• MrEff@lemmy.world
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      3 months ago

      $10,000 at 4% gives you $400 interest in one year.

      Just about any decent dividend stock will outperform that. Look at PET for example. It is sitting at $3.65/share right now and offers a quarterly dividend of $0.30. That puts you at $1.20/share per year. 10k = 2739 shares = $3,286.80 dividend payout in one year.

      Banks are the worst place to put investments. Money in bank accounts are only supposed to be there if you need it liquid, like an emergency fund or your checking account.

        • MrEff@lemmy.world
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          3 months ago

          Little under 30k in higher risk dividend. Bring in about 800 a month.

          I have a mix of large cap, small cap growth stocks, then dividend high risk and low risk. Stock like this (I do not own PETS, I was just using it as an example) would be a high risk due to its price instability. But you mitigate that with stop loss orders.

          I have a vanguard/roth for my longs (large cap growths and stable dividends with DRIP) and then use etrade for the small cap or high risk ones. I like their tax documents and easy interface.

          People make arguments against dividend stocks, I simply call it a different strategy. Some years it beats out my growths, some years it is about on par. Depends on where I have it at the time and slightly more market dependant.

          I have recently gotten into ex-date chasing. While it has increased the returns, it is more work.

            • MrEff@lemmy.world
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              3 months ago

              Also yes. The more professional name is ‘dividend capture strategy’. More work, worth the pay off, do all you can to avoid commissions and fees.

              • TrickDacy@lemmy.world
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                3 months ago

                Haha I was making a joke about the terminology but I probably should actually do some reading about the topic

          • Grayox@lemmy.ml
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            3 months ago

            Ive thought about doing that with my IRA, has the market negatively impacted your yields at all?

            • MrEff@lemmy.world
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              3 months ago

              When it is easy bull markets, I go heavy on growth stocks. When the market is bear, I go heavy on dividends. Right now though there is a high beta turmoil, so I have a mix of both. My IRA is also set up as more od a “leave this alone” investment. My etrade account has my “fuck around and find out” money. I mention this because it is hard to directly compare the two. So far my dividends have strongly out performed the growth stocks, but only in the last 3 months or so has the gap widened. I credit it to 2 specific ones that are getting me 30%-ish yields with stable prices. They are also new etf’s, so the hedge money is still strong before the stripping gets to its prices. I mentioned in a post lower that that my little under 30k is netting me 800/month. Honestly it is paying a higher yield than renting out my condo is getting me.

    • JamesBean@kbin.earth
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      3 months ago

      Vanguard recently started offering a savings account with 4.15% APY (their ‘cash plus’ account).

      If OP wants to park the money in a savings account for easier access than a mutual fund, that’s both a more reliable institution and a better rate.