Dividend Stocks vs Dividend ETF | The Power of Dividend Investing

MY EXACT Dividend Stock Portfolio -- See it in M1 Finance! ||
In this video we are continuing our conversation with Quality Dividend Stocks. We saw in a previous video that when we own a portfolio of individual dividend stocks and hold those same dividend stocks over a long period of time while reinvesting the dividend income we receive during that timeframe, we end up with a lot of recurring dividend income AND a pretty big portfolio. We also pitted the same model dividend stock portfolio vs. the S&P 500, specifically the longest running S&P 500 index fund, SPY. Using ACTUAL HISTORICAL price and dividend information for the past 25 years and then a hypothetical 10 extra years, we saw again that the Model Portfolio destroyed the S&P 500. In this video we are pitting the same model portfolio against 3 different Dividend ETF's: Vanguard VYM, Vanguard VIG and PowerShares NOBL.

00:00 Introduction
01:51 Barriers to Proper Analysis
04:22 Vanguard VYM Overview
05:10 Vanguard VIG Overview
06:09 PowerShares NOBL Overview
07:08 ROUND 1: What Happens from 2013 - 2021
09:18 Assumptions for ROUND 2
09:53 ROUND 2: What Happens from 2013 - 2031

[JumpStartJim]

You know how the "Average Joe/Jane" talk about binge watching shows? Well my weekend starts now...and I'm binge watching this channel!

It took less than 2 videos before I jumped on the Patreon membership, highest level. Plus, as an older, had a not so wonderful life investor, and an experienced somewhat (successful) options guy, I'm trying my best NOT to beat myself up for NOT just committing to the strategies you teach.

If I would have followed what I knew and you're teaching, 30 years ago, I wouldn't be working a dangerous, stress filled job for low pay right now... I'd be retired in my 50s!

Thanks for your enthusiasm and education.

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[geoideas]

Thank you for always listening to your viewers feedback.

[malikstroman]

So is it perfectly fine to have a roth retirement account and then a dividen brokerage account? I ask because I want to be able to love off my dividen income by the age of 40 (currently 25) until I retire with that nice nest egg from the roth

[pilosopotasyo]

If you invested in a dividend etf, you would have paid an annual management fee. And only a quarterly dividend yield payout. You dont get that with individual stocks.

[tumultuoustempus]

I subscribed! Really appreciate the thorough and informative content.

My question: your modeling all seems to clearly indicate that reinvested dividend stocks (whether ETF index or quality hand-picked) outperform S&P index funds by nearly all metrics over a lengthy period of time. That being true, what are the BEST arguments in favor of S&P index fund investing? Is there any reason to not just focus on dividend-specific funds over a 20+ year timeframe?

[SantaBarbaraAlberto]

That was the comparison suggested earlier. I own VIGAX and VDADX both Dividend appreciation. Agree with you about the time frame. Good video!

[DavidSmith-lptz]

I guess I missed where you stated how much you started with. Honestly, this was hard to follow and compare gains and losses without a beginning point.

[AlpineDividends]

I prefer individual dividend stocks over ETFs 👌

[jershir]

Great video thanks. I wish you included DGRO instead of VIG.

[goul]

I will add to my VTI position as it my etf choice and my quality dividend stock portfolio of around 40 holding. Same amount for 2 portfolios. Just to cover all bases since VTI has some holdings that don't give dividend but has very good and safe appreciation over time. Also VTI has the 2009 crisis on its back and has reacted very good

[Mr.C-Mister]

Why during the battle are varying shares held? Is this a fixed income purchasing the shares monthly?

[AvioftheSand]

Great overview. I've gotten rid of most of my individual growth stocks in my Roth IRA except Square and will be adding NOBL to my 70 shares of SCHD. Thanks again!

[Azel]

Subscribed!!

What should a retired person invest in that gives good (4%) dividends, is easy to manage, and has very low risk?

[mandorodriguez]

Do dividends count towards the contribution limit when doing dividend reinvesting in a Roth IRA?

[ericb]

I am in my late 40's and new to investing. Your videos have been very helpful. Thank you. I smashed that like, clicked the subscribe, and rang the bell.

[JHulbert]

Great video! What is your opinion of QYLD in a dividend portfolio? Thanks for your input

[atticus]

I SUBSCRIBED!! Have you ever read The Gone Fishin’ Portfolio?

[htran]

This is what I wanna hear!! Can you do a side by side VTF and Stocks dividend comparison?

[HC_]

what about SCHD?? can u review that one?

[tomsettles]

Great video but please include SCHD and its index in your next one. Its proven better than VYM, VIG and NOBL when comparing the indexes over last 15 years.