3Settimana·

Building monthly dividend income with Dividend Kings alongside TDIV, does this make sense?

I'm 28 years old and building out my dividend portfolio. My core holdings are $TDIV (+0,14%), $VWRL (+0,11%) , $EIMI (-0,53%) and $SMEA (+0,11%), but I noticed I have zero dividend income in January, February, May, August and November.

So I'm thinking about adding a few Dividend Kings to fill those gaps:

Coca-Cola ($KO (-0,18%)) → Jan / Apr / Jul / Oct

McDonald's ($MCD (+0,09%)) → Jan / Apr / Jul / Oct

Procter & Gamble ($PG (-0,31%)) → Feb / May / Aug / Nov

Johnson & Johnson ($JNJ (-0,09%)) → Feb / May / Aug / Nov

All four have raised their dividend for 50+ consecutive years, through the dot-com crash, 2008 and COVID without a single cut. Payout ratios sit between 50-75%, which I consider healthy.

My plan is to start with €1,000 per stock (€4,000 total) and gradually build up. The goal is a stable, growing dividend income every single month, even during a market crash. Because that crash is definitely coming. But when, nobody knows.

My questions for the community:

1️⃣ Do you hold any Dividend Kings? Which ones and why?

2️⃣ Are JNJ, KO, MCD and PG solid picks or are there better alternatives I'm missing?

3️⃣ Does it make sense to add individual dividend stocks alongside a dividend ETF like TDIV, or is that just unnecessary overlap?

Would love to hear your thoughts!

17 Commenti

Olli@Olli68

3Settimana

$WINC + $EEI for Jan/Apr/Jul/Oct
$WQDS for Feb/May/Aug/Nov
$TDIV for Mar/Jun/Sep/Dec

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SpongeBob@SquarePants

3Settimana

@Olli68 looks great, never looked at individual stocks?

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Olli@Olli68

3Settimana

@SquarePants Of course I have some too, but this is my core for monthly dividends.

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NichtRelevant@NichtRelevant

1Settimana

@Olli68 Really cool combination! Great pick!

I also have $TDIV and $WINC as some sort of 'dividend core'. I bought the $EEI into the portfolio of my kids - for me the $EEI feels underrated.

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NichtRelevant@NichtRelevant

1Settimana

Normally I would say that you are too young to run a dividend strategy. That you have a lot of time for a successful and agressive growth strategy.
On the other hand: Why not a dividend strategy and - who knows - maybe some of those established businesses will do well in times of overheated and volatile markets.

@Olli68 has made some great suggestions in terms of ETFs. Of course there is nothing wrong about adding some individual stocks as well. The blue chips, which you have mentioned are classics.

I think that my own portfolio might be similar to the one which you are intending to build. Personally I have picked $BATS , $PFE , $DTE , $MUV2 , $ARCC , $AMGN and $PZU as individual dividend stocks (with some more exotic, smaller positions).

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Silas@Bein-Godik

3Settimana

$TDIV, $ZPRG and $ISPA

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D@DividendenKater

3Settimana

$LDGL

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A@nitroxx

3Settimana

I agree with the others—I’d go with ETFs. Personally, I sold $PG $JNJ and reallocated the funds into ETFs.
I still hold$MCD and $KO, though $MCD will likely be sold or at least cut in half.

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SpongeBob@SquarePants

3Settimana

@nitroxx what is the reason if I may ask?

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A@nitroxx

3Settimana

@SquarePants in my eyes, the dividend etf runs more stable

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Martin B.@Martin_B100

3Settimana

looking at MCD but haven't bought that one, might do if that goes lower. I own the other 3, like them so far but JNJ seems high on the price right now.

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Poor Dad@PoorDad

3Settimana

Choose stocks with stronger earnings growth and dividend growth.

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SpongeBob@SquarePants

3Settimana

@PoorDad do you have suggestions?

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Poor Dad@PoorDad

3Settimana

@SquarePants I find $HD really interesting, even though its profits have stagnated in recent years. But that can be attributed to weak consumer spending in the U.S. I also find UnitedHealth interesting, and I think I'll keep the stock in my portfolio for a very long time 🧐

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Guillaume@Guillaume_C

2Settimana

One advice ... if you are 28, you have years ahead of you, so you should over index on growth ETF for the long term. the value of TDIV is more to get lower beta, at the cost of the fiscal friction. lower beta matters much less when you have 20-30 years ahead of you

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SpongeBob@SquarePants

2Settimana

@Guillaume_C Yes, I agree. But the market is very heated right now, so I try to play defensive. Dividend stocks have industries that sometimes do wel with crashes and crisis. I am building both up at the same time.

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Guillaume@Guillaume_C

2Settimana

@SquarePants agree, doing the same

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