(09-30-2021, 04:43 PM)Kerim Wrote:I'd like to thank you all for paying your taxes and funding my generous pensions lol.(09-30-2021, 03:05 PM)fenders53 Wrote: My port isn't large enough to do that with dividends unless I put much of it in yield traps.
I think you just described my whole DG strategy...
My stock port is respectable but three milly was never going to happen. I mostly invested in SPY and small CAP growth. A few years ago it occurred to me the SPY Div yield was dropping like a rock. To get $30K after taxes per million in port value you need an average yield exceeding 3 1/2%. Now subtract some out for a cash bucket as you should in retirement and this starts looking desperate. You are stuck chasing too many yield traps to make the average work.
.............. and this is when I knew I had to learn how to steal option premiums from millennials who throw down after watching a 20 minute youtube video. I didn't make them do it.
About a third of my retirement port will be in a mix of DGI, UTEs and yield traps. An option trick allocation until I tire of babysitting it. Add in some safish growth with low dividends and hope for the best. I like MO and XOM well enough, but I am not going to buy 5000 shares and hope the government doesn't wreck their business model because at times that seems to be the goal.