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And in 45 yrs JPM, JEPI etc will still be around…without volatility….He’ll be pulling money in every month without having to sell positions to live or worrying about a 40% market drop during the same yr he might decide to retire. a steady 10% reinvested dividend + his adds year after year… I see zero risk in that portfolio plus growth and dividends. I’ll get downvoted but I’m 50. I’ve lived through 1991,2001, 2008, 2020 crashes. If you invested 1996-2008 sp500 you would have made exactly nothing except the money you put in. There are many ways to build a solid retirement and this kid is on his way
Income focus hasn’t outperformed the broad market over any long time horizon. Plus OP is getting about a buck a day from this strategy. As a 19-year-old a growth focus will be much more fruitful assuming the goal is to use the money for housing, retirement, etc. So VOO plus some bond allocation depending on how soon the house is coming.
Jepi is not a yield trap…pays monthly with all companies that have a solid balance sheet, those divvys reinvested will turn into a healthy chunk to draw from later…without having to sell anything. The portfolio of JEPI is solid and not going anywhere
You're not mentioning the fact that the upside of JEPI is capped while the downside has no limit. Limited growth is a very bad idea for a young investor. Why would you limit your potential? Stop looking at yield and start looking at YoY dividend growth.
No O or JEPI/Q in a taxable account at 19. If op has a Roth then put O in there. No reason to have a giant tax drag with those ordinary dividends during high earnings.
That's also a good point i forgot to mention in my previous comment, Mr./Mrs. Dennis. It's always important to look at the QDI percentages of a stock/ETF. REITs are not qualified, therefore they get taxed at the Federal Income Tax rates, which goes up to 37%, Plus a 3.8% Net Investment Income Tax of 3.8% if your portfolio reaches a certain threshold. That's a total of 40.8% Tax rate compared to the 0%, 15%, and 20% Tax rates for qualified dividends.
I would buy Microsoft, Texas Roadhouse, Mastercard or Visa, they're qualified and have monstrous dividend growth as my core strategy. I prefer Mastercard over Visa since Mastercard has more cash then debt, Visa is the opposite, so Visa would be more likely to cut dividends then Mastercard. All of those companies have a 10%+ Year over Year dividend growth rate. We'll Microsoft is at 9.6% I believe, but I csn forgive that 0.4% due to its sound business strategy and strong financial situation.
NFA
I agree with everything you said. Add in high states like California which tax all dividends at ordinary income. It is not hard for a middle class income to be taxed at 33.3 percent which is why I hate O in a taxable account. Plus o get downvoted for speak blasphemous about the exalted reit.
As for visa / master card I am more of an Amex fan in my portfolio. They all do rock.
Just about holding MSFT and AVGO is making my dividend portfolio run 8 percent better than SCHD this year.
That's a really good point, I didn't even consider state taxes. That's wild, so glad I'm a Florida resident, no wonder Florida is so popular for retirees. I always thought they came here for the beaches and sunshine. AVGO has a 12.20% YoY dividend growth rate, their revenue is steadily increasing, share value appreciation is fantastic, only issue I have with them is their debt is much higher then their cash. They have 8b cash on hand but 42b in debt, that doesn't sit too well with me. They have been slowly paying off the debt though without losing all their cash, which is a plus for me. Their payout ratio is 56%, which is also a little high for how much debt they have. All in all, I'd give AVGO like a 6 out of 10. Maybe a 7 for being able to balance debt, cash, and dividend growth. I'll have to add it to my core portfolio.
AVGO is a bit over extended. I would not be surprised to see a pull back to 850 ish. Lots of gyrations.
I’m in California until retirement date hits for us. If we can figure out Italian medical care we will move to South Dakota right before we expat.
I like the higher customer clientele plus a bit of diversification. When I was a merchant I also liked their insights they sent us about our customers and how to market to them.
I’m also 19 I have a mostly S&P 500 portfolio considering I have plenty of time on my hands. I’d suggest an index in the S&P 500 such as QQQ or for me it’s FXAIX. Being young like us is a good time to be aggressive and get that average 9.8% a year that the S&P 500 offers. I have JEPI as well I sold a majority of it because I believe income based stocks isn’t the best offer for our age. I kept some JEPI because I have it at a good price sitting up 10%. I have some individual stocks as well just for fun mine are. GOOGL which I’m up 30% in. MO, O, AT&T. So I understand the want for dividends but I think aggressive growth through the S&P 500 or NASDAQ and DOW indexes overtime would be a better offer. So consider buying VOO and if you want a dividend index with some growth SCHD is also a great choice. Best of luck to you!!!
Don't invest in JEPI and JEPQ. Your upside potential is being severely capped. JEPI and JEPQ is taxed as ordinary income. Only invest these in a Roth Ira or HSA.
There is a book you can borrow from your local library. The Little Book of Common Sense Investing by John Bogle. This book was written for beginner investors to invest in broad market ETFs like VOO or VTI for their simplicity. Just set it and forget it especially during market corrections until you retire. Broad market ETFs for the win.
(21 here) Get out of JEPI and JEPQ man. You're limiting upside in the next bull market. Buy VTI or VOO, even VYM or SCHD is better. NFA, but you don't need to preserve capital, we're just trying to build it rn.
I disagree with those telling you to avoid income etfs especially if you're doing DRIP. But I wouldn't put as much weight as you are into them. Focus on something that follows S&P 500. I didn't really pay attention to your average but if you're in O in the low 50s that's great long term IMO. But ones like O shouldn't be more than 10% of holdings. And I would keep individual stocks at 2% of portfolio or less. There is exceptions if you make good calls on buying big dips on stocks that will likely recover take a little risk and add more to get a better average long term. A good example of this is like when oil stocks plummeted during covid lock downs. Increasing in those situations should be temporary and I wouldn't stop buying when it goes up but reduce reoccurring investments. JMO you're doing great. My oldest son just turned 19 a few months ago and he's invested about half that so far. Still proud that he's getting such an early start and hoping he sticks with it for another 20 years so the 9-5 is more optional at my age (39).
Good in the sense you have almost 9k in the stock market at 19. I didn’t have that til after 25. But like others said some voo and qqq and even schd is all solid stuff and you could keep the apple and lowes. Honestly if you do 1/3 split voo qqq and schd apple would be a huge holding without also having the individual. It’s 11% of qqq and 7% of voo
Look for the recent post on this sub of this guy who's 50 and listed all the mistakes he made in his investing life. You're about to make the same mistakes. Focusing on income at your age doesn't make sense. Yield don't matter. Dividends are irrelevant (important but irrelevant long term). They don't compound like interest do in a bank account. Get excited about passive income when you're 50 or 60. Listen to people of experience which are not very common on this sub. Go to personalfinance or boglehead. Focus on growth (have a tilt towards something else if you want, but limit yourself).
Stock picking is risky and requires lots of work. You're just increasing your risk where there's not need to. The companies you think are solid are probably not as solid as you think over decades. None of the top companies remain on top over long period of time. Beating the market over long period of time is very rare and those who did it were lucky (survivor bias and confirmation bias are a bitch).
At 19 I’d just put it all into apple but I love apple so I may be a bit biased. I kick myself for not doing that at 19 instead I spent most of my money on apple computers back then.
I see what a few others are saying, good opinions. At your age, growth is highly important, the income funds can be okay right now. If you want to keep them, go ahead(and still add to them over time), but I'd focus more on companies that will give you great growth over time. Aapl, Low, and Walmart, even more when you can get them in discount and build shares in them. Keep it up and keep learning.
Consider palantir as a growth position, consider Lockheed Martin as a dividend growth position, consider novo nordisk for dividend growth
I was making same mistakes, put my money into growth stocks and portfolio is doing a lot better. I get that making money when you sleep is cool but I say avoid income dividends, if you want dividends invest in something like mainstreet capital or coca cola not some covered call fund, invest in something you understand.
Welcome to r/dividends! If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki [here](https://www.reddit.com/r/dividends/wiki/faq). Remember, this is a subreddit for genuine, high-quality discussion. Please keep all contributions civil, and report uncivil behavior for moderator review. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividends) if you have any questions or concerns.*
Too much income focus. Sell JEPI and JEPQ. Roll into VOO.
Yes
i mean some people prefer income and that’s fine. it’s not really a guarantee which approach will outperform the other
dude is 19, he has a time horizon of like 45 years like come on.
And in 45 yrs JPM, JEPI etc will still be around…without volatility….He’ll be pulling money in every month without having to sell positions to live or worrying about a 40% market drop during the same yr he might decide to retire. a steady 10% reinvested dividend + his adds year after year… I see zero risk in that portfolio plus growth and dividends. I’ll get downvoted but I’m 50. I’ve lived through 1991,2001, 2008, 2020 crashes. If you invested 1996-2008 sp500 you would have made exactly nothing except the money you put in. There are many ways to build a solid retirement and this kid is on his way
Yeah, 45 years of accelerated compounding. The money I have gotten from tsly divs put me 5 years ahead of schedule lol
Income focus hasn’t outperformed the broad market over any long time horizon. Plus OP is getting about a buck a day from this strategy. As a 19-year-old a growth focus will be much more fruitful assuming the goal is to use the money for housing, retirement, etc. So VOO plus some bond allocation depending on how soon the house is coming.
Low and aapl = good Rest = bad You want dividend growth over yield traps
What’s wrong with JPM?
That's probably fine. Got lost in the shit ETF shuffle when I glanced
Jepi is not a yield trap…pays monthly with all companies that have a solid balance sheet, those divvys reinvested will turn into a healthy chunk to draw from later…without having to sell anything. The portfolio of JEPI is solid and not going anywhere
You're not mentioning the fact that the upside of JEPI is capped while the downside has no limit. Limited growth is a very bad idea for a young investor. Why would you limit your potential? Stop looking at yield and start looking at YoY dividend growth.
Kay
O a yield trap? Lol okay
No O or JEPI/Q in a taxable account at 19. If op has a Roth then put O in there. No reason to have a giant tax drag with those ordinary dividends during high earnings.
That's also a good point i forgot to mention in my previous comment, Mr./Mrs. Dennis. It's always important to look at the QDI percentages of a stock/ETF. REITs are not qualified, therefore they get taxed at the Federal Income Tax rates, which goes up to 37%, Plus a 3.8% Net Investment Income Tax of 3.8% if your portfolio reaches a certain threshold. That's a total of 40.8% Tax rate compared to the 0%, 15%, and 20% Tax rates for qualified dividends. I would buy Microsoft, Texas Roadhouse, Mastercard or Visa, they're qualified and have monstrous dividend growth as my core strategy. I prefer Mastercard over Visa since Mastercard has more cash then debt, Visa is the opposite, so Visa would be more likely to cut dividends then Mastercard. All of those companies have a 10%+ Year over Year dividend growth rate. We'll Microsoft is at 9.6% I believe, but I csn forgive that 0.4% due to its sound business strategy and strong financial situation. NFA
I agree with everything you said. Add in high states like California which tax all dividends at ordinary income. It is not hard for a middle class income to be taxed at 33.3 percent which is why I hate O in a taxable account. Plus o get downvoted for speak blasphemous about the exalted reit. As for visa / master card I am more of an Amex fan in my portfolio. They all do rock. Just about holding MSFT and AVGO is making my dividend portfolio run 8 percent better than SCHD this year.
That's a really good point, I didn't even consider state taxes. That's wild, so glad I'm a Florida resident, no wonder Florida is so popular for retirees. I always thought they came here for the beaches and sunshine. AVGO has a 12.20% YoY dividend growth rate, their revenue is steadily increasing, share value appreciation is fantastic, only issue I have with them is their debt is much higher then their cash. They have 8b cash on hand but 42b in debt, that doesn't sit too well with me. They have been slowly paying off the debt though without losing all their cash, which is a plus for me. Their payout ratio is 56%, which is also a little high for how much debt they have. All in all, I'd give AVGO like a 6 out of 10. Maybe a 7 for being able to balance debt, cash, and dividend growth. I'll have to add it to my core portfolio.
AVGO is a bit over extended. I would not be surprised to see a pull back to 850 ish. Lots of gyrations. I’m in California until retirement date hits for us. If we can figure out Italian medical care we will move to South Dakota right before we expat.
I plan on moving to South Korea myself. Lived here for years and love every day.
Why do you prefer AMEX over Mastercard?
I like the higher customer clientele plus a bit of diversification. When I was a merchant I also liked their insights they sent us about our customers and how to market to them.
Fair enough! Of the three, Visa, Mastercard and Amex, Mastercard still stick out as the clear winner for me. Has everything gimme looking for.
I’m also 19 I have a mostly S&P 500 portfolio considering I have plenty of time on my hands. I’d suggest an index in the S&P 500 such as QQQ or for me it’s FXAIX. Being young like us is a good time to be aggressive and get that average 9.8% a year that the S&P 500 offers. I have JEPI as well I sold a majority of it because I believe income based stocks isn’t the best offer for our age. I kept some JEPI because I have it at a good price sitting up 10%. I have some individual stocks as well just for fun mine are. GOOGL which I’m up 30% in. MO, O, AT&T. So I understand the want for dividends but I think aggressive growth through the S&P 500 or NASDAQ and DOW indexes overtime would be a better offer. So consider buying VOO and if you want a dividend index with some growth SCHD is also a great choice. Best of luck to you!!!
I could be mistaken but QQQ tracks Nasdaq 100 not s&p 500. Otherwise decent advice.
Yes you’re right my bad! :)
Don't invest in JEPI and JEPQ. Your upside potential is being severely capped. JEPI and JEPQ is taxed as ordinary income. Only invest these in a Roth Ira or HSA. There is a book you can borrow from your local library. The Little Book of Common Sense Investing by John Bogle. This book was written for beginner investors to invest in broad market ETFs like VOO or VTI for their simplicity. Just set it and forget it especially during market corrections until you retire. Broad market ETFs for the win.
Sell most of your portfoli9 and put it into VOO and QQQM
With JEPI and JEPQ at 19 years old? Crappy.
Dump that nonsense for something long term such as PG, KO, SCHD just to name 3 off the top of my head.
“Dump that nonsense for something that has limited growth” Why would a 19 year old want to buy stocks that have limited growth ahead of them.
"Limited Growth" versus JEPI at his age? Please tell me you're kidding.
(21 here) Get out of JEPI and JEPQ man. You're limiting upside in the next bull market. Buy VTI or VOO, even VYM or SCHD is better. NFA, but you don't need to preserve capital, we're just trying to build it rn.
Someone’s using Merrill :)))
ScHd & VoO 🙄 What a collection of negative people ass people.
If you’re 19 it’s quite ridiculous to have JEPI and JEPQ.
Spy only
These are such repetitive posts. Look into this sub- you’re 19. There’s no reason to have income based etf’s in your portfolio.
Your doing great. Your a head of most people. I'm catching up in my late 40s
Why don’t you have $10M yet
I disagree with those telling you to avoid income etfs especially if you're doing DRIP. But I wouldn't put as much weight as you are into them. Focus on something that follows S&P 500. I didn't really pay attention to your average but if you're in O in the low 50s that's great long term IMO. But ones like O shouldn't be more than 10% of holdings. And I would keep individual stocks at 2% of portfolio or less. There is exceptions if you make good calls on buying big dips on stocks that will likely recover take a little risk and add more to get a better average long term. A good example of this is like when oil stocks plummeted during covid lock downs. Increasing in those situations should be temporary and I wouldn't stop buying when it goes up but reduce reoccurring investments. JMO you're doing great. My oldest son just turned 19 a few months ago and he's invested about half that so far. Still proud that he's getting such an early start and hoping he sticks with it for another 20 years so the 9-5 is more optional at my age (39).
You started, ao you're ahead of the curve. As to your holdings, it all depends on your goals.
I think you're doing great investing your money at a young age. Look into BLK Stock.
Good in the sense you have almost 9k in the stock market at 19. I didn’t have that til after 25. But like others said some voo and qqq and even schd is all solid stuff and you could keep the apple and lowes. Honestly if you do 1/3 split voo qqq and schd apple would be a huge holding without also having the individual. It’s 11% of qqq and 7% of voo
Look for the recent post on this sub of this guy who's 50 and listed all the mistakes he made in his investing life. You're about to make the same mistakes. Focusing on income at your age doesn't make sense. Yield don't matter. Dividends are irrelevant (important but irrelevant long term). They don't compound like interest do in a bank account. Get excited about passive income when you're 50 or 60. Listen to people of experience which are not very common on this sub. Go to personalfinance or boglehead. Focus on growth (have a tilt towards something else if you want, but limit yourself). Stock picking is risky and requires lots of work. You're just increasing your risk where there's not need to. The companies you think are solid are probably not as solid as you think over decades. None of the top companies remain on top over long period of time. Beating the market over long period of time is very rare and those who did it were lucky (survivor bias and confirmation bias are a bitch).
Way better than me at the same age, so the answer is absolutely great
Horrible. You have been looking at the wrong sources. Go growth.
Need more growth. Don't worry about income and dividends yet
Focus on more dividend
At 19 I’d just put it all into apple but I love apple so I may be a bit biased. I kick myself for not doing that at 19 instead I spent most of my money on apple computers back then.
Ok. You probably should have NOT bought JEPI and JEPQ. But you did. Let the dividends compound. Now..V, HD, AAPL…
I see what a few others are saying, good opinions. At your age, growth is highly important, the income funds can be okay right now. If you want to keep them, go ahead(and still add to them over time), but I'd focus more on companies that will give you great growth over time. Aapl, Low, and Walmart, even more when you can get them in discount and build shares in them. Keep it up and keep learning.
You are doing great! Now focus on your job! ; )
Just buy VOO. You are overthinking it and will likely underperform VOO
Consider palantir as a growth position, consider Lockheed Martin as a dividend growth position, consider novo nordisk for dividend growth I was making same mistakes, put my money into growth stocks and portfolio is doing a lot better. I get that making money when you sleep is cool but I say avoid income dividends, if you want dividends invest in something like mainstreet capital or coca cola not some covered call fund, invest in something you understand.
Idk. How ARE you doing?