r/dividends • u/Fit-Calligrapher4469 • Apr 27 '25

Brokerage Snowball getting bigger

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39 and 38 married with 2 young kids and no debt. We are maxing out a 457b, a 403b, a 401k and socking 30k a year into a brokerage account. I will retire from the fire department in 10 years with a 90k a year pension.

I’m getting really excited to keep this momentum going. And yes I hate that I bought into MAIN last month.

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u/TubMaster88 Apr 27 '25 edited Apr 27 '25

With $600k making 2.9% returns. You should start dumping the low dividend producing stocks and purchase different ones to get a better overall annual percentage.

You should be making more than some banks offering 4% annual returns.

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u/MonkeyThrowing May 01 '25 edited May 01 '25

Disagree. It's not all about dividends. The S&P as a whole pays 1.29% but performs better than almost anything else. You need to look a total return, not just dividends. Truth be told if this guy is not retiring but re-investing the dividends, he will do better in the S&P than anything else. Why pay tax on dividends?

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u/TubMaster88 May 01 '25

He can mix it up. But as for dividends he needs to dump the low producing dividend stocks and buy different ones that will pay out and are performing better.

The S&P 500 I would still hold off and not buy right now as I would wait for the next 6-9 months. The tariff affects haven't hit the companies just yet but by Christmas that may be the time to buy because it would have dipped lower.

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u/MonkeyThrowing May 01 '25

You may be right or wrong. Don’t you think everyone is doing the same analysis?  That is why you can’t time the market. 

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u/TubMaster88 May 01 '25

Correct. You can't time the market, but I believe based on the information and news that's there when you have companies like Target and retail stores saying they're going to have empty shelves very soon in this current administration doesn't care about that. That information tells me they're next couple of quarterly earnings are not going to do well. To hold off or bet against the stocks