08-10-2021, 10:12 AM
In fact I have VOO (no leverage), SPUU (double leverage), and SPXL (triple leverage) to capture the S&P 500! And as you'd guess, the dividend shrinks as you add leverage:
(VIG: 1.78%)
VOO: 1.30%
SPUU: 0.66%
SPXL: 0.13%
But in my situation, the Income part of my portfolio is needed to produce dividends to supplement my monthly budget (for the two paycheck months, not the three*). If I didn't have that requirement, I probably would focus more on growth, and stocks that I'd pick up would have to at least be on par with SPUU.
* I get paid every other Friday. That usually means two months of the year are 3 paycheck months, but there's this crazy payroll leap year that comes around like once every 11 years where there are 27 Fridays in a year, not 26, which can result in 3 three paycheck months. In 2027, I will get 3 paychecks in January, July, and December.
(VIG: 1.78%)
VOO: 1.30%
SPUU: 0.66%
SPXL: 0.13%
But in my situation, the Income part of my portfolio is needed to produce dividends to supplement my monthly budget (for the two paycheck months, not the three*). If I didn't have that requirement, I probably would focus more on growth, and stocks that I'd pick up would have to at least be on par with SPUU.
* I get paid every other Friday. That usually means two months of the year are 3 paycheck months, but there's this crazy payroll leap year that comes around like once every 11 years where there are 27 Fridays in a year, not 26, which can result in 3 three paycheck months. In 2027, I will get 3 paychecks in January, July, and December.