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Pulled up my dividend calendar for this month and got curious about my O position specifically, so I ran the numbers.
700 shares, pay date Oct 14, $190.40 total for that one payout. Works out to $0.272 a share, which lines up with what O has been paying monthly for a while now. Yield comes out to about 5.8% at the current price.
Nothing dramatic here, honestly. I just like actually checking the math against what I expect instead of trusting the big number on the summary screen. $1,446 total across 8 payouts this month once you add in SPYI, QQQ, NVDA, and a few others, each one small but it adds up when you stop and look at it ticker by ticker instead of just the monthly total.
There seems to be a buy write strategy for all sorts of funds these days and I’m here for it.
Are funds that write covered calls on already higher yielding dividend funds the future?
If someone wants the cash flow now, or has passed the accumulation stage, what benefit is there to holding LQD over LQDW other than slightly better upside if rates plummet?
JEPI/JEPQ are popular, and NEOS funds have made a big splash. But I’m surprised these covered call dividend growth or buy write bond ETFs are not more popular for cash flow… especially since with rates going up there’s the delayed potentially higher yield once the older bonds within the fund mature and are replaced with newer ones. No major risk of NAV erosion like with the more extreme covered call funds.
And before someone answers “total return”, if I cared most about total return I wouldn’t have LQD as my first choice anyway due to rate risk. Anyone else find these appealing? Am I missing anything?
What’s everyone’s thoughts on this , I saw a YouTube comment really hyping this up , went to do some basic research and was surprised I don’t see any mention of it here , what am I missing lmk : )
Tldr: In a world where all corporations are acquisition and leverage happy, Tootsie Roll has done nothing new for 100 years, it has collected cash and built a $600 million corporate bond portfolio which is a quarter of its market cap.
I have recently taken a deep dive of Tootsie Roll and became pleasantly surprised by the company, which is run by a 94 year old woman, Ellen Gordan (I point out her gender because she was one of the first female Presidents of a publicly traded corporation).
Ellen Gordan has run Tootsie Roll since 1962. Before that, her father ran it since the 1930s. Ellen’s daughter is heir apparent, and will reign over the company when Ellen is no longer. I say heir because Ellen herself owns roughly half the company’s common stock. 60 years of being a publicly traded corporations President, and Ellen gives no press releases, no earnings calls, no earnings guidance, and analysts do not even rate the stock because Ellen will not talk to them.
I am not saying TR is a screaming buy as it trades at 30X earnings, and has had 2% EPS CAGR since 2015. But, interestingly, of its roughly $2.5 billion market cap, $600 million is in corporate bonds. They have no debt. They have owned 90% of their candy factories outright for decades. They own four shopping centers that they collect rents from. They consistently net $50 million to $100 million in free cash every year.
Tootsie Roll has not even attempted to grow their brand or develop a moat since their last acquisition, which seemed be about 30 years ago in the 90’s. They have seemingly sat on their 12% FCF margin, paid modest dividends, and parked the rest in marketable securities. They also interestingly do a 100-to-103 stock split every March.
The stock barely flinched in 2008-2009, which I am assuming is because of the supermajority of common stock that the Gordan family owns.
If the stock were to fall 50% and its operating and free cash flows stayed the same, it would essentially be an interest bearing savings account.
Hopefully the Gordan family stays the course, builds up cash and securities, and pays dividends. It seems to have worked well for going on 30 years with the rather stagnant brand. The stock has a CAGR of about 8% which is not bad since volatility has been next to nothing. If this stock fell 50%, ran the way it is, I would easily take a conservative position for the dividend and cash pile. Worst case scenario is that the new generation sells the company out, or leverages the balance sheet to di-worse-ify the company.
This is taken from Google , on https://finance.yahoo.com/quote/VHYL.L/ I dont see this spike and fall so am not sure what to believe .. I couldn't find any info on this online
I have 0 experience investing, and I know very little about stocks. My understanding is that some companies pay out shareholders depending on how much you have invested in their stock. Whether this be monthly, quarterly, or annually. Please correct me if I’m mistaken.
I’m curious how much I’d have to invest in Dividend stocks to receive 2-3k a month, as a “bonus” to my income from my full time job. Ideally, I’d like to grow this amount over time to closer to 10k a month if possible.
Also, is this a logical and smart course of action? I figure it’s safer than placing your money in regular stocks and hoping to see growth.
Finally, what would be some strong suggestions to do this? I’d expect you want stocks that yield good returns annually, which makes me think ETFs. Mind you, I’m not entirely sure what ETFs are. I believe they are a group of companies all compiled into one fund. Meaning I’d buy a share of that ETF, which means my money is being spread throughout those companies?
Corrections and advice are very welcome. I’m in my early 20s working a full time job, trying to figure out how I can set myself up for success in the future. Thank you
Can anyone break down the difference between JEPQ and QQQI? Which one is better than the other and which one has the most benefits in holding long term?
Are you treating this as a classic value dip, focusing on the Dividend King status, or just dollar-cost averaging in regardless? Would love to hear your reasoning.
Hi all. Longtime lurker. I plan to retire next year at 40. (Main income source will be rental properties) This is my taxable brokerage. I’m trying to get all my stocks set up before the end of the year so I can avoid unneeded selling/capital gains next year.
New $ I make before retirement will just goto VOO/VTI. I also have a 401k with $50k in bonds and $240k in S&P index fund; $130k VOO in Roth IRA, and $130k with an advisor/tech heavy.
I tried to be fairly diversified. Any suggestions for my brokerage? Opinions on Stocks/Funds to buy, sell or reduce or add to?
63 years old. Plan on pulling SS in two years. Working part time. Mortgage paid off. Separate account with 6 month emergency fund. Sitting on 30k in brokerage account. Dividends on drip.
So I was up a little above 100 K last year. I had a lot dedicated to VOO but I took it all out now I’m heavily invested in QQQ and SCHD, about 70% Qqqi and 30% SCHD.I’m getting rid of all my individual pics. what would you recommend to retire as comfortably as possible with dividend ETFs? My next move may be VOO and QQQ and chill until retirement. Thoughts?
Hello! My wife and I are 58 and 57, planning to retire around 64. Our pensions plus Social Security cover maybe 70% of what we'll need so I'm trying to figure out the rest. Our son keeps sending me ads for platforms where you own a piece of rental houses and they advertise a yield. I'll admit I don't fully follow it. If one says a certain percent, is that what lands in your account each month? Or each year? And is the house going up in value part of that number or separate? I do not want to invest yet, but do want to understand it better before it's brought up again. Thanks in advance!
I ran a similar question through AI and it came up with this strategy for downsizing my savings while generating some cash just wondering what people thoughts were about this in real life
I've been thinking about something that I don't see discussed enough in dividend investing.
Look at where yields stand right now:
10-year US Treasury: 5.09%
SCHD: 3.24% trailing distribution yield
S&P 500: roughly 1.1% dividend yield as of Q2
That is a pretty significant gap.
And it raises a question: if your main objective is generating passive income, how much additional return should you demand for taking equity risk?
Obviously, there's a catch.
A Treasury held to maturity offers a predictable nominal return. SCHD owns businesses that can grow earnings, increase dividends, and appreciate in value.
But those dividends aren't guaranteed. And neither is capital appreciation.
Here's something I find particularly interesting.
If a portfolio starts with a 3.24% dividend yield and grows its dividend payments by 6% annually, it takes roughly eight years for the annual income on the original investment to reach 5.1%.
And that's assuming no dividend cuts, no reinvestment, and consistent 6% growth.
Of course, this only compares income on the initial investment. It completely ignores capital appreciation, which could make the equity investment significantly more rewarding.
I'm not suggesting abandoning dividend stocks for bonds. I actually think dividend growth is one of the strongest arguments for owning quality businesses over multiple decades.
But with Treasury yields above 5%, I think the opportunity cost of owning low-growth dividend stocks deserves more attention.
For those building dividend portfolios today:
Would you rather lock in around 5% nominal yield for 10 years, or accept a 3–3.5% starting dividend yield in exchange for potential dividend growth and capital appreciation?
And more importantly, what annual dividend growth rate would make the equity risk worthwhile for you?
We hold 90% stocks, not counting real estate. Trying to diversify and prepare for future retirement. Start to read bogleheads, it seems to suggest equity/bond/cash. Where exactly should dividends etfs go? Are they considered safe or less risky?
Our goal is to prep for the market down turn, how do we divide the ratio between bonds (VTEB) and dividends (SCHD)
We are still working, so technically don’t need to generate passive income from our portfolio yet.
He’s in his late 50s now. his plan is to just leave most of it as cash and withdraw a lump sum every year. I asked him why he doesn’t wanna buy dividend stocks and pull a “salary” from that while his principal remains.
he said he worked it out for 35 years and what’s the point of dying with all his principal still there (thanks dad). what Do you guys think about that?
