13H·

Dividend strategy

This is my first post, so please don't hate. 🙂

I've been using the dividend strategy for a year now because it motivates me to stick with it. The simple one-ETF solution is too boring for me in the long run - I have more fun following individual stocks from time to time.

So far, I've mainly invested in dividend ETFs, and I want to keep it that way. However, I would like to add a few individual stocks to my portfolio to make it more interesting.

My goal is a maximum of 10 individual stocks so that I don't lose track. Here are the stocks I'm currently looking at:

Realty Income ($O (+0.02%) )
Main Street Capital ($MAIN (-0.37%) )
Agree Realty ($ADC (-0.05%) )
STAG Industrial ($STAG (-0.05%) )
BlackRock ($BLK (+0.35%) )
The Home Depot ($HD (+0.18%) )
Munich Re ($MUV2 (-0.02%) )
Chevron ($CVX (+0.27%) )
American Electric Power ($AEP (+0%) )
Waste Management ($WM (+0.26%) )
Sixt Vz. ($SIX2 (-0.13%) )

My questions for you:

👉 Are these stocks generally suitable for a dividend strategy?

👉 Is there potential for improvement in terms of sector and country allocation?

👉 Is there a stock that you think should definitely not be missing?

Looking forward to your opinions and tips!

#dividendenstrategie
#einzelaktien
#passiveseinkommen

7Positions

€9,611.23

5.71%

8 Comments

MoneyIncinerator@DoppelSchlechtMinus

12H

Simply create a test portfolio here, where you enter fictitious purchases of the 10 shares. This makes it much easier to recognize the potential for improvement in terms of sector and country allocation.

Whether the values fit also depends on what you mean by "dividend strategy" and what your goal is.

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DerZyklon@DerZyklon

12H

@DoppelSchlechtMinus At best, it should have a high payout ratio and at the same time show strong dividend growth.

Thanks for the tip, I'll give it a try

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MoneyIncinerator@DoppelSchlechtMinus

12H

@DerZyklon However, a high payout ratio and strong growth are simply forces that work against each other.
Of course, there are always companies that deliver both for a few years, but in the long term this is rather unrealistic.
You should therefore not necessarily expect more than inflation compensation from the high yielders in your selection in terms of dividend growth, and accordingly a lower total return compared to your ETFs.

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Buddy@Dampfhammer

I would also consider the idea of a test portfolio. For a clear dividend strategy, you can't avoid a significant US share. Nevertheless, I don't think you should ignore diversification, and I wouldn't have chosen your existing ETFs, as the country weightings and the top 10 holdings are very similar - too much duplication for me. But there are good things in there, I would concentrate on a sector for the next investment that you think should be in there next. This will automatically reduce your selection or watchlist. Before that, I would expand your positions. But that's always a question of strategy. Keep up the good work! Good luck.

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DerZyklon@DerZyklon

@Dampfhammer Thank you very much, the three ETFs are chosen because each pays out every four months and therefore a distribution is made every month.

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Nobody@Nobody_123

12H

I understand you 🫡

But with this plan, are you aware that your US share will be very high? If that's what you want, that's fine.

Personally, I only have individual stocks and try to distribute the portfolio as evenly as possible globally... (I'm still working on this, my US share is still just over 50%)

And you don't really seem to be aiming for a sector diversification?

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DerZyklon@DerZyklon

12H

@Nobody_123 So I've written down a few titles for now. For example, you could switch to $RWE instead of $AEP. But at the same time I want to avoid the home bias. Do you have any interesting titles?

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Nobody@Nobody_123

12H

@DerZyklon So RWE hasn't worked for me for the last 5 years 😂

You can look at the depot or watchlist or also @Dividendenopi, @SAUgut77 or others

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