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Talking stocks, trading, and investing in general

Texasmade

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would this apply in bear markets ?
IMG_4809.jpeg

SF’s favorite bear market
 

Piobaire

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Right, I guess I should clarify. I've been prioritizing growth stocks *that also* have dividends.

When I get a dividend and reinvest it, yes the price of the stock goes down, but it'll recover. That's what I mean, really.

I'm not new to investing at all, I just say something dumb sometimes.

I'm not much at investing, but from my very limited knowledge, "growth stocks" and "dividend stocks" tend to belong to two different sets. As dividends limit growth, this tends to make sense.
 

UnFacconable

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I'm not much at investing, but from my very limited knowledge, "growth stocks" and "dividend stocks" tend to belong to two different sets. As dividends limit growth, this tends to make sense.
Exactly. There are a small number of growth companies who have essentially unlimited resources (Apple, NVIDIA, Google, etc.) but for most "growth" companies the choice to pay dividends or perform stock buybacks really tells you that they are running out of growth initiatives to fund and don't think they have a ton of high ROI investments they can make.
 

brokencycle

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Interestingly, according to this article dividend performers have higher total return since the 1920s.


This one also suggests the same thing since the 1980s. Obviously if a company starts paying dividends and then stops or reduces, that's a very bad thing.

1718861221145.jpeg

 

gettoasty

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I guess just make sure you don't create a huge tax drag with all them dividends
See https://www.schwab.com/learn/story/tax-efficient-investing-why-is-it-important

The discussion also seem to pivot into what @Piobaire points to every now and then that is SORR i.e., dividend stocks helps manage volatility compared to growth stocks when considering a long term. (A quick scan of the above two articles seem to suggest this.)

MS stylebox also comes to mind...a large cap blend perhaps covers both your growth and dividend. Then, adjust accordingly based on the weighting in your total portfolio.

MutualFundStyleBox2-995a2449c69a430ebc5b3124e95618d5.png



Also


Edit:
After the last several months, really the best approach I'm coming to realize that is related to this discussion is find your way into a high growth tech company or like workplace in whatever sector/industry whereby your stock plan acts as the DRIP. The caveat being a lot of taxes due to W-2 income + vesting schedule coupled with concentration risk that can be likened to SORR I suppose. Good luck
 
Last edited:

double00

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Edit:
After the last several months, really the best approach I'm coming to realize that is related to this discussion is find your way into a high growth tech company or like workplace in whatever sector/industry whereby your stock plan acts as the DRIP. The caveat being a lot of taxes due to W-2 income + vesting schedule coupled with concentration risk that can be likened to SORR I suppose. Good luck

i am instinctively allergic to the kind of exposure you are describing . that said this is more or less the situation that my old lady has been working and it's panned out so far .

fwiw if the value is right the taxes are a non-issue imho .
 

Piobaire

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Does anyone have a data set comparing say, SPY to dividend stocks, when the portfolio is in the monetization phase, i.e. you're retired and drawing? I ask as because things like JEPI in my port barely perform at S&P return and would probably be negative if the dividends were not reinvested.

Everyone tends to think of the growth phase but it's hard to find more than things like, "Say your port is 60/40, you take X out per year, receiving Y% return."
 

brokencycle

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Does anyone have a data set comparing say, SPY to dividend stocks, when the portfolio is in the monetization phase, i.e. you're retired and drawing? I ask as because things like JEPI in my port barely perform at S&P return and would probably be negative if the dividends were not reinvested.

Everyone tends to think of the growth phase but it's hard to find more than things like, "Say your port is 60/40, you take X out per year, receiving Y% return."

How would you drawing down affect the returns? The only difference is that you may be withdrawing at a suddenly lower value (or higher value) due to a big swing.
 

Piobaire

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I'm not sure really but just seems it might due to the compounding nature of DRIPs no longer positively impacting the returns. Yes, SPY is probably set to DRIP too during the growth phase, but one would assume dividend stocks have more...well, dividends, so turning off the DRIP would logically seem to impact their returns more?
 

grio1212

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Interestingly, according to this article dividend performers have higher total return since the 1920s.


This one also suggests the same thing since the 1980s. Obviously if a company starts paying dividends and then stops or reduces, that's a very bad thing.

View attachment 2202871
Dividend trusters vindicated again.
 

Piobaire

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For instance, I see my initial purchase of JEPI was on Jan 4, 2022. That tranche is currently down 10.45% but my entire holdings in JEPI are currently up 9.99%. I've had it on DRIP for the monthly dividend the whole time, and have several more recent tranches, but SPY is up about 15% from that date.

🤷‍♂️ 🤔
 

brokencycle

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For instance, I see my initial purchase of JEPI was on Jan 4, 2022. That tranche is currently down 10.45% but my entire holdings in JEPI are currently up 9.99%. I've had it on DRIP for the monthly dividend the whole time, and have several more recent tranches, but SPY is up about 15% from that date.

🤷‍♂️ 🤔

You've successfully averaged down. Congrats.
 

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