Going all dividend route in my Roth

[mmmmm...beer 790]

Been watching a bunch of videos and reading some articles about dividend investing, as opposed to chasing all equites.  Really interesting.  I essentially stole this guys portfolio and did the same percentages in my Roth IRA.  Right now estimated to have a dividend of about $1140 a month, but as I'm only 50 I have almost 10 years until I can touch it anyway.  So using the calculators, if I just re-invest all the monthly dividends, it could be something crazy like $4500 a month in dividends when I'm eligible to draw it in 9.5 years.

The really appealing part, is the estimates they give on the dividends are pretty accurate, and aren't necessarily driven at how the market is doing.  I'm stoked at the lesser volatility.  We've had a really great run the last two years of +52% in the market.  That rides gotta end soon with a pullback.  Just would be nice to miss that and have some almost guaranteed returns during that time period. 

https://armchairinsider.beehiiv.com/

Anyway... I'm definitely not a guru when it comes to dividend targeting, but it's cool to read about and delve into.

 

[Mookz 1,337]

Is there a particular video where he lays out his portfolio? 

I finally started funding a Roth in 2024 (I've...been foolish), and went with the mix that this hawtie recommended:
 

 

[easilyscan 855]

1 hour ago, Mookz said:

Is there a particular video where he lays out his portfolio? 

I finally started funding a Roth in 2024 (I've...been foolish), and went with the mix that this hawtie recommended:
 

 

I've known about these types of ETFs for a few years now, but I've never really researched them until recently. All 3 of them juice the returns/yield by selling covered calls. I've been doing this on some of my core holdings for the past 12 years & it definitely improves the returns. If you have an interest in how individuals, & in this case ETF managers, go about doing that, here's a link.

https://www.investopedia.com/terms/c/coveredcall.asp

 

[Mookz 1,337]

36 minutes ago, easilyscan said:

I've known about these types of ETFs for a few years now, but I've never really researched them until recently. All 3 of them juice the returns/yield by selling covered calls. I've been doing this on some of my core holdings for the past 12 years & it definitely improves the returns. If you have an interest in how individuals, & in this case ETF managers, go about doing that, here's a link.

https://www.investopedia.com/terms/c/coveredcall.asp

 

That's funny, I actually have been learning about covered calls, cash-secured puts, the wheel strategy, etc, and am about to give it a try on a small scale with a stock (Energy Transfer) which I'm sure will immediately tank.   Any tips on choosing stocks for covered calls?  

[easilyscan 855]

2 minutes ago, Mookz said:

That's funny, I actually have been learning about covered calls, cash-secured puts, the wheel strategy, etc, and am about to give it a try on a small scale with a stock (Energy Transfer) which I'm sure will immediately tank.   Any tips on choosing stocks for covered calls?  

For me, it works best on mature, low volatility companies. I wait for a day that the stock does well, let's say up 5%. Since option buyers are confident on days like that, they're willing to pay more substantial premiums. I usually sell them far enough out of the money, that barring a huge move up in the share price, the option will expire worthless. But that's just me. If you asked 10 different people that sell covered calls, about the specifics of the strategy they use, you might get 10 different answers.

I'm off to bed now, so if you have any follow-up questions, expect a long wait.

Regards

[mmmmm...beer 790]

47 minutes ago, Mookz said:

That's funny, I actually have been learning about covered calls, cash-secured puts, the wheel strategy, etc, and am about to give it a try on a small scale with a stock (Energy Transfer) which I'm sure will immediately tank.   Any tips on choosing stocks for covered calls?  

Yeah don't do them unless you really know wtf you are doing, and then be prepared to lose money.  Hahaha... I tried it a few years ago and got my @ss handed to me.  Though I have some friends that do it, I just don't trust I know what I'm doing enough.

[mmmmm...beer 790]

3 hours ago, Mookz said:

Is there a particular video where he lays out his portfolio? 

 

https://beehiiv-publication-files.s3.amazonaws.com/uploads/downloadables/c295bd6e-2531-4991-864a-d3fed725cce9/3a929d19-eff4-4229-9def-13e760fd2327/Armchair Insider Portfolio%2C Jan 21%2C 2025 - Snowball Holdings.csv.pdf?X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Credential=AKIAQCMHTQSERNC675WH%2F20250204%2Fus-east-1%2Fs3%2Faws4_request&X-Amz-Date=20250204T054828Z&X-Amz-Expires=604800&X-Amz-SignedHeaders=host&X-Amz-Signature=868d5d3dd855e4f72039a520d47c3905046319c639d6e59174e997b7e280a0a8

[mmmmm...beer 790]

Here's the guys youtube page where he discusses his reasons and others at length ie income investing vs growth investing:  https://www.youtube.com/channel/UCxU4PhPfJEBgaeYT1rMhvCg

Interesting video I dug that sort of gives the basis:

 

 

[Mookz 1,337]

16 minutes ago, mmmmm...beer said:

Yeah don't do them unless you really know wtf you are doing, and then be prepared to lose money.  Hahaha... I tried it a few years ago and got my @ss handed to me.  Though I have some friends that do it, I just don't trust I know what I'm doing enough.

Seems like the key is to only do it with stocks you are planning on holding long term anyway.  Then the only "risk" is selling them sooner than you wanted to. 

15 minutes ago, mmmmm...beer said:

https://beehiiv-publication-files.s3.amazonaws.com/uploads/downloadables/c295bd6e-2531-4991-864a-d3fed725cce9/3a929d19-eff4-4229-9def-13e760fd2327/Armchair Insider Portfolio%2C Jan 21%2C 2025 - Snowball Holdings.csv.pdf?X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Credential=AKIAQCMHTQSERNC675WH%2F20250204%2Fus-east-1%2Fs3%2Faws4_request&X-Amz-Date=20250204T054828Z&X-Amz-Expires=604800&X-Amz-SignedHeaders=host&X-Amz-Signature=868d5d3dd855e4f72039a520d47c3905046319c639d6e59174e997b7e280a0a8

Noice, my three are in there! 

[mmmmm...beer 790]

2 minutes ago, Mookz said:

Seems like the key is to only do it with stocks you are planning on holding long term anyway.  Then the only "risk" is selling them sooner than you wanted to. 

Noice, my three are in there! 

Now all you need is the other 34 for some diversification! Essentially if you watch some of the videos, you sacrifice some of the big big gains to make between 9-11%, that doesn't give a sh!t what the market is doing.  So... really much much less volatility.