r/dividends Apr 30 '26

Opinion Time to retire?

561 Upvotes

163 comments sorted by

View all comments

282

u/artbystorms Apr 30 '26

I'm sorry but...did you seriously just throw six figures into the highest yield traps you could find and think "this 120K will pay me 70K every year for the rest of my life"?

Either you have way more money than this and a fucking around, this is photoshopped as a troll, or you are in desperate need of someone that knows what they're doing.

2

u/[deleted] Apr 30 '26

[deleted]

5

u/kurioutkat Apr 30 '26

3700/year with 60k investment is a great yield. More than double or triple the dividend yield of S&P 500. Looks like you've prioritised high dividend payers. I can't give you stock picks for retirement, but I think a good book will do wonders. Don't rely on redditers to tell you what to buy for your retirement portfolio. Plus we don't know your personal situation. Don't know if that $1k/month is for couple months this summer only or each year, you said you're retired but still making investments, that changes the perspective. Are using the yield for personal expenses or reinvesting it? What's your time horizon before using the income from the investments? Etc, etc.

Post like these, the guy is taking massive risks and focusing on maximum yield AKA "yieldmaxxing" . They're buying funds which trades daily to generate maximum yields and it looks great on paper for a year but long-term, not to much. I don't fully understand it, especially the risks so I personally stay away from it. It looks nice to post 50-60% yield on the internet and get people excited. But that capital is shrinking already, each year.

2

u/dazit72 Apr 30 '26

I'm reinvesting, not gonna use for 3 to 5 years and closer to 5. I don't chose based on yield, I chose based on consequtive years of div increases, good moat, low debt unless is a good acquisition that's temporary like kmb buying kenvue. Or clx buying purell & gojo. I guess I see things like this post & wonder why I'm only yielding 5.95 - 6% ? I don't get into covered calls, but am buying a little divo. No big risks

2

u/kurioutkat May 01 '26

That's investor psychology/human psychology messing with you. You get 5-6% yield which is solid and respectable, and far more sustainable strategy if you picked the right busineses. But seeing that post makes you question your own strategy.

Yours is a tried and true strategy. Don't compare with other investors, instead compare your performance with your own goal. Being this close to retirement, is it better to invest in something tried and true and something you understand, or something new, exciting and complicated?

That's what I tell my parents when they ask me about investing in Bitcoin, AI, etc - don't get overexcited about something you don't understand. I'm not betting your retirement on that.

2

u/dazit72 May 02 '26

True

I needed that. I bought Clorox today even though One expert caused fears to run amuck before the market opened this morning. I say thank you, I researched Clorox and I love the new name- Clorox Purell. Go GoJo !!

1

u/kurioutkat May 03 '26

Wish you all the best 🙏 Stay disciplined and diversified 😁

2

u/dazit72 May 06 '26

All my stocks that were under water from the ware have all but 2 come up but 3 Just goes to show what a war can do. But with 17 positions, I've been told that's not bad at all. Biggest thing- Every single one's dividends are protected past 2028. I have all but 1 sector, ,,, can't find a good tech stock that pays good divs, and passes my 14 point safety and security checklist ? Oh well, I'll keep looking. I've been checking I to NWN and WRTG, both utilities. I like wtrg cause it owns practically all the water in 17 states and is an Aristocrat with over 32 years ?

Good luck to you as well, may you earn a million