11-04-2021, 05:11 PM
(11-02-2021, 06:26 PM)ken-do-nim Wrote:(11-02-2021, 05:44 PM)Navi Wrote: I'm surprised that there is so much movement in a dividend portfolio. I expect dividend stocks to be purchased and held for many years unless they start to underperform (either stock price stays below the average for too long, or dividends get slashed). Also, these yields are quite high. I expect the long term dividend stocks to be around 3 or 4%. Is this a unique approach for you in regards to dividend investing?
Hi Navi,
I invest in 6 categories of equities:
1. Triple-leveraged Index ETFs (ex: TECL, SPXL, SOXL)
2. High growth stocks, tiny to no dividend (ex: Tesla, Nvidia)
3. High growth stocks, < 1% dividend (ex: Microsoft, Apple, Sherwin Williams)
4. Moderate growth stocks, dividend between 1 and 3% (ex: Oracle, Johnson & Johnson, Seagate)
5. Low growth high dividend stocks, with a dividend between 3 and 5% (ex: LyondellBasell)
6. Income stocks, dividend north of 6%
The funny thing is many of my income stocks are absolutely crushing growth as well. OXLC year to date is +53.09%, with a 9.62% yield to match, which will be raising in January. HTGC is +25.90% year-to-date with aggressive dividend increases. ARCC is +28.35% year-to-date with a dividend raise this year. RQI is +40.03% year-to-date, which has caused the yield to drop below 6% because they haven't raised the dividend. CIM is +56.81% year-to-date with dividend increases (might be my stock of the year if I had discovered it earlier).
Of course these funds aren't going to beat the S&P 500 index long term, but 2021 has been a fun ride.
Oh nice! Quite diverse in terms of the dividend spread. Funny you mention LyondellBasell, as they are one of my long term equities. Do you just hold on to them simply for dividends? Or are you holding the growth stocks in hopes that you get both capital gains as well as dividends someday? I would only look to growth stocks for capital gains, but it's not a "gift that keeps on giving" so to speak. Once you tap into the gains, it's gone. Curious as to the role it plays for you.