My portfolio is currently mainly ETFs, with $FWRG (-0,04 %) + $IUIT (+0,23 %) + $AVWS (-0,64 %) as the core, focused on long-term growth.
I’m considering adding individual dividend stocks as a second layer. The idea comes from my long-term plan: as I get older, I would gradually shift part of my portfolio from growth towards dividend income.
The reason is that I don’t particularly like the idea of having to sell assets to create liquidity later in life. In a FIRE scenario, for example, growth stocks and ETFs would require me to regularly sell part of my holdings to generate income. With dividend stocks, the income is generated without having to sell the underlying assets.
At the same time, I see myself somewhere in the middle right now: I’m still young enough to focus mainly on growth and have many years ahead, but I also feel it could make sense to start building some dividend positions gradually, taking advantage of good opportunities along the way.
So rather than waiting until much later to make that transition, I’m considering starting to build a dividend portfolio gradually alongside my growth ETFs.
Another reason is that my ETFs already give me broad exposure to most of the market, so adding more individual growth stocks would probably mean adding more of what I already own. Dividend stocks could potentially add a different dimension to the portfolio.
A few questions for the community:
- Does combining growth ETFs + individual dividend stocks make sense for a 20+ year horizon?
- Would a dividend-focused ETF make more sense instead, or alongside individual stocks?
- Is it worth starting this transition early, even if dividends aren’t currently my main goal?
- If individual dividend stocks make sense, which companies look attractive or undervalued right now?
I’m more interested in quality, sustainable dividend growth, strong fundamentals and reasonable valuations than simply chasing high yields.
How would you approach this? 🫡
