12-31-2023, 11:10 AM
(12-30-2023, 10:48 PM)rayray Wrote:(12-30-2023, 05:43 PM)ken-do-nim Wrote: Btw 26k in dividends, nice! And without trying too.
Thank you
--A while back I went from a DGI style of investing to excluding the dividend from my investing research--what I found was that dividend paying stocks, actually of high quality showed up on my screens. The difference might have been 10 to 12k less in dividends but a lot more in actual capital appreciation. The name of the game for me is capital appreciation, compounding my overall net worth, the dividend is secondary. I can make my own income by selling 4% of my portfolio--as long as I average over and beyond 4% return the chances of running out of money is slim to none.
I mostly made the same switch. I still have some pure DGI stocks like LYB and WEC but they aren't a large part of my portfolio. They do keep my yield up above 1.5%; which is a boundary I'm trying to keep.
I agree many people live off trimming rather than dividends in retirement. It sucks on a down year, but overall it works well. The trick is to keep a cash reserve of 1-2 years, so that when a down year happens, you eat away your cash reserve rather than trim shares.