1Semana·

How to allocate 20 K an alternative idea to choosing 20 US Stock from the previous post..

In my last post I assumed that I was buying 20 U.S. stocks putting in about 1,000€ per share to create a diversified portfolio...

In this post I came up with an alternative idea that is less diversified and more income-driven...

Invest 20 k allocated 5 k per instrument:

$LDGL (-0,07%) - L&G Global Quality Dividends UCITS ETF USD Dist.
$MAIN (+0,31%) - Main Street Capital
$ARCC (+0,69%) - Ares Capital
$STHY (-0,08%) - PIMCO US Short-Term High Yield Corporate Bond UCITS ETF Dist

After taxes it's a little over €1,000 per year which compared to about €450 per year given by the 20 individual U.S. Stocks makes a big difference...although the 20 Stocks over time could partially close the gap by increasing their individual dividends over the long term...this option offers more sector exposure but gives good cash flow and a more immediate return.

10 Comentários

ETFBAAS@etfbaas

1Semana

Let me give you a better idea.

To allocate 20K
30% $FTWG
30% $TDIV
15% $WINC
15% $LDGL
10% project OWN etf (find your own dividend/growth stocks)

This is the “perfect” balance between income and driven growth, and gives you the time to make mistakes and learn from your “own” etf project by picking stocks on your own (like Main Street Capital/ Hercules Captial and so on)

🫡💪

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I. G.@MrDividend_108

1Semana

@etfbaas WINC and LGDL they are already in my wallet 😁

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NichtRelevant@NichtRelevant

1Semana

@etfbaas Looks like a good suggestion. I have both $TDIV and $WINC in my portfolio to generate some cash flow.

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ETFBAAS@etfbaas

1Semana

@NichtRelevant have this combination since this year, will keep you posted about the results 💪📈

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NichtRelevant@NichtRelevant

1Semana

You have definetly more payout with this choice. However I find it a more risky approach. (I have the $ARCC in my portfolio as well ).

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Simone B.@TheRealSimone

1Semana

I would honestly opt for a portfolio and try to postpone paying taxes as much as possible.... (Especially if foreign). It makes sense to switch to a dividend portfolio when you have well built your wealth

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I. G.@MrDividend_108

1Semana

@TheRealSimone I will need from next year a supplement to my income that's why my portfolio is largely distribution and not accumulation

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Jorge@Frost

1Semana

@MrDividend_108 and why not try to make more income instead?

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I. G.@MrDividend_108

1Semana

@Frost In fact, in my last post I presented an idea for having a higher income..

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NichtRelevant@NichtRelevant

1Semana

@TheRealSimone I understand that is the usual aproach. And especially for young people probably the correct one if you can afford to live from your regular income and let the portfolio work for you in the meanwhile.

Still motivation thru dividend paypouts helps. 😉

In my case as an "old guy" the payments from dividends are necessary as I have decided not to work any more when I was 48 (now 51). I use the payments from dividends as suplementary income.

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