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DISCLAIMER - I am not a Financial Advisor and do not work for any Brokerage Firm. The opinions given are of my own and are not to be used as professional advice. These are my findings and can hopefully help you to make informed decisions on investing. Consult a Broker or Lawyer before making any investment. Some High Yielding Dividend ETFs There are few things nicer in life than to see monthly dividends pour in from your Dividend Stock investments. The problem with that is that you have to constantly monitor the returns and quality of each company to be sure the stock is still a sound investment. One of the easier methods to avoid this issue is to invest in ETFs (Exchange Traded Funds) that pull in a large universe of dividend stocks and still give good solid returns. Upfront I want to say that I still buy dividend stocks in my Schwab IRA every month. But I have expanded out in my investments and now purchase a large number of ETFs that are doing a great job of making a consistent monthly dividend. Some of these pay dividends every month instead of just quarterly. Some of the best dividend stocks come from the lists of Dividend Aristocrats and Dividend Kings. Read the associated articles if you are not familiar with them. These are some of the most highly successful companies that have increased their dividends over 25 years (Aristocrats) and over 50 years on Dividend Kings. The criteria are not the same to make up the lists, so read carefully before making any investing decision. Article on Dividend Aristocrats Article on Dividend Kings Just being on either list does not necessarily make them a good investment, but those on both lists certainly should be considered. I try for at least an 8% return on both the dividend and stock growth. (Stock growth being the increase in stock price yearly). Not all will return that well, but some will do even better. The ETFs that I am writing about today are those that do invest in Dividend stocks and have paid consistent dividends. One of my favorites is NOBL (Pro Shares S&P 500 Aristocrats. It is based on investments in the Dividend Aristocrats. Here is a list of several ETFs that I own. Not necessarily in any order, just ones that stand out as consistent returning Dividend ETFs. FDVV – Fidelity High Dividend ETF DHS - Wisdom Tree U S High Dividend HDV – I Shares Core Hi Dividend ETF DGRO – I Shares Core Growth Dividend SDIV – Global X Super Dividends LVHD – Legg Mason Low Volatility Hi Div ETF I have 4 that have really done well. These are based on using covered calls to increase their returns. These 4 have consistently paid 12% or more. I have QYLD in all 3 of our biggest Roth IRAs. QYLD – Global Nasdaq 100 cov call ETF XYLD – Global X S&P 500 Covered Call JEPQ – J P Morgan Nasdaq Equity Income JEPI - J P Morgan ETF Income Fund Those in the first list may use covered calls to increase their dividends, but I am unsure. SDIV has been high consistently so they probably do. Buying an ETF has a lot of advantages. The person overseeing the managed ETFs makes the decisions on which stocks to purchase. (Not all ETFs are managed… some are based on simple grouping of investment types. ) For example VTI is the whole stock market as well as ITOT and SCHB. I have investments in all 3 of those. But the great thing about ETFs is they give you diversification with many stocks. It is much like a mutual fund but without the 2% management fee. While doing research for this article, I came across a list of the top 100 highest-paying ETFs regarding selling price. Remember that these are not necessarily Dividend ETFs, but have shown the greatest returns overall. I am unsure exactly how they came up with this list, so be wary. 100 High Returning ETFs I have not researched any of these but some on my two dividend lists are in this grouping. Two that particularly stood out to me on Bonds with great returns were TLTW and HYGW. First is on treasury bonds and second is on Corporate bonds. I will be looking into those later this week. As I always urge, get investment advice from a seasoned investor or lawyer. These are just examples of some ETFs that have performed well for me. I wish you much success in your investing endeavors. List of All Investment Articles List of all Minimalism Articles Internet Direct Laptops
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DISCLAIMER - I am not a Financial Advisor and do not work for any Brokerage Firm. The opinions given are of my own and are not to be used as professional advice. These are my findings and can hopefully help you to make informed decisions on investing. Consult a Broker or Lawyer before making any investment. The Little Book of Common Sense Investing - Jack C. Bogle About 12 years ago, I read the book “The Little Book of Common Sense Investing” by the late Jack C. Bogle. Jack C. Bogle was one of the great minds in the investment world and his Vanguard group of investments is still one of the best. Mr. Bogle died in 2019, but his legacy lives on. He was the first person to create a full index Mutual Fund using the full stock market as its basis. Today many ETFs try to mimic his designs. Three great ETFs (Exchange Traded Funds) that I have owned for years are the I-Shares ITOT, the Vanguard full stock market index VTI, and the Schwab Full Market Index SCHB. Another great one that is not the whole market but is the S&P 500 that is doing great is the Vanguard VOO. I read this week that renowned investor Warren Buffett has instructed his estate to invest his money into VOO giving you an idea of how much Warren Buffett regards this Vanguard ETF. No investment book has ever affected me as much as The Little Book of Common Sense Investing. I have used full stock market ETFs for the past 12 years in at least 25% of my portfolio. Probably the years that I used them for 50% were the years I had the best returns, so don’t discount the importance of reading this book. Here are some of the insights I gained from The Little Book of Common Sense Investing. 1. In his book, he explained that only 2% of the people making marketing decisions on Mutual Funds can outperform the full stock market index. And if you invest your money with one of those in the top 2, next year they will not be in the top 2% slot. One exception to that rule was Peter Lynch and his fantastic Fidelity Magellan fund. He consistently outperformed the market for many years. But the truth of the matter is that no matter how smart you are, you are hard-pressed to beat the ‘average’ of the whole stock market. I really took this to heart and over the past 12 years, the full stock market ETFs in my portfolio have outperformed all my other investments. 2. Successful investing is all about common sense. Coming up with a completely concise solid plan and sticking to it is a theory for success. A person moving money in and out of the market does not normally make as much as the person who has a fully diversified plan and sticks to it. Simple arithmetic suggests and history confirms that the winning strategy is to own all of the nation’s publicly held businesses at a very low cost. This way you receive all their dividends and share in earnings growth. 3. Over the past century, corporations have earned a return on their capital of 9.5% per year. If you compound that over a decade, each $1 invested goes to $2.48, in 20 years $5.14, 30 years $15.22, and 50 years: $93.48. Think of what compounding does for you. $1 invested in the average in fifty-years grows over 90 times its initial value. Capitalism works and creates wealth. 4. Scattered throughout the book are little boxes with the heading “Don’t Take my Word for It” and Mr. Bogle has industry leaders speak out on their opinion of the full stock market index. It would take a 20-page review to list them all, so I will just pick a few. Jack R. Meyer, former President of Harvard Manage Company said this. (He took the Harvard Endowment Fund from $8 billion to $27 billion during his management.) The investment business is a giant scam. Most people think they can find managers who can outperform, but most people are wrong. I would say 85 to 90% of managers fail to match their benchmarks. Get diversified. Come up with a portfolio that covers a lot of asset classes. And keep your fees low. 5. Princeton professor Burton G. Malkiel, author of A Random Walk Down Wall Street expressed his view: Index funds have regularly produced rates of return exceeding those of active managers by close to 2 percentage points. 6. Peter Lynch, legendary manager of the Fidelity Magellan Fund said in Barron’s Magazine “The S&P is up 343.8 for the last 10 years. General equity funds are up an average of 283 percent. So it’s getting worse and the deterioration by professionals is getting worse. “The public would be better off in an index fund.” 7. Tyler Mathisen, then executive editor of Money Magazine, conceded the point. “For nearly two decades, Jack Bogle, the tart-tongued chairman of the Vanguard Group, has preached the virtues of index funds—those boring portfolios that aim to match their performance of the market barometer. Well, Jack, we were wrong. You win. Settling for the average is good enough for a substantial portion of most investors’ stock and bond portfolios. So what can we conclude from this book? Believe that the average is the way to go using full stock market indexes. I have proven it in my portfolio for the last 12 years. Over the past 15 years, the stock market has consistently put out average yields above 12%. Get a plan of action, and then hold the market portfolio forever. That is what the index fund does. The investment philosophy is not only simple but elegant. The arithmetic on which it is based is irrefutable, but it takes discipline to stick with even a simple plan. Consider the full stock market indexes in your investment plans. I try to keep at least 25% of my investments in full stock market indexes and have had great success with them over the past 12 years. Right now in these days when we have these massive losses on the market, it is a good time to consider buying in on some of the full stock market indexes or buying in on some mutual funds based on full stock market indexes. All this information is for your reading enjoyment. No one can predict the future, but if history repeats itself (and many times it does), then a good long-term bull market may be around the corner. List of All Investment Articles List of all Minimalism Articles Internet Direct Laptops
DISCLAIMER - I am not a Financial Advisor and do not work for any Brokerage Firm. The opinions given are of my own and are not to be used as professional advice. These are my findings and can hopefully help you to make informed decisions on investing. Consult a Broker or Lawyer before making any investment. The Power of Full Market Indexes The stock market is full of varying types of investments. Few make more money in the long haul than the Full Stock Market Indexes. About 12 years ago, I read the book “The Little Book of Common Sense Investing” by the late Jack Bogle. Jack Bogle was one of the great minds in the investment world and his Vanguard group of investments is still one of the best. In his book, he explained that only 2% of the people making marketing decisions on Mutual Funds can outperform the full stock market index. And if you invest your money with one of those in the top 2, next year they will not be in the top 2% slot. One exception to that rule was Peter Lynch and his fantastic Magellean fund. He consistently outperformed the market for many years. But the truth of the matter is that no matter how smart you are, you are hard-pressed to beat the ‘average’ of the whole stock market. I really took this to heart and over the past 12 years, the full stock market ETFs in my portfolio has outperformed all other investments. Over the past 15 years, the stock market has consistently put out average yields above 12%. Years like 2022 are a misnomer in that we have so many things wrong in our world that there is no consistency to the market. Schwab investments printed an article two weeks ago about the 2022 phenomena where both the stock market and the bond market lost money. This has only happened twice in the history of the stock market. 2023 was a good year for the stock market and 2024 is starting out good also. Back to the article for the day, why are full market indexes so wonderful? You get the best of it all. You are fully diversified over the entire market. So in a good year, you should see a 12 to 14% average if history repeats itself. There is no guarantee that it will, but people who stick with the market in both ups and downs seem to make the most money. Three great ETFs (Exchange Traded Funds) that I have owned for years are the I-Shares ITOT, the Vanguard full stock market index VTI, and the Schwab Full Market Index SCHB. Another great one that is not the whole market but is the S&P 500 that is doing great is the Vanguard VOO. I read this week that renowned investor Warren Buffett has instructed his estate to invest his money into VOO giving you an idea of how much Warren Buffett regards this ETF. Another good S&P 500 ETF is SPY. Are these locks for profits? Not at all. But over time, I think you will find these to be some of the most steady and consistent investments. I have not been able to prove it yet, but I think that DGI investing may yield a bit more than the full stock market indexes, but only time will tell. DGI stands for Dividend Grow Investments. You are zeroing in on stocks that have long-term market increases of dividends with the ability to grow in value. Check out article on DGI investing. Consider the full stock market indexes in your investment plans. I try to keep at least 25% of my investments in full stock market indexes and have had great success with them over the past 20 years. Investment Articles Minimalism Articles Internet Direct Laptops
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David ParhamChristian Minimalist and Investor. God guides and helps me everyday. Archives
May 2024
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