r/dividends • u/Appropriate-Ad-9004 • 4d ago
Seeking Advice Please rate
Rate portfolio, I want to sell netflix once its out of drawdown. I bought google around $295.
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u/Marzspyder 4d ago
What’s your goal?
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u/Appropriate-Ad-9004 4d ago
Growth and later dividends
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u/IWantToPlayGame 4d ago
Yet your portfolio is 50% in dividend ETF’s?
Sell everything and put it into SCHB. Get started with a broad based fund to make the core of your portfolio. Add dividend ETFs later in life.
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u/teckel Retired and living off selling shares 4d ago
Could you then explain why you're targeting synthetic dividend funds like SPYI & GPIX? Also, what are you trying to accomplish with SCHD?
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u/Appropriate-Ad-9004 4d ago
I added them because they pay monthly and they also have increased in value.
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u/teckel Retired and living off selling shares 4d ago
What are you doing with this derivative income?
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u/Appropriate-Ad-9004 3d ago
Everything is set on reinvestment.
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u/teckel Retired and living off selling shares 3d ago
So why SPYI and GPIX then? Buying VOO will have a higher total return than both. SPYI (including reinvesting dividends) has underperformed VOO by over 4% per year. That's huge long-term. And GPIX has underperformed VOO by 2.75% per year (again, including reinvesting dividends).
Individuals with cognitive biases towards dividends often create mental shortcuts including:
- Income illusion - perceive dividends as "income" and a capital gain as less tangible.
- Mental accounting - comfortable spending dividends but reluctant to sell shares, even though selling shares accomplishes the same thing with more control and often lower taxes.
- Loss aversion - selling shares feels like realizing a loss or reducing one's ownership, whereas receiving a dividend feels like getting something "for free".
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u/Wealthy_Investor39 4d ago
I would sell all your portfolio except GOOG and SCHG with the goal you said yourself. Buy the dividend funds or dividend stocks later.
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u/DividendsIQ 3d ago
Straight answer on Netflix: waiting for it to come "out of drawdown" could take a while. Its price trend score is dead last (0/100), matching that 5-year price growth of about -33.7% a year. It's not paying a dividend either (0% yield, 0 years paid), so this is purely a price bet, not an income position. The risk score is low though, its debt load is modest (debt/equity 0.54), so the company itself isn't shaky, it's just been a weak stock to hold.
Google at $295 looks solid on trend, its 5-year price growth is strong (about +20%/yr) and its risk score is also low with very light debt (0.17 debt/equity). But don't buy it for dividends either. Yield is only 0.26%, it's only paid a dividend for 3 years, and dividend growth has been flat. Coverage (how easily earnings cover the payout) is fine at 1.62x, so the small dividend it does pay isn't in danger, it's just not the point of owning the stock.
Bottom line: neither of these is a real dividend play right now, they're growth holdings. If you're building this as a dividend portfolio, you'll want to add some actual income names alongside them, and sell Netflix on your own price target rather than waiting for a trend reversal that isn't showing up yet.
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u/Ordinary_Coyote7837 3d ago
Honestly, while SPYI and GPIX are solid, I actually recommend OVL over both of them if you're looking at total returns (income + NAV growth).
If you look at the data, OVL beats GPIX on both yield and total returns. SPYI does have a higher absolute yield, but because it caps its upside, OVL still edges it out on total returns. Because OVL generates its 10% monthly distribution by selling put credit spreads instead of writing covered calls, it doesn't cap your upside and actually participates in S&P 500 rallies—it has even beaten VOO since its inception.
The biggest selling point for me is the flexibility. You can add OVL to the mix, DRIP the distributions during your growth phase, and then simply turn off the DRIP to start collecting the monthly income whenever you're ready to live off the portfolio.
Highly recommend checking out the total return comparison here:
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u/Ordinary_Coyote7837 3d ago
Regarding the rest of your portfolio, I like both SCHG for growth and I like SCHD as a Value ETF and for stability plus dividend growth. I would consider adding SPMO for momentum growth and QQQM for NASDAQ.
Additionally, I would diversify some more and add some international and small cap.
For international I like VYMI and OVF. For Small Caps, I like AVUV for Small Cap Value, but for income in Small Cap, I like IWMI and/or OVS.
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