3D·

Strategy adjustment Growth & dividends

I am 42 years old and have an investment horizon of 20 years. I would like to combine some growth with dividends as a retirement provision.

Even though the portfolio is currently quite red, I am generally satisfied with the stocks. $RKLB (-3.67%) was once a gift and $MSFT (-0.27%) would be a bonus, so they are not self-selected.

I would like to invest a total of 6,000 euros per year for the time being, i.e. an average of 500 euros per month.

I have now changed the distribution as follows:

150 euros go into the $VWRL (-0.66%)

75 euros to the $ZPRG (-1.01%)

45 Euro to the $QYLE (-0.6%)

30 Euro in the $EUDF (+2.25%)

Would you weight differently here?

Up to now, I have saved 10 euros a month in the individual shares represented, but I will be making a quarterly one-off purchase of 500 euros. In this way, I can take advantage of opportunities and gradually build up the stocks or say goodbye to one or the other or add something new.

400 euros remain free each year, which I would like to use flexibly for $BTC (+1.24%) for example.

I like the mix of regular long-term passive investment and the opportunity to be more active on a quarterly basis.

17Positions

9.83%

9 Comments

Harald@Madhatter5566

With a term of twenty years, you don't really need distributing ETFs now. And no yield brakes like covered calls either.

Yes, if it goes sideways, the covered will bring you something. If it goes down, you eat losses in the same way. But when it goes up, you simply leave profits behind. An investment should go up in the long term, otherwise you should leave it alone.

The same applies to dividends: this is a deinvesting strategy. For you, this means that you are making more effort now for twenty years from now. Without benefit. Dividends can be tracked with partial sales, and much more easily.

•

Uvilo@Uvilo

@Madhatter5566 Good thoughts! I'm unfortunately not that disciplined and have realized that the monthly return somehow does motivate me a lot. Positive growth but also 😄.

But the CC ETF is actually the one I'm most critical of myself. Maybe it really does still have to go. Thank you!

•

Max@bullish999

@Uvilo Dividends are very good. Don't let them unsettle you. They are part of the return.

•

Harald@Madhatter5566

@bullish999 They are as pointless as a crop when building up the position and have no added value as long as they are reinvested. Worse, they are tax events, especially where they are not needed. Namely at the beginning of the investment, where every euro counts.

And at the end: unless you have planned them perfectly, you still have to sell part of them in order to live. Complete nonsense.

Of course, they are part of the return. But in the end, only the total return counts. And this is usually worse with distributing investments than with accumulating investments.

I understand that some people think dividends are magic money, but they're not.
You could also have part of your portfolio paid out every month, count it up and pay it back in. That's all you do when building up a position in dividends. But you have effort, trading costs, spread, your money is uninvested as long as it is paid out and not paid in again, etc.
Simply wasting time

•

Uvilo@Uvilo

@bullish999 Thanks for the feedback! I've already learned that a dividend strategy is polarizing 🤗! Do you have a dividend favorite?

•

Chris@Multibagger

For ETFs, there are much more competent opinions here than mine, but as far as savings plans are concerned, I would stick to monthly for cost average reasons, reduce the number and increase the amount per share saved.

•

Uvilo@Uvilo

@Multibagger Yes, that's why I like savings plans so much! However, I would also like to be able to be somewhat active. Maybe I'll take half of the quarterly 500 euros in savings plans on the most important individual stocks and then only actively invest the other 250 euros. Thank you!

••

Melly@melly-m

Nice portfolio. With a 20-year investment period, I would look to add a few more dividend growth stocks to the portfolio at good purchase prices.
(Possibilities are e.g. Zoetis, S&P Global, SNAP-on, CME, JPM, Fastenal, Watsco, ... - if the valuation is right, of course).
I think with such stocks you will have a good dividend yield in 20 years and will be happy not to have to get into them in the first place.

•

Uvilo@Uvilo

Thanks for the feedback 👍! That's actually a point I would try to take into account when making quarterly purchases. Do you have a dividend favorite?

••