1Sem.·

Dividend stocks ETF compiled

Hello dear getquin community and dear dividend investors,

inspired by some users (@Simpson I'm looking at you!) here and have been thinking about it myself for some time, I would also like to put together a sustainable and high-quality dividend stock ETF. I used the tool from Aktienfinder.net and paid attention to growth in earnings, growth in dividends and growth in overall price performance. I also wanted to diversify a little more broadly across several countries and sectors so that it covers a lot all round.

I have put together a total of 60 shares (satellite), which I would like to invest €10 in each. I don't really want to do any reallocations, I've also focused mainly on established companies (moats etc.). It's a mix of dividend growth and share price growth together, so the dividends here range from 0.62% to 5.38%.

I realize that there are a lot of US companies here, but I think it's hard to avoid them.

My 6 ETFs serve as a core, which I would put on hold for the time being, but of course continue to generate cash flow:

My goal here is clearly to outperform a few of the ETFs mentioned above with the shares, be it in dividend yield after x years with better price growth overall.

What do you think of the selection?

@Simpson
@AlterMann
@Ayecaramba256

27 Commentaires

Stulle 🥪@Stullen-Portfolio

1Sem.

Okay, we don't want to get into a discussion here about whether it makes more sense to invest in companies that use their profits for their own growth or in those that distribute them to investors...

But: one idea could be to invest in ex-US companies first and wait for the development of US companies at "899" -> dividends from individual shares may be hit harder or differently than those from ETFs 🤷

Greetings
🥪

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BockaufDividenden@BockaufDividenden

1Sem.

@Stullen-Portfolio Yes, exactly, that would be a philosophical question that everyone has to decide for themselves, thank you for taking that right up front.

I'm also torn between waiting until after July 4th and then reacting, it's going to go one way or the other as far as the 899 provision is concerned.

It's difficult to estimate anyway whether you could beat a $TDIV with the dividends from the 60 shares, for example, if you still have to consider the 70% partial exemption and domicile NL (or analogous ETFs, with domicile in Ireland because of taxation...).

But unfortunately there are so many lame ducks in the ETFs...

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Ronald@AlterMann

1Sem.

I've had a quick look: I have at least 20 of them in my portfolio.
Now you should increase the savings plans every year with rising dividends

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BockaufDividenden@BockaufDividenden

1Sem.

@AlterMann That would be the plan, but first stay at €10 per share and see how it develops :)

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Ronald@AlterMann

1Sem.

@BockaufDividenden sounds good.
But hopefully not at TR

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BockaufDividenden@BockaufDividenden

1Sem.

@AlterMann Absolutely not - I'm with Scalable Capital.

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Ronald@AlterMann

1Sem.

@BockaufDividenden TR is like licorice. If there's nothing else, it's ok. Otherwise, everything else is better. 🤷‍♂️

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Homer@Simpson

What can I say I have 40 of them in my savings plan myself 😂👍

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BockaufDividenden@BockaufDividenden

@Simpson would you kick some of them out so that you would end up with a nice number of 50 shares? But then again, you certainly have twice as many in yours :D

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Homer@Simpson

@BockaufDividenden 3 times as much 🤣
Probably the positions that don't mean anything to me are difficult 😂

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Chris@Multibagger

1Sem.

I would actually be interested to know what dividend yield you can expect with this portfolio as of today? Unfortunately, this information is missing from the values.

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BockaufDividenden@BockaufDividenden

1Sem.

@Multibagger I did a little more math, you got me thinking! :)
Always the !average! of the 60 dividend stocks =

Dividend yield 2.499%
Annual dividend growth over 10 years 13.508%
Annual dividend growth over 5 years 13.634%
Annual dividend growth estimated 11.585%

Annual increase in profit over 10 years 11.793%
Annual profit growth over 5 years 17.990%
Annual growth in profit estimated 5.531%

Annual increase in price over 10 years 12.569%
Annual increase in price over 5 years 13.303%

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Kapitän K.@PalmPirateTechnocrate

@BockaufDividenden What does that mean if you invest for 10 years? will you have 2.5%+12% per year more dividend? I am currently at 2.762% according to getqin and am very happy with that, but I still have >50 positions. I would like to reduce these to a maximum of 42 by the end of the year. Possibly even less. Well. I think your stock selection is very wise and good, but monitoring 60 stocks? hm... I prefer less is more.

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BockaufDividenden@BockaufDividenden

@PalmPirateTechnocrate Hey, I would use the compound interest formula according to your question, and it works as follows:

https://www.zinsen-berechnen.de/zinsformeln/zinseszinsformel.php

After entering all parameters, i.e. starting dividend 2.5%, growth rate of 12% or 0.12 and period of 10 years for n, the result would be approx. 7.76%.

After 10 years, the dividend yield on the original purchase price is around 7.76% if the dividend increases by 12% annually, but it should also be noted that the higher the dividend a company pays out, the more the increase in the dividend payout tends to decrease. No company will be able to maintain this at a high level for 10 years

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DiviMike@DiviMike

1Sem.

Very strong and interesting stocks! I am very curious to see how your portfolio will develop.
I wish you good luck and high returns. 🍀

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DividendenAlpaka@DividendenAlpaka

1Sem.

Great selection, great stocks among them and definitely more exciting for you as an investor than a classic MSCI World. I'm curious to see if you outperform the MSCI World. Personally, however, the US share would be far too high for me.

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BockaufDividenden@BockaufDividenden

1Sem.

@DividendenAlpaka Thank you very much for your words! I also had great difficulty finding stocks that are outside the USA but with a reasonably solid moat and just those criteria with dividend, profit and price growth. At aktienfinder.net I found a lot of financial stocks, which would be far too much of a cluster risk for me.

That's why I included many sectors other than financials, but unfortunately a lot of US stocks. I left out other stocks, e.g. from France, because the taxation of dividends is even worse there.

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Ayecaramba@Ayecaramba256

I also have 22 of them and a few on the watch, so you're doing everything right 😜 for some of them I decided on a different value from the respective peer

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💁‍♀️@_aaaa_

1Sem.

What is it good for? Such a self-built "ETF" only has disadvantages in the long term

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BockaufDividenden@BockaufDividenden

1Sem.

@_Hippo_ I am of the opinion that in the long term, in relation to the past, it naturally has the chance to achieve a higher increase in dividends, share price and profit than, for example, $TDIV. Unfortunately, the withholding tax and partial exemption have to be taken into account, that's true.

Or what disadvantages do you see here? My proposed 60 stocks are all hand-picked stocks, and not so many lame ducks that you have in all dividend ETFs.

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Ronald@AlterMann

@BockaufDividenden Talking about finances with someone who carries an egg figurine everywhere and takes pictures of it - I don't know.... 😂

We have a colleague who has hand puppets on his desk and talks to them - nobody takes him seriously either...

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Gehebeltes-EFH@Gehebeltes-EFH

Ben Felix's videos are always refreshing. This time on stock picking:

https://youtu.be/RxCqxhRsHiY?si=J2DNoMiiNc1qjBwd

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BockaufDividenden@BockaufDividenden

@Gehebeltes-EFH Hey thanks for the video. I finally found the time to watch the video a while ago and have to ask, does it even fit my thread here?

My focus here is dividend growth and dividend yield over time, ideally steady price growth as well.

BUT, NOT about stock picking as described in the video, finding the next Palatir or Nvidia or other AI highflyers e.g....
In the video it is clearly stated that with a higher number of hotstocks you can catch a pearl that can outperform, but then you can also play the lottery, according to the statement. Also that many companies in the Russel 3000 underperform after a while.

But there is zero reference to dividends and reinvestment of dividends etc. Especially as I have been paying a lot of attention to moat stocks and ongoing market share for years / decades

In my opinion the video doesn't quite fit the theme here. I'm not about hotstock picking.

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Gehebeltes-EFH@Gehebeltes-EFH

@BockaufDividenden "Also that many companies in the Russel 3000 underperform after a while." That's exactly the point Ben Felix is making. Only a small proportion of stocks are responsible for a large part of the return. And we can't know in advance which stocks these will be and which stocks may even disappear from the market altogether. In my opinion, it doesn't matter whether the companies have dividend growth. You "pick" a few stocks that you assume will perform better than others. What is that other than stock picking?

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BockaufDividenden@BockaufDividenden

@Gehebeltes-EFH That's absolutely right, it's also a kind of stock picking, but it's systematic in the sense that I've used Aktienfinder.net over the last 5, 10 and 15 years to see how things have gone. If 10-15 of the 60 stocks now perform absolutely badly, then hopefully the others will do better.

From a purely mathematical point of view, you have a 33% chance per share that it will either do very badly and go down, a 33% chance that it will hold its value and a 33% chance that it will go up.

So there is at least a 2/3 chance that all shares will perform the same or worse. However, the historical valuation and the castle's grave characteristics lead me to believe that this will continue for the time being,

What do you think about the High Dividend All World or others with over 100 or 1000 positions, how many of them contribute nothing?

Of course, it's also just an attempt to build a small ETF for yourself, of course

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Jason M.@JasonMcMillen

You can take inspiration from this Etf as far as America is concerned. $SPYD There will probably already be some overlaps.

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BockaufDividenden@BockaufDividenden

@JasonMcMillen hey, I've also been saving for a while, but the meager returns bothered me a bit, but certainly not a bad etf

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