3Sem.·

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 (+0,22 %)

30.09

Vanguard FTSE All-Wld Hgh Div Yld ETF D

Reçu x1045,36 dividendes à 0,519 $US

542,62 $US

8 Commentaires

Epi@Epi

3Sem.

De-compounding your investments. 💪

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Part_Time_Joe@Part_Time_Joe

3Sem.

@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

3Sem.

@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

3Sem.

@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

3Sem.

@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

3Sem.

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

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Basti92@BavarianLion

3Sem.

@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

3Sem.

@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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