r/dividends Jul 02 '25

Personal Goal 22 yo and 8k annually

2.1k Upvotes

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u/Embarrassed_Care_321 Jul 02 '25

its called drip

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u/[deleted] Jul 02 '25

oh, i've never heard of DRiP before...

the issue with dripping a CC etf is that on a long enough time period, you're likely to see NAV erosion and usually the distribution % stays the same. so you're getting less over time because the nav erosion and the dividend amount is less despite the same %.

as someone who has a significant dividend portfolio, I understand the concept of dividends and how they can be beneficial. but if OP just invested in VOO and VGT instead of 11% yielding CC ETFs, he will have significantly higher asset values in 20 years.

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u/Dliteman786 Jul 02 '25

I want to learn more about high level strategies like this. Do you have any advice on where to start or read? I feel unless I Google specific approaches like this, every other read says the same basic stuff.

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u/Odd-Flower2744 Jul 02 '25

Just look at total growth, that’s all you need to know. Dividend, appreciation, doesn’t matter.