Index fund vs dividend investing reddit. Fidelity has Target Date Index Funds, too.

Index fund vs dividend investing reddit Index Funds Does anyone know if there are any historical samples of which does better? On one hand you have a group of people who swear by dividend payouts and reinvesting that back into your investments (D. You have bogleheads who say regularly investing in index funds is safe and have grown over the period of time. Now my question is I still don't understand why S&P 500 would be worse than target date index. 45 (+176%) and paying a dividend of . On first glance this seems like a bad long term investment strategy? What I missing? Normally invest in index funds mirroring the S&P500. VOO follows the S&P index which is capitalization weighted for the top 500 companies in the US. And by growth investing or Capital Gains investing I mean just buying Index Funds or ETFs. This is the basic application of the 4% rule. It's so loke some stocks paid equivalently 15% if you picked them up at the downturn which is pretty damn good. If you use Fidelity and you want to use Target Date Index Funds, you should use theirs, not Vanguard's, due to the extra cost of buying mutual funds that aren't owned or have a deal with your brokerage. Should I hold onto company stock for dividends, should I just put everything into the index I already have or should I pay the 2000 or so $ to start a new index? Should I keep opening index funds to be more diversified or stick to just one two or how many is smart???? I’m only 29 but only plan to keep aggressively investing for about 17 years I’m 21 with about $1,000 to start investing. The downside is that the overall return is generally lower. I've tried to recommend an index only portfolio, but they refuse. I was looking for an an S&P 500 index fund or ETF, and was wondering what was the best option? Thank you Share Add a Comment Sort by: Best Open comment sort options Top New Controversial Old Q&A Studentbettor • I’ve done a little research so my list is basically between VOO, SWPPX, FXAIX, or VFIAX. If you DCA in with regular scheduled contributions this also takes the market timing aspect out of your hands. You should also be aware of the risks associated with index funds, such as the overall market volatility. Dividend stocks is just another way of saying "actively managing Value stocks". "mutual fund" refers to how investors purchase or redeem the fund. Why not chose the latter investment option? What if someone just wanted a growth fund WITHOUT the tax implications of dividends of VOO, for example? This would be held in a taxable brokerage account. An S&P 500 index fund, no matter what kind, holds those 500 companies in the proportion that the S&P 500 index specifies. It seems like everyone agrees VOO through Vanguard is the best index fund to invest in but I’ve also heard of S&P 500 (or are these 2 the same thing?). Index investing is a good strategy for retirement account and no one here should be saying one strategy is superior than another. Of course, whether growth or dividend stocks are a *good Dividend investing can be ideal for those fortunate enough to be retired. We would like to show you a description here but the site won’t allow us. Why? Because they I invest into index tracking funds and low cost bond funds (standard passive investment approach) However ever since one company had a scandal amd dropped by almost 300% (and went back up eventually) I started following this company. Given that my I have been investing for the past decade primarily in index funds, but recently decided to take a closer look at my portfolio to see if I could make some improvements. Im a lurker on this sub, r/stocks and all the associated subreddits etc… but I have not once seen somebody bring up VYM, which I find curious. Also, ETFs/mutual funds tracking the same index can have different dividend distribution. The one with smaller dividend distribution is always more tax efficient if you plan to hold for a long time. So if the S&P does 10% CAGR then an S&P 500 fund investor might only make 9% CAGR. I'm currently investing in some of the Mutual Funds (Small/Large/Flexi etc) but haven't added any Index fund to my MF… As an official Fidelity customer care channel, our community is the best way to get help on Reddit with your questions about investing with Fidelity – directly from Fidelity Associates. Reply reply ragnaroksunset • If everyone got the higher reward it wouldn't be a higher risk, would it Reply Jul 7, 2025 · There are investors like me who believe that investing in companies with consistently growing dividends will lead to good performance. Jan 17, 2025 · In the world of investing, reaching high returns is a goal for both new and seasoned investors. This is 3,518 companies. Most dividend stocks yield between 2% and 5%. 32% returns (I invest in Growth plans). You guys were able to make me understand that investing in an index fund can be done in two ways: 1) mutual fund or 2) etfs. Going for dividends exclusively could expose you to unnecessary equities risk and sector specific Index funds are just so simple and more likely to be successful that really it should be a no-brainer to be the backbone (or the entirety) of virtually everyone's investment portfolio until approaching retirement, at which point you can make changes to reduce shorter-term risk like with bonds or dividend stocks. I am a bot, and this action was performed automatically I'm in my late 20s and I started investing in March 2020. I’m just unsure about which one to invest in. In many cases, investors will reinvest those dividends, but as I understand it, any reinvested funds are used to purchase the index fund as a whole, not just shares of the particular companies that paid dividends. It feels like a great way to get automatic withdrawals without having to tinker with what to sell etc etc. Bogleheads are passive investors who follow Jack Bogle's simple but powerful message to diversify with low-cost index funds and let compounding grow wealth. At least the higher end paying ones about 69% payout ratio. Nov 5, 2019 · Dividend investing vs. 5% and another that said it was often 10-15% - but I think the latter was assuming that you would reinvest the dividends back into the index fund? You get dividends with an index fund right? Dividend investing vs. If you have enough income from the dividends, you don’t have to ever sell your shares and could potentially create generational wealth for your family when you pass on those For Filipinos interested in stocks, bonds, mutual funds, ETFs, forex, crypto, banking, business, insurance, and any other topic related to investing money, making money, or growing money in the Philippines. The high dividend yield sounds good in theory and the price point seems more accessible to me. But what's the meaning of trading intraday (ETFs) vs at market closing (index fund)? Is there any benefit of one over another? 15 votes, 23 comments. Welcome to r/dividends! If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki here. Apr 19, 2022 · Investment risk: Put simply, dividend stocks still carry risks, particularly those that aren’t the top dividend stocks. Within a portfolio one purpose of bonds is to add diversity with an asset that isn't perfectly correlated to stocks in order to reduce volatility and risk. His work has since inspired others to get the most out of their long-term investments. Generally, retail accounts cannot purchase institutional class shares and vice versa. "Index" refers to how the fund decides what to invest. The question is whether growth stocks or dividend stocks are more suitable for a TFSA. Fidelity has Target Date Index Funds, too. Looking to diversify my assets a bit. I'm pretty sure not the market cap, for good or ill. So my question is, doesn’t 41 votes, 89 comments. There are a variety of dividend ETF and index funds I have found online. All of them should have good tracking. May 31, 2024 · Fidelity index funds are a popular choice amongst investors. For Filipinos interested in stocks, bonds, mutual funds, ETFs, forex, crypto, banking, business, insurance, and any other topic related to investing money, making money, or growing money in the Philippines. With my work I don’t have a lot of time on my hands during the day to spend trading while the market is open or pouring through company info to find unicorn stocks and with a family my evenings are pretty tight on time as well. VTI is a total US index that is an ETF. Researching solar a few years ago is the reason I was able to find companies like ENPH and SEDG to invest in. It's not always about beating the market, it's also about preserving your wealth for some people. I’m also confused about the average return on an index fund because I saw one statistic that said it was about 1. It seems like investing in the SP500 outpaces buying houses and renting them out. Get index funds rather than individual stocks. 8% ( Nifty Index regular - Dividend plan). Bogleheads are passive investors who follow Jack Bogle's simple but powerful message to diversify and let compounding grow wealth. I am a bot, and this action was performed automatically If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki here. There are countless numbers of companies that will go to 0 over a 30-40 year period. VYM seeks to track the performance of the FTSE High Dividend Yield Index, which comprises companies with higher-than-average dividend yields. If you’re looking to receive cash from your investment, similar to real estate, look into a concept called home-made dividends. Gave me a better understanding of index funds and why you should invest in index vs. One of the ways to achieve this that has been recommended is dividend stock investing. 43 you’re getting a yield of 5. Dec 29, 2024 · Looking for the best index funds for 2025? Check this list of examined index funds that are worth considering adding to your portfolio. Continue Reading: How to invest in index funds Top 3 Stocks For Trying To Beat Rising Inflation The stock market is reeling from the growing level of inflation. Collectively, we are known as Dividend Growth Investors or ‘DGI’ for short. What Are Some Things To Consider Before Investing In Index Funds? Before investing in index funds, you should carefully assess fees and other costs associated with the fund and the underlying assets that make up the fund. Dividend plans is what my dad invests as he needs regular income. 2% interest. JEPI is an actively-managed fund which seeks to generate income by investing in US stocks which have low volatility and which appear undervalued, and through investments in equity-linked notes which provide the economic exposure of the US stock market and written (sold) call options. Active managers want your money - our advice: keep it! How? Investing in broad-market (MF or ETF) indexes, diversified between equities and fixed income. For example, you can invest in bonds, CDs, and other fixed-income assets, dividend stocks carry more investment risk because of the nature of stocks, which are riskier because they aren't diversified at all. I have a question regarding the allocation of idle funds during a dollar-cost averaging investment strategy within a non-registered account. Bond funds started paying more than 4, only recently really. e. Since then, I've tried to invest a weekly portion of my paycheck into stocks. I am reinvesting the dividends should I just focus on voo alone. It’s often been said that dividend investing lags the S&P 500 in regards to long-term investing (10+ years). P) and then you have another that states throw it in a total stock index or S&P500 index. Reply reply More repliesMore repliesMore replies Holding a world index for 20 years and realizising your gains to shift into dividend stocks is probably not going to be a good idea, you may be having 3-4 times your invested capital in profits youll have to pay taxes upon realization. 65 a share. Vanguard high-dividend index fund , though it's not so much higher than a regular broad index, which is around 2% these days. Active managers want your money - our advice: keep it! How? Investing in broad-market (MF or Welcome to r/dividends! If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki here. They swapped one 500 index fund for another 500 index fund, this is very common in 401k plans. "ETF" vs. Learn the pros and cons of each to maximize returns. Invest ~ 100k a year. It does have something to do with a TFSA. Active managers want your money - our advice: keep it! How? Investing in broad-market low-cost So your only real choice come down to sp500 index fund or dividend funds. Indexes that track the US market will provide higher returns annually than dividend stocks (historically). index investing by Momus » Tue Nov 05, 2019 7:56 am Which one is better? in Youtube, it looks like dividend investing is all in the rage. You're just throwing away tax advantage if you do that. Please direct all simple questions and "Rate my Portfolio" requests towards the Weekly Discussion Threads (sort by hot, they're at the top). You can profit from an investment through capital growth or income (dividends in the case of stocks). But dividend stocks in your portfolio can snowball over time and at the same time the company might stop paying or cut dividends due to various reasons. Another factor the OP may want to consider is taxes on an index fund. Essentially looking for max growth without adding to the tax burden. About mutual funds: These are funds managed by fund managers and not all mutual funds are index funds. I am currently investing in the dividend stocks, but I have recently seen a lot of people saying that when you are young, you should invest in growth stocks like VOO. spending the same amount on fund B and spending the dividends? Part of it is just me not understanding when index funds would be the best move. 3% APY provide a reasonable level of stability and security for a short vs long-term investment strategy? For those who have experience with CDs or index funds during volatile times, what are your personal preferences and why? Archived post. Seeking Alpha's latest ideas for investors interested in dividend stocks. So of course I want to point them in the right direction. Dividends and capital gains are both taxed at the same rate (in the US, at least) and neither is inherently better for passive income. My high yield savings account gets me 4. I mostly invest in SWTSX, a mutual fund which follows the Dow Jones U. R. For a long term perspective, which one is more efficient? (keeping fees, taxes in mind) Note: I know Growth Investing also means chasing momentum etc. It's also important to note the distinction between your personal investing account, and your Roth IRA. After weeks of reading about various investment vehicles, I am not understanding why REITs are not a much bigger part of people's portfolios. Because there is zero risk in a HYSA as opposed to stocks, it seems like just using a HYSA account is the superior strategy. This is the part many people seem to forget in their mantra of holding growth upto retirement. You don't want the income until retirement so you want the money reinvested and it is irrelevant whether they pay a dividend or not. I'm currently investing in some of the Mutual Funds (Small/Large/Flexi etc) but haven't added any Index fund to my MF… IMHO dividend growth investing benefits even more from compounding than index fund investing, as long as you choose solid companies and don't go yield chasing. 48% dividend yield isn’t too shabby and would beat the S Reviewing 'dividend aristocrat' stocks, only 4 offer dividends over 5% (which you can achieve with a saving's account) many of these stocks are also sliding in value over time. Even though you're excited about dividends now, you'll be better off reallocating inside the Roth IRA after your growth stocks/funds have dramatically climbed over 30 years. The answer is no, they are both highly suitable for a TFSA. I know that every dividend payout results in lowering stock price of equal amount. Jun 26, 2025 · If you had to choose between investing in an index fund or dividend stocks, what would factor into your decision? This post was originally published in February 2010 and is regularly updated. Hello, what are the paramaters for choosing a index fund, i just know 2- low expense ratio and low tracking error, is there… Oct 9, 2025 · Discover the top index funds for dividends that offer steady income and long-term growth. 176% return and 5. When people fill their portfolio with them, even if they use SCHD, they are actively only investing in slow growing Value stocks and concentrating their portfolio this way. Active managers want your money - our advice: keep it! How? Investing in broad-market low-cost And investors need to consider their time horizon, risk tolerance, and investment objective to determine whether an index fund is a suitable addition to their portfolio. In theory, an index fund should outperform long-term a reasonably-diversified dividend portfolio. My specific question: What are the benefits of investing in dividend stocks rather than dumping your money into SPY, or QQQ (SPY & NASDAQ index fund equivalent)? Reading up on individual stocks and reading the latest news is my passion, I can't get that kind of satisfaction by buying an index fund. Why the need to live off of dividends exclusively? The traditional drawdown strategy involves a diversified portfolio of stock and bond index funds, selling shares as needed, and rebalancing as you go. emerging markets index, europe index, asia index Forget about dividend paying stocks. If you decide to invest in bond funds you should do so in a tax sheltered account because bond yields are taxed as ordinary income at your marginal rate whereas qualified dividends from equities are usually taxed at the long term capital gains rate. By dividend investing I mean directly buying stocks with decent dividend yield. The difference between 6% and 8% return is massive over If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki here. Just wondering what people here prefer. Key differences between fund classes include the expense ratios and minimum investment requirements. Dividend stocks/funds can still crash and cut dividends, or be stagnant during times of higher rates like now when people can get higher interest, say 5%+ risk free vs putting money in SCHD paying like 3. Active managers want your money - our advice: keep it! How? Investing in broad-market low-cost If you decide to invest in bond funds you should do so in a tax sheltered account because bond yields are taxed as ordinary income at your marginal rate whereas qualified dividends from equities are usually taxed at the long term capital gains rate. As of this moment, I would just go with short term t-bill to see where the market goes for the next 2 years and get risk free 5% rate. Oct 25, 2018 · Which is why Index investing makes all the more sense. Invest in workplace 401k or keep own money to invest in index funds? Went to set up my 401k at work today and was surprised at how bad their company match is, which is about 1%. Active managers want your money - our advice: keep it! How? Investing in broad-market low-cost We would like to show you a description here but the site won’t allow us. Fast forward today and QCOM is at 144. professionally managed ETFs and funds. 7%, however using your cost basis of 47. r/indexfunds: **What is this place?** /r/indexfunds is a subreddit dedicated to index funds and index fund investing. If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki here. Our goal is to help Redditors get answers to questions about Fidelity products and services, money movement, transfers, trading and more. Ive spent quite some time reading, watching youtube videos and browsing through reddit about value investing but each time I come to the conclusion that I dont have the time to research and So then the frequent poster on here making 300k or so in their 30s is better off investing in fund A? Letting fund A appreciate and selling off the occasional share to have spending money vs. 478K subscribers in the AusFinance community. JEPI is subject to equity market risk, and risk Why is Target Date Index Fund better than S&P 500? I have all my roth ira and 401k invested in target date index fund 2060. I am a bot, and this action was performed automatically. You don't want to hold cash, or low-yielding, high-security bonds in your TFSA, for example. Am I missing something? If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki here. So all I'm saying u did not get 5% beginning of last yr. The journey toward this outcome often involves a portfolio with a mix of dividend-paying stocks and A S&P 500 ETF is a S&P 500 index fund. I will be investing 100 000 dollars and will contribute an additional 2000 every month for at least the next 2 years so just trying to get some opinions. My 80/20 stock bond portfolio (60/40 US and Intl) is producing about 2. Comparing Index fund returns over the same period it is 10. Specifically, I plan to invest my initial capital in Canadian dollars into VFV and QQC over the course of three years. Now if u have been investing all this time, then it is more complicated calc, but the same in that u invested a lot in zero paying funds, and lost value too. But all said and done your point still stands they crash proof. Apr 22, 2022 · Dividend stocks vs. Everyone has their own personal preference based on their goals and the risks their willing to take. The fund is appropriate for investors seeking long-term income. So a high dividend stock generally means limited capital growth. I also see some forecasts that suggest slow growth over the next 5 years but who knows. The trade off is theoretically less gross money, but consistent income generated from your dividends. trying to make $100k into $1M with dividend payers from the get-go. You should not settle for a lower total return just because for some reason you prefer dividends So will high dividend ETFs provide greater return then some broad market fund (Total stock market , S&P500) , well history has said no. Which is beyond what I’m spending. I've invested in both dividend and growth stocks, but I'm not sure which I should focus on more for the long term. But do the dividends from low cost index funds keep up with inflation? Anyone else doing this? Dec 24, 2024 · A typical S&P 500 fund pays 1-2% in dividends because some of the companies in the fund pay out dividends which are passed through to the fund holder. Dividend investors aren’t necessarily concerned about overall growth, but are concerned about dividend growth. Capital gains receive favorable tax treatment relative to current income, at least certain types of current income. Thus, this option would be most optimal - especially this early on in your life. If you bought today your dividend yield would be 1. trueIf you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki here. I. Please contact the Very new to dividend stock investing. Dividends reduce retained earnings which reduces the company's available funds for capital expenditure to fuel growth. Please keep all contributions civil, and report uncivil behavior for moderator review. Click to see the best ideas and analysis that provide yield on their investments. Find the best dividend-paying funds to boost your portfolio returns. Is there a more efficient method to manage these funds during the interim? Agreed. 3% per year in dividends. Dividend vs Value investing Curious what the communities take on dividend vs value investing is. My specific question: What are the benefits of investing in dividend stocks rather than dumping your money into SPY, or QQQ (SPY & NASDAQ index fund equivalent)? Both of these indexes are quite diversified across all the companies they are comprised of. I’ve honestly come to the point where I just plan on sticking to index funds, with the vast majority in simple S&P funds like VOO. Well typically dividend stocks cancel a month or two of dividend and reduce the dividend in a downturn. So what you are asking is which investment over the long term will give you better return on investment, an S&P 500 index fund with dividends reinvested, or a dividend index fund like SCHD with dividends invested. You can also search or review other investment offerings with our screener tools, exploring a variety of individual investments, including Exchange Traded Funds (ETFs), individual stocks, bonds, mutual funds, and more. The question should become will these ETFs provide greater total return vs a total market fund . If you want dividends, you can get them without taking the risk of investing in individual stocks. Hi everyone, I’m relatively new to investing, and recent set up my account. It's not a question of mutual fund/ETF or active fund/index fund that you're asking, as much as "does it make sense to overweight dividend-paying stocks in my portfolio?" Dividend stocks vs ETFs: Compare yields, top funds like SCHD & VIG, expert tips & tax insights to pick the best 2025 income strategy. This Reddit is called dividend investing which focuses on income producing positions. Dividend funds aren't really comparable to bond funds, mostly because stocks and bonds are two different animals. The benefits generally include a more predictable return, lower price volatility and less risk. Even tho an index fund is pretty low risk. Australian Personal Finance: budgeting, saving, getting out of debt, investing, and saving for… By investing in broad market indexed ETF's & Mutual Funds you should have to do very little with the exception of the occasional rebalancing. Buying majority index will get you the market without requiring any ongoing work/research. Just something you may want to consider. I have a Charles Schwab account to invest through if that matters. Total Stock Market IndexSM. It makes it easier to invest, I spend less time worrying, and will likely come out on top anyways. . That being said am I likely to do significantly better investing in individual dividend stocks rather than something like VYM to Dividend stock investing is a fallacy often touted by inexperienced investors on reddit. The new fund is not strictly speaking a mutual fund but rather a collective investment trust which are used all the time in 401k plans. I’ve been investing for a little while now, but mostly heavy in tech and index funds. Dividend etf’s can also be used but they usually don’t beat the index. My “investor” friend keeps trying to convince me that dividend stocks are better than the SP 500. That said, they hold less international bonds, i. The dividends of these index funds are taxable events. But there are others who argue that investing in an index fund or index ETF such as the S&P 500 (SPX) is simply better and easier. Look at historical data for companies that have a history of increasing their dividend as well as increasing the share price a significant amount. Unless it's going into a roth account you'll be paying taxes on those index fund gains. Dividend investing in individual stocks can lead to a higher return if you pick correctly. ETFs can be traded like a stock intraday whereas index funds are executed at market closing. Join our community, read the PF Wiki, and get on top of your finances! Dec 19, 2024 · Investors who want the stability of regular dividend income—people in or close to retirement, income investors, or those with a long time horizon—can find dividend funds and dividend exchange When I see young people in general post about their dividend portfolios or investing mostly in dividends and not growth, I see a lot of people in here saying they should focus on growth rather than dividends. In the end, the only real advantage of investing for dividends is behavioral and emotional. Given the current volatility in the stock market and economy, does investing in CDs at 5. index funds: Which might you want to invest in? Let's go over the pros and cons of both types of investments to help you. His work has since inspired others to get the most out of their long-term stock and bond investments by indexing. I would still invest in VOO, but I would also start building a portfolio of 20+ high-quality dividend growth companies. His argument is that compounding interest of reinvested dividends has historically beat VOO. In general the dividend yield ranges from 3-4%, and the growth of the funds is typically from 4-7 %. However, studies have shown that investors do a fair amount worse than the funds/strategy they choose. 48 a share or a 4% dividend yield. Hello, I saw that there is a large movement of people interested in passive income. Right now I put a lot of my income in different stock index funds but have recently picked up interest in reading books about value investing (One up on Wall Street and Beating the street by Peter Lynch). Therefore, we can conclude that the Fidelity 500 Index Fund (FXAIX) is the investor class fund, whereas Class F is for institutional investors. Index funds are just funds (whether ETF or mutual) that follow a specific index. Here is my approach - mostly invest in inexpensive index funds, but set aside some funds for individual stocks. 53 votes, 110 comments. I am not too familiar with the index fund investing situation but I did find the VYM ETF. The question is, which are the best ones? Dive into our analysis to find out. I like the idea of a dividend fund and reinvesting the dividends for the next 10 years and having cash flow. 48%. S. Discover the best investment strategy for you: dividend stocks vs index funds. If that’s the case, can someone explain to me my so many people would rather invest in dividend stocks (ie SCHD) over the S&P 500 (ie SPY or VOO) for long-term investing? Dec 24, 2024 · In many cases, investors will reinvest those dividends, but as I understand it, any reinvested funds are used to purchase the index fund as a whole, not just shares of the particular companies that paid dividends. Year over year, long term investing, would that be a better route for someone who just started out? I originally thought that dividends stocks are generally good for investors who want cash flow. There are ways to invest that don't involve the stock market. Active managers want your money - our advice: keep it! How? Investing in broad-market low-cost The dividend was . I personally invest in dividend paying stocks with about 10% being no dividend paying tech stocks. Even during the crash in 2008, it only took a few years for it to recover and start to surpass target date index fund. Go with index funds. Investing in an ETF or index fund versus real estate rentals? I've been playing around with broad mathematical projections on the ideas in the title. Reply reply Kjpilot • Bogleheads are passive investors who follow Jack Bogle's simple but powerful message to diversify with low-cost index funds and let compounding grow wealth. I learned that index funds are a much safer long term option than investing in individual stocks. I know dividend yields, expense ratios and things like that play a part but I’m not sure what matters more if any. This means that the ETF invests in companies that pay a larger portion of their earnings as dividends relative to their stock price. It's easier to make $100k into $1M with the S&P 500, then convert to $1M in income generating assets, vs. Remember, this is a subreddit for genuine, high-quality discussion. Its just so hard to tell what companies will be around, much less thrive over that kind of time period. g. While I am a big believer in passive investing and using index funds, you need to read more about the strategy if you're going to be able to make an informed comparison. 5%. Yet I've got a friend whom is adamant about only dividend investing and is asking me for advice, if I know of a stock fund with a dividend yield of 4-5%. Non-retirement brokerage accounts are taxable investment accounts, meaning that when you invest in stocks, mutual funds, or other securities, you'll gain or lose money in the stock market. Considering this data I am thinking of moving my investments to Index funds. You're mostly just trading one type of growth for another, but you may be less diversified if you just buy high dividend stocks or high dividend funds. However, I'm definitely focused on building We would like to show you a description here but the site won’t allow us. Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. So, index funds are not at all a bad investment and can help your overall portfolio. Keep majority in your own currency but get some uncorrelated indexes e. My thesis: (30 M) I can live of the dividends in retirement with out selling the underlying asset and the stocks will continue to grow. Dec 16, 2023 · Trying to decide between dividend stocks vs index funds? Then here you will find 10 reasons addressing index investing vs dividend investing. Jack founded Vanguard and pioneered indexed mutual funds. I too am an investor for 10 years and I too see only 8. On the other hand you have companies like Microsoft, Apple and McDonalds that have a proven track record of growth with decent dividends. VYM, the Vanguard High Dividend Yield ETF, prioritizes high dividend yield. bxvb tsqikzl ywubgbao ufvurq zsldk ppokfbc hhq xfaqiv wfvir nihv mkj kobi tbvmao eqa cclnfd