2J·

Another fundamental discussion ...

Dear people,

I can't keep my feet still again. And yes, I know ... Actionism kills returns. But after a brief explanation, I'm sure you'll understand better what's on my mind and why I'm talking about a fundamental discussion. Personally, I make no secret of the fact that I have great respect for Gerd Kommer. At the same time, I also find Helmut Jonen's (waikiki5800) online content exciting. In short, maximum dividend promotion vs. Gerd Kommer, who, as is well known, prefers total returns to dividends and, to put it mildly, thinks absolutely nothing of dividends (and this is also scientifically proven).

Some time ago, I personally opted for a core-satellite approach with dividend growth (although the $GGRP (+0,19 %) more disappointing than inspiring). I also have a small pure dividend portfolio (just under 20% of the total portfolio value). I took this approach mainly to minimize risk, and the payouts are also quite nice from a purely psychological point of view. BUT (and this is a big but) ... I don't notice any real risk minimization, but rather a below-average return (as Gerd Kommer always preaches). I already make full use of the tax-free amount through the flat-rate withholding tax, so I don't really have any significant advantage there either. So the question is for you ... How would you personally design the portfolio structure? Continue with the split concept or focus on maximizing returns? I wouldn't mind 2% more per year 😁 My IZF is currently 9%. According to Morningstar X-Ray, I beat the "benchmark" (which is unfortunately not defined in more detail) moderately over the 3- and 5-year periods. Nevertheless, simplification and optimization would of course be the best of all options. I know - we all don't have a crystal ball. Nevertheless, you are simply fantastic advisors here with knowledge of the subject matter - even the discussion is fun 😀

With this in mind, I would like to thank you once again for listening and for any feedback and wish you a wonderfully sunny day and excellent returns 🫡

Yours _EvD_ 😎

5 Commentaires

Enrique@Dividenden_Monteur

With people like Helmut Jonen, many people forget that he has been on the stock market for 40 years 😅 Of course he can preach on insta that you should stay calm and collect dividends, I would say the same if I got my investment in Allianz back as dividends every year.

Better concentrate on dividend growth and add a couple of high dividends if it satisfies you psychologically.

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Harald@Madhatter5566

I myself am not a fan of dividends for the sake of dividends. Total return is what counts in the end. Period.

The idea that selling part of your position once a month or quarter to pay taxes, recount and redeposit adds any value is, in my opinion, the biggest self-deception there is. Psychology or not.
As long as you don't need the money that comes back, it's just an effort that hinders your view of what counts: Return on investment.

If you are of the opinion that other things work better with the same risk, I would at least not continue to invest in the old strategy but in the other one. You can decide later if you want to reallocate. You may be wrong.

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Epi@Epi

I like fundamental discussions, they're so nice... fundamental! 😊

In your case, I find it interesting that you obviously know the rational arguments against dividends and can confirm them through your own experience. Nevertheless, you are unsure and continue to rely on dividends to some extent. This means that it is ultimately a psychological question. You seem to expect something (irrational) from dividends. You should find that out first.
Once you have that, you can find out what this something systematically costs you in terms of returns. And then you can decide whether you want to hold on to it for the sake of your peace or free yourself from it for the sake of your return.

Good luck!

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EugeneKrabs@Danicx13

You may not achieve the highest returns in boom phases, but you won't suffer the biggest crash in crises either.
The dividends become more and more over the years. I think that in the end you will have more fun with the Core Satellite strategy instead of just ETFs. Just stick with it.
That's definitely the case for me.

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Olli@EisenEnte

I read your post and then looked at your depot. Somehow it doesn't fit together in my opinion.
The way you write it sounds like: FTSE all world + div ETF + single stocks with div focus.
But that's not how your portfolio is structured with the many ETFs that all overlap.
Why don't you first actually do as you write, or do a backtest with a demo portfolio with the setup and check whether it meets your requirements.
I am currently very dividend-heavy and very happy with it. Compared to the FTSE all world, I have done better since starting the portfolio. Perhaps this is also due to $TDIV, which is doing very well.
But as I said, if you want the strategy, then implement it...at the moment it looks like a bit of everything 😐

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