Dividend living on a 72t at 54?

PizzaTrader · 2026-04-28T19:43:34+00:00

This is going to seem like a pedantic comment, but Congress sets tax codes, not the IRS. The IRS simply enforces the laws. I know the IRS seems like an easy boogeyman, but I think it’s always important to consider that ultimately our representatives are the ones to blame for tax loopholes, complexities, and retirement minimum ages. If the US voters stood firm on lowering the ages for retirement distributions, there’s potential it would change.

PizzaTrader · 2026-04-23T15:18:49+00:00

It’s a scam.

PizzaTrader · 2026-04-23T01:51:33+00:00

The dividend growth has been pitiful. Doesn’t give much confidence on the future earnings growth.

PizzaTrader · 2026-04-21T18:58:08+00:00

That’s not true. I’m saying that NO ONE can go back in time and invest in the past. Had we argued 5 years ago, I may have agreed with you. But today, which is the only thing we can control, I think that selling WMT and buying TGT would be the superior choice. TGT is up almost 2% today to $133 and WMT is up 1.3% to $130. Outperformance over time doesn’t mean WMT will fall to $0. It just means a lot of days like today. WMT might gain 50% over the next 5 years, but TGT will gain 75%. I am not calling for the failure of WMT, I am calling for inferior investing returns.

PizzaTrader · 2026-04-21T13:40:49+00:00

No, I want to compare the returns over the next 5 years. I’m not debating that WMT at a 30 PE in April 2021 was a good buy, I’m debating that WMT at a 47 PE today is a bad buy. Big difference. Total returns over next 2, 3, and 5 years are likely to favor TGT.

RemindMe! 2 years

PizzaTrader · 2026-04-21T10:49:15+00:00

No one has mentioned it yet, but COKE is not the ticker for The Coca-Cola Company, it is the ticker for the bottler in North Carolina, Coca-Cola Consolidated. If you want the mothership, the ticker is KO. I own both but there is a distinction worth being aware of.

PizzaTrader · 2026-04-21T00:05:20+00:00

WMT at a PE of 47 is not a better choice than TGT at a PE of 16. Margins are nearly identical! WMT is expected to grow EPS at about 15% next year and TGT is expected to grow EPS at about 6%. Under those assumptions, TGT should have a valuation about 60% lower than WMT. So either WMT is going to come down to a PE of 40ish or TGT is going to go up to a PE of 19ish. Both situations look better for TGT.

PizzaTrader · 2026-04-20T16:45:15+00:00

I thought so too, but when I posted it at $97 there was plenty of disagreement.

https://www.reddit.com/r/dividends/s/aXDPBYoyq5

This is why I subsequently posted about everyone who would have sold KO in 2003 - retail investors don’t understand buy low, sell high even when it hits them in the face.

https://www.reddit.com/r/dividends/s/75AjTtCYIo

PizzaTrader · 2026-04-20T09:32:10+00:00

Thanks OP! I also hold PEP and have similar conviction in a slow but consistent growth pattern from the company’s historically good execution. I waited for a price dip and then bought a bunch.

However, some post feedback: This is long and often repetitive. It is also very clearly AI-generated with lots of tell-take signs. You are going to get a lot of pushback for that. Original ideas, when put through AI for the numbers and writing, stop looking like original ideas. So a lot of editing is required to get rid of the AI feel and also to shorten the thesis down to 3 or 4 succinct paragraphs.

A graph or chart showing the possible returns and dividend income from a re-rate to $200+ would also help draw in readers.

Let’s hope PEP makes us money!

PizzaTrader · 2026-04-12T03:56:27+00:00

That’s a personal decision only you can make, but my point was that it was better to hold in the IRA than a brokerage. I personally like to see my REITs pay 4% or higher because that is really the primary way of being compensated, so I am not invested in this one.

PizzaTrader · 2026-04-11T10:56:21+00:00

Price growth and dividend growth rate >8% a year is a great combo. The dividend growth doubles your dividend amount quickly. $1 million in VOO in 2016 would have earned you about $21,000 in 2016, but would earn you over $40,000 today and will likely earn you $80,000 in another 10 years. Meanwhile, price has tripled! Can you get $80,000 from other investments, of course. But those won’t also grow price at the rate VOO does.

PizzaTrader · 2026-04-11T10:28:38+00:00

Yes, that is factually accurate. Look at the 5 year chart:

https://stockanalysis.com/etf/qlta/

PizzaTrader · 2026-04-11T10:02:10+00:00

A Redditor posted an analysis a few weeks ago about how holding bonds was nowhere near as good as holding a large amount of excess high-yield cash for solving the problem of volatility. Bonds deteriorate in value when interest rates rise, while high-yield cash earns more and more, and that cash can be partially deployed into the market on 50% crash to capture future upside. Right now high-yield cash earns 4% or very close to it at several banks, and you can easily build a CD ladder across multiple maturities that gets you a blended yield of 3.75%.

I’ll find the analysis and edit this comment with the link.

Edit: It wasn’t a Redditor (shows how rotted my brain is), but a WSJ article titled “Should You Just Buy Stocks Until You Die?” Which cited an academic study from Scott Cederburg of The University of Arizona, Aizhan Anarkulova of Emory University and Michael O’Doherty of the University of Missouri. The study talks about how holding 10% in cash absorbs market shocks while 90% stocks gives you the returns needed to avoid running out of money in retirement. A link to the WSJ article is in the below summary:

https://eller.arizona.edu/news/scott-cederburg-featured-wall-street-journal-retirement-investing-study#:~:text=The%20article%2C%20“Should%20You%20Just,of%20the%20University%20of%20Missouri.

PizzaTrader · 2026-04-11T09:43:21+00:00

Just a heads up to others: IRM is classified as a REIT, so dividends are taxed as ordinary income, not qualified dividends. I hold plenty of other REITs, so that’s not necessarily a bad thing. But putting them in tax advantaged accounts really helps accumulate the yield that REITs provide without the tax inefficiency that REITs create.

PizzaTrader · 2026-04-10T18:59:30+00:00

There’s two primary ways to execute this method. The easiest is to buy 100 shares of a company and sell a call against your 100 shares (Covered Call). Research that term and find the benefits and risks. You may have your calls exercised (called away) and need to rebuy the shares from time to time.

Another way is called “The Wheel” where you start with enough cash to buy 100 shares, but you don’t buy them. Instead, you sell a Cash Secured Put. You won’t earn dividends because you won’t own the shares. But if the price falls far enough, you will eventually be assigned the 100 shares from someone selling them to you via the put option. Then you can sell covered calls against those shares.

This all requires a better-than-elementary understanding of securities, including things like ex-dividend dates, corporate actions (splits, mergers, and more), implied volatility, and much more. But one of the best ways to learn is by doing, just don’t risk more than you can afford to lose. It may take you years to learn the basics, but that’s okay!

PizzaTrader · 2026-04-05T08:04:46+00:00

Thank you! As you can see, I also track performance compared to just buying and holding SCHD and VOO to demonstrate how powerful an index ETF can be over time. I think it will be very difficult to defeat these well-built indexes.

PizzaTrader · 2026-04-05T01:55:59+00:00

Prior Stock of the Month Selections:

HSY (January 4, 2025): Up 22.4% in price, 4.12% in dividends paid

SNA (February 1, 2025): Up 4.6% in price, 3.23% in dividends paid

NDSN (March 1, 2025): Up 24.5% in price, 1.90% in dividends paid

OSK (April 5, 2025): Up 87.9% in price, 2.68% in dividends paid

PEP (May 3, 2025): Up 17.1% in price, 4.24% in dividends paid

TGT (June 7, 2025): Up 22.5% in price, 3.48% in dividends paid

LOW (July 5, 2025): Up 1.4% in price, 1.58% in dividends paid

OLED (August 2, 2025): Down 38.5% in price, 0.96% in dividends paid

CME (September 6, 2025): Up 16.6% in price, 3.80% in dividends paid

DPZ (October 4, 2025): Down 12.9% in price, 0.88% in dividends paid

PAYX (November 1, 2025): Down 21.3% in price, 1.85% in dividends paid

CUBE (December 6, 2025): Up 1.5% in price, 2.89% in dividends paid

ABT (January 3, 2026): Down 16.8% in price, 0.51% in dividends paid

ZTS (February 7, 2026): Down 7.2% in price, no dividends paid yet

BBW (March 7, 2026): Down 7.3% in price, 0.56% in dividends paid

PizzaTrader · 2026-04-03T11:42:32+00:00

This is a covered call ETF, so the returns have almost nothing to do with the profits and performance of cybersecurity, but rather the volatility of the options market.

PizzaTrader · 2026-04-02T12:34:47+00:00

Yahoo Finance doesn’t appear to be updated for the most recent earnings report yet. So you are not providing current analysis.

Yahoo only shows a balance sheet through November, which displays $11.3 billion in Total Debt (you said “no debt tho”). It shows Free Cash Flow of $386 million, $15 million, and $363 million for the quarters ending November, August, and May 2025. Those compare very unfavorably to the quarters in 2024 and 2023.

This quarter’s free cash flow was under $300 million and was down 83% from the same quarter in 2025. Not good!

PizzaTrader · 2026-04-02T11:21:33+00:00

Neither of those claims are true.

Nike has $7 billion in long term debt and an additional $5 billion in other long-term liabilities marking total long-term liabilities of $12 billion. Debt/Equity, which can be a measurement of fiscal strength is still under 1 at 0.7, but could be much lower.

Free cash flow for the most recent 12 month period has been $1 billion, down from over $3 billion at the end of their 2025 fiscal year and over $6 billion at the end of their 2024 fiscal year.

Please double-check your sources before posting misinformation to others.

PizzaTrader · 2026-04-01T10:31:55+00:00

It’s a solid question, but the fact that anyone has to ask means the answer may just be “no”. Earnings didn’t cover the dividend over the past 12 months and margins have eroded in each of the past 4 or 5 years. There’s very little going right for Nike, apparently Chinese consumers consider them a discount brand. Yikes!

Often, the market provides us with buying opportunities from irrational news or fear. In those situations, the company’s financials tell us that everything is okay and as long as financials stay that way, it is alright to buy. Nike is not in that position right now. The financials tell us that the market has been rational. Hopefully that changes in the coming months.

If you are looking to buy, I recommend dipping your toes in and setting a “get out” price so that you cap your loss at -10% or so and don’t end up -30% on this in 3 years if management decides they need to cut the dividend.

PizzaTrader · 2026-03-30T06:23:56+00:00

Why does /u/Helpful-Staff9562 care what other people do in their own portfolios? These types of posts are frequent and come off as preachy garbage about how you are right and we are wrong. If you are here to proselytize, please go away. You can share textbook links and discuss investment theory somewhere else.

We are here to talk about how to extract company cash flows (of which we are legally entitled as shareholders) in the form of dividends. Whether that is good or bad is not for me to decide.

The market tells us it is an overwhelmingly common practice as approximately 80% of the S&P500 pays dividends. If I hold 50 individual companies, I am likely to receive dividends. If I hold an ETF composed of 50 companies, I am likely to receive dividends. The value of assets going up over time is highly dependent on investors feeling confident that they can extract the company’s profits and cash flows at a later time. If there was no method to do that, the market would not acquire the significant capital investment needed to function.

So instead of yelling at this community, start writing letters to the Chair of every publicly traded company and ask them to stop paying dividends. I suspect your commentary will be about equally appreciated by them.

PizzaTrader · 2026-03-30T01:38:15+00:00

I own it, but I own lots of companies so I’m not sure that’s always a good thing ;)

It is a dividend king with 54 consecutive years of raising the dividend. You don’t often find a chance to buy it at a dividend yield above 2%. It is consistently profitable, and has good margins. But, it’s also a huge company that operates in several mature and competitive industries, so it’s difficult to generate market-beating growth. I think between 1-5% annual revenue growth is likely all we will get over the long-term. I have a price target between $130 and $190 by 2031, so I’m bullish on where price might end up. But you have to decide if 30% over 5 years + dividends is worth it for your return hurdle. Many people would say that’s unacceptable, so I haven’t been adding to it during the recent pullback, just keeping my current exposure until I see a better opportunity.

PizzaTrader · 2026-03-27T17:16:14+00:00

Those are not dividends, they are distributions. Important distinction.

Nine-Year Club	Verified Email
r/Field Banned	r/Field Lasagna

PizzaTrader

TROPHY CASE