2Mon·

Shares wanted for the dividend portfolio

Hello everyone,

Having only entered the stock market in February, I have decided to make a radical change today: I want to restructure my portfolio towards a dividend portfolio.

About the savings plan: Monthly deposits, duration: until retirement, i.e. around 38 years.

The aim is not necessarily to be able to live off the dividends, but rather to use them as a nice extra. An average dividend of 4% p.a. would be desirable.

About the portfolio:

The portfolio should consist of a 60/40 ratio of dividend-paying ETFs. The background to this is that I want to diversify as widely as possible. I currently have the $VHYL (-1.07%) with just under 25%, the $ZPRG (-1.03%) with just under 22% and the $IMEU (-1.07%) with just under 13%.

The remaining 40% of the portfolio should consist of equities. And this is where your expertise is needed: which high-dividend stocks with future potential would you no longer want to do without in your portfolio?

To begin with, I have opted for $ALV (-0.56%)
$VOW (-0.54%)
$MBG (-0.9%)
$O (-2.16%)
$ULVR (-1.42%)
$INGA (-0.54%) and $BAS (-1.94%) today.

I would like to have a total of 20 shares with 2% each in my portfolio. These should be as diversified as possible - both in terms of sectors and regions - even if the ETFs already contribute to this. Speculative shares may be included, but only sporadically.

Thank you very much and I look forward to your feedback!

34 Comments

Eric@Eric030903

2Mon

Coca Cola, MC Donalds

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Maximilian@Max095

2Mon

At your age, I would focus primarily on dividend growth, at least that's what I do.
$ZTS $V $MSFT $NEE $NOVO B $PGR $AFL $4063

ETF: $FGEQ

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DiviMike@DiviMike

2Mon

Thank you, I have now implemented this.

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DieEnte7@DieEnte7

2Mon

If you still have 38 years to go, I wouldn't place too much value on the 4% dividend if I were you. At the end of the day, this will be taxed and if you don't reinvest consistently, you could lose a lot of return. Of course, it's nice for motivation, and I can understand that, but don't focus too much on this one factor. That being said, here are a few stocks that I find attractive and yield at least 3% or more:
$DHL
$CLX
$SHEL
$DLG
and, if it can be a bit more speculative: $BMPS

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DiviMike@DiviMike

2Mon

Thank you! Your stock suggestions have now found a place in my portfolio.

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Capt‘n@Wuestenschiff

2Mon

Where do you see German carmakers in 38 years? With two individual stocks, the weighting would be very high. I know the dividend seems attractive, but I at least don't see a rosy future...

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DiviMike@DiviMike

2Mon

@Wuestenschiff So with regard to VW, I am optimistic for the future. VW will probably also benefit from the government's billion-euro package. I have now removed Mercedes again and added $RACE instead.

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PatitosFortune@dividend_master_pf

1Mon

@GMK_VII I was so close to adding $MBG to my portfolio especially with that dividend coming up but after scoring it against other options decided not to

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sodium@TomCOR

2Mon

OMV $OMV oder public storage $PSA

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DiviMike@DiviMike

2Mon

Thank you!

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Adrian@buysedip

2Mon

Would rather focus on dividend growth stocks. Even if the dividend yield seems low at first, over time you will achieve a decent personal dividend yield. Especially with your long investment horizon.

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Maximilian@Max095

2Mon

@buysedip yes and above all course growth 🚀

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Adrian@buysedip

2Mon

@Max095 Yes, it's a nice mixture.

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DiviMike@DiviMike

2Mon

@buysedip Thank you for your input. I have now set my focus on dividend growth.

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Adrian@buysedip

2Mon

@GMK_VII clean! What kind of companies are you looking at now?

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Robert125@Robert1972

2Mon

Rio Tinto, Coca Cola, DHL

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F@Cai-pirinha

2Mon

$RIO $MCD $KO $CAT $PLD $8001
Dividend growth $APH $RACE $BLK
ETF $TDIV

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DiviMike@DiviMike

2Mon

Thank you very much!

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F@Cai-pirinha

2Mon

@GMK_VII oh well, how about something like $HSBA $UCG or similar?

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DiviMike@DiviMike

2Mon

@Cai-pirinha $HSBA I actually have it in there, I'll take a look at $UCG.

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PatitosFortune@dividend_master_pf

2Mon

Love the structure and long-term mindset here, I’ve adopted a similar approach, and just entered in February as well, just don’t think I have that long horizon hehe 🥲

One thought, while a 4% yield is a nice goal, I’ve found that focusing too much on the headline yield can sometimes lead to weaker picks.

Over time, things like dividend safety, payout ratio, earnings growth, and how fast the stock recovers after ex-div dates can have a much bigger impact on total returns.

A 3% yield that grows steadily and comes from a solid business can often beat a 5% one with no growth or high risk.
Lots of due diligence to cherry pick, good luck on your search!

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DiviMike@DiviMike

2Mon

@dividend_master_pf Thank you very much for your opinion! I will remember it.

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opportunity_scout_2288@opportunity_scout_2288

1Mon

BASF

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_ake_@_ake_

1Mon

I could recommend $PFLT or $EFC. Very risky. With a very high dividend yield.

I am invested in both stocks myself. I've been invested in $PFLT since 2014. The performance tends to stagnate. But you can compensate for that with the monthly dividend yield. The stock is not subject to very large price fluctuations. It was already very volatile during Corona. But I used that as a new entry point.

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DiviMike@DiviMike

1Mon

Great, I'll take a look at both titles, thank you very much!

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Olli@Olli68

2Mon

I find the $VHYL rather counterproductive at your age.

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bls@market_mastermind_25

2Mon

If you have so long until retirement I would consider some growth etfs like $VUG or just $QQQ

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Tom@Tom_laeuft

2Mon

If you like, you can take a look at my portfolio. 60% dividend stocks and 40% ETFs, most of which also pay dividends. Getquin KI is 78/100

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DiviMike@DiviMike

2Mon

@Tom_laeuft So you would put more emphasis on equities than ETFs?

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Tom@Tom_laeuft

2Mon

@GMK_VII No. Not necessarily. The higher proportion of shares in my portfolio was due to the high number of Mercedes shares. I would possibly aim for around 50/50 or a slightly higher proportion of ETFs

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PatitosFortune@dividend_master_pf

1Mon

@Tom_laeuft I’d also be interested if you don’t mind :)

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Tom@Tom_laeuft

1Mon

@dividend_master_pf of course

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MJS@portfolio_prophet_581

1Mon

How about some holding companies? There're basically also a sort of ETF but they have access to private equity. Some suggestions Sofina, Brederode, Investor AB and the most well known Berkshire... They might not give you a high dividend yield at the moment, but with a long horizon...

I'm thinking about doing this myself but first I'm restructuring my portfolio towards ETFs.

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F@Cai-pirinha

1Mon

@portfolio_prophet_581 true that, that's why I've mentioned $8001 - in regards of a significant dividend yield there's also $MUX

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