Simple question: Do you really believe dividend paying stocks will give you finnancial freedom 10, 20, or even 50 years from now? Obviously no one can predict the stock market future, i’m just curious to see where your minds are at!
Brian Fey: Absolutely, But you have to hold them, don’t expect to get rich in a year. It took me 20+ years to really feel like I’d built something specular, and now 27 years in, I’m thrilled, and hopefully you’ll hit a few home runs along the way, as I have with Apple and Wynn.
Brian Fey: You have to understand, not only do the dividends add up over time, even a older, slow growth company like CAT, DE, KO, WMT will be worth far more 20-30 years than it is today, so you’ll get the application on the stock as well as the dividend.
John Chacko: Dividend paying stocks is a part of the strategy to hopefully get me to financial freedom. It’s my most favored one since I lack the means, sophistication, market expertise, etc. to rely on any of the other strategies out there.
Helen Sriubiskis: Yes. That’s why we’re here in this FB group. You may want to do some projections using this tool. www.dividendladder.com
Dividend Ladder – Creating Income Through Dividend Investing
dividendladder.com
Ty Gimbel: Yes. If it doesn’t then it means the system probably collapsed and it doesn’t matter anyways.
Robert VanScoy: My dividends + option premiums currently cover about 90% of my expenses.
Justin Bruno: I like that strategy, however none of my stocks offer a premium worth the risk so i never got into it much.
Robert VanScoy: Some are definitely better than others. BA, HD, VLO, WYNN and the like all work very well.
Yj Adonis: You need a pool of investments personally I have a 401k also pay into a pension I own big holdings in div paying funds like CLM ERUS NORW which I just reinvest all the divs then I have a rental property and then about 10% of my assets I keep in physical gold for long term savings. All those combined will give me financial freedom by the age of 50
Jay Harper: CLM- Love Me Long Time. haha love the div
Yj Adonis: CLM is a great fund I have 2,255 shares and just keep the divs reinvesting at the NAV value can’t loose long term.
Robert VanScoy: Not a fan of the 1.3% expense ratio
Robert VanScoy: Or the 5 year…
Yj Adonis: The NAV reinvestment plan well than makes up for that which gives you the fund at 15% sometimes 20% premium. I have owned the fund the pass 5 years and my averge share price is $14.06 thanks to the divs reinvestment at the 52 week high I was up over 12k. Even at the current price I’m up 2,500 plus all the divs I’ve reinvested the pass 5 years.
Katja Bethune: Actually Ty Gimbel that is when it matters the most. I will give an example. When Germany switched to the Euro, people who had kept their Deutsch Mark, ended up with only half of what they previously had. Those who had their Deutsch Mark in a forgeign currency – were better of, but those who had their Deutsch Mark in stocks were even better off. The Mark/Euro conversion hit them initially, but they were able to make most of it back. Same when after WW1 AND WW2 the money was devalued all together.Those who owned stocks – still had that value once the companies came back.
Rene Cooper: I had a client that I prepared taxes for who’s only income was dividends… the 1099 was eight pages of stocks I had never heard of… Her dividend income was $93k per year…
Kim Dinh: Wow!! How old was she?
Eric Brooks: holy crap
Helen Sriubiskis: The lady with the $93K income: Assuming a 4% yield, her portfolio is $2,325M
Rene Cooper: She was in her late eighties… she said that her father started her when she was young, and that her husband kept it up while he was alive… she doesn’t do anything, except spend money on what she wants when she wants, cause it was set up that way…
Rene Cooper: I am certain her actual yield is probably much higher, Helen… her husband died about 20 yrs ago at that time… and I didn’t see total value of the investment account, though I probably should have looked… I was actually afraid of having to list each dividend transaction individually, and was relieved when I found that it had a summary page that I could use…
Steve Ryan: There is a guy in here that brings in like $45,000/yr on dividend income.So yeah.
Helen Sriubiskis: …assuming a 4% yield, then the portfolio is $1.125M
Steve Ryan: Yes that is true, it is over a million I think he said. But he also said he made less than $100,000 a year, so being fiscally smart and stuff and making good dividends is not beyond reach for most of us. Which was the important thing I gathered.
Bev Smith: Would love to hear more of these stories. Anybody with bragging rights – I am all ears
Jay Harper: I have a blog on my journey if you want to check it out. www.dividendmiracle.com
Dividend Miracle
dividendmiracle.com
Bev Smith: Read it, enjoyed it very much !
Jenny Riester: There are a few other blogs that I follow, one being DividendDiplomats.com. They talk about their strategy and earnings off dividends but also highlight other blogs and followers that share their dividend story with them.
Dividend Diplomats – Dividend Reinvesting + Frugal Living =…
dividenddiplomats.com
Jay Harper: Thanks and my blog is on there and we bounce ideas off each other.
Pavak Shah: Of course it can. I like to check my long term every so often so that just in case if any of my stocks not doing great, I can sell them.
Efrain Gonzalez: Everyone has their own path. I want to make enough monthly dividends to pay my utilties. My 457 and pension will cover the rest. Since I just started last year right now the only thing I can cover is the vonage house phone.
Dave Sieling: My only regret is not starting earlier.
Pavak Shah: Don’t regret.. Like people say, best time to invest was 20 years ago and second best time is now.
Hai Nguyen: set up 5 accounts and forget about them other than buying stocks
Hai Nguyen: 50 years later look at them and b like oh shitz i’ve been a millionaire for 10 years and been living like crap XD
Alanya Kolberg: The right ones will.
Christi Mathers Williamson: My husband inherited about 100K worth of stocks at 9. At 25, we have 366K after selling around 300K over 16 years.
Scott Rubin: Do I really believe? Belief has nothing to do with it, fact is fact, no alternatives needed.
Allan Powell: Dividends have been around for a long time. Dividend stocks add a degree of reliability if done correctly. A balance of all types and proper strategy you can win in just about any market
Scott Rubin: The only strategy that I’ve seen overcome the fear of “I could lose everything” is the bucket method: 2 years of cash/guaranteed cash flow to cover expenses, for years 3 to 10 interest, divs, annuities to refill 2 years of cash at a time, and equities …See more
Allan Powell: Reading that over and over trying to decipher what it means
Scott Rubin: Read Morningstar, Christine Benz covers it extremely well. If you have a Roku there is an hour long interview with a professor on their free channel.
Allan Powell: Not interested.
Allan Powell: The part about taking money out for expenses worries me. Seems like a crippling approach to compounding. My point was that well managed dividend stocks aren’t that risky especially with blue chips and if people are smart enough to manage their portfolios. Otherwise they should just let someone else do it.
Scott Rubin: The question in the original post posits 10, 20, to 50 years from now. Most of us, if not all, will be in retirement or beyond with that timeframe. Will DGI provide financial independence? It can in and of itself without active management or trading. B…See more
Allan Powell: Think I’d diversify into Real estate and should have plenty coming in passively from my small businesses in case the market crashes. I would worry more having all my eggs in one bucket~
Robert VanScoy: Scott – you lost me at annuities
Scott Rubin: Robert VanScoy I have no annuities and will have no annuities. But plenty of people do, and they need to know how those products fit into their overall retirement planning.
Scott Rubin: Allan, real estate is certainly a tried and true method of creating wealth and an income stream. This group is specifically dividend growth investing. There might be other facebook groups tailored to your interests.
Rodger Frego: It depends how much you make, how much you invest, whether or not you investments will generate tax free in come, and your current standard of living. I discovered the best thing to do is get out a pencil, paper and a calculator and do the math. So, if after subtracting your pension, and other streams of guaranteed monthly income if you determine you need an additional $60,000.00 a year to live I would recommend you have at least $3,000,000.00 invested a World Total Stock Market ETF like VT. At the bare minimum you would likely need $2,000,000.00 @ a 3% sustainable withdrawal rate ( which may or may not be too high). The 4% rule may or may not be sustainable for 30+ years and nobody wants to run out of money in the latter stage of life. The extra $1 million gives you a buffer and will give you peace of mind and quality sleep. It’s always best to have more than less imo.
Robert VanScoy: So the opposite of dividend growth investing?
Rodger Frego: Absolutely not .. I mentioned VT because Its expense ratio is a mere 0.14%, and it offers respectable dividend growth with a 2.3% dividend yield. It’s a simple way to invest in the world , very low rates while earning above average dividend growth income. So it is a form of dividend growth investing not the opposite.
Robert VanScoy: Generally… working longer than you need to so that you can save more money so that you can retire and start depleting your savings in hopes that it lasts long enough is the opposite of dividend growth investing. Having a dividend paying etf does not = dividend growth investing.
Rodger Frego: Robert VanScoy its ambiguous terminology subject to different interpretation.
Robert VanScoy:
Robert VanScoy: This is a very good book on dividend growth investing. I highly recommend it. Check it out. https://smile.amazon.com/…/ref=oh_aui_search_detailpage…
The Single Best Investment: Creating Wealth with Dividend…
amazon.com
Scott Rubin: Rodger, $3 million? Respectfully, you are nuts.
Derek Getz: I do and I think it’s important to know what your investments are at a young age. What I’m starting to see firsthand are my parents / their friends, etc start to get to retirement age. Being close to retirement is not the time to realize you don’t really know what you are invested in and learning how to make a stable income. I like to think that by doing DGI now, having 30+ years until retirement (officially), I’ll have a lifetime of experience under my belt to meet my goals.
Michael McKinney: Dividend paying stocks helped to give me financial freedom.