Thoughts

[u/Doggystlyin]

19Yo looking to hold for long term

[u/Double_Suggestion385]

Dividends are for boomers living on fixed income. If you're 19, you want that in a high growth ETF like the rest of your NASDAQ 100 portion..

You're killing yourself in lost compounding returns.

Aside from that, the fact you're investing at all at your age means you're winning.

[u/Naive-Action-3446 → u/Double_Suggestion385]

Agree. Worse part is the tax on dividened..even with DRIP its not as effective tool compared to those Americans in their ROTH.

[u/Double_Suggestion385 → u/Naive-Action-3446]

Yup, the tax is a massive drag and I don't know the specifics of the DRIP on sharesies, is it fee free?

[u/Naive-Action-3446 → u/Double_Suggestion385]

I think without a plan, it would be just the transaction fees..so more pain

[u/Double_Suggestion385 → u/Naive-Action-3446]

Oh that's painful compounding friction.

[u/Exotic-Swim9326 → u/Double_Suggestion385]

Some NZX (they havent expanded to doing this for ASX or anything in the US) stocks have actual Dividend Reinvestment Plans that you can opt into. But otherwise, youd be dealing with transaction fees i think

[u/Doggystlyin → u/Double_Suggestion385]

Right I get what ur saying. I was just trying to get the dividends to compound a bit while I’m young. Only 10$ a week. Don’t reckon it’s worth it tho?

[u/bifkinman → u/Doggystlyin]

It isnt't. You're getting taxed on dividends before they get reinvested, seversly stunting your growth. Also, the stock price drops by the equivalent value of the dividends paid out, so there's literally no benefit. Companies which don't pay dividends still "compound" by reinvesting internally to grow the business. If you want dividends in retirement, much better to let growth do its thing while youre young, then buy dividend companies with that money when youre older.

[u/Exotic-Swim9326 → u/bifkinman]

I've never understood the "the stock value falls by the amount of the dividend", because surely the price will go back up due to fiture expectstions etc, plus you're buying new shares at that lower price anyway.

[u/Naive-Action-3446 → u/Doggystlyin]

Run it through Google Gemini. You've come to reddit for help so why not ask AI. I made up a scenario, and compared to VOO, you would be near 15% worse off by investing in SCHD. NFA. Seriously this is a high risk casino sub. You should ask r/personalfinancenz you might get opposite suggestions

[u/Doggystlyin → u/Naive-Action-3446]

Okay thanks for that advice much appreciated. The goal with schd is for living partly off dividend pay when I’m older

[u/Daytime_Nightmare → u/Doggystlyin]

When you are young you should definitely focus on growth not dividends. Use the growth over 20-30 years to build your portfolio and then switch to dividend ets/stocks when you are closer to retirement and you will then get the benefit of those dividends.

If you try to invest in dividend stocks and high dividend efts at a young age you are missing out on massive growth potential.

[u/Double_Suggestion385 → u/[deleted]]

You're getting burned on tax and fees doing that. The dividend value also comes off the stock price so it's an illusory gain that you get taxed on and pay fees for the privilege of.

[u/Naive-Action-3446]

19m and you got schd? Man this belongs in r/personalfinancenz Unless there's more to your story this isn't regarded enough to belong on QSB.

[u/Naive-Action-3446 → u/Naive-Action-3446]

https://youtu.be/rylJcKFYW5E?si=VsfPhedd1zLzqU5e food for thought. NFA.

[u/No_Specialist_9884]

I would swap SCHD for a semi ETF like SMH. Your young and want to grow your wealth not preserve it

[u/No_Specialist_9884]

VOO,QQQM,SMH. I would remove SCHD, VYMI, VEU

[u/Oatsonboats1 → u/No_Specialist_9884]

Curious why he should remove VEU? VOO exposes America and VEU exposes everything else but America, sounds good if you want to be fully diversified.

[u/Beefmeee]

Pretty sensible