First dividend ETF in my portfolio
I've committed the sin that every good European dividend investor should avoid... I've added a dividend ETF to my portfolio... And do you know why I did this? Well, you see, I'm building a dividend stock portfolio for the future.
My primary goal is to achieve a recurring monthly income that is as balanced as possible. In other words, I intend to have a similar income every month.
As you can imagine, this isn't easy because, normally, a company distributes dividends once, twice, or four times a year at most.
What also often happens is that the months in which I receive the most dividends are typically March, June, September, and December, as these quarterly distributions are the most common in the market.
This doesn't only happen with stocks; it's more common to see it this way with ETFs as well.
But... yes, there are some that distribute with another quarterly distribution.
I'm fine with an ETF that has a 4% dividend yield, that doesn't lose too much over the long term, but rather that grows at least 4 or 5% annualized excluding dividends, and that pays out dividends in the months of February, May, August, and November.
After analyzing many of them, I've settled on this one:
SPDR S&P Global Dividend Aristocrats UCITS ETF
It's not the best dividend ETF out there, but its risk is minimal and its growth, although slow, seems solid, and it also gives me a good yield of 4.1% today...with a tendency to grow (hopefully).
It doesn't seem like the typical dividend ETF that deflates over time; it increases in value, even if we don't count the dividends.
INCLUDING DIVIDENDS:
EXCLUDING DIVIDENDS:
As I've said, I don't like ETFs for a dividend portfolio. Perhaps I'd think differently if I were in the US, where I believe they're really worth it. Even if I were 10 years older, maybe I'd buy another, more "juicy" ETF, not caring about its devaluation over time, but I'm still young for that.
I prefer to build something solid until the day I decide to send everyone to hell (I'm referring to my day job, LOL).
The only thing I want it for is to "fill in" the gaps between "stronger" and "weaker" months... I promise not to introduce another one of these; one is enough for me.
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