Author Topic: How much in dividends do you make a month?  (Read 17045 times)

kylemoney

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How much in dividends do you make a month?
« on: August 03, 2016, 07:02:18 AM »
Thought I would throw this out there for encouragement purposes.

I am young and starting out and have a brokerage account with 8 different stocks/CEF's earning me $32 each month currently. I'm reinvesting and diversifying as I go and the goal is after getting all debt paid off (student/car) is to have this pay for the wife to be a SAHM. :) long ways to go!

Mr.GrowingMustache

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Re: How much in dividends do you make a month?
« Reply #1 on: August 03, 2016, 07:26:26 AM »
I also have a brokerage account with some individual stocks, and most of them do not pay dividends, and not all pay monthly.

I have a single mutual fund that on the 1st of every month gives me about $19-$22, and I have about $4k invested in it. I have had it for years and it has been riding at -8% for a while until recently it has gone up to -3.5%, but always delivering about 5.5% dividends for the year. Even though it shows -3.5% the reinvested dividends over the years have been significant, I believe I started with $2.5-$3k initially and just let it ride. It is PREMX, and I believe it is a Developed Countries Bonds Fund.

Although I have a brokerage account with individual stocks, I do not put any new money in there, and all my new investments are in my TSP/401K, and Vanguard ETF Funds.


webguy

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Re: How much in dividends do you make a month?
« Reply #2 on: August 03, 2016, 07:47:36 AM »
Is there an easy way to find this information out?  I'm curious how much my portfolio produces in dividends per month/quarter/year.  I have all of my investment accounts tracked inside of Personal Capital but it doesn't seem to tell me the total yield of my portfolio.

A rough guesstimate would be that the average dividend on all my investments is around 2.5%, which would be ~$1,562/month.

Retire-Canada

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Re: How much in dividends do you make a month?
« Reply #3 on: August 03, 2016, 08:21:08 AM »
I get $0 in dividends each month as my ETFs pay out quarterly...on average I'm getting ~2% overall in dividends. So if I want a 4% WR that's 50% dividends and 50% capital appreciation.

Roots&Wings

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Re: How much in dividends do you make a month?
« Reply #4 on: August 03, 2016, 10:37:14 AM »
Is there an easy way to find this information out?  I'm curious how much my portfolio produces in dividends per month/quarter/year.  I have all of my investment accounts tracked inside of Personal Capital but it doesn't seem to tell me the total yield of my portfolio.

A rough guesstimate would be that the average dividend on all my investments is around 2.5%, which would be ~$1,562/month.

I use Mint and it doesn't show taxable account investment dividends, but maybe that's because mine are set to reinvest instead of deposit into a money market account.

To view dividends, I have to login to Vanguard and check the Dividend & Capital Gains tab. Maybe someone knows an easier way?

YoungInvestor

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Re: How much in dividends do you make a month?
« Reply #5 on: August 03, 2016, 02:44:51 PM »
My overall yield is roughly 4%, as quite a few of the good values I have found recently had high yields.

I'm pretty dividend agnostic, but my preference for predictable earnings/cash flows that grow regularly is obviously leading me to many companies that pay dividends more often than not.

Seppia

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Re: How much in dividends do you make a month?
« Reply #6 on: August 03, 2016, 03:58:41 PM »
I get $0 in dividends each month as my ETFs pay out quarterly...on average I'm getting ~2% overall in dividends. So if I want a 4% WR that's 50% dividends and 50% capital appreciation.
It's great you guys can pay zero taxes. Here in Italy regardless of your income level all dividends are taxed 26% flat.

I also get zero monthly dividends, but on a yearly basis I'm around 3.8% before taxes (lots of euro stocks)

Retire-Canada

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Re: How much in dividends do you make a month?
« Reply #7 on: August 03, 2016, 04:08:31 PM »
It's great you guys can pay zero taxes.

I lose 15% withholding tax on most of my US dividends. A big chunk of my other dividends are tax free until withdrawal at which point I pay normal income tax on them so in the case of my US dividends in that account I essentially get taxed twice.

I only have one truly tax free account and its value is less than 10% of my portfolio.

beastykato

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Re: How much in dividends do you make a month?
« Reply #8 on: August 03, 2016, 05:27:56 PM »
I get ~$175/month when you average it out evenly across the year. 

I'm 29 and have been investing since I was 23.  I didn't really start hammering large amounts of cash in until about 3 years ago though.

The younger the better!  Do not be discouraged by the small amounts you get at first it will definitely snowball if you give it time.

I'm hoping to be getting ~$1500-1800/month when I'm close to 40 years old just from dividends.

Roland of Gilead

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Re: How much in dividends do you make a month?
« Reply #9 on: August 03, 2016, 05:40:06 PM »
I guess we get about $1000 a month in dividends.

boarder42

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Re: How much in dividends do you make a month?
« Reply #10 on: August 03, 2016, 05:45:14 PM »
Chasing dividends with your primary investment for fire is typically a losing scenario compared to the alternative of index investing.

bigchrisb

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Re: How much in dividends do you make a month?
« Reply #11 on: August 03, 2016, 06:17:32 PM »
I don't chase dividends explicitly, but the yield on my portfolio is fairly high due to a significant bias to the Australian market (ASX300 average yield is about 6.5%.  I hold a mix of local and international ETFs, some closed end funds and some direct stock. 

My dividends range between $200 and $12000 a month, which makes "monthly dividends" a pretty poor metric.  Annual dividends are about $95k pre tax of a ~$1.9m portfolio. 

I don't believe this dividend payout is sustainable or able to grow in the long term, hence I intend on living off about two thirds of my dividend income and reinvest one third once in FIRE.

I'm 34 and have been at this 10 years, with a bit of leverage and a bit of timing luck (accumulation through GFC).  Its pretty amazing how quickly it can grow as an income stream.

2Birds1Stone

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Re: How much in dividends do you make a month?
« Reply #12 on: August 03, 2016, 06:37:38 PM »
Very small amount compared to my portfolio size.

I'm in Total Stock/Total International Stock/ Total Bond funds from Vanguard.

MoonLiteNite

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Re: How much in dividends do you make a month?
« Reply #13 on: August 04, 2016, 02:53:05 AM »
I am up to 12... just finally did my last swing trade and going to slowly buy into dividend stocks and hold.
Got my first small around of KO. Need to wait for funds settle to get some more :D

Going to be just putting only around 10% of my total FI funds into dividends stocks.
« Last Edit: August 04, 2016, 02:56:00 AM by MoonLiteNite »

mathjak107

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Re: How much in dividends do you make a month?
« Reply #14 on: August 04, 2016, 03:11:36 AM »
Chasing dividends with your primary investment for fire is typically a losing scenario compared to the alternative of index investing.

i agree .  it is all about total return at the end of the day . dividends in tough times can be reduced or suspended and if you are living off that money you can end up selling things at a loss to make up the income shortfall .

lots of that went on in 2008-2009 .

at the end of the day except for  possibly trading  costs and taxes there is no difference between the company handing you back 2% of your investment value as a dividend    or you selling off the same dollars (not percentage ) from your total portfolio .

assuming the same total returns on both the results will be similar .

many folks do not realize that whenever a stock goes ex div the exchange computers have to reduce the price by an equal amount at the ring of the bell . this is mandatory . so if you are not reinvesting the dividends but are spending them , you will have less dollars compounding for you at the ring of the bell over the next quarter compared to what you had the night before .

it is dollars being compounded over each quarter that count .

if you reinvest the dividends then you have the exact same dollar value compounding at the ring of the  bell  over the next quarter  as you had the night before .

the dividend is not  like interest . interest has no price reduction .

there is a reason you want both interest paying investments and either dividend or growth vehicles . they serve different purposes .

i reinvest all dividends from my retirement accounts  and basically pull from the portfolio over all . it helps keep the income non dependent each year on any dividend cuts or changes . i use the dividends to refill next years money  for spending .

According to John Bogle in The Little Book of Common Sense Investing (Exhibit 7.1), over the past 100 years capital gains (represented in his numbers by earnings growth) have accounted for:

53% of stock market returns while
dividends have accounted for 47%.

But over the past 25 years:

65% of returns have come from capital gains
while only 35% have come from dividends.
Not only that, but the actual return from dividends has fallen, from 4.5% per year over the past 100 years to 3.4% per year over the past 25. Today, the overall US stock market has a 2% dividend yield.

ever look at how hard it would be to try to plan living off the dividends from the so called dividend aristocrat's ?

you keep seeing just invest in this group and call it a day .

however what constitutes this group changes all the time so get ready for lots of selling trying to keep up as they get bumped and replaced AFTER THE FACT THEY DID NOT LIVE UP TO EXPECTATIONS . you could be behind the curve here very easily .

these dividend aristocrats are not somehow immune to all the things that effect company's and stocks . Just like other companies, their outcomes change.

in 2009 there were 52 stocks that met the groupís strict criteria.

As of 2012, there were 51.

But of those 51, 13 were different than the original set. So over the course of just 3 years, there was a 27% change in the groupís composition.

in fact going back to 1989's list :

Of those 26, seven are still on the list today, ten were removed because they either cut or froze their dividend, four were removed for an unknown reason, and the remainder were acquired at some point and dividends were altered . So at least ten of the 26 had an outcome that is different from the assumption of dividend growth every year through thick and thin.

 dividend stocks  an be a fine investment vehicle, but one needs to practice reasonable diversification  and not chase yield or get to fixated on that dividend .

today the fact i can't control  the dividends and distributions from my funds hurts me a bit . my yearly distributions can run from 29k to 69k a year depending on markets . that means i may or may not get an aca subsidy on my medical insurance costs . had i had a more efficient portfolio of non div  payers it would be easier to control since i would not have money forced upon me  at those  times i did not want  it.

but at this point it is what it is , but if it was decades ago i would have structured things differently .






« Last Edit: August 04, 2016, 03:48:45 AM by mathjak107 »

mathjak107

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Re: How much in dividends do you make a month?
« Reply #15 on: August 04, 2016, 03:20:46 AM »
for those who never knew a price drop is mandatory here are the finra rules .



5330. Adjustment of Orders

(a) A member holding an open order from a customer or another broker-dealer shall, prior to executing or permitting the order to be executed, reduce, increase, or adjust the price and/or number of shares of such order by an amount equal to the dividend, payment, or distribution on the day that the security is quoted ex-dividend, ex-rights, ex-distribution, or ex-interest, except where a cash dividend or distribution is less than one cent ($0.01), as follows:
(1) Cash Dividends: Unless marked "Do Not Reduce," open order prices shall be first reduced by the dollar amount of the dividend, and the resulting price will then be rounded down to the next lower minimum quotation variation

boarder42

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Re: How much in dividends do you make a month?
« Reply #16 on: August 04, 2016, 04:53:46 AM »
Technically dividends are less tax efficient as well. While ever so slightly they are less efficient

Mr.GrowingMustache

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Re: How much in dividends do you make a month?
« Reply #17 on: August 04, 2016, 07:11:17 AM »
...Annual dividends are about $95k pre tax of a ~$1.9m portfolio. 

I'm 34 and have been at this 10 years, with a bit of leverage and a bit of timing luck (accumulation through GFC).  Its pretty amazing how quickly it can grow as an income stream.

Awesome! I would FIRE with that amount :)

Wish I started at 23 :/, I started last year and I am 30. Maybe in 15 years I'll have a nice stash, but I just wish for my family to be healthy.

On Dividends, it's definitely a mental cushion seeing that $20 trickle in every month,  I can actually say and see that I am making money.... but yeah.. index funds... long term.

mizzourah2006

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Re: How much in dividends do you make a month?
« Reply #18 on: August 04, 2016, 11:44:13 AM »
Technically dividends are less tax efficient as well. While ever so slightly they are less efficient

In a brokerage account this is true. In a 401k or IRA there is no difference.

Roland of Gilead

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Re: How much in dividends do you make a month?
« Reply #19 on: August 04, 2016, 06:34:20 PM »
I do like some bit of dividend.  A company that hoards cash can end up granting excessive stock and option bonuses or make irrational purchases because they feel they are under pressure to do something with the cash.  Besides, if you owned your own business, you would expect to eventually get some profit and spending money from it without having to sell it.

Financial.Velociraptor

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Re: How much in dividends do you make a month?
« Reply #20 on: August 04, 2016, 07:26:26 PM »
In my taxable account, my forward estimated 12 month dividend, distributions, and bond interest comes to 26,276.  It covers my budget with a little wiggle room.  I sell options around my existing positions for a kicker.

Greenway52

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Re: How much in dividends do you make a month?
« Reply #21 on: August 04, 2016, 07:33:16 PM »
I get about $160/month in CAD dollars (some of my dividends are in US dollars), but of course since most stocks pay quarterly, it varies from month to month. I also don't chase dividends and in fact my biggest investment don't pay a dividend.

My monthly living expenses is about $700/month. So I hope to get to that level at some point.

Be careful not to chase the dividend yield. Some stocks have a high yield due to the fact that their stock price is falling due to poor performance. Also, higher dividend paying funds (like a lot of income funds) could be giving you that dividend because of Return of Capital. That'll decrease your ACB which will cost you higher capital gains taxes down the road, so be aware of that.

doggyfizzle

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Re: How much in dividends do you make a month?
« Reply #22 on: August 04, 2016, 07:49:32 PM »
My wife and I take in about $1k/ month in dividends from our common stocks and her small business equity.  We also get about $300/month from our stake in an LLC that owns a commercial building, promissory notes to start-up breweries, and some common stock.

mathjak107

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Re: How much in dividends do you make a month?
« Reply #23 on: August 05, 2016, 02:29:06 AM »
I do like some bit of dividend.  A company that hoards cash can end up granting excessive stock and option bonuses or make irrational purchases because they feel they are under pressure to do something with the cash.  Besides, if you owned your own business, you would expect to eventually get some profit and spending money from it without having to sell it.

perhaps you are not selling it , but the company is in effect selling off a piece of your share price and handing it to you .

like i said , there are few differences between say a 2% dividend and you pulling the same dollars by selling a piece of your total portfolio assuming same total returns .

in the end how you get the cash flow amounts to just about the same thing .

there are advantages to the dividends as a way but there are disadvantages too but dollar wise it is all the same effect
« Last Edit: August 05, 2016, 02:30:45 AM by mathjak107 »

force majeure

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Re: How much in dividends do you make a month?
« Reply #24 on: August 05, 2016, 03:38:16 AM »
$3000 divs /month on average. I dont care about the tax inefficiencies. I want to have the flexibility to stay or leave my job at a moment's  notice, guess I watched HEAT too many times;

A guy told me one time, 'Don't let yourself get attached to anything you are not willing to walk out on in 30 seconds flat if you feel the heat around the corner.'

I am leaving plenty of wiggle room, living costs are under $1000 / month. I have most of funds in a dividend based ETF, only marketed to professional investors (i - share class). I want carnage in the markets, I am always ready to buy more.

boarder42

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Re: How much in dividends do you make a month?
« Reply #25 on: August 05, 2016, 04:07:16 AM »
I do like some bit of dividend.  A company that hoards cash can end up granting excessive stock and option bonuses or make irrational purchases because they feel they are under pressure to do something with the cash.  Besides, if you owned your own business, you would expect to eventually get some profit and spending money from it without having to sell it.

perhaps you are not selling it , but the company is in effect selling off a piece of your share price and handing it to you .

like i said , there are few differences between say a 2% dividend and you pulling the same dollars by selling a piece of your total portfolio assuming same total returns .

in the end how you get the cash flow amounts to just about the same thing .

there are advantages to the dividends as a way but there are disadvantages too but dollar wise it is all the same effect

Except chasing dividends historically equates to lower overall market returns. Since you're limiting yourself to dividend producing stocks.

Fishindude

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Re: How much in dividends do you make a month?
« Reply #26 on: August 05, 2016, 04:56:53 AM »
Approx. $620 per month.   Great source of fun money !

Rightflyer

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Re: How much in dividends do you make a month?
« Reply #27 on: August 05, 2016, 05:33:16 AM »
I get $0 in dividends each month as my ETFs pay out quarterly...on average I'm getting ~2% overall in dividends. So if I want a 4% WR that's 50% dividends and 50% capital appreciation.
It's great you guys can pay zero taxes. Here in Italy regardless of your income level all dividends are taxed 26% flat.

I also get zero monthly dividends, but on a yearly basis I'm around 3.8% before taxes (lots of euro stocks)

I feel for you Seppia.

The flat tax is the single thing that stopped us moving to Italy. (And it looks like Brexit may close the door forever!)

mizzourah2006

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Re: How much in dividends do you make a month?
« Reply #28 on: August 05, 2016, 11:37:03 AM »
I do like some bit of dividend.  A company that hoards cash can end up granting excessive stock and option bonuses or make irrational purchases because they feel they are under pressure to do something with the cash.  Besides, if you owned your own business, you would expect to eventually get some profit and spending money from it without having to sell it.

perhaps you are not selling it , but the company is in effect selling off a piece of your share price and handing it to you .

like i said , there are few differences between say a 2% dividend and you pulling the same dollars by selling a piece of your total portfolio assuming same total returns .

in the end how you get the cash flow amounts to just about the same thing .

there are advantages to the dividends as a way but there are disadvantages too but dollar wise it is all the same effect


Yes, if a company pays you a dividend equivalent to 2% of its share price that company's stock price is subtracted by that same amount on the ex-dividend date. Thus, there is really no difference at that specific point in time whether they sell off the 2% or keep it in the share prices.

The second and often less discussed point is what happens to said companies over time.
Would an investment in a mature company that just hoards cash because they generate far more than they can use to grow in an efficient manner generate the same return as an investment that returns some of that money to shareholders over time? In the case of most individuals here said dividend would be invested back into the market as a whole and not invested specifically back into the same company?

Chasing dividends and yield in general is clearly a poor decision, but to say that from an investment standpoint over time dividends vs. no dividends for a company will result in the exact same return over time is much more of a stretch.

Bottom line is I doubt many people would be ok with Apple continuing to hoard cash. At a certain point investors will want Apple to do something with all the money they have. I think they have been more patient given the tax implications, but if Apple had all that cash in the US and was doing nothing with it if there is really no difference between the two from a return perspective investors shouldn't care whether Apple just continues to grow its cash position for no reason other than to have more cash or if they decide to return that cash to shareholders.
« Last Edit: August 05, 2016, 11:40:31 AM by mizzourah2006 »

CorpRaider

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Re: How much in dividends do you make a month?
« Reply #29 on: August 05, 2016, 11:51:19 AM »
MadFientist's lab/fi tracker thing gives you a monthly yield based on your assumed total return figure and your portfolio balance.

Proud Foot

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Re: How much in dividends do you make a month?
« Reply #30 on: August 05, 2016, 11:58:02 AM »
To answer the question: Right now I average about $25 a month.  I am sure it is more than that but because of how my 401k is administered I do not know the dividends on those funds.

Quote
Chasing dividends and yield in general is clearly a poor decision, but to say that from an investment standpoint over time dividends vs. no dividends for a company will result in the exact same return over time is much more of a stretch.

I agree that chasing dividends and yield is generally a poor decision.  I think the returns over time for dividend/no dividend companies would vary depending on the the phase the company is in as well as what you did with the dividends.  You would prefer a young company to not pay a dividend so they can reinvest in their growth so the earnings could grow exponentially.  For a mature company with less opportunity for rapid growth, say JNJ, I would guess you would have a higher return if you reinvested the dividends versus if they did not pay a dividend.

BDWW

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Re: How much in dividends do you make a month?
« Reply #31 on: August 05, 2016, 11:59:08 AM »
I do like some bit of dividend.  A company that hoards cash can end up granting excessive stock and option bonuses or make irrational purchases because they feel they are under pressure to do something with the cash.  Besides, if you owned your own business, you would expect to eventually get some profit and spending money from it without having to sell it.

perhaps you are not selling it , but the company is in effect selling off a piece of your share price and handing it to you .

like i said , there are few differences between say a 2% dividend and you pulling the same dollars by selling a piece of your total portfolio assuming same total returns .

in the end how you get the cash flow amounts to just about the same thing .

there are advantages to the dividends as a way but there are disadvantages too but dollar wise it is all the same effect

Except chasing dividends historically equates to lower overall market returns. Since you're limiting yourself to dividend producing stocks.

Chasing yield generally does, but everything I've read says that historically dividend paying stocks have returned more than non paying stocks.

According to Fama & French, from 1917-2014, if you held only all the dividend paying stocks in SP index, you would have an annualized return of 10.4%, while holding only non-payers returned 8.5%.

« Last Edit: August 05, 2016, 12:08:32 PM by BDWW »

boarder42

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Re: How much in dividends do you make a month?
« Reply #32 on: August 05, 2016, 01:41:53 PM »
I do like some bit of dividend.  A company that hoards cash can end up granting excessive stock and option bonuses or make irrational purchases because they feel they are under pressure to do something with the cash.  Besides, if you owned your own business, you would expect to eventually get some profit and spending money from it without having to sell it.

perhaps you are not selling it , but the company is in effect selling off a piece of your share price and handing it to you .

like i said , there are few differences between say a 2% dividend and you pulling the same dollars by selling a piece of your total portfolio assuming same total returns .

in the end how you get the cash flow amounts to just about the same thing .

there are advantages to the dividends as a way but there are disadvantages too but dollar wise it is all the same effect

Except chasing dividends historically equates to lower overall market returns. Since you're limiting yourself to dividend producing stocks.

Chasing yield generally does, but everything I've read says that historically dividend paying stocks have returned more than non paying stocks.

According to Fama & French, from 1917-2014, if you held only all the dividend paying stocks in SP index, you would have an annualized return of 10.4%, while holding only non-payers returned 8.5%.

that analysis is only of the large cap sector of the stock market. very small sample size to infer all of that from.  i doubt much of the S&P 500 doesnt pay some sort of dividend.

beastykato

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Re: How much in dividends do you make a month?
« Reply #33 on: August 05, 2016, 02:14:15 PM »
I feel so miniscule with my <$200/ month dividend stream in this thread.  We got lot of people here well beyond able to FIRE it seems.

mathjak107

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Re: How much in dividends do you make a month?
« Reply #34 on: August 05, 2016, 05:15:59 PM »
I do like some bit of dividend.  A company that hoards cash can end up granting excessive stock and option bonuses or make irrational purchases because they feel they are under pressure to do something with the cash.  Besides, if you owned your own business, you would expect to eventually get some profit and spending money from it without having to sell it.

perhaps you are not selling it , but the company is in effect selling off a piece of your share price and handing it to you .

like i said , there are few differences between say a 2% dividend and you pulling the same dollars by selling a piece of your total portfolio assuming same total returns .

in the end how you get the cash flow amounts to just about the same thing .

there are advantages to the dividends as a way but there are disadvantages too but dollar wise it is all the same effect

Except chasing dividends historically equates to lower overall market returns. Since you're limiting yourself to dividend producing stocks.

Chasing yield generally does, but everything I've read says that historically dividend paying stocks have returned more than non paying stocks.

According to Fama & French, from 1917-2014, if you held only all the dividend paying stocks in SP index, you would have an annualized return of 10.4%, while holding only non-payers returned 8.5%.

that is true in the past . more recently non dividend payers have out performed the dividend payers .

what is interesting is dividends have increased to the highest levels since 1998 with a record increase of 17.8 billion dollars in increased dividends payed out just 1st quarter. the 2nd quarter may be even bigger.

all dow stocks pay dividends and 84% of the s&p 500 does too.

but according to a study done by howard silverblatt at s&p those dividends have been coming at a price as they go up and up..

a good part of that capital from free cash flow is gone forever and no longer available for compounding.

mid-caps and small caps who pay little in dividends have been far and away providing far better compounding and use of investor money for much greater returns..

in fact one of the least efficiant ways to grow investor money now is paying it out as a dividend.

as chuck akre said ,free cash flow in a company can be used to compound by buying back its own stock, investing in its own company or buying other companies . cash flow paid out as dividends loses its compounding ability and much of it is gone forever and can no longer compound.

many of the great companies in the s&p 500 have lagged behind their non dividend payers in the midcap and small cap markets who now seem to be much more efficient at generating compounding on investor money.

midcaps and small caps have compounded the last few  years with few exceptions  at a rate of 5-6% higher then their dividend paying cousins.

« Last Edit: August 05, 2016, 05:17:59 PM by mathjak107 »

Ottoford

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Re: How much in dividends do you make a month?
« Reply #35 on: August 05, 2016, 07:20:17 PM »
My E trade statement has an estimated annual income column for each of my holding.  In the non-IRA account it should be around $14k this year so averaging $1,100 per month.  The big chunk of our IRA $ is not in E-trade but the dividends are around $1,500 per month. 

My husband loves telling me about every dividend payment.  "Coca-Cola paid us $7.62 today"  or "Con Edison paid us $146 today".  Of course, everything is reinvested but it's nice to know it there if we need it.

mathjak107

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Re: How much in dividends do you make a month?
« Reply #36 on: August 06, 2016, 01:27:32 AM »
the truth is he should be saying coca cola gave us back 7.62 of our own money today   ha ha ha . like i explained it is not over and above what you had the day prior .

it is a return of your own invested money  right off the value of the investment .

it is all about your total return -period!
« Last Edit: August 06, 2016, 02:21:19 AM by mathjak107 »

Stimulated

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Re: How much in dividends do you make a month?
« Reply #37 on: August 06, 2016, 02:38:57 AM »
About £4000 per year on the FTSE.  Less on the ASX as I have a smaller holding on the ASX.


beastykato

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Re: How much in dividends do you make a month?
« Reply #38 on: August 06, 2016, 09:04:14 AM »
I'm not trying to start an argument here, just trying to further educate myself.  From what I've seen though total return ultimately is better in the accumulation phase. 

However, it seems to me that a dividend approach would be better in the draw down phase because you never sell off your shares.

Also, from what I've read many companies use buy-backs and such to manipulate their numbers, which is why people trust dividend paying companies more.  Personally, I like to see the cash coming out for that reason, because I don't trust the majority of people running these companies.  Having to display exactly what your balance sheet entails keeps them honest, or at least as honest as possible. 

Now I'm just regurgitating what I've read previously, but I'd definitely like to hear opinions on this. 

mathjak107

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Re: How much in dividends do you make a month?
« Reply #39 on: August 06, 2016, 09:41:13 AM »
you need the same amount of gains in either case to survive .

a dividend payer that hypothetically stays flat  would in theory constantly  be reduced by the payout . in theory if they did not stop the dividend you would have all your shares left worth zero .

taking the same amount of dollars from your portfolio if the growth stayed flat , you would still have shares worth money but you would have sold  off all your shares

in both cases you need enough capial appreciation to offset the payout ..

so in either case given the same growth on the funds or stock the portfolio or the shares as long as it is more then you took out it  can sustain themselves forever .
remember as the portfolio  grows from appreciation  you need less and less shares to equal the dividend .
« Last Edit: August 06, 2016, 09:44:03 AM by mathjak107 »

mrpercentage

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Re: How much in dividends do you make a month?
« Reply #40 on: August 06, 2016, 09:44:17 AM »
you need the same amount of gains in either case to survive .

a dividend payer that hypothetically stays flat  would in theory constantly  be reduced by the payout . in theory if they did not stop the dividend you would have all your shares left worth zero .

taking the same amount of dollars from your portfolio if the growth stayed flat , you would still have shares worth money but you would have sold  off all your shares

in both cases you need enough capial appreciation to offset the payout ..

so in either case given the same growth on the funds or stock the portfolio or the shares as long as it is more then you took out it  can sustain themselves forever

Wrong

mathjak107

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Re: How much in dividends do you make a month?
« Reply #41 on: August 06, 2016, 09:46:36 AM »
right!!!!!!!!!!!!!!  100% correct .  there is no difference between you pulling equal amounts of dollars out of a non dividend paying portfolio vs getting  that amount in  dividends . you may have some transactional costs or tax difference's but it is the same ending result . if total returns are the same results will be pretty much the same .
« Last Edit: August 06, 2016, 09:52:05 AM by mathjak107 »

mrpercentage

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Re: How much in dividends do you make a month?
« Reply #42 on: August 06, 2016, 09:59:11 AM »
right!!!!!!!!!!!!!!  100% correct .  there is no difference between you pulling equal amounts of dollars out of a non dividend paying portfolio vs getting  that amount in  dividends . you may have some transactional costs or tax difference's but it is the same ending result . if total returns are the same results will be pretty much the same .

It's not the same. Dividends do not come from the equity of the stock. They don't. Sure hypothetically you could have the same total cash in your account using both methods but I'm not talking hypothetical. A dividend is not an equity sell period

mrpercentage

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Re: How much in dividends do you make a month?
« Reply #43 on: August 06, 2016, 10:07:29 AM »
BOOM!

MissNancyPryor

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Re: How much in dividends do you make a month?
« Reply #44 on: August 06, 2016, 10:20:16 AM »
Mr. P is back!

mrpercentage

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Re: How much in dividends do you make a month?
« Reply #45 on: August 06, 2016, 10:22:35 AM »
Mr. P is back!

Only because the Olympics have water polo on. ✌️😉

mathjak107

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Re: How much in dividends do you make a month?
« Reply #46 on: August 06, 2016, 11:05:39 AM »
right!!!!!!!!!!!!!!  100% correct .  there is no difference between you pulling equal amounts of dollars out of a non dividend paying portfolio vs getting  that amount in  dividends . you may have some transactional costs or tax difference's but it is the same ending result . if total returns are the same results will be pretty much the same .

It's not the same. Dividends do not come from the equity of the stock. They don't. Sure hypothetically you could have the same total cash in your account using both methods but I'm not talking hypothetical. A dividend is not an equity sell period

absolutely wrong . it is a requirement that the exchanges reduce the share price by the amount of the payout . it is mandatory at the open .

here are finra regulations .


5330. Adjustment of Orders

(a) A member holding an open order from a customer or another broker-dealer shall, prior to executing or permitting the order to be executed, reduce, increase, or adjust the price and/or number of shares of such order by an amount equal to the dividend, payment, or distribution on the day that the security is quoted ex-dividend, ex-rights, ex-distribution, or ex-interest, except where a cash dividend or distribution is less than one cent ($0.01), as follows:
(1) Cash Dividends: Unless marked "Do Not Reduce," open order prices shall be first reduced by the dollar amount of the dividend, and the resulting price will then be rounded down to the next lower minimum quotation variation.


Price Changes on the Ex-Dividend Date
When a company issues a dividend, the cash that makes up the dividend payment no longer belongs to the company. Because this is transferred to shareholders, the companyís share price is reduced by the amount of the dividend payment on the ex-dividend date.
« Last Edit: August 06, 2016, 11:07:36 AM by mathjak107 »

mathjak107

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Re: How much in dividends do you make a month?
« Reply #47 on: August 06, 2016, 11:11:42 AM »
all compounding is based on the opening balance  each quarter . if you have 100k and a 5% div is paid you have 5k in pocket and 95k left compounding by the market action .

if you reinvest that 5k then you have your original 100k back working for you again .

a portfolio worth 100k would not have a reduction so assuming same total returns  the portfolio would be worth 5k more with no dividend payment reset . . if you pull the 5k out of the portfolio you have the same balance working for you in either case .


mrpercentage

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Re: How much in dividends do you make a month?
« Reply #48 on: August 06, 2016, 11:13:53 AM »
right!!!!!!!!!!!!!!  100% correct .  there is no difference between you pulling equal amounts of dollars out of a non dividend paying portfolio vs getting  that amount in  dividends . you may have some transactional costs or tax difference's but it is the same ending result . if total returns are the same results will be pretty much the same .

It's not the same. Dividends do not come from the equity of the stock. They don't. Sure hypothetically you could have the same total cash in your account using both methods but I'm not talking hypothetical. A dividend is not an equity sell period

absolutely wrong . it is a requirement that the exchanges reduce the share price by the amount of the payout . it is mandatory at the open .

here are finra regulations .


5330. Adjustment of Orders

(a) A member holding an open order from a customer or another broker-dealer shall, prior to executing or permitting the order to be executed, reduce, increase, or adjust the price and/or number of shares of such order by an amount equal to the dividend, payment, or distribution on the day that the security is quoted ex-dividend, ex-rights, ex-distribution, or ex-interest, except where a cash dividend or distribution is less than one cent ($0.01), as follows:
(1) Cash Dividends: Unless marked "Do Not Reduce," open order prices shall be first reduced by the dollar amount of the dividend, and the resulting price will then be rounded down to the next lower minimum quotation variation.


Price Changes on the Ex-Dividend Date
When a company issues a dividend, the cash that makes up the dividend payment no longer belongs to the company. Because this is transferred to shareholders, the companyís share price is reduced by the amount of the dividend payment on the ex-dividend date.

First, that is to help combat dividend captures.

Second, artificially changing the price at the open does not change the natural demand the will bring the price quickly right where it belongs

Look. Not paying a dividend or having a smaller payout has some advantages. However, selling equity is not the same as a dividend.

mrpercentage

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Re: How much in dividends do you make a month?
« Reply #49 on: August 06, 2016, 11:19:46 AM »
all compounding is based on the opening balance  each quarter .

False. Compounding can be measured by opening and closing share prices. I'm not picking on you. I'm just trying to show precisely where you are wrong. I have been wrong on here a few times myself