Absolutely nothing wrong with slowly selling AMD.
I don't plan on selling the big stocks i have above but was thinking ging forward DCA not into a few ETFs selling some of my smaller stock holdings. I own VTI SP500 and SCHD. I know the first 2 overlap. Was thinking of QQQ or SMH. And just DCA set and forget it into them..not sure why I haven't bought SMH I'm pretty dead set on it but it's always at all time highs..which doesn't even matter when DCA lol
Yep! People have already been doing this in early retirement for decades and is very common. If you have a large enough amount of VTI/VXUS I think even there you would generate a decent amount of dividend income.
You could set up a lazy portfolio that consists of something like VTI/VXUS (perhaps with something like a 70% / 30% allocation.
www.optimizedportfolio.com
I'm not planning for early retirement, but...
The goose is slaughtered either way. When you sell shares for cash, your remaining shares represent less value because you have fewer of them. When you receive a dividend for cash, your remaining shares represent less value because the issuer has fewer assets. These aren't exactly the same mechanism, but there's no inherent reason that one is better than the other for your long-term value, except that the former gives you more tax control.
Yep, dividends are essentially forced liquidations at regular intervals... a taxable event. Thus, they should be mostly irrelevant for making investing decisions.
in reits like O you're getting a piece of the rents collected and in profitable companies like apple and MS you're getting a piece of their profit/revenue. it's not like they are selling away their windows division to give you a dividend check. so i don't buy that way thinking that you're losing assets in getting dividends from them (other than the pure accounting of cash=assets, so they are giving away "assets." )
In a way, they are. The money that gets paid out in dividends isn't being used to support or grow their operations, and the future state of those operations is where much of the market valuation of those stocks lies.
I don't understand why you think it's strange to refer to cash as part of a corporation's assets.
because there's several different categories of assets. depreciating assets, revenue generating assets, liquid assets (cash), fixed/capital/human-talent/patent assets. not all are worth the same
That's neither here nor there when it comes to this discussion, though. Nobody is saying that all companies with healthy liquidity should start stockpiling tons of extra cash under the mattress instead of reinvesting it into their operations or distributing it to shareholders.
If you consider a corporation's assets more valuable than cash, why are you using dividends to buy dinner instead of reinvesting them into more shares of the corporation?
cause spending the dividend on dinner doesn't lower my share count or my share of dividends next month. selling off the shares means i'll get less next month. the forever growth/reinvest model that corporations follow doesn't work on a personal level because i'm not here forever, i'll die eventually. the dividend model just makes sure i die well fed when im not earning anymore from a job to buy more shares
At some point, it's okay to spend down your portfolio in retirement. Can't take everything with you. Unless you want to bequeath it all to your next of kin.
Spending the dividend will definitely result in you having lower future dividends, when compared with keeping that money in the dividend-paying asset. It doesn't lower your share count, but "share count" is mostly an arbitrarily-scaled number.
Our current disagreement doesn't have anything to do with what either of us likes.
Closed at $185. 27% swing in less than 24 hours. I hope a bunch of hedge funds lost a lot of money.
Honestly, I'll probably get a position in a Fidelity Eth ETF.
welcome to the cc club friend, remember there's no going back
Before the split, probably yes. After, maybe not depending on price.
Maybe. The implications of something like this happening would probably ruin the entire stock market for at least several years.
raytheon and lockheed would be the new nvidia and AMD
