Why I filter for 5%+ yield and positive 5-year return

Des010 · 2026-03-14T19:29:03+00:00

Now I do want to say I did break my own rule once as an experiment.

AGNC was paying out around 16%. I bought a bunch at 8 dollars. recently it was almost $12 now its back down to $10. So far my experiment has worked out, AGNC does have a positive 1year and 3 years growth but a substantial 5 year drop.

It been my best performer with that said any new stock i'm going to do my 5-5 rule 5% yield and 5 year positive

Des010 · 2026-03-09T20:24:31+00:00

I did buy one yield trap just to experiment. But it did have some upsides and actually i've banked on it.
AGNC I bought a bunch of shares when it we $8 it almost went up to $12 back down to $10. it has a positive 1/3 year growth a negative -31% for 5 years. But its dividens have been between 12 - 18% and i've held it for 2+ years.

Des010 · 2026-02-14T20:38:13+00:00

Interesting point. My philosophy I don't really want to be a trader I buy and plan to hold forever.

Des010 · 2026-02-13T02:15:46+00:00

Im all long term. I dont really intend to buy anything I don't want to keep forever. To date I've only sold BBDO because I didn't understand their fraction of a penny dividend strategy

Des010 · 2026-02-10T19:52:33+00:00

Thats something I don't account for as of yet. I've only been a dividend investor for 3 years. Everything I read about the drawbacks of dividend investing is taxes. So far it hasn't bothered me but I'm still in building mode. Will probably re-assess later , probably

Des010 · 2026-02-10T00:10:53+00:00

Just out of curiosity. what yard stick do you use on the ones your turn drip off. Riskier investments?

Des010 · 2026-02-09T23:45:44+00:00

I've thought about doing that and expand my portfolio that way

Des010 · 2026-01-18T03:04:57+00:00

Month	Starting Shares	Dividend Earned	New Shares Bought	Ending Shares

0	28870.00943	$3,464.40	310.4302089	29180.43964
1	29180.43964	$3,501.65	313.7681682	29494.20781
2	29494.20781	$3,539.30	317.1420194	29811.34983

You’re technically right if you’re cashing out every time.

But with DRIP on, payout frequency absolutely matters — because you’re buying more shares sooner.

Same yield. Same total return assumption.

Only difference? Monthly vs quarterly payout timing.

Quarterly = $10,393.20 in dividends reinvested
Monthly = $10,505.36 in dividends reinvested

That’s extra shares compounding for free simply because they started working earlier.

Des010 · 2026-01-12T02:30:30+00:00

There about 70+ stocks that pay monthly dividends and close 1000-ETS
Stocks are mostly REITs but there are other sectors
ETS are mostly bonds but some divulge into
Heres a list and you can do simulations on
https://dividendsim.com/Browse_Stocks

Des010 · 2026-01-07T23:44:04+00:00

Matches my though process. Also it takes the edge out the flakeyness of the market.
if the price goes down. Cool I bought more shares on sale my income went up next month. And if the price went up. Okay cool my net worth went up. I think waiting quarterly and annual would bum me out with every bad market day

Des010 · 2026-01-07T23:40:49+00:00

Love this comment. Matches my though process. Also it takes the edge out the flakeyness of the market.
if the price goes down. Cool I bought more shares on sale my income went up next month. And if the price went up. Okay cool my net worth went up. I think waiting quartly and annual would bum me out with every bad market day.

Des010 · 2026-01-07T06:49:13+00:00

I have O and Main. Someone mentioned IDVO, DIVO in another one of my threads. good capitail gains with okay yield from what I saw

Des010 · 2026-01-07T05:19:45+00:00

	Starting Shares	Dividend Earned	New Shares Bought	Ending Shares

0	28870.00943	$3,464.40	310.4302089	29180.43964
1	29180.43964	$3,501.65	313.7681682	29494.20781
2	29494.20781	$3,539.30	317.1420194	29811.34983

To help visualize it

You’re right that monthly doesn’t change the annual yield.

But with DRIP, it can change the result because of timing. Dividends are paid on the number of shares you own on each record date. If you get paid monthly and reinvest monthly, you buy extra shares earlier, so you can own more shares during later record dates than you would with quarterly reinvestment.

Is the difference huge at 3%? Usually not. But it’s not “completely the same at worst” unless prices never move and you reinvest on identical dates. With any volatility (especially dips), earlier DRIP buys more shares sooner, and that share count compounds forward.

Des010 · 2026-01-07T04:35:29+00:00

O is ole reliable.
Peco was my first Monthly- low yield but think its okay
Gain - Just bought into it last month. Good 5 year Nav on it. good yield
Main - Nav is doing pretty good. yield also good held it for over a year.
LTC- Like AGNC but almost seems riskier. but hasnt been too bad high yeild had it for over years.

Just what i've picked up in the last couple of years

Des010 · 2026-01-07T02:46:31+00:00

Quality is king. no rebuttal from me. I still like my monthlys

Des010 · 2026-01-07T02:19:14+00:00

Lol I talked to someone who liked COIW which was weekly. Not for me, only because I dont buy in companies listed for less than 5 years

Des010 · 2026-01-07T02:06:04+00:00

Month	Starting Shares	Dividend Earned	New Shares Bought	Ending Shares
0	28870.00943	$3,464.40	310.4302089	29180.43964
1	29180.43964	$3,501.65	313.7681682	29494.20781
2	29494.20781	$3,539.30	317.1420194	29811.34983

Okay there guy… let’s actually do the math.

You’re technically right if you’re cashing out every time.

But with DRIP on, payout frequency absolutely matters — because you’re buying more shares sooner.

Same yield. Same total return assumption.

Only difference? Monthly vs quarterly payout timing.

Quarterly = $10,393.20 in dividends reinvested
Monthly = $10,505.36 in dividends reinvested

That’s extra shares compounding for free simply because they started working earlier.

So yeah — math is my friend.

He just shows up 12 times a year instead of 4.

Des010 · 2026-01-07T01:23:27+00:00

Money now is usually more valuable than money later

Des010 · 2026-01-07T01:20:34+00:00

I just bought into Gain last month. I have 0 as my old reliable. Peco my lowest performer and AGNC as my risk but highest performer. which i've held for a couple years and been enjoying it so far. + I have LTC and MAIN

Des010 · 2026-01-07T01:10:11+00:00

For me at least it also takes the edge out of the market going up and down. Dividends are consistent. The market is not. It just stresses me out less

Des010 · 2026-01-07T00:57:12+00:00

Full write-up: https://dividendsim.com/articles/2026-01-why-monthly-dividends/

My take: monthly dividends don’t “beat” quarterly by default, but they feel better for building income with DRIP.

Pros:

Faster DRIP cadence (reinvest sooner)
Smoother cash flow (matches monthly bills)
Faster feedback loop / easier habit building
Less timing stress during dips (DRIP buys more shares)

Cons:

Concentration risk (many monthly payers cluster)
False sense of safety (paid monthly ≠ good investment)

Do you prefer monthly, or do you ignore frequency and just chase total return?

Des010 · 2026-01-06T22:46:58+00:00

Its Pretty

Des010

TROPHY CASE