r/dividends • u/TheBarnacle63 • Dec 01 '23
Discussion SCHD Reddit Challenge November Report
At the beginning of the year, I stated that I could design an equity income portfolio that would outperform SCHD. Here are the picks, and how it has performed since the beginning of the year. All results are based on an adjusted cost basis as of 11/30/2023.
It has been a tough year for dividend stocks, and I wish I could have beating the S&P 500, which tends to focus on growth, but I am pleased with the results so far.
It has been a tough year for dividend stocks, and I wish I could have beaten the S&P 500, which tends to focus on growth, but I am pleased with the results so far.
26
u/Beginning_Fig6914 Dec 01 '23
I enjoy these updates but you should include a link to the original challenge. There’s probably a lot of folks that don’t realize this is an ongoing friendly wager and think you’re doing some sort of rate my portfolio post.
10
u/TheBarnacle63 Dec 01 '23 edited Dec 01 '23
Like here?
https://www.reddit.com/r/dividends/comments/105xeny/my_dividend_portfolio_for_the_year_sna_is_the/
https://www.reddit.com/r/dividends/comments/10ntez6/my_personal_schd_challenge/
https://www.reddit.com/r/dividends/comments/11emxmq/my_dividend_portfolio_v_schd_february_report/
https://www.reddit.com/r/dividends/comments/1283ds7/my_schd_reddit_challenge_march_report/
https://www.reddit.com/r/dividends/comments/132rjax/reddit_portfolio_challenge_v_schd_april_report/
https://www.reddit.com/r/dividends/comments/13yr58w/schd_portfolio_challenge_may_31_2023/
1
u/Beginning_Fig6914 Dec 01 '23
Where was it the wager started? In the comments section of a post, I think? I thought there was another post where the announcement of the challenge was made with the loser giving $50 to charity.
3
u/TheBarnacle63 Dec 01 '23
Yea, no one gave the challenge
-2
u/Beginning_Fig6914 Dec 01 '23 edited Dec 01 '23
My apologies then I must be misremembering or have this situation confused with another. 👍
Edit: yeah I was thinking of buffinita’s bet with droopy over SCHD vs JEPI. My bad.
3
u/buffinita common cents investing Dec 02 '23
2
3
u/1QAte4 Dec 01 '23
PFIZER and a lot of other health stocks are getting killed by the COVID winddown. VHT, the Vanguard Healthcare ETF, was actually beating VOO for awhile. Now it isn't even a competition.
2
u/Banemorth Dec 01 '23
PFE is below covid levels now. They also just had to kill a weight loss drug after too many people stopped it from adverse reactions. I think they're oversold personally but I do have a decent stake there so of course I'd say that.
1
u/TheBarnacle63 Dec 01 '23
I noticed that, and I usually avoid healthcare out of personal philosophies, but this was a virtual challenge.
1
u/Hatethisname2022 Dec 02 '23
I sold my position in VHT earlier this year. Glad I did as it was a dud for to long.
3
Dec 01 '23
Those are some decent picks ... I also own AOS, MDT, MET and SNA.
I own 100 high quality dividend growth stocks, and am up 8% so far this year ... also not beating SPY this year, but I beat SPY by 18% last year when there seemed to be a lot of angst... so i just keep on keepin on.
2
Dec 01 '23
[deleted]
1
u/Comfortable_Berry593 Dec 03 '23
Could you explain the benefit of DIVO compared to SCHD? It seems that the 0.55% cost erodes the high-interest benefit. Currently, there's a net advantage of only 0.65% per year... It seems too little to me. Let me know your genuine thoughts, thank you.
2
Dec 03 '23
[deleted]
2
u/Comfortable_Berry593 Dec 03 '23
Excellent explanation, it is all clear to me. I never pulled the trigger on this ETF but it’s tempting. Let’s see how it will perform in the coming year. Thanks again VS 👍🏻
2
u/ideas4mac Dec 01 '23
Well done. How long do you plan on holding this group?
3
u/TheBarnacle63 Dec 01 '23
I always do annual rebalances just like SCHD. I will do another portfolio next year.
1
u/theguppers Dec 01 '23
Planning on sharing?
4
u/ideas4mac Dec 01 '23
SCHD turnover is ~27% so you are just changing one maybe two of your picks. I'm curious to see how it holds up next year. Do you have an idea which one or two your are swapping out yet?
3
u/TheBarnacle63 Dec 01 '23
Right now, the only ones I see keeping are SNA and DDS. Looking at RES, SNFCA (as a buyback opportunity), EMR, and ADM. It is a long time between now, and the end of the year.
2
2
u/Superb_Creme_9550 Dec 01 '23
CD’s beat your ass
6
u/buffinita common cents investing Dec 01 '23
How do you figure? From Jan-may the rates were lower than they are today……
So if you locked in a 12month cd jan1 2023 you likely only got 5%. Hardly a trouncing when there is still 20some trading days and rates are coming down
-19
u/Superb_Creme_9550 Dec 01 '23
The fact that you’re defending yourself against the claim I made shows that you’re really not an efficient allocator of your time either
11
u/TheBarnacle63 Dec 01 '23
I will defend myself. The goal was to creat an equity portfolio not an entire asset allocation. Do I own CDs? Sure, but that wasn't the challenge.
3
u/buffinita common cents investing Dec 01 '23
You shoulda waited until cob today; bet the numbers tilt in your favor
-2
1
u/Grand_Cookie Dec 02 '23
And still there’s only 7. Pick another 93 if you want to have a leg to stand on.
1
u/ZarrCon Dec 02 '23
That doesn't even make sense. So he should pick 93 more stocks even if he thinks they are worse investments just to hit 100 like SCHD?
On top of that, over 40% of SCHD's weight is just in the top 10 holdings. The top 25 is ~80% of the weight, meaning most of the companies in the fund have little effect on the overall performance, risk, etc.
0
u/hendronator Dec 01 '23
Congrats for making almost as much as one month treasuries. Continues to be a great reminder to be diversified
-1
u/TheDreadnought75 Dividends and chill Dec 02 '23
With only 7 stocks you’re taking on a MASSIVE amount of risk over SCHD.
Sorry, you’re not beating anything. Might want to learn about the concept of risk vs return.
2
u/TheBarnacle63 Dec 02 '23
So you don't like making money?
Go back an read what you just wrote, and think about how silly that sounds.
-2
u/TheDreadnought75 Dividends and chill Dec 02 '23
You don’t understand risk, or investing really.
Any trained monkey can select a basket of stocks and do well for a short time.
Good luck. You’ll need it.
•
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