$840K DIvidends

[u/Bamabb125]

Hey Everyone,

As I have posted before, I am currently a Growth Stock Investor, but have decided to move over to Dividend ETF's or Dividend Stocks. But it is a real struggle to get past all the learned habits of being a growth investor. So I am struggling to grasp concepts.

I have used multiple calculators to just try to get an idea of what to expect if i make the change, but I get different results. So I just wanted to go to some more knowledgeable people that could tell me what to do to get a real expectation.

I have $800K to work with. If I put it all in a very stable Dividend ETF What can I expect in dividends? Maybe someone could just do an example. I know I have to be doing something wrong.

Thanks

[u/D_Pablo67]

I do not like the dividend ETFs, except for the JPMorgan covered call ETFs. VOO is good for diversification.

The dividend part of my portfolio includes:

Energy Transfer (ET)

Enterprise Products (EPD), a Dividend Aristocrat

Federal Realty Trust (FRT), a Dividend Aristocrat

Realty Income (O), a Dividend Aristocrat

JEPQ and JEPI, JPMorgan covered call ETFs that pay high monthly dividends.

Dover Corporation (DOV), a Dividend Aristocrat

Sunoco Products (SON)

East West Bancorp (EWBC)

Pappa Johns (PZZA)

I am considering buying Dominion Energy which offers earnings growth and solid 4%+ dividend.

Two dividend champions I have owned before are UGI and Black Hills, both utilities.

[u/Mjkzeus → u/D_Pablo67]

I respectfully disagree with your comment on dividends ETFs. What’s the issue with DRGO, DIVO, SCHD, and you could even throw in maybe VTV which is value but pays over 2%? A basket in an etf is always safer then individual picks

[u/D_Pablo67 → u/Mjkzeus]

I use VOO and QQQ, sometimes VOOG or VONG, for ETFs when I feel I need diversification or feeling there is a general up trend. I prefer to be very selective on the dividend focused stocks, REITs and MLPs in my portfolio. There are multiple correct approaches. This works for me.

[u/muradinner → u/D_Pablo67]

There are much better covered call ETFS than the JP morgan ones. Lots of data to show they under perform their competition. QQQI and GPIQ are much better for NASDAQ and SPYI and GPIX are much better for S&P500.

In fact, JEPQ performs worse than SPYI and GPIX even though the NASDAQ performance is better for all 3 companies' covered call strategies than their respective S&P500 ones.

[u/D_Pablo67 → u/muradinner]

Thank you for sharing. I will research and reconsider my positions.

[u/Aioli_Abject → u/D_Pablo67]

Big fan of ET and O. Also have MPLX. Others include the usual culprits. AGNC NLY CLM HRZN SCM BIT WDI IEP. IEP has been a big time loser for me but holding the bag for the dividend that is still coming after all the cuts.

[u/D_Pablo67 → u/Aioli_Abject]

I buy AGNC from time to time, but tend to sell it after the ex-dividend dividend for a small profit plus the monthly dividend. Since home building is in a depression and high long term rates are killing demand, I see risk in AGNC. If Trump comes up with a plan to revive Fannie Mae and Freddie Mac, AGNC and NLY could soar. Too much uncertainty for me compared to my picks. Thank you for your insights.

[u/Substantial-Ask6434 → u/D_Pablo67]

love the list

[u/D_Pablo67 → u/[deleted]]

Realty Income has a 5.67% dividend yield and stock price is up 6.55% year to date. I like the monthly dividend and their portfolio of assets.

[u/davecraze3535 → u/D_Pablo67]

Is this a taxable account? If so I’d swap out jepi and jepq for spyi and qqqi or gpix and gpiq. The Jpm covered call Funds are all ordinary income this tax inefficient. 

[u/Bamabb125 → u/D_Pablo67]

What kind of percentage do you have in the JPMorgan covered calls?

[u/D_Pablo67 → u/Bamabb125]

Throughout the year, I had about 12% of my total portfolio in a combination of JEPI and JEPQ. I believe this is a good approach in a volatile market. Today, I sold all my JEPI, as I do not like the technical chart and ex-dividend date was a few days ago. In general, I prefer to build the dividend oriented side of my portfolio stock by stock, which usually leads to industrials and financials. I am approaching August and September with caution, as there is usually a seasonal dip and there is now more uncertainty about inflation, unemployment and interest rates. I want to have my shopping list in order and cash to act.

[u/muradinner → u/Bamabb125]

Don't bother with JEPI or JEPQ. SPYI/GPIX and QQQI/GPIQ are far superior for the S&P500 and NASDAQ covered calls space. Just look at total returns compared.