(@Ardo) on getquin

9Mon·

Portfolio Feedback

Morning everyone,

I've been wondering for two weeks now whether the strategy I'm pursuing is the right one (dividend strategy),

because on the one hand the taxes you pay on it are a big contra in my eyes but on the other hand I benefit from the dividend growth in the future. On the other hand, if I increase my capital now and then switch to dividends in 15-20 years, I would theoretically have more.

I always find it difficult to sort out my thoughts and write them as text, but I hope you can help me 😅.

I have now added stocks via a savings plan such as: accenture $ACN (+1.62%) , deere $DE (+8.8%) , pepsi $PEP (+1.54%) , tractor supply $TSCO (+2%) , abbvie $ABBV (+2.99%) , McDonald's $MCD (-0.17%) Union $UNP (+2.45%) , home depot $HD (+3.25%).

All the other bets were just gambling without any real analysis to be honest and these are the ones I'm convinced of in the long term unless something fundamental changes.

Yes, the topic of returns has now also reached me and I want to leave as little of it as possible by the wayside and take it with me.

20 Comments

9Mon

Take your focus away from the pure dividend that finds its way to you.

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VP@VP

9Mon

Moin

The question should be: What is your goal?
Are you dependent on cash flow? Or is your goal capital maximization?

The aim of the dividend strategy is to receive a regular, passive income.
The goal is cash flow, not capital maximization.

Dividend growth or not... on the day of the dividend payment, the value of the share falls by the amount of the dividend. The total profit of your portfolio remains the same when a dividend is paid out.
You only liquidate part of your capital.

For dividends up to the exemption limit, there's nothing to worry about; above that, dividends are paid out whether you want them or not, so tax is paid whether you want it or not.

With partial sales, for example, you can control more flexibly how much you need later, e.g. towards your pension.

With regard to capital maximization, the following question: when do you reinvest the dividends?
For every day that the dividend is in the clearing account (unless you get a good interest rate), the return on the capital market is lost.
This is what makes accumulating ETFs interesting.
What about reinvestment with order fees? Or do you wait until the next free savings plan execution before reinvesting?

Personally, I would, as long as you don't have cash flow as your goal. Primarily collect dividends/distributions up to the exemption limit and then relax and go for an accumulator/growth stock. the advance lump sum means that taxes are already due here anyway.

Maybe there is some food for thought here.

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Fetzen@Fetzen

9Mon

Looks quite ok, but maybe focus more on "dividend growth" and less on current yield. But I think you have some useful stocks. Maybe you could comb them out at some point. I find 30 or more stocks a lot, but that's preference.
It's the mix that counts.

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Yannik@Aktienandlife

9Mon

I would recommend that if you would like to pursue a dividend strategy but you don't want to live off THE dividends now but only in 20-30 years, you should focus on stocks that can already show dividend growth.

For example, a stock that currently pays a dividend of 0.6% but raises its dividend by a certain percentage every year and still has good share price growth.
In this way, you will benefit from the hopefully higher dividends in the future and will still have enjoyed good share price growth in the meantime.

For example, a Sherwin Williams, Rollins or Hershey's.
Instead of betting on shares that pay a high dividend now and hardly have any share price growth.

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Daniel K.@capital_guru_230

9Mon

If you want to build up capital, then I wouldn't take dividend-paying shares, but rather accumulating ETFs (80%) and 20% individual stocks to "play". Why? Because it's much cheaper, see link

https://www.finanztip.de/finanztip-email/aktuell/#edi

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Felix@Investor_in_Jogginghose

9Mon

You never have to switch to dividends. You can cut small slices off your portfolio later with low transaction costs. In addition, companies may then pay dividends (Meta).

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Daniel@Der--Investor

9Mon

You have some high dividend stocks in there that will hardly grow or you will probably make a loss in the long term. Until recently, I was also at the point of moving away from the dividend strategy because it yields less in the long term.

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Melly@melly-m

9Mon

I would focus on dividend growth. If you really want growth, then maybe a few more growth stocks.
But dividend growth stocks will also continue to rise over time. And who says that some of them won't do better than pure growth stocks.
See Novo nordisk, cintas, Microsoft, ... Many growth stocks can't keep up.

And more important than performance for me is that I have confidence in my companies.

Accenture - great company. However, you pay 50% tax on dividends from Ireland. - You should also pay attention to this.
(Etf from Ireland does not have this problem!)

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TP@TP

6Mon

I understand your text and your thoughts, I had the same! You are on the right track. Don't stop thinking! 😉

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