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About high dividend ETFs

Hello all, I've being reading other users here and they usually advise to not put a high dividend ETF at young ages in your portfolio.

I'm currently 26 and building my nest egg, I thought let's put some extra in $VHYL (+0,29 %) so I can create slowly a snowball for the future. Reinvesting dividends to make it my dividend income in the future.

Although I'm wondering if would be better to just stick with $VWCE (+0,19 %) because of the price appreciation.

Still in the early months of my portfolio so definitely can make the change now before starting to raise my monthly contributions.

Appreciate the feedback 😁

7 Commentaires

Yes, it would be better

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SoftDev@SoftDev

@JuppDupp thanks! Appreciate the feedback, I'm trying to get informed as much as I can before making big contributions and this was kind of my last big doubt. Aside from that I feel confident with my ETFs selection.

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Frank C.@Frankster

I agree that $VWCE might be better considering your young age. However, there is something really reassuring and rewarding about dividend cashflows coming in. It all depends what works best for your state of mind. If you do want a dividend etf, also take a look at $TDIV.

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SoftDev@SoftDev

@Frankster_portfolio thanks! Appreciate every feedback.

In my case I did want a nice dividend yield to see the progress and think about that income as a passive income.

Although I'm also looking ahead and knowing it's something for the really long term so I'm okay with a slightly lower dividend yield considering the price appreciation! The idea is to have one distributive ETF to dump every dividend my portfolio yields and see it grow 😁

About $TDIV seems really interesting and saw a lot of comments in this app about it, sadly is not available in my broker (Revolut)

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Melchior@ColdzeroNL

Mathematically the 2nd would be better by a small margin but I like the feeling of recieving dividends and being able to distribute them myself. Also I live in the Netherlands where there is a 15% withholding tax on dividends but that is withdrawn from capital tax so that isn't a worry for me because you only have to pay one of those two. And I think I can live of my dividends in about 15 years about 10 years before retirement age without having to sell anything.

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SoftDev@SoftDev

@ColdzeroNL that sounds amazing mate! Congratulations for reaching that point for sure what we are all pursuing.

Here in Spain we have a 19% minimum tax on dividends and it goes up when you earn more than 6.000€.

My idea is to have a distributive and a bit less risky ETF (all world) to dump every dividend my portfolio yields and keep making the snowball bigger. I think about it as a little extra of my monthly contribution.

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Roberto H.@Misswirtschaft

Hello servus

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