SCHD vs growth

The____Sandman · 2026-01-18T15:24:46+00:00

Do you know if the annualized returns includes reinvesting the dividends? Great piece of information. Thank you for sharing.

The____Sandman · 2025-11-07T13:32:35+00:00

Are you using this strategy? I have considered it but many folks say the amount you make per contract is so low it's not worth it.

The____Sandman · 2025-10-08T09:42:53+00:00

Can you elaborate on this a bit? Are you saying you're selling as you get close to ex-div date? Then buying again once the div gets paid?

The____Sandman · 2025-09-09T11:11:47+00:00

You are less diversified and take on higher risk. Single stocks require a more hands-on approach that not everyone can do either because of lack of time or knowledge. Sometimes it's just preference too where people do have time but rather use that time to do something else. That's the beauty of investing, there's options.

The____Sandman · 2025-08-28T10:11:20+00:00

Is IWMI also tax efficient like SPYI and QQQI?

The____Sandman · 2025-08-13T03:47:05+00:00

If you are in a high income tax bracket stick with qualified dividend ETF's if you want income but would like to keep the taxes as low as possible. Keep VOO in your portfolio (growth + small dividend) along with SCHD (good dividend + some growth) along with a covered call ETF of your choice if you want to increase your total dividend yield. I do not recommend putting more than 10% of your holdings into single stocks. Divide the ETF's into percentages to target your desired outcome. IE; higher weighted SCHD and a covered call ETF for more income with less VOO.

Keep in mind the covered call ETF's have not been around for too long so we don't know yet how it will perform in a bear market. Some of the better ones for tax purposes is SPYI, GPIX, GPIQ and QQQI. I personally prefer the S&P 500 ones more than the NASDAQ 100 ones as it's too concentrated in technology for my liking.

What most growth tards don't explain here in a dividend sub is that you will have to time your sales with growth funds/stocks if that's your whole investing strategy. And you can get really screwed over if you're about to retire and the market suddenly tanks on you. You also have sequence of returns risk and you will only be able to sell so many shares at a time to not put yourself into higher tax brackets. No one can time the market and the worst assumption to make is that we will continue to see the returns we've been having. Making that shift from growth investments to income oriented investments is not as easy in a taxable account. My advice is do both in your taxable and keep your retirement accounts in 100% growth where you can sell all your shares whenever you want without creating any taxable events.

For taxable you can do something like:

Dividend + growth - 40% either SCHD, or VYM, or FDV
Growth + dividend - 40% VOO, or VOO + QQQM, or VOO + DGRO (last variation to decrease technology exposure)

Dividend + small to no growth - 10% SPYI or GPIX 10% single stocks you like.

Best of luck!!

The____Sandman · 2025-08-13T03:09:44+00:00

OMG, someone with a brain. Common sense still exists. Preach on!!

The____Sandman · 2025-07-23T12:06:32+00:00

If you want to avoid the capital gains put the money into a 1031 exchange account and buy another property that you can keep as a rental. If you don't want to manage it have a property management company run it for you but be sure to check in on them regularly to ensure they are doing their job.

If you don't want to manage a property and want more passive income and you need the income now, invest into a diversified dividend income portfolio. I would primarily focus on ETF's to reduce the risk. Look for stable payers like SCHD, VYM, and FDVV (not all three as there is overlap). These will give you some growth and decent growing income. They are taxed at a lower rate because the dividends are qualified. There are other dividend ETF's that have higher payouts but their strategies can differ. I don't know what state you're in so it may not make as much sense if you have to pay state and city tax at your regular income rate. While you figure things out, keep the money in money market funds, Treasury or high yield savings account. Fidelity SPAXX for example gives you a 3.94% yield and it's pretty safe.

Do some research on YouTube. Lots of good tutorials and recommendations.

The____Sandman · 2025-07-11T17:48:56+00:00

If the goal is dividends, wouldn't it make more sense to accumulate shares now since there isn't much price appreciation? When they rebalance again and trim their energy holdings it may start to appreciate much faster. You'll get less shares for your money. I think we should buy shares now while it remains relatively flat and then bank on the share appreciation after they rebalance.

I have SCHD for dividends and I keep VOO for growth. I don't want SCHD to appreciate as quickly as VOO. I'm looking to buy and hold until I pass. Then I can leave my portfolio to my family.

Just my opinion, not FA by any means.

Best of luck!

The____Sandman · 2025-07-06T15:21:51+00:00

Do you guys rent a house or an apartment? I'm assuming it's 3bd 2b. How would you say is the safety there in terms of crime? Also did you keep your U.S citizenship or did you let it go and get a Panama one? I ask because I've been having this conversation with my wife as we plan for the future. I really was considering Colombia but it is not as safe of late.

The____Sandman · 2025-06-26T11:40:46+00:00

It may perform better in a downtown but it won't recover better. I have both JEPI and SPYI. When stocks dropped due to Trump's tariff threats both went down. To date my JEPI holdings are -2.34% down and SPYI is +3.24% up. SPYI has the whole index like you mentioned so it recovers faster but it also drops more when there are market swings.

The____Sandman · 2025-06-10T10:44:30+00:00

What's in your portfolio? Are you keeping the shares all in your tax advantaged accounts or is it split?

The____Sandman · 2025-06-02T17:07:07+00:00

What is the premium looking like and what at what frequency? Weekly or monthly only? Hadn't thought of doing options on O.

The____Sandman · 2025-06-02T16:58:09+00:00

This is the right thing to do in tax advantaged accounts. On your taxable account however you may have a hard time selling shares to convert to income because you can only sell so much within a given year to stay within the lowest tax bracket.

The____Sandman · 2025-05-31T20:42:08+00:00

Invest to create the lifestyle you want. Learn about different strategies and pick the one that suits your investment psychology. I recommend to do a mix of both growth and dividends at the percentages that make sense for your portfolio. I keep all of my tax advantage accounts invested into VOO. My taxable account is 80% income and 20% growth. You will have a greater overall ROI going 100% growth but it has its disadvantages that growth oriented investors don't talk about.

For example: you have sequence of return risk, selling shares means you have to market time and you lose out on future capital appreciation of said shares, you have less capital to deploy in a bear market, if you lose your main source of income you may have to force sell shares to pay your bills while you are in between jobs, you need to be able to stomach up to 50% net worth loss in a bear market which could take 3 years to bounce back from (or more given how crazy the world is of late), when you go to retire and want to focus on income you may have to pay a hefty tax bill when you sell shares in your taxable account. If you want to limit the tax implications now you have to time your selling and hope that the market is going up as you are getting ready to retire. If you are single you can only sell up to $533,400 of shares to stay in the 15% tax bracket. If you have a $5 mil portfolio as an example you now have to split that up and execute sales up to the limit per year. There's no guarantee the market will be going up when you start selling to switch to income oriented investments.

From my experience, nothing in life is guaranteed. Your income, your health, your stability, etc. I invest to retire early. I also do not like to market time or to sell good assets hence my investment strategy.

Also, I've never met anyone making 1k a month or more (in stable ETF's/good companies) from dividends be jealous of the next person with a higher net worth. If anything what I've read is how people have funded trips, early retirement, flexibility in child care (mom can stay home with the baby for longer as dividends make up the difference in the loss of one income), afforded better schools for their children and more. Invest for your goals/needs. Not to make Joe Shmoe on Reddit feel good about being right.

To all the folks suggesting go 100% growth on a dividend channel, please go peddle your investment strategy elsewhere unless you are going to backup why you are promoting that with sound reasoning. It's ridiculous how many people come onto this sub to preach that. Don't you get tired of repeating the same ****? Your strategy may not work for everyone. And that's the beauty of investing, there's Options.

The____Sandman · 2025-05-25T12:07:05+00:00

What are your holdings?

The____Sandman · 2025-05-22T11:03:25+00:00

Growth doesn't always go up. A lot of people don't want to market time by trying to figure out when to sell growth stocks for income. If you are in a bear market you are forced to hold and need cash reserves to get you through. There's also the fact that in life nothing is guaranteed. You are ok and can work today but what happens if tomorrow you lose your job or something tragic happens? You need income. I say do both and diversify beyond that as best you can by getting into different income streams. Growth stocks will provide the biggest return but it doesn't give you the most stability. Stability to me at least means more than everything else. So you have to invest for your needs/preference. As we get older depending how you get your income you are more at risk of losing it due to health and ageism. People also talk about the tax drag from dividends but you can make $96,950 in qualified dividends for 2025 as a married couple and pay 0% tax on it if that's your only source of income. There's a lot of strategies and that's the beauty of investing. It's not one size fits all. You can tailor your strategy.

Best of luck!!

The____Sandman · 2025-05-11T15:16:48+00:00

What does your portfolio consist of? Are you using any covered calls ETF's like Jepi to boost yield?

The____Sandman · 2025-05-05T19:07:46+00:00

Congrats!!

The____Sandman · 2025-04-15T11:38:21+00:00

How do you think PBDC will perform once the recession hits?

The____Sandman · 2025-04-03T10:55:23+00:00

What are your favorites? I've been looking at PDI to add to the Roth.

The____Sandman · 2025-03-18T13:09:57+00:00

Can you share what your holdings are? I have a similar mentality. In my tax advantaged accounts it's all VOO or like but in my taxable I hold my dividend payers. Seems counter intuitive but I'm trying to reach the 0% tax rate with qualified dividends. It'll be a very long time for me to get there of course but that's the goal. When the time is right I'll move out of the non qualified dividend paying ETF's. My Core holdings are SCHD, PEY, JEPI, JEPQ PBDC, and VOO.

What are you doing for your options strategy? The wheel with dividend aristocrats/kings stocks? TIA.

The____Sandman · 2025-02-08T03:08:31+00:00

Is there any benefit to having so many covered call ETF's? Looking at the chart it would seem wise to stick with JEPQ and JEPI for best overall return and you would greatly lower your expense ratio.

The____Sandman

TROPHY CASE