Financial analyst by day and a seasoned investor by passion, I’ve been involved in the world of investing for over 15 years and honed my skills in analyzing lucrative opportunities within the market.I specialize in uncovering strategies to utilize various investment vehicles – seeking out high quality dividend stocks, and other assets that offer potential for long term-growth that pack a serious punch for bill-paying potential. I use myself as an example that with a solid base of classic dividend growth stocks, sprinkling in some Business Development Companies, REITs, and Closed End Funds can be a highly efficient way to boost your investment income while still capturing a total return that follows traditional index funds. I create a hybrid system between growth and income and manage to still capture a total return that is on par with the S&P.You can read more of my work here.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of SCHD, FDVV either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
When it comes to investing in dividend stocks, there are two popular options that investors often consider: FDVV (Fidelity High Dividend ETF) and SCHD (Schwab US Dividend Equity ETF). Both of these exchange-traded funds (ETFs) offer exposure to a diversified portfolio of dividend-paying companies, but they have different focuses and objectives.
FDVV is designed for income-seeking investors who prioritize high dividend yields. This ETF tracks an index of large and mid-cap U.S. stocks that have a history of consistently paying and growing dividends. With a current dividend yield of around 3.5%, FDVV is a solid choice for investors looking to generate a steady stream of income from their investments.
On the other hand, SCHD is geared towards investors who are more interested in long-term growth potential. This ETF focuses on companies that have a track record of growing their dividends over time, as well as strong fundamentals and competitive advantages. While SCHD’s dividend yield may not be as high as FDVV’s, it offers the potential for greater capital appreciation over the long term.
So, which ETF is better for you? It ultimately depends on your investment goals and risk tolerance. If you are primarily looking for income, FDVV may be the better choice for you. However, if you are more focused on growth and are willing to sacrifice some current income for potentially higher returns in the future, SCHD may be the right option for you.
In conclusion, both FDVV and SCHD have their own strengths and weaknesses, and the best choice for you will depend on your individual investment objectives. Consider your goals, risk tolerance, and time horizon before making a decision on which ETF to invest in.
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Investing involves balancing risk, reward and personal goals and for many, index funds like SCHD, QQQM and VOO have become an important part of their portfolios.
Whether it’s SCHD’s focus on high-yield dividend-paying enterprises, VOO’s all-around coverage of the S&P 500 or QQQM’s focus on tech companies, these index funds provide investors with diversified exposure to the stock market.
Choosing which fund to invest in usually depends on the investor’s goals, but what happens when you’re at a crossroads and don’t know where to allocate a significant sum? That’s exactly the impasse one Reddit member found himself in.
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The poster, who’s been investing for several years, is selling a rental property he bought for $110,000. Now, with the rental evaluated at $245,000, he thinks he will remain with $200,000 to invest after accounting for all the expenses related to selling the house.
While the rental property generated $1,100 monthly, the management and maintenance issues made him want to give up renting the property. His goal? To transition to the stock market, focus on growth and dividend-paying investments.
“Just been seeing the popularity of SCHD, QQQM and VOO a lot and wondering if I could get a million in 10 years or less. I’m sure I can handle some risk but I was wondering if I should be dividend-heavy or growth-heavy for my goals,” he said.
Besides the rental profits, the investor has $40K in a HYSA and has been maxing out his Roth IRA in the last three years. Now, he’s turned to Reddit’s r/dividends community to seek guidance on whether his strategy is a good one or whether he should consider a better one.
Let’s explore the strategies Reddit investors shared in the thread.
Is $1 Million in 10 Years Possible With The VOO, QQQM, SCHD Strategy? Reddit’s Advice
Balance Risk and Investment Objectives
Many commenters highlighted the imperative need to assess the investor’s willingness to take risk, especially when considering his five-to-ten-year time horizon.
“The shorter your time frame, the more I’d lean SCHD. The market is a long game. Growth happens over 30 years not 5,” a comment reads.
A Redditor mentioned dividend-focused ETFs as a good investment if the poster cannot handle that much risk.
“If the market hits a downturn right when you retire, can you handle that financially and not be forced to sell? If not, consider dividend-based ETFs so you can get that income and have a small portion in a high-yield savings account as you get closer,” the Reddit member wrote.
Because of the poster’s five-to-ten-year time horizon, one comment suggested he invest in the S&P 500 or some growth-focused stocks.
“If you have a 5-year-ish time horizon I would have some in S&P 500 or growth stocks but there is inherent volatility,” the comment says.
Some Reddit members advised the investor that instead of selling the property, he could still use it as a source of income or collateral while eliminating the management and maintenance hassle.
“OP, any particular reason you don’t hire a property management company to manage it for you? I have one I use without any issues and I don’t have to do any interaction with the renter. I pay 10% and they do mostly everything,” a Redditor says.
Another commenter suggested the poster keep his property and either invest the profit the rent brings him into stocks or index funds or open a line of credit to buy stocks.
“Wouldn’t it be better to keep the rental property and just open a line of credit or reinvest the cash flow from the rental into the tickers you want?”
Are you an investor who recently sold a rental property and now has $200K to invest? Are you considering putting your money into SCHD, QQQM, and VOO in the hopes of reaching $1 million in 10 years with a 70% growth rate?
If so, you’re not alone. Many investors are looking for ways to grow their wealth quickly and effectively. However, investing in the stock market comes with risks and uncertainties, especially when aiming for such ambitious goals.
Before making any investment decisions, it’s important to do your research and consider your risk tolerance. SCHD, QQQM, and VOO are all popular exchange-traded funds (ETFs) with different investment strategies and risk profiles. SCHD focuses on high-quality dividend-paying companies, QQQM tracks the performance of the Nasdaq 100 Index, and VOO mirrors the S&P 500 Index.
While these ETFs have the potential for growth, it’s important to remember that past performance is not indicative of future results. A 70% growth rate over 10 years is certainly possible, but it’s also a very aggressive target that may not be achievable. It’s crucial to have a diversified investment portfolio and to consider factors such as market volatility, economic conditions, and your own financial goals.
Consulting with a financial advisor can help you create a personalized investment plan that aligns with your risk tolerance and financial objectives. They can provide guidance on asset allocation, risk management, and investment strategies to help you reach your long-term financial goals.
Investing in SCHD, QQQM, and VOO can be a solid foundation for your investment portfolio, but it’s essential to approach it with caution and realistic expectations. With proper planning and a disciplined approach, you may be able to grow your $200K into $1 million in 10 years, but it’s important to be prepared for potential challenges along the way.
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.
For many people, selling a house is a good way to open up new financial opportunities.
Rather than letting the money from the sale sit idle, some people start investing in the stock market to grow their wealth or create a reliable monthly income.
Popular funds like SCHD, VTI and MSTY have captured investors’ attention for various reasons. While SCHD is known for its reliability when it comes to dividends, VTI offers broad exposure to the whole market, and MSTY is noted for being high-risk, high-return.
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Many dream of earning a few thousand dollars each month from investments. Whether through growth-focused stocks, dividend-paying stocks or a mix of both, reaching this objective requires careful planning, some risk tolerance and a good strategy.
One Redditor is trying to figure this out: after selling his property, he was left with $150K. However, he plans to move into a free apartment at his dad’s home to keep costs low, which will allow him to invest all that money in stocks.
His goal? To make around $1,000 per month while keeping his principal safe.
“How should I invest this capital in order to make, say, $1,000 a month? Is that even possible? I could basically live off that,” he wrote.
Since he’s done his research, he’s considering investing in SCHD, MSTY, VTI and perhaps other funds, but he doesn’t know how to allocate his money to achieve his goal of earning $1,000 per month.
“I’ve been reading all about SCHD, MSTY, VTI and all the others. Looks like MSTY provides crazy returns,” the Redditor said.
Reddit members of the r/dividends community have shared their opinions and advice, so let’s dive into the comments to pick the most relevant and common suggestions.
Several Reddit members in the comment section warned the investor about funds like MSTY, which guarantee high returns but come with great risks.
“I’d avoid high-risk funds like MSTY. With those, you could double your money, or it could drop by 80%. It’s really that risky,” a comment reads.
“MSTY is a very risky play. Looks great now. But you really need to understand it and be prepared for huge losses,” says another Redditor.
On the other hand, one commenter pledged for MSTY, saying that every endeavor is risky, including opening a business.
“While people keep saying MSTY is risky and well sure it is, but has anyone opened a small business? Or heard of a stop loss? I’ve made consistently $2K a month with a DCA of 26, which also means I’m up 3 bucks a share on it as well. Set a stop loss and rake in money till it tanks,” he said.
According to the commenters, a balanced portfolio of dividend-paying ETFs and growth-focused ETFs is a great strategy.
“I’d suggest something like a 40% VOO, 35% SCHD, 10% XMMO & 15% AVUV and building wealth before you consider retirement,” a Redditor recommended.
A second Reddit member advised the investor to consider a mix of growth and dividend funds.
“If you wanna have stable income and long-term growth, look into the combination of VOO, SPYI, GPIQ, JEPQ/JEPI, SCHD and one or two aristocrat dividend stocks, such as PEP, ABBV or KO,” he said.
While most commenters suggested a combo of stocks, this Redditor recommended that the poster go all-in on growth ETFs because he’s young.
“I assume you are still relatively young, probably somewhere between 20 and 35. I wouldn’t put the $150K in dividends at all. A growth ETF would be more reasonable. I’m 99.99% sure if you put it into a growth ETF you will have way better results,” he wrote.
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If you’re looking to make $1,000 a month through investing, you may be considering popular options like SCHD, MSTY, or VTI. But is it possible to do so safely? We asked financial experts to weigh in on the potential risks and rewards of investing in these funds.
SCHD (Schwab U.S. Dividend Equity ETF) is a popular choice for income-seeking investors, as it focuses on high-quality dividend-paying companies. While SCHD has a solid track record of delivering consistent returns, it’s important to remember that no investment is completely risk-free. Market fluctuations and economic uncertainties can impact the performance of SCHD, so it’s crucial to diversify your portfolio and do thorough research before investing.
MSTY (Misty Robotics) is a more niche option, as it focuses on robotics and artificial intelligence companies. While these industries have the potential for explosive growth, they also come with higher risks. Investing in MSTY could lead to significant gains, but it could also result in substantial losses. It’s important to carefully consider your risk tolerance and investment goals before adding MSTY to your portfolio.
VTI (Vanguard Total Stock Market ETF) is a broad-based fund that offers exposure to the entire U.S. stock market. VTI is known for its low fees and diversification benefits, making it a popular choice for long-term investors. While VTI may not offer the same potential for high returns as more focused funds like SCHD or MSTY, it provides a solid foundation for a well-rounded portfolio.
In conclusion, while it is possible to make $1,000 a month through investing in SCHD, MSTY, or VTI, it’s crucial to do your due diligence and consult with a financial advisor before making any investment decisions. Diversification, risk management, and a long-term perspective are key factors to consider when aiming for consistent returns. Remember, investing always comes with some level of risk, so be sure to weigh the potential rewards against the potential downsides before diving in.
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