1Wk·

Well, I'll join in, too 🎆🎇

The dividend from my Vanguard High Yield fund came in right on time today! It's always a good feeling when my cash account fills up a little bit again 😉

$VHYL (-0.38%)

30.09

Vanguard FTSE All-Wld Hgh Div Yld ETF D

Received x1045.36 Dividends at $0.519

$542.62

8 Comments

Epi@Epi

1Wk

De-compounding your investments. 💪

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Part_Time_Joe@Part_Time_Joe

1Wk

@Epi Why? Since ETFs are taxed in advance, that shouldn't really make much of a difference anymore, should it?

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Basti92@BavarianLion

1Wk

@Epi There’s one thing you shouldn’t forget—of course, everyone sees it differently—but dividends can have a huge psychological impact! It’s helped me out many times 😉

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Epi@Epi

1Wk

@Part_Time_Joe The problem isn't the tax; it's that money is being taken out of the investment process.

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Epi@Epi

1Wk

@BavarianLion The psychological effect is undeniable. Ask yourself where it actually comes from. Is it the lower volatility of the dividend amounts, or is it the illusion of generating passive income, or is it the sense of self-efficacy, or...?
Those who understand themselves can optimize their investments accordingly.

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profit_potential_lqufk@profit_potential_lqufk

1Wk

@Epi That might be intentional; for me, for example, the dividends help me rebalance my Level 1 allocation.

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Basti92@BavarianLion

1Wk

@Epi I think for me, it’s a mix of all the points you mentioned! But I’ll be completely honest here: I’d rather give up a little return if the dividends help me stick with it for 20+ years! Yeah, maybe that’s silly, but in the end, everyone has to find what works best for them!

And in terms of performance, my two dividend ETFs aren’t doing too bad at all! Sure, I’d have a higher return if I’d just stubbornly thrown everything into the FTSE All World… but like I said, sometimes the psychological aspect matters, too! 🙂

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Basti92@BavarianLion

1Wk

@Epi I just wanted to add that dividend stocks don't necessarily have to perform poorly! For example, I initially viewed HSBC as a dividend stock, and today I've seen a return of nearly 80%!

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