05-05-2024, 04:06 PM
(This post was last modified: 05-05-2024, 04:21 PM by ken-do-nim.)
Here are how those 4 held up during some recent downturns:
OMF
Yield: 8.13%
overall 5 year return: +50.90%
2020: dividend payout unaffected
2022: dividend payout unaffected
Also, this past February was the first time they didn't raise the dividend annually. Looking to the May announcement to see if the dividend gets raised.
Tax implications: pays qualified dividends, making it the star of this group, not to mention having the best 5 year return; it almost keeps up with the S&P 500
BXSL
Yield: 9.56%
overall 5 year return: +11.14%
2020: (wasn't around)
2022: dividend payout unaffected, and had bonus payouts too
ARCC
Yield: 9.31%
overall 5 year return: +16.01%
2020: payout unaffected
2022: payout unaffected
HTGC
Yield: 8.23%
overall 5 year return: +44.89%
2020: they had the payout in 2 parts, the standard .32 and a bonus .08, up through Feb 2020. The bonus part ceased until it started to come back in November 2020
2022: unaffected; in fact they had a dividend raise
These 4 are the best high div payers I've found; though it remains to be seen if they will stay that way in 10 years. Another I keep track of:
HRZN
Yield: 11.18%
overall 5 year return: +1.20%
2020/2022: dividend rarely changes; occasionally there's a month here and there with a higher than normal payout
Others like FSK, RQI, QYLD and RYLD don't pass my positive-in-the-last-5-years test.
Also, there will be dividends coming from the growth portion of the portfolio as well, just not as much. ABBV, AVGO, LLY etc are nice payers.
**********
Really great point about starting with a large cash buffer. I need to decide how much. Maybe as much as $200k. I guess that all depends upon how high the taxable account manages to get.
**********
Also worth pointing out is that large purchases like cars will come out of the cash buffer as well. Even larger purchases, like say the downpayment - or outright purchase - of a new condo or house will come out of the growth portion of the taxable portfolio.
OMF
Yield: 8.13%
overall 5 year return: +50.90%
2020: dividend payout unaffected
2022: dividend payout unaffected
Also, this past February was the first time they didn't raise the dividend annually. Looking to the May announcement to see if the dividend gets raised.
Tax implications: pays qualified dividends, making it the star of this group, not to mention having the best 5 year return; it almost keeps up with the S&P 500
BXSL
Yield: 9.56%
overall 5 year return: +11.14%
2020: (wasn't around)
2022: dividend payout unaffected, and had bonus payouts too
ARCC
Yield: 9.31%
overall 5 year return: +16.01%
2020: payout unaffected
2022: payout unaffected
HTGC
Yield: 8.23%
overall 5 year return: +44.89%
2020: they had the payout in 2 parts, the standard .32 and a bonus .08, up through Feb 2020. The bonus part ceased until it started to come back in November 2020
2022: unaffected; in fact they had a dividend raise
These 4 are the best high div payers I've found; though it remains to be seen if they will stay that way in 10 years. Another I keep track of:
HRZN
Yield: 11.18%
overall 5 year return: +1.20%
2020/2022: dividend rarely changes; occasionally there's a month here and there with a higher than normal payout
Others like FSK, RQI, QYLD and RYLD don't pass my positive-in-the-last-5-years test.
Also, there will be dividends coming from the growth portion of the portfolio as well, just not as much. ABBV, AVGO, LLY etc are nice payers.
**********
Really great point about starting with a large cash buffer. I need to decide how much. Maybe as much as $200k. I guess that all depends upon how high the taxable account manages to get.
**********
Also worth pointing out is that large purchases like cars will come out of the cash buffer as well. Even larger purchases, like say the downpayment - or outright purchase - of a new condo or house will come out of the growth portion of the taxable portfolio.