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52 stocks. 35 are div stocks are the rest are growth non div stocks. My rule of thumb is to buy enough of a stock for its div to be able to DRIP at least 1 new stock
I have 6 stocks and 6 ETFs. Just starting my investment journey. I have a taxable account and a Roth IRA. My holdings are:. SCHD, XYLD, JEPI, XLE, BCD, ONEY for ETFs. My stocks are:. LMT,. HPQ,. ABBV,. GOGL, AFG and MMM. It's all about the dividends, baby!
I think you are looking at it wrong. If it's how you feel about the number of shares and whether you feel like an owner or not, ok. But regardless of the number of different companies you own shares in, the dollars from dividends all add up the same ( obviously different yields). If is $100 total from each of 20 companies or $100 total from 50 companies, it's the same.
Your reasoning doesn't make a lot of sense to me. Either you want to own a good company or you don't. Whether it's $500 or $500,000 worth, you still own a good company. But, like you said at the beginning, there's no right or wrong way to do it. In the end, either we're all approaching our monetary goals or we're not. Always appreciate your content!
I think that if you want to truly diversify your portfolio, you should probably look at ETFs instead of increasing the amount of companies you invest in. So I have my core 20 individual holdings, then to diversify it I have a few ETFs (Dividend ETFs and Market ETFs).
Have done this myself for over 11 years. Now you can diversify with virtually any weighting you want. Dollar cost averaging makes this a gold mine, especially if your time horizon is ten years or longer.
Please allow me to disagree with you a bit. Here is my logic as a beginning investor. I would go broad with my portfolio, I'd buy up to 100 high-dividend stocks, putting no more than $200-$500 into each stock. Hence spending around 100x$200 = $20000 (just as an example), these $20000 will generate $20000x0.08 = $1600 of dividend income that I can re-invest into higher-quality stocks like McDonald's or Costco. Since the portfolio is diversified, the probability that some of the stocks not paying a dividend on time and hence hurting the whole portfolio is low. If company X didn't pay the dividend this quarter, then companies A, B, C etc. are going to compensate me anyways. With this logic, I can guarantee my dividend cash flow and use that to buy higher-quality stocks in time. Even companies like AT&T can cut their dividends, hence there should not be any emotional attachments to any corporation. Feeling that "company X is working for me" is illogical. No, they're not. It just happened that you invested $3000-$50000 and they will cut their dividend if they have to. Yes, having a lot of stocks requires me to review them at least once or twice every year, but that's just a small annoyance. Also, regarding inflation, the share price of company X will go up anyway, so the absolute amount of paid dividends will go up too, hence if you're being paid $50 from company X this year, the same company might pay you $700 for the same amount of shares in 20 years from now. Or not?
I have 53 great stocks and have no plan on selling them. Diversity is key. Never put your eggs in one basket. 120 K a year in dividends, not hard to take. I am not watching market every minute and going crazy like some when the market Tanks. Slow and steady wins the race.
I have 18 individual stocks and a few ETFs. I used to have like 80 individual stocks but I realized I just needed to cut back significantly because I can't possibly keep up with all those stocks.
I have like 104 dividend stocks in my portfolio, monthly and quarterly, and a semi. I also have specs because it is a taxable portfolio. So I have all those because some might hit big, others don't as you know. If one of the Specs or a couple don't pan out after a year or two, I tax harvest them. But my portfolio isn't like yours. It is at 33k, but I like getting on there buying dips of the companies, especially the monthly payers, then buy enough to DRIP at least 2 shares a year, I just did that with MO, and I have JEPI getting like a share every 2 months, and then get the other monthly payers like PSEC and PFLT, SCM, GOOD, GAIN, that kind of stuff to Dripping like a share a month, but that won't happen soon., I just started a year and half ago, when everything was at bottom, used my savings and covid stimulus and been adding around $500 a month, I just like with having that many, I am pretty much getting paid every day, which all DRIP, I have all the Big dogs to as you can imagine with 104 companies, but I wanted to get those monthly payers out of the way to do their thing, and then start investing more into the big dogs. Recently sold out of my shares of APPLE because I can't stand their dividends. Maybe if you had 50 years, you would DRIP another share lol
I don't have the time to research and find individual companies. I keep my investment strategy simple. I invest into VOO, SCHD, DGRO, QQQ & VNQ. A mix of income, value, and growth!
Great video, this is the main reason that i sold most of my individual stocks last fall and when into mostly index funds. At one time i had 142 holdings. i am down to 32 total holdings, my main index funds are CDC, DHS ,QDIV , VTI , VXUS ,FYLD ,CID ,HDAW, QDPL for my equity holdings. and RYLD ,QYLD ,XYLD ,PFFA , PFFD , USA , CHW , THW , SVOL for my high yield portion of my portfolio
@@DividendGrowthInvesting yes i had up to 142 holdings about 2 years ago .I forgot about 2 more indexes , they are SCHD and REET. i probably have too many indexes
I have 55 positions between ETF, Dividend, and others. The reason I have so many is it keeps me motivated to invest. If I bought MCD every week, I would lose interest and likely not invest as much. But every week, I go through, research who I think is the best buy, and go with my gut. Keeps me motivated.
I definitely want to have at least 5 of all sectors to weather in any market conditions and once I have the heavy hitters I'll just feed them plus I have an etf retirement portfolio where I feed every month and when I can throughout the weeks etc so we will see how it goes hopefully it doesn't exceed 40 companies lol I want a good passive stream from it I do know that much lol
I get the feeling that someone might be caught up in the whole, "I get 50 'paychecks' a quarter from all of these companies." Sure it sounds nice but I decided to allocate money away from lower yield and lower free cash flow div stocks into growth.
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When it comes to investment, diversification is key. That is why I have my interests set on key sectors based on performance and projected growth. They range from the EV sector, renewable energy, Tech, and Health.
I have been thinking about how to grow my reserve by 100% or more within months. I will be grateful if you can give tips or anything on how to make good market picks and how I can get my portfolio diversified and balanced to meet up my target
@Manuel Andrea I just looked up this person out of curiosity, and surprisingly she seems proficient. I thought this was just some overrated BS, I appreciate this.
I think I have at least 200 stocks in the DGI category and 4000+ stocks with global ETFs. Honestly, I don't have time to do in-depth research. If it looks good (based on a simple spreadsheet) and doesn't have nosebleed valuations (something really stupid like 40 P/E, especially with very little growth), BUYBUYBUY. I basically either buy ETFs nowadays or emulate my own ETF.
You made some good points in this video, and I like the calculation example you made with Target in reference to the dividend you would be paid based on the percentage slice in your portfolio. Where I am a bit confused is how does this really differ from an ETF? Isn't an ETF essentially the same thing as a well diversified stock portfolio? When you get paid a dividend from an ETF, isn't it based on the percentages of the individual stocks in that ETF as per the example you made about Target? Your passive income portfolio has 6 ETF's, so by definition you basically investing in hundreds of different companies, some of which overlap within the 6 different ETF's in your portfolio. I guess my overall question is, if you shouldn't own more than 40 dividend stocks how does that differ from owning multiple ETF's that invest into hundreds of individual stocks and the payout would be just the same percentage wise as it would be in your own diversified dividend portfolio.
For me, one of the reasons to have a lot of positions when building my portfolio is that there is always something on sale. In the long run that will lead to a higher YOC and help me reach FIRE faster.
Everyone is thinking about the right diversification. Is 10. 20. 30, 40 or whatever the right amount? It took years for me and I came to the conclusion, that I do not care. Same as the worth of a stock. I´m only interested in the business modell and if it works. This is represented by increasing dividends and if they are non-dividend shares (I have not that many) regarding the business figures - this is for all my shares. I do not much work and if I get 15 $ quarterly dividend from a company, so let it be. I have a portfolio over 500.000 $ yet and it is increasing every year. Proportionatley REITs to common shares I had the plan of 80% common/20% REIT, but I only have 15% REITs because the common shares are increasing far more than REITs. They are only interesting regarding dividends. On the other hand you have ETFs and there you have 100s or even 1000s of different companies. So this is the average market and when I see your portfolio, this is a big part of it. So overall you are far more diversified than me. I only own 1 World ETF from Blackrock (I also have some shares from Blackrock) and with this I´m far diversified in this position. Your personal strategy is, what fits best for you. Investing is not rocket science. Your portfolio should simple do, what your target is. And I do not have a lot work with it, sometimes I only look in the beginning of the month into my portfolio to invest money. That´s it, otherwise I have other things to do. I do not care to a lot of topics and it works well. My portfolio may be is horror for you, I own 115 stocks (including REITs) and 1 ETF. Some of them for many years. I´m content with it, because it does what I planned doing it. So everything is fine.
Well I have 500, and it’s called the S&app 500, and despite what anyone says, it will beat most fund managers in the long run, and will slaughter the average Joe that thinks he is smarter than the market
How many dividend stocks do I own? Let's just say it is a rarity for me not to receive a dividend in a day. Let's move on to the next question. LOL. How many computers do I have? Oh oh. Is there a third question?
I currently have 32 holdings, I originally had 40 but cut down to 15 of which 6 were tax deficient monthly dividend stocks like buisness development companies and real estate investment trust. At first I was happy by how much I slimmed down and I have watched this video a few times now. However, as I began to think about it, I did not feel comfortable having most of my portfolio be these high tax stocks so I brought back most of my original positions as I feel more comfortable building my 6 high tax stock positions with a large hand of qualified dividend stocks. So in my case the reason I added more stocks was not diversity but to simply feel more comfortable by having more qualified dividends to build alongside my favorite income stocks. bear in mind I just started so only have money invested in two of my positions which is why I can do massive overhauls like this.
Love the content. You sound like a young guy. A couple of your videos about covered call etfs recommend them for older investors closer to or in retirement, like myself. On this video i noticed you own a couple of them. This is confusing. Can you explain it?
Hi Billy! You are absolutely correct. My wife and I are looking to reach FIRE in the next 2 years so having these cc ETFs for us makes sense because we are looking for an increase income today not 10 years down the road.
@@DividendGrowthInvesting thanks. I probably could have used fire to retire years ago but never thought about it having always worked. Now after 40 years of accumulating hundreds of stocks and etfs i recently got lucky enough to sell my business and retire. My plan was always buy and hold good companies with some speculative ones. Now im trying to shift my focus to more dividend income using etfs. Trying to unwind so many smaller positions into just a few large ones takes work. I was always a fan of being so diversified. Its hard to pull the trigger.
@@bfine1962 I tend to see myself in a similar situation or focus with my investing strategy around individual companies/ETFs. Congrats on selling your business!!
No ETFs, only stocks. Currently 43, goal is 50, which means approx. 2% per stock. Most US, but CH, UK and EUR as well. A nice day to all of you! And by the way: If you add all the stocks of an ETF to the number of stocks you own, you‘d end up in several hundred or even thousands of stocks, depending of the number of ETFs you own… 😉
@@DividendGrowthInvesting Nah, just I want to not have alot of satellite positions. The ones I have less conviction in I want to eventually sell. For example recently sold KMB after an analysis on the Fundamentals.
no lack of data out there, in terms of risk-adjusted returns, if you believe in that and MPT, almost no difference between a portfolio of 15 names compared to 500. Therefore, past 5-10 stocks, an index fund would be the best choice.
This will be a good one, I’m currently holding 32 holdings and would like to reduce to 24ish, but it’s just so hard to say good bye to some great companies 😔
If you are into option selling then best combo would be investing in wheel friendly stock or etfs -> pledge them for margin -> wheel strategy. You get wheel income + divideneds etc
Rida Morwa on Seeking alpha had an article showing that around 40 companies you risk is almost the same as the market risk. 50 or more companies add little safety, so not worth the time
I disagree. If you can only find 30 great companies that pay dividends, worldwide, and end up with 30 Us companies. Wheres yer plan b? Are all your worldwide stock market portfolio, 1 country based?
Perhaps all eggs in one basket , isnt well read. Going all usa is very small future market growth , future wise. Where do you invest in asia, china, persia, africa and europe...??? Or do you, really believe the fastest and largest market growth, worldwide, will be in focused in America. As it has been for a long time. Dont ye see a tipping point coming? Im not well read, but i would not trust American companies to grow faster than for example Ukraine companies, in a 5 year span for example..
Some really good dividend stocks you should look into are: BHP-10.5% yield and price up 95% last 5 years NEWT-12% yield and price up 46% last 5 years RIO-11% yield and price up 82% last 5 years SBLK-14% yield and price up 240% last 5 years VALE-16% yield and price up 100% last 5 years
The problem is that ETFs often have a lower dividend yield than single stocks and if not, the ETFs have a low performance. Nice maths but what is with your ETFs? How much does every single business pay you in there??? You see, that your maths doesn't fit there. Buffet doesn't invest in etfs.😉
30+ individual stocks really seems like a lot. I only hold six companies, difficult to find find five or six good ideas. Might as well buy a mutual fund. No way you can find 30+ good ideas. Looks like you are trying to collect stocks like we did baseball cards.
I don’t understand the thought process. If you own a broad amount of companies the dividends are small per company . However as a whole on 1.5 million their substantial. Have 40 stocks it’s hard the listen to conference calls and keep up on all your holdings.
"Warren Buffet has said repeatedly that there are "only so many good stocks" " Yes but he was stating it in the context of a professional picking those companies, lets face it no one in this comment section is a professional investor lol.
Most of my wife and I’s assets are tied up in VOO. We recently made a dividend portfolio (a small percentage of our overall wealth) we currently have 9 individual stocks with SCHD being the anchor in the middle. We might add 2-3 more individual stocks, but any more stocks it would be difficult to manage and stay on top of that many companies. ETFs are my favorite because they are passive and all I have to do is buy.
Great video, I think too many investors spread themselves too thin which is a big mistake. At any given time there really are only a handful of quality investments so pick the best 10 or so and double down on them 💰
I personally have 21 holdings spread across 9 sectors, I find that's plenty for me to manage my portfolio plus I'm still only in my first year of investing .
Love this video thank you ! I had apple Microsoft VNQ O and VGT but I sold them and put everything on VOO and now I only have 35 thanks 🙏 thanks I understand little bit more I learned something new every Sunday with your videos.
Maybe I missed something but wouldn't the YOC be higher if this was invested over time? I think it's better to have enough shares to get a decent dividend snowball rolling if you have the cash.
Man,I love your videos, I started 2 months ago, what should I focus in your opinion? I’m looking to build for something on the long run,any advice is appreciated, thanks
I'm relatively new investor as well. I only have 2 years under my belt. But 1 statement that helped me was to consider a "what if" scenario. You are going to Tibet to live with the monks and you will have no contact with the outside world, where are you going to put your money? Remember no changes can be made. I picked my 5 companies and realized that I still hadn't even bought those ones yet! I now have all but one of them and I have now learned patience and just waiting for the last one to hit my buy price!
I own 9 companies and 4 etfs haha vgt is my largest followed by schd. I hope to get around 70k a year down the road from these companies. They all have double digit CAGR and I have 25-30 years so I think I’ll get there!
For me I prefer to have around 16-20 as I like to watch the companies closely and I have trouble doing that with a larger number. I also use ETF's. Thanks for the great video I'll have to do the math you mentioned later for sure.
I know you meant cash on hand ready to invest, but having followed you for awhile when you said "i wish i had $100,000 that'd be nice" that made me laugh.
