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András A.
@Spinat
1Mon·

Portfolio feedback requested


I (early 50s, so still a good 15 years to work on the portfolio) would like to hear your opinion. I've been with Trade Republic since January, mainly because of the 4%. But then I started saving a few ETFs, then buying and selling a few shares. So I played around. At the moment my portfolio has three or rather four different parts. Let's put it this way, the family treasury has given me around €10k to play with. The rest remains in call money.


Of this 10K I would like to have a part to play, individual stocks, §IWDA, other ETFs that are close to me because of my work, XRP.

But that's not my topic here.


I want to build a dividend portfolio. Reduce working hours or improve pension, we'll see where the journey takes me. For now, I would reinvest all payouts.


The composition from December would look like this:

$MCD (-0.24%) 15%

$EXSH (-0.42%) 9%

$MAIN (+0.74%) 9%

$ARCC (+0.21%) 9%

$HTGC (+0.24%) 9%

$O (-1.81%) 9%

$CSWC (-0.37%) 5%

$PFE (-1.02%) 5%

$KAP (+0.56%) 5%

$JEGP (-0.57%) 5%

$TGT (-0.01%) 3,5%

$GAIN (-0.18%) 5%

$QYLE (-0.36%) 5%

$VHYL (-0.63%) 1%


What do you think about the composition? Should something go in/out?

My aim would be to distribute the monthly distributions evenly. I'll have to play around with the ratios a bit.


My problem is that the months of January, February, April and May look too poor. What would you suggest that pays out in these months?

Roast me!

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29 Comments
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Epi@Epi
1Mon
Oh dear, where to start? Your plan is full of typical beginner's mistakes. Sorry.
Example :

10k does nothing for your pension. Especially if they are invested defensively. 5% divs make 40€pM. You're wasting more of your life on the subject!

Dividend strategy, especially after monthly distributions, is rubbish in terms of performance. Underperformance under all scenarios.

Fees, diversification, risk profile - all suboptimal in your proposal.

My guess is that your Ministry of Finance is against investing in the capital market because it fears risk like the devil fears holy water or it simply sees your lack of experience. Basically, however, it has no understanding or even interest in the topic. This, together with your desire for peace and your own lack of experience, ties your hands and you look for a strategy that will show immediate success and increase the family income. That's why you're pursuing the irrational strategy.

My tip in this situation: take a look at the 200-day strategy and portfolio concepts. Above all, you can use them to reduce risk. Explain what you find there to the Ministry of Finance or, even better, involve it in your learning process until it gains confidence. Then you can significantly increase the portfolio amount to a sensible level and pursue a rational, high-return, low-risk strategy, e.g. MSCIWorld + gold + 200-day strategy = 8%pa under 20% drawdown.

Good luck! 👍
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András A.@Spinat
1Mon
@Epi Thank you for the detailed explanation and the suggestions. I will follow your advice.
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Aktienmasseur@Aktienmasseur
1Mon
@Epi Great feedback, I can only agree with that ☺️
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DerMartin@DerMartin
1Mon
I wish you all the luck in the world. But I don't think it will work to reduce your working hours.
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András A.@Spinat
1Mon
@DerMartin is probably due to the sum, isn't it? I still have to try to change that.
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Uwe@SchlaubiSchlumpf
1Mon
@Spinat Do the math with a 3% withdrawal. If you need 1000 euros per month, you have 1000*100/3 *12 as target capital. That would give you 400,000 as the required capital. And then there's the capital gains tax.

Of course, if you only reduce your working hours so that you need 400 euros, you would end up with 160,000.

And I would only be half happy with a stock selection of 20 shares. Things can go really badly from time to time.

If you have enough Excel know-how, calculate a savings scenario for yourself. Assume a market return, withdrawal rate, savings amount, etc. Only you can fill in the details. Because you need to know what you earn, what you have left to save, how much money you need... then you can also play around with the numbers a la "what if I save more".
Keep in mind things like tax, that you can run below average market returns over the 15 year period and that individual stocks generally have more uncertainties (and opportunities).
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Phily@Phily
1Mon
I already make 400€ a month with 70K thanks to CES and no risk.
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DerMartin@DerMartin
1Mon
@Phily CES?
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Phily@Phily
1Mon
@DerMartin Close End Funds , no ETF
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Matthias@Rebellion81
1Mon
I wish you every success and all the luck in the world, but I don't understand the request in your text. Gambling? Dividend deposit? Costs? 15 stocks? I would rather recommend an ETF in the Sp500 and that's it.
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Kai@Dividenden-Sammler
1Mon
I would be interested to know the criteria for your selection of individual stocks. There are a few that make me wonder why. I would also choose other ETFs.
If the amount of the dividend should be a decisive factor for the selection - it is not always good to judge by it. Just like the months in which the investments pay out their dividends. It's better to look for reliable quality companies and invest in them.
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András A.@Spinat
1Mon
@Dividenden-Sammler Thank you. I wanted something that was above the 3.25 from TR. There are also some that are there because of the height, of course. Sure, I also want stability. What do you think is wrong with the listed ETFs?
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Kai@Dividenden-Sammler
1Mon
@Spinat With ETFs, I would look at the dividend growth rather than the current dividend amount. You still have a long time to go before you are really dependent on the income. The ETFs you have chosen are more interesting for those who are about to receive the planned distribution. In addition, the price performance is not particularly high, which means you get additional returns. In short, these ETFs are more for wealth preservation than for wealth accumulation.
My favorites among the dividend ETFs would be $GGRP, $TDIV or $FGEQ, for example, which focus more on dividend growth than on high dividends from the outset.
You can also take a look at the portfolio I have chosen. It's a mixture of dividend income and dividend growth.
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Jupp D.@JuppDupp
1Mon
For the small sum, I would only take the $VHYL
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Aktienmasseur@Aktienmasseur
1Mon
You should first familiarize yourself with the basics of the stock market and the tax disadvantages of dividends. You don't need dividends on the stock market to have a cash flow. Keyword withdrawal strategy.

In this context, you should always take a defensive approach and never gamble with your hard-earned money. Your money deserves nothing less than perfection. Ideally, always use a broadly diversified global ETF. You want to grow your money, preserve it but never burn it. Analyzing individual stocks is a full-time job and in 90% of cases no individual investor beats the global economy in the long term.

So set up an ETF, define your goal and increase your income. Then you will also be able to retire earlier.
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Sparfuchs@Reinecke
1Mon
This is called risk investment. Only an Alphakevin plays with money.
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Melchior@ColdzeroNL
1Mon
IF you have 10K don't use more then two ETF's or stocks because the fee's will kill you if you have to pay that 15 times. Also the maximux you can expect in total return is something like 67.000 with a 8% return and adding 100 euro each month.
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Stulle 🥪@Stullen-Portfolio
1Mon
"What nonsense!"
...that was my thought about your post.

I'm sure it will help you to look at the response from @Epi and @Aktienmasseur in particular.

ETF rules!
...you might also like to read a book by G. Kommer on the subject.

Greetings
🥪
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ToDaMoon@randomdude
1Mon
Let me get this straight: you want to build up a dividend portfolio with part of the 10K, reinvest the distributions, but don't want to make any additional savings in the portfolio? And you want to play around with the rest of the money?
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András A.@Spinat
1Mon
@randomdude OK, maybe it wasn't quite clear, there is about 7K in this portfolio. I will reinvest the distributions and invest an additional €100 a month. I would sacrifice more, but higher powers won't allow it. The part to play around with is about 3K. It's in stocks or ETFs that don't pay dividends. Sure, it's not much.
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ToDaMoon@randomdude
1Mon
Rule number 1: Never select securities by distribution date, but by quality and whether they fit your strategy.
Rule number 2: Don't play around with 3K. You can do great things with it, but without a plan it will be gone faster than you can look.
Rule number 3: You need an investment strategy with which you can pursue realistic goals.
...
Since your investment horizon is not so terribly long, if I were you I would set up a portfolio with 60% ACWI/FTSE All Wolrd (accumulating), 20% gold and 20% call money/money market funds or similar. Save stubbornly and rebalance once a year. When it comes to the withdrawal phase, you can see whether a dividend ETF or a payout plan is the better choice.
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András A.@Spinat
1Mon
@randomdude Thank you, that is very specific advice and very specific figures. I will look into this tomorrow.
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Hermes@der_Goetterbote
1Mon
so what I see there I personally would not put in the portfolio, the $VHYL $TGT and $MCD are ok and maybe $WMT $WM $ALV. High payouts are not always an advantage, §No investment advice§
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Smudo@Smudeo
1Mon
15 titles spread over 10 K is nothing. You are already paying 15x fees. Then dividend yield 3-4%, share price increase. More than 400-1000 euros a year is not possible. So that improves your earnings by 80 euros a month. Bravo - 1 hour less work per month.
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Gomerdoc@Gomerdoc
1Mon
Basically: investing €10,000, or €7,000 as a one-off payment, +€100 a month or so: that's perfectly fine. Calculated over 15 years, it adds up to quite a lot - you'll see.

But: your strong focus on shares from the financing sector doesn't make sense in my view. Although these companies currently pay high dividends (in some cases), the size of the dividend is not everything:
If you invest in quality stocks that produce long-term price gains (and have been able to prove this for 80 or 90 years if possible 😁!) ,Then your dividend yield will end up being higher than six or 7% that a financing stock pays you at the moment, but is highly risky and won't produce solid growth in the long term. 3 % dividend yield today is 25 or 30, sometimes 50 % in 15 years with a corresponding increase in the base price! per year.
And: high dividend payments say nothing about the quality of the company and its stability. On the contrary: many companies with currently very high dividend yields are absolute shaky candidates in terms of their fundamental structure.

Leave out all securities that rely on gold or bonds.

Invest in an ETF that tracks the MSCI World Index, for example, and you can still switch it to a dividend fund later on if you don't want to deplete your capital in retirement (which makes sense: withdrawal strategies based solely on the absorption of share price gains are much more dependent on the share price performance at the time of withdrawal).

In any case, reduce all these capital investment stocks such as $ARCC IDER $0 and $HTGC: broad diversification in different sectors. If a high-dividend bank share: then $CBA

No more $PFE, but rather $AMGN or $NOVO B: (product portfolio, current development pipeline, performance of the last ten years) everything better with the other two.
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András A.@Spinat
1Mon
@Gomerdoc Thank you for the thorough explanation and recommendations.
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Elfuhr@Elfuhr
1Mon
First of all, take all the feedback to heart and, above all, stop gambling. And make up your mind that you will find a share that rises by a factor of >thousands while playing. Before that, everything is gone and you have lost everything through panic selling.

I myself am in my late 40s and have been investing since 2020. I can understand that a monthly dividend payment is attractive to see success. But that won't work and involves risks.

Personally, I would put the 10,000 into a world ETF or another one for 10-20 months at 500-1000 eur each. Then save the 100 eur until you have 1000 and buy a growth stock that perhaps pays a dividend once a quarter.
After 10 months you will see which is better and the risk is lower.

The government will also set up a custody account with an etf savings plan...
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Imvestment4Life@Investment4Life
1Mon
Phu.. no words
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Torben@dividend_hero_66
1Mon
10k to play ...? Just leave it fach totally the wrong attitude
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