Dividends from 2020

[ken-do-nim]

Hi all,

I thought I'd take a look back at 2020 and see how much dividend income I made in my Etrade account (both taxable & ROTH).  My strategy is mostly growth, so dividends aren't a focus.

And the answer is ... $673.05

I think that's not bad given it was essentially year 1 for the taxable account.

How about the rest of you?

[crimsonghost747]

My dividend income in 2020 was up 31% compared to 2019.
And my cash flow (which is dividends + option trades + other small stuff - taxes) was up 40%.

I'd love to keep this speed going for another year or two

[ChadR]

My dividend income was up 9% for 2020. With it basically on auto pilot this year, I was happy especially considering the dividend cuts that occurred. Barely missed my goal of $12,000 in dividend received for 2020.

[fenders53]

Glad you are starting new threads for us, and your first year dividend performance is excellent. My results will be a little hard to interpret, though I believe Crimsonghost understands my game and can connect the dots. I have many sources of income. Unfortunately I don't see where Waterhouse separate option transaction income from capital appreciation. I just know what my average and quite consistent monthly option income is.

I had a short term goal of maximum income. Secure extra cash beyond my pensions for first two years of real retirement. Those funds were secured late 2020 and gradually transitioning a more growthy portfolio. But for 2020 it was VERY income focused.

-2020 dividends down 35%
-2020 income from selling puts is up 50%, and it was already over 2X my annual dividend income in 2019. Now it's over 3X and consistent.
-My stock market FCF was up about 35% for 2020. My intent for 2021 is to dial that back about 5% with a little more focus on growth. I've learned that gradual adjustments to the plan are usually prudent.

Moral of story is it's not difficult to exceed dividend income by a margin. There will definitely be a capital appreciation penalty for doing so in a strong bull market.

[ken-do-nim]

(02-05-2021, 10:22 AM)ChadR Wrote: My dividend income was up 9% for 2020.  With it basically on auto pilot this year, I was happy especially considering the dividend cuts that occurred.  Barely missed my goal of $12,000 in dividend received for 2020.

Nice!

(02-05-2021, 11:09 AM)fenders53 Wrote: Glad you are starting new threads for us, and your first year dividend performance is excellent.  My results will be a little hard to interpret, though I believe Crimsonghost understands my game and can connect the dots.  I have many sources of income. Unfortunately I don't see where Waterhouse separate option transaction income from capital appreciation.  I just know what my average and quite consistent monthly option income is.  

I had a short term goal of maximum income.  Secure extra cash beyond my pensions for first two years of real retirement.  Those funds were secured late 2020 and gradually transitioning a more growthy portfolio.  But for 2020 it was VERY income focused.

-2020 dividends down 35%
-2020 income from selling puts is up 50%, and it was already over 2X my annual dividend income in 2019.  Now it's over 3X and consistent.
-My stock market FCF was up about 35% for 2020.  My intent for 2021 is to dial that back about 5% with a little more focus on growth.  I've learned that gradual adjustments to the plan are usually prudent.

Moral of story is it's not difficult to exceed dividend income by a margin.  There will definitely be a capital appreciation penalty for doing so in a strong bull market.

I have to admit most of what you and crimsonghost practice is way, way over my head.  I don't know what "selling a put" is, what FCF stands for, how to trade options, and some of the things you've mentioned in other threads.  But I think that's okay.  I'm just a buy-and-hold guy.

[EricL]

(02-05-2021, 02:53 PM)ken-do-nim Wrote:

(02-05-2021, 10:22 AM)ChadR Wrote: My dividend income was up 9% for 2020.  With it basically on auto pilot this year, I was happy especially considering the dividend cuts that occurred.  Barely missed my goal of $12,000 in dividend received for 2020.

Nice!

(02-05-2021, 11:09 AM)fenders53 Wrote: Glad you are starting new threads for us, and your first year dividend performance is excellent.  My results will be a little hard to interpret, though I believe Crimsonghost understands my game and can connect the dots.  I have many sources of income. Unfortunately I don't see where Waterhouse separate option transaction income from capital appreciation.  I just know what my average and quite consistent monthly option income is.  

I had a short term goal of maximum income.  Secure extra cash beyond my pensions for first two years of real retirement.  Those funds were secured late 2020 and gradually transitioning a more growthy portfolio.  But for 2020 it was VERY income focused.

-2020 dividends down 35%
-2020 income from selling puts is up 50%, and it was already over 2X my annual dividend income in 2019.  Now it's over 3X and consistent.
-My stock market FCF was up about 35% for 2020.  My intent for 2021 is to dial that back about 5% with a little more focus on growth.  I've learned that gradual adjustments to the plan are usually prudent.

Moral of story is it's not difficult to exceed dividend income by a margin.  There will definitely be a capital appreciation penalty for doing so in a strong bull market.

I have to admit most of what you and crimsonghost practice is way, way over my head.  I don't know what "selling a put" is, what FCF stands for, how to trade options, and some of the things you've mentioned in other threads.  But I think that's okay.  I'm just a buy-and-hold guy.

Don't feel bad, that's all over my head too. Buy and hold is all I do as well.

[fenders53]

It's not over either of your heads. You just haven't learned it. There are many times a buy and hold long strategy will outperform. The past three months comes to mind. In my experience my methods are best in a sideways or choppy market. You might realize a 10%+ return with a stock that goes nowhere in a year. Of course I am not trying to own that stocks performance intentionally.

Carry on with the dividend thread.

[crimsonghost747]

I am very much a buy and hold guy too. Over 90% of my portfolio is pure buy and hold, and I intend to keep it that way. Options are just something we use to increase the incoming cash... or sometimes decrease it if things don't go according to plan. Personally, it's not my intention to have the option stuff to replace anything, it's just something I do on the side for fun and hopefully some extra cash.

[fenders53]

My port is about half buy and hold. Conservative use of options is just another tool. A diverse set of skills is good. Once your portfolio is over halfway to goal, it's not all that much fun to watch it do nothing for 5-10 years. There is really no extended historical period when you wouldn't deal with that. A quality DGI port will lessen the pain. Market doesn't care about Divs lately but we got it right for the longterm.

[ken-do-nim]

(02-06-2021, 06:31 AM)fenders53 Wrote: My port is about half buy and hold.  Conservative use of options is just another tool.  A diverse set of skills is good.  Once your portfolio is over halfway to goal, it's not all that much fun to watch it do nothing for 5-10 years.  There is really no extended historical period when you wouldn't deal with that.  A quality DGI port will lessen the pain.  Market doesn't care about Divs lately but we got it right for the longterm.

I see your point; I'll probably dive into learning options some day.

I have to admit, about 6-7 years ago I had a portfolio built with the trendy stocks of the day - Tesla, Amazon, Netflix, eBay, etc. and at the time; this was before they took off like rockets, they weren't doing much, so I got bored and sold them all.  Ugh, I know.  Had I just stayed the course...

[fenders53]

(02-06-2021, 07:59 AM)ken-do-nim Wrote:

(02-06-2021, 06:31 AM)fenders53 Wrote: My port is about half buy and hold.  Conservative use of options is just another tool.  A diverse set of skills is good.  Once your portfolio is over halfway to goal, it's not all that much fun to watch it do nothing for 5-10 years.  There is really no extended historical period when you wouldn't deal with that.  A quality DGI port will lessen the pain.  Market doesn't care about Divs lately but we got it right for the longterm.

I see your point; I'll probably dive into learning options some day.

I have to admit, about 6-7 years ago I had a portfolio built with the trendy stocks of the day - Tesla, Amazon, Netflix, eBay, etc. and at the time; this was before they took off like rockets, they weren't doing much, so I got bored and sold them all.  Ugh, I know.  Had I just stayed the course...

It takes considerable capital to do what I do in a meaningful way.  It requires $5K to even learn how to do it.  This is a DGI forum and that should be significant part of your plan if you converse here often.  I know the busy thread sounds like Vegas more other than it doesn't.  Almost everyone here has a DGI port as well.  I know all the option traders do.  I am guessing "Option Trader" sounds kinda risky to you doesn't it?  That's probably because 80% of option traders mostly use it for gambling purposes.  I prefer to be the house.  I will never get rich quick with options because I understand the game well enough.  The gamblers bets have already financed my first few years of retirement cash needs and it didn't take too long.  They are funding a new truck now by financing my growthy port.  I'll need that to pull the future boat that is already secured through buy and hold (for 20 years!).  I can be patient too.  Back to the point, I diversify in every way I can.  Sectors of course and a few different investing styles I am comfortable enough through experience.  I never stop learning, but becoming more diverse is making this easier every year.  I get the impression a lot of folks think they have this thing figured out but their sample size is mostly the longest bull market in history.  It gives a false sense of security.

[ken-do-nim]

(02-06-2021, 11:11 AM)fenders53 Wrote:

(02-06-2021, 07:59 AM)ken-do-nim Wrote:

(02-06-2021, 06:31 AM)fenders53 Wrote: My port is about half buy and hold.  Conservative use of options is just another tool.  A diverse set of skills is good.  Once your portfolio is over halfway to goal, it's not all that much fun to watch it do nothing for 5-10 years.  There is really no extended historical period when you wouldn't deal with that.  A quality DGI port will lessen the pain.  Market doesn't care about Divs lately but we got it right for the longterm.

I see your point; I'll probably dive into learning options some day.

I have to admit, about 6-7 years ago I had a portfolio built with the trendy stocks of the day - Tesla, Amazon, Netflix, eBay, etc. and at the time; this was before they took off like rockets, they weren't doing much, so I got bored and sold them all.  Ugh, I know.  Had I just stayed the course...

It takes considerable capital to do what I do in a meaningful way.  It requires $5K to even learn how to do it.  This is a DGI forum and that should be significant part of your plan if you converse here often.  I know the busy thread sounds like Vegas more other than it doesn't.  Almost everyone here has a DGI port as well.  I know all the option traders do.  I am guessing "Option Trader" sounds kinda risky to you doesn't it?  That's probably because 80% of option traders mostly use it for gambling purposes.  I prefer to be the house.  I will never get rich quick with options because I understand the game well enough.  The gamblers bets have already financed my first few years of retirement cash needs and it didn't take too long.  They are funding a new truck now by financing my growthy port.  I'll need that to pull the future boat that is already secured through buy and hold (for 20 years!).  I can be patient too.  Back to the point, I diversify in every way I can.  Sectors of course and a few different investing styles I am comfortable enough through experience.  I never stop learning, but becoming more diverse is making this easier every year.  I get the impression a lot of folks think they have this thing figured out but their sample size is mostly the longest bull market in history.  It gives a false sense of security.

Good point on never stop learning, and I love learning about financial stuff anyway, so at some point I'll tackle the options/puts of the world, at least academically.

I have a theory as to why we are in the longest bull run in history, and I think a part of it has to do with free commission trading.  The rise of Robin Hood and other ways to invest small amounts of money has lots of people pouring money into the market, all the time, which I believe raises prices.  The bigger reason of course is that technology is revolutionizing our way of life, and I don't see that slowing down.

But you are right, I've been looking at my current investment lineup from a bull run point of view.  It obviously can't continue at the speed it's going otherwise we'll all be billionaires in 30 years