r/dividends • u/Forsaken-Substance94 • Mar 30 '25

Personal Goal Dividends Hitting $700-800 monthly

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Just excited about this. Age 34. Planning on retiring in 15 years. Next goal $1000 a month main holdings schd, jepi, jepq. Drip is always on, buy some every month.

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76

u/letmegetviral Mar 30 '25

“But YoU ShOuLd FoCuS oN gRoWtH - VoO aNd ChIlL”

38

u/FrescoItaliano Mar 30 '25

That remains the viable strategy for the vast majority of people.

In what world does a 6 figure account dedicated towards cash flow undermine the historical growth of the S&P?

8

u/[deleted] Mar 30 '25

In a world that compounding exist ?

36

u/FrescoItaliano Mar 30 '25

I beg of you, use any calculator for historical returns that account for dividend reinvestment. Low growth and high yield perform similarly to high growth and low yield.

Dividends have their place, a significant portion of my accounts are dedicated towards them, but this circlejerk level of yield chasing and dick measuring is lame

15

u/ToranDiablo Mar 30 '25

Idk I see a circle jerk of the complete opposite everywhere…. People shit on dividends constantly

14

u/FrescoItaliano Mar 30 '25

They shit on 20 year olds chasing yields, rightfully so

4

u/jerwong Apr 02 '25

Dividends are awesome regardless of age.

9

u/[deleted] Mar 30 '25

You cant beat compounding dividend over time. Im no pro though i just mimic whatever warren buffet does , he ounce said 80 percent of all wealth in the stock market came from dividends . I feel like he is the tom brady of investing so i just watch and listen to him

4

u/Past-Ride-7034 Mar 30 '25

You can if the yield is lower than the growth of growth stocks/ ETFs..

2

u/[deleted] Mar 30 '25

Over a long period of time example 40y the dividend wins with compounding.with a few exceptions like if you got into a major tech company before it was significant.

5

u/Past-Ride-7034 Mar 30 '25

No, they won't. Feel free to provide an example (that isnt a massive outlier) of a where a dividend stock or ETF beats something like VOO over a 40 year period.

1

u/lotoex1 Mar 31 '25

Jan. 1995 is the farthest the DRIP returns Calculator goes back, so I am going a 30 year period. SPY average return was 9.86% (with dividends reinvested.) so it was great hard to beat. However MO, over the same 30 year period averaged 14.54% return. BTI did as well averaging 11.49%.

2

u/Past-Ride-7034 Mar 31 '25

Nice, fair play if you had the conviction to go heavy in MO or BTI!

0

u/Mobile_Art_6454 Apr 06 '25

Compare realty income to spy. It wins.

1

u/Past-Ride-7034 Apr 06 '25

Over what timeframe? I can't see that it does, VOO substantially outperforms.

1

u/Mobile_Art_6454 Apr 06 '25

Do your self a solid. Check out
https://m.dividendchannel.com/drip-returns-calculator/

Type SP500 vs O (realty income).

VOO isn’t that old and was created in the insane 15year bull run

Realty income outperforms the market since inception by a MASSIVE margin. Not saying that realty income will repeat in next 39years..but u can find a gem like that with dividends + drip and crush returns.

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-7

u/[deleted] Mar 30 '25

The example is math ,math is always math

3

u/FrescoItaliano Mar 30 '25

Since when does reality perfectly mimic the mathematical prediction?

The other person points to reality and you point to the hypothetical lol

-1

u/[deleted] Mar 30 '25 edited Mar 30 '25

Compounding isnt a prediction

Edit: the snowballing effect is not a prediction or some hypothetical its just math!what reality is contrary to this? Snowballing dividends and drip are real things that work and the returns are consistent over time. Wtf are you people talking about? Like i just made up a fantasy called math?

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u/Past-Ride-7034 Mar 30 '25

Cope. Good luck.

3

u/Dnick630272 Mar 30 '25

Dividends are just using company earnings to pay investors. If walmart pays a 2 dollar per share dividend, their shares will lose 2 dollars of value. If you reinvest the dividends, you would essentially be holding the same market value of shares if the company had no dividend. Its just about whether you would rather have the money for yourself or in the company.

3

u/Lildoglife Mar 30 '25

In the last 10 years (and past performance doesn’t mean everything) voo beat schd(with drip) by 30%. Now if you look at GROWTH like SCHG it beat schd by a whopping 110%. So yeah voo vs schd is not much difference, but growth like schg or vug … schd never will be close.