Invest in growth today and buy dividends later

Invest in growth today and buy dividends later

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More about dividend growth investing:

I'm not a financial advisor and the content discussed today is merely my opinion and intended only for your entertainment. The content expressed in this video should not be considered as professional financial advice. This video may contain links through which we are compensated when you click on or are approved for offers. The information in this video was not provided by any of the companies mentioned, and has not been reviewed, approved, or otherwise endorsed by any of these entities.
#DividendGrowthInvesting

[DividendGrowthInvesting]

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[chimchu]

I still prefer dividend investing. Building a foundation of dividend stocks now is going to yield incredible yield on cost by the time i retire. Seeing my dividend income come in is what keeps me motivated

[delbomb]

I understand this concept, but it doesn't work for me. It's soooo motivating for me to see the income grow. I've spent so many years working 70 hours a week and each boost to my dividends mentally takes hours of work off my schedule.

[atl]

I’ve given this topic much thought over the past year and watching your video confirms what I’ve been considering. I’ve been investing heavily into dividends and growth but have decided to focus primarily on growth in my tax advantaged accounts and convert them to income producing holdings near or after retirement since it wouldn’t create a taxable event. I’ll continue buying some dividend positions in my taxable account but will still focus more on growth in that account since I’ve got about 20 more years until retirement. Thanks. I enjoyed watching.

[RS-lwcd]

This is a very reasonable and sound analysis. Thanks for a great video. The most important thing is to start investing ASAP (or as young as possible!!!). Use time as your ally so you can use take advantage of it to compound growth in your portfolio. The bottom line is if you are young, have a long time horizon and are a long term investor, go with growth.

[TinkerToFIRE]

Hi Jake, thanks for the video. I think I found a flaw in your SCHD/DGRO calculations. The $80858 in divs assumes you rebuy SCHD/DGRO at 2.78% yield at retirement. With holding and not selling you are missing the CAGR of the dividends. Using your calculator with 10k starting, 8.75% Appreciation, 10.75% CAGR, and a STARTING yield of 2.78%. After 30 years it would be a portfolio value of 3.67 million and $165k in annual dividends with a YOC of 5.11%

[BrettBayer-gjuo]

The above returns only work in a BULL market. What if the stock returns were in a "lost" decade like the 2000s? One must consider all types of markets (bull, bear, and sideways). In a bear market or sideways, the dividend growth would hold up better due to the compounding of the dividends and the larger accumulation of shares.

[SAMEER]

This video make me clear on investing. when you are young invest in growth etf more and when you are about to retired then rebalance all your investment to dividend income portfolio as you want less risk and more income monthly cash flow. this video make my investment journey clear.

[Deadeye]

I've been looking for a video like this for a couple of years now. Thank you!

I currently invest in a Roth 457K that is 90/10 S&P/Bonds, the warren buffet portfolio, and also i put some side money into SCHD every month. My strategy was to take that full roth and, when I retire, dump it all into SCHD. But I had no hard numbers like this. Thanks for confirming my strategy.

[mikewill]

Im trying to avoid taxes as much as possible. Right now its Roth and 401k. Goal is as much growth as possible. Until im able to flip the switch on dividen growth. But like you said earlier the better. Wish I got in this game in my early 20s.

[brianhartman]

My current Roth IRA portfolio is S&P500, dividends and growth. I contribute 150 dollars a week to max out my IRA with these 3. Going to let it sit for 25+ years.

[tejpatel]

Love the side by side comparison. One thing I would have liked is adjusting the amount in Roth IRA for each scenario for the annual limit we have in place. Annual limit of $12k into ROTH gives a significantly different return compare to an annual limit of $7k(which we have currently).

All in all, I thank you for the comparison and I will definitely look at allocating my own portfolio differently going forward.

[DanABA]

Did you take into account how much higher the NAV of SCHD/DGRO could be in 30 years? You'll be purchasing fewer shares with the same amount of money in 30 years versus buying them year by year, assuming the cost of SCHD/DGRO increase as they have in the past.

[hagank]

Hey, I am a little confused on the dividend growth rate then. Doesn't the divdend growth rate play a part in this? Eventually, your yield on cost would be much greater than 2.78%, in this example atleast. Or am I completely screwing up how this growth rate thing works?

[BobboNaught-YT]

This is so valuable. I love the idea of doing a mix of the two approaches for the time being, as a semi-defensive strategy. Maybe sometimes I shift into complete growth when the market is down, maybe shift to full dividend investments when I feel there is a bubble.

[AlpayWester]

New to investing? Don’t be misled. ETFs beat mutual funds with lower fees, better tax perks, and stock-like flexibility. Stick with SCHD, SCHG, VOO, and VUG to build long-term wealth.

[Thewealthyinvestor-cnsg]

I do a mix of growth etfs and dividend growth stocks. This motivate me way more doing both.

[IronKneeClimbing]

So good!! Thanks for taking the time for doing these educational videos. So helpful having so much knowledge in this day and age. This knowledge needs be a prerequisite in highschool, along with common car maintenance.

[Josevaldes]

This is awesome I’m 22 and those numbers are kinda what I’m going for i have 42 years trying to add 10, 000 per year I was adding to dividends most but I see I need to go full growth 🤯thank you

[dividendjourney]

I love the examples Jake! I would also say that past history as you mentioned is not a guarantee; I’ve got a hunch the growth side may not do as well over the next 30 years. Though, I could be wrong. But one thing I am sure of is divvy companies have historically been better overall returns example 50-70% total stock market returns are from dividends. Also, like mentioned it’s incredibly motivating to see the income growing. I’ll still take divvy growth indexes SCHD, DGRO, and my individual holdings:) Great video, and I always enjoy your videos. Good movie comparison too! 😅