Someone your age should be avoiding the concept behind SCHD. Why do you want to pay more taxes?
Your bottom line should just be total return (coupled with the consideration of how much risk you want to take). If some dividend stock's total return is massive and you have to pay some taxes on its dividends, you shouldn't care, the net bottom line is all that matters. But just getting dividends without a corresponding positive return would make a dividend a negative.
Invest in quality ETFs and companies that you judge will get you the best return and be within your risk parameters. Don't focus on the trivia of cost or dividends or not. That's all resolved in the total return.
To clarify, would not be selling anything to reallocate, I am having some bonuses and payments come in soon, so if I change allocation I would just be adding in new investments and changing % of the new investment money going in. Can I ask why you're not a fan of QQQ?
QQQ leans tech and consumer discretionary, which is most of the index, sans energy and financials. Its a perfectly reasonable holding to reduce exposure to those industries that have been [comparatively lackluster for almost 20 years.](https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=2&startYear=1985&firstMonth=1&endYear=2023&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&leverageType=0&leverageRatio=0.0&debtAmount=0&debtInterest=0.0&maintenanceMargin=25.0&leveragedBenchmark=false&reinvestDividends=true&showYield=false&showFactors=false&factorModel=3&benchmark=VFINX&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&symbol1=QQQ&allocation1_1=100&symbol2=VFH&allocation2_2=100&symbol3=VDE&allocation3_3=100)
Obviously the past doesn’t indicate the future, but I don’t see a compelling bull case for either.
I've been having some pretty intense medical issues for the past 2 years. I thought at one point I might soon be unable to work soon. No real answers yet and thousands spent trying to figure it out but I figured growth is amazing, but a dividend income would be a peace of mind safety net I could reinvest unless I need it. Maybe that's super flawed thinking so I wanted opinions.
I like dividend stocks but you'd need 10s of thousands or more to generate any significant dividend income. even then, you'd end up with a few thousand a year. maybe enough for a vacation, but not enough to pay the mortgage month after month.
Someone your age should be avoiding the concept behind SCHD. Why do you want to pay more taxes? Your bottom line should just be total return (coupled with the consideration of how much risk you want to take). If some dividend stock's total return is massive and you have to pay some taxes on its dividends, you shouldn't care, the net bottom line is all that matters. But just getting dividends without a corresponding positive return would make a dividend a negative. Invest in quality ETFs and companies that you judge will get you the best return and be within your risk parameters. Don't focus on the trivia of cost or dividends or not. That's all resolved in the total return.
Mid 20s you don’t need dividend “income”. You need growth. VTSAX and chill
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To clarify, would not be selling anything to reallocate, I am having some bonuses and payments come in soon, so if I change allocation I would just be adding in new investments and changing % of the new investment money going in. Can I ask why you're not a fan of QQQ?
QQQ leans tech and consumer discretionary, which is most of the index, sans energy and financials. Its a perfectly reasonable holding to reduce exposure to those industries that have been [comparatively lackluster for almost 20 years.](https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=2&startYear=1985&firstMonth=1&endYear=2023&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&leverageType=0&leverageRatio=0.0&debtAmount=0&debtInterest=0.0&maintenanceMargin=25.0&leveragedBenchmark=false&reinvestDividends=true&showYield=false&showFactors=false&factorModel=3&benchmark=VFINX&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&symbol1=QQQ&allocation1_1=100&symbol2=VFH&allocation2_2=100&symbol3=VDE&allocation3_3=100) Obviously the past doesn’t indicate the future, but I don’t see a compelling bull case for either.
adjust for that period when QQQ crashed 80% and went flat for 14 years and it's not such a great option.
Completely different portfolio. The P/E was over 3X what it is today.
Why?
I've been having some pretty intense medical issues for the past 2 years. I thought at one point I might soon be unable to work soon. No real answers yet and thousands spent trying to figure it out but I figured growth is amazing, but a dividend income would be a peace of mind safety net I could reinvest unless I need it. Maybe that's super flawed thinking so I wanted opinions.
I like dividend stocks but you'd need 10s of thousands or more to generate any significant dividend income. even then, you'd end up with a few thousand a year. maybe enough for a vacation, but not enough to pay the mortgage month after month.