : 83   
@DividendGrowthInvesting
@DividendGrowthInvesting Год назад
The Core & Satellite investing approach makes investing so much easier and most of all less stressful. Try M1 Finance: bit.ly/TryM1Finance How to transfer to M1: bit.ly/TransfertoM1 Seeking Alpha Premium (get 58% off): bit.ly/SeekingAlpha-DGI Instagram: instagram.com/dgi_jake/ Dividend Reinvestment Calculator: docs.google.com/spreadsheets/d/1W8UvXLZdEpVX-UPTKiHIT1oYIkj7Omvf30FgB3FTKWY/edit?usp=sharing
@michalkopanicky8254
@michalkopanicky8254 Год назад
Hi from Slovakia 🇸🇰 👋 I would like to send you my portfolio and see what do you think about it. Really curious, what's your opinion. Where I can send it to you please? Do you have any email address or FB? (I do not have Instagram 😂) thanks
@thepickyinvestors
@thepickyinvestors Год назад
Having a process is so important. That's the only way of being consistent over time.
@1DansBlues
@1DansBlues Год назад
Jake good stuff here. You are a teacher and explains things well. Thanks. I’ve always like dividend stocks for the simple reason as I control the Capital Gain. As CPA I see clients that have mutual funds, they have to pay out the C/G at the end of the year. In ‘21 those distributions were high and most have them reinvested. I do drip my dividends and invest monthly in my Simple IRA and most of those are in index funds. I do keep stats on my portfolio and it’s nice to see the dividends and portfolio grow.
@DividendGrowthInvesting
@DividendGrowthInvesting Год назад
Hey! Thank you! Yeah the capital gains can be insane with some funds. One of my favorite parts about dividend investing is seeing it growth each month.
@mr.financial
@mr.financial Год назад
I really like how you present information Jake. Thanks for sharing!
@DividendGrowthInvesting
@DividendGrowthInvesting Год назад
thanks man!!
@unashamedly1776
@unashamedly1776 Год назад
This Core/Satellite concept is how I have my portfolio setup for retirement in 11 years. While it provides a decent dividend (~2.2%), it also has a good amount of growth and blue chips. Core: 50% of portfolio -SCHD 50% -SPYG 25% -VOO 25% Satellite: 50% of portfolio -AAPL 11% -MSFT 11% -SBUX 10% -TGT 10% -KO 10% -COST 10% -HD 10% -BAC 7% -WMT 7% -WM 7% -MCD 7%
@DividendGrowthInvesting
@DividendGrowthInvesting Год назад
look at that!!
@ethanshy280
@ethanshy280 Год назад
That’s awesome that you can get that spreadsheet with SA. That’s a great tool. Thanks for the video!
@DividendGrowthInvesting
@DividendGrowthInvesting Год назад
Thanks for watching Ethan!
@Mc.flyyy11
@Mc.flyyy11 2 месяца назад
Quick question. If I want to build a dividend portfolio in a brokerage, how does this affect my taxes as I'm investing but not taking dividends yet because I'm just trying to grow it over the next 15 years. I learned a lot in this video. I live in Austin, would love to grab a coffee and pick your brain sometime on where I should start. I binge your videos, pretty sure I have a base grasp on it all (or core and satellite approach). Thank you, hope you see this.
@FinGeek4now
@FinGeek4now Год назад
Huh, seems I've been doing this approach since I started investing without knowing that there was a school of thought behind it. My "core" is actually a pie of the S&P500, Nasdaq, VYM, and the JEPQ income ETF that have an equal weighing. Then I have a few (major) satellite pies which include individual companies and REITs, followed by (minor) satellites which are thematic ETFs. Honestly, I really need to look at condensing the thematic ETFs into just a few individual holdings since there is a ton of overlap, not too mention I could avoid paying the fees too.
@BluegrassDaimyo
@BluegrassDaimyo 4 месяца назад
Why not adjust the amount in each holding so that you get nearly the same amount each month on your returns? I run a spreadsheet that has color codes in each cell depending on the type and month of the dividends. Light grey for monthly, Blue for Jan-Apr-Jul-Oct, Orange for Feb-May-Aug-Nov and Green for Mar-June-Sept-Dec Red for Annual and pink for Semi Annual. I can see how much I'll be paid each month and can adjust my holdings to even out the projected income. I'm getting very close to retirement so this method works great for those on fixed incomes in retirement. As soon as I turn off the DRIP, i'm looking at between $1,200-$1,500 each month. If I so desired, I could sell a few from the $1,500 month holdings and buy more of the $1,200 month positions to even it out more.
@yitkinhtoung3431
@yitkinhtoung3431 Год назад
Hello Jake. I am new to dividend investing. I just started to watch your video about a month ago. I try to watch your video as much as i can. There are a lot of great information in your channel. Thank for your efforts and time for sharing such great information with us for free.
@DividendGrowthInvesting
@DividendGrowthInvesting Год назад
hey there!! So glad you found the channel!
@TalkingMoneyWithNozi
@TalkingMoneyWithNozi Год назад
SCHD and VTI are my core
@DividendGrowthInvesting
@DividendGrowthInvesting Год назад
Same here!!
@ActiveDutyRealtor
@ActiveDutyRealtor 3 месяца назад
I love this strategy. I like the idea of my satellite holdings as individual stocks focusing on higher income/ div growth. And my core being (SCHD + DGRO) currently I have PEP, ABBV, EPD & MO. Open to any suggestions!
@DividendGrowthInvesting
@DividendGrowthInvesting 3 месяца назад
Just keep the satellites at less than 5% each for individual stocks and you are doing great!
@Wealthforthe99Percent
@Wealthforthe99Percent 3 месяца назад
Great video
@DividendGrowthInvesting
@DividendGrowthInvesting 3 месяца назад
Thanks for the visit
@JoseSanchez-df8hb
@JoseSanchez-df8hb Год назад
SUBSCRIBED. Thanks for keeping it real
@DividendGrowthInvesting
@DividendGrowthInvesting Год назад
So glad you enjoyed it!!
@michaelvizzoca5318
@michaelvizzoca5318 Год назад
Jake! We love you, keep up the GREAT work brother!
@DividendGrowthInvesting
@DividendGrowthInvesting Год назад
Hey Michael!! Thanks man! Hope you are doing well!
@quest_edward
@quest_edward 11 месяцев назад
Excellent video and analisys.
@DividendGrowthInvesting
@DividendGrowthInvesting 11 месяцев назад
Glad you liked it!
@jaym8908
@jaym8908 Год назад
My dividend investing methodology: Passively manage my active portfolio and actively manage my passive portfolio.🤣
@alexrichardson2592
@alexrichardson2592 Год назад
His “funny gif memes” are how you know he is both a millennial and a dad
@iftekherahmedchowdhury2754
@iftekherahmedchowdhury2754 Год назад
Thanks Jake from UK ✌
@DividendGrowthInvesting
@DividendGrowthInvesting Год назад
hey!! Cheers from Texas!
@mmehdi6911
@mmehdi6911 Год назад
Appreciate all the time u put into this a great video.
@DividendGrowthInvesting
@DividendGrowthInvesting Год назад
Really glad you enjoyed it! Thanks for watching!
@chimchu3232
@chimchu3232 7 месяцев назад
Honest question here, would you still hold schd even if you held the individual stocks at the same weight? Essentially, if you made a proxy schd by setting the allocation of individual stocks the same as schd's criteria? I never really saw the point of adding a fund when i already hold the majority of the companies individually. I'm not personally trying to match schd exactly, but it's similar, and it feels redundant to also invest in schd.
@DividendGrowthInvesting
@DividendGrowthInvesting 7 месяцев назад
I would never hold 100 stocks and it would be a pain to always rebalance the portfolio to have it track the SCHD index. I'd much rather focus on SCHD/DGRO as my core and have other individual stocks at a lower percentage.
@fabiGBOtown
@fabiGBOtown Год назад
Dang it Jake, I bought O and VNQ on my SEP but im at the 20 yr horizon. You recommend o for 5 years. Would much rather add voo now
@DividendGrowthInvesting
@DividendGrowthInvesting Год назад
Welcome to the everything is on sale time in the market :)
@fabiGBOtown
@fabiGBOtown Год назад
@@DividendGrowthInvesting lol, it did hit a 52 with low when I bought it
@delbomb3131
@delbomb3131 Год назад
Since I'm a lunatic I'm building my satellites which will fund my core, theory being that I'm rounding out my income with higher yield stocks then switching to etf's which generally pay less to stay under problematic tax burdens.
@DividendGrowthInvesting
@DividendGrowthInvesting Год назад
yeah that tax burden is what is high on my mind as well. I need to be careful how much I add to my REIT portfolio and those CC ETFs.
@delbomb3131
@delbomb3131 Год назад
@@DividendGrowthInvesting i have a LONG way to go before it's an issue, but it's nice to have a plan and options to make sure it doesn't become an issue
@hallpaintandbody7717
@hallpaintandbody7717 Год назад
Some of my risky satellite positions announced to cut their dividends, so I exited those positions. Was able to average down some core positions.
@surmanator89
@surmanator89 Год назад
Jake, the elephant in the room for me is, how do you plan on utilizing your dividend income? In other words, if you project to make $150,000 per year from dividends, what % do you project or will you target to reinvest?
@DividendGrowthInvesting
@DividendGrowthInvesting Год назад
I will be living my life paying my bills with the money. At that point, once we reach our goal, we will no longer reinvest the dividends.
@brucecampbell208
@brucecampbell208 Год назад
If you are making 150K a year off dividends, congrats, youve already won the game :)
@surmanator89
@surmanator89 Год назад
@@brucecampbell208 based on his projections it's not far fetched
@fatzeus76gaming46
@fatzeus76gaming46 Год назад
love this idea. mine is currently set up with four cour qqq spy schd vym . can't wait to see it grow over the years
@DividendGrowthInvesting
@DividendGrowthInvesting Год назад
some great ETFs!! Dollar cost average and enjoy the journey!
@Draega007
@Draega007 Год назад
Would something like this work in a roth ira since $6000 is the max contribution a year? I have a roth 401k through my job and using the 3 fund portfolio approach for that but I wanted to open a roth ira through fidelity and use it to try to get a dividend income from it. By the way I'm 37 so I'd be 38 before I would be able to start maxing out the fidelity roth ira.
@justinlindenmayer9782
@justinlindenmayer9782 Год назад
Hi Jake - I plan to reach early retirement at 55. I’m 34 and am setting up an account. Should I set this up in an after tax account or IRA? Between my wife and I, we have a little over 400k thus far saved for retirement. Our savings rate and return will let us retire comfortably between 60-65 and would use this new account for potentially retiring earlier. Thanks for your help
@DividendGrowthInvesting
@DividendGrowthInvesting Год назад
Hey Justin! Well if you go with the IRA, you wouldn't be able to access it until 59.5. You may want to do a combination in a taxable account and a portion in your IRA. My wife and I are 36 and we funded our Roth IRA early and will have it on auto pilot and are now only funding our taxable account.
@justinlindenmayer9782
@justinlindenmayer9782 Год назад
Thanks for the advice Jake!
@XDividendDad
@XDividendDad Год назад
I love the video. You should make a discord!
@DividendGrowthInvesting
@DividendGrowthInvesting Год назад
Hey Chris!! Thanks man!
@hishamjuma5423
@hishamjuma5423 Год назад
Hi Jake What are your thoughts on VTV as a core holding? It can be considered as part of an dividend portfolio.
@DividendGrowthInvesting
@DividendGrowthInvesting Год назад
Hey! I like VTV as a core holding. You could look at ETFs like VUG, SPYG, VGT to add additional growth.
@baileyembry6057
@baileyembry6057 Год назад
Let’s Go!!!!!!
@DividendGrowthInvesting
@DividendGrowthInvesting Год назад
There she is!!!!!!!!!!!
@livingalone5737
@livingalone5737 Год назад
How do you escape the matrix?
@scsu300
@scsu300 Год назад
spreadsheet? might already be in the comments...searching...
@BooleanError
@BooleanError Год назад
I've watched a few of your videos, and I've enjoyed the content, but I was finally moved to subscribe based on one thing: you properly used "indices" instead of "indexes".
@DividendGrowthInvesting
@DividendGrowthInvesting Год назад
Yeah it sounds weird saying it, but is correct :)
@jeddesselle2611
@jeddesselle2611 Год назад
Great video Jake 👍👍👍
@DividendGrowthInvesting
@DividendGrowthInvesting Год назад
Thanks, Jed!
@sshumkaer
@sshumkaer Год назад
What I don't understand is your advice for JEPI don't hold it more than 5 years? This seems like bad advice for any divided income strategy. If the company is solid and stable and paying solid divided hold it 4 life if you want. Also I'd add prices may not move as much as traditional investing but they still swing $5.00 or more dollars a year and because of this you can dollar cost average just by buying the deeps.
@DividendGrowthInvesting
@DividendGrowthInvesting Год назад
Hey Steven! What I am saying is in my opinion don't invest into JEPI if you have 5 or more years before you plan to live off the dividend income. The reason for this is primarly around the growth rate of JEPI vs other equity ETFs like VOO, VTI, SCHD, DGRO etc. Also the taxes play a role as well but not as much as the total return aspect of what I am talking about here.
@sshumkaer
@sshumkaer Год назад
Ok I think I understand better now. What if a person is generating $2,000 a month from it? Those numbers aren't difficult to reach with plays like this. And for the majority that is almost a monthly NET Paycheck. Would you still advise against?
@surmanator89
@surmanator89 Год назад
Come on!!!!!!
@DividendGrowthInvesting
@DividendGrowthInvesting Год назад
:D
@Gunieapower33
@Gunieapower33 Год назад
SCHD is performing like gas station viaagra
@DividendGrowthInvesting
@DividendGrowthInvesting Год назад
lol
@mikesurel5040
@mikesurel5040 Год назад
Do not miss Balmer. Not one bit.
@DividendGrowthInvesting
@DividendGrowthInvesting Год назад
Lol yeah he was something else
@kookiebush
@kookiebush Год назад
Hello sir. Do you think it's possible for an etf like divo to dissolve in 30 or 40 yrs when the founder of cwp passes away. Since they're a way smaller player than say schwab, what happens to funds like that?
@DividendGrowthInvesting
@DividendGrowthInvesting Год назад
Way too hard to say. The only way is if the NAV of the fund go to 0 which is almost impossible.. If it does, you will be looking for food and water not what your investments are doing.
@BenGates101
@BenGates101 Год назад
You need to keep these videos ten minutes or less. Break them into multiple videos!
@wasanthaabeysiri
@wasanthaabeysiri Год назад
Jake what is your website or email to connect with you thanks Jake your hardwork
@petereinert7581
@petereinert7581 Год назад
And why would you NOT have a Roth IRA, LOL.
@BigBirdieXL
@BigBirdieXL Год назад
Woooo sub 700 view.
@DividendGrowthInvesting
@DividendGrowthInvesting Год назад
early bird!
@aleqsyo
@aleqsyo Год назад
Hello my man, I am planning my Portfolio and I am still debating about whether I want to use VTI or VOO together with SCHD in my Portfolio. What do you think? :)
@DividendGrowthInvesting
@DividendGrowthInvesting Год назад
I really like that I personally have VTI in my roth IRA as my largest holding and SCHD as my largest holding in my taxable account
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