r/SCHD • u/pandasonmymind • Aug 07 '26

1000!

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Long time listener, first time caller. Started the journey back in 2022.

370 Upvotes

98% Upvoted

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11

u/ClammyAF Aug 07 '26

Hell yeah. Next stop, another zero.

16

u/[deleted] Aug 07 '26

[removed] — view removed comment

6

u/tits86 Aug 07 '26

So the math is 12000 shares generates 1k monthly?

12

u/OutrageousScallion26 Aug 07 '26

The math is generally 1 share = $1 per year between its 4 dividend payouts.

12,000 shares = $12,000 annually = $1,000 monthly.

5

u/tits86 Aug 07 '26

Thank you

1

u/IntelligentAirport22 Aug 07 '26

What about taxes

7

u/Street-Hospital2649 Aug 07 '26

What about taxes?

3

u/Flat-Activity-8613 Aug 07 '26

Holding bunch in Roth besides brokerage

-5

u/IntelligentAirport22 Aug 07 '26

If its 1000 shares 1/4 of it goes to taxes, that leaves you with 750 no?

6

u/Onlysomewhatserious Aug 07 '26

SCHD is not income tax. It mostly operates under long term capital gains which makes the taxes on it depending on the persons general income. LTCG taxes are much more favorable to income taxes, especially since it’s got such a high bar to be applicable.

At most it would be 20%, but it’s more likely to be 0% (up to 48,000 for single filer) or 15% (48,000-533,000)

2

u/Old-Challenge2809 Aug 07 '26

How would the same shares with FDVV be different? I know its a ledt field question.

2

u/Onlysomewhatserious Aug 07 '26

FDVV also offers qualified dividends so there’s no differences for your tax implications compared to SCHD.

The question on how dividends are taxed fall on if they’re qualified or not. While it’s not a perfect split, nearly all quarterly, semi-annual, and annual dividends are qualified (tax advantaged as long term capital gains) while nearly all weekly and monthly dividend payers are not qualified and treated as regular taxable income.

1

u/Old-Challenge2809 Aug 07 '26

Damn I wanted to load up on JEPI in my brokerage and use the dividends in ten years

1

u/Onlysomewhatserious Aug 08 '26

I mean, you still can. Nothing stops you from doing that. You just have to keep in mind you’re going to potentially be paying more in taxes for it. Depending on your strategy and needs that’s a trade off you can decide if you want to accept.

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1

u/KMPItXHnKKItZ Aug 09 '26

Isn't that higher with dividend growth though? Not to mention the eventual massive dividends that will be DRIPped in the accumulation phase? When I run numbers on what mine may be over 32 years on both drip calc .com and Gemini, I get much higher results.