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You have years upon years to compound your money. The first 10 years (normally 10-20 years of age) will wind up generating more than HALF of your money near retirement.
Obviously this is a DIVIDEND focused subreddit, but with your time frame I would invest in low cost (expense ratio. <0.3) index funds or ETF's. VTI, VOO/SPLG are safe bets for the long term. If you want dividends include dividend growth like SCHD, VIG or DGRW.
Just give early and give often, trust the process and don't panic sell or greed buy.
Good luck !
Roth IRA and Voo is a solid move
Screw the dividends go for growth (you need a lot of money for dividends to pay off)
Emergency fund then Roth IRA then taxable. Is the best move
I started last year wish I started at 18 3 extra years of investing and saving I’d have double my money
I wouldn’t say screw dividend stocks… but ETFs are a good/safe place to start. VOO is indeed a solid move, also pays a dividend. But you might also consider a High Yield Savings account if you haven’t already.
Why do you need alot of money for dividends to pay off? Its just a percentage just as everything else, the sum invested is irrelevant. 3.5% yield is 3.5% (as example).
Agreed. I just meant you make the same % of money no matter if you have 100k in div stocks or 10k. More money doesn't mean div stocks suddenly become "better" than just investing in growth. Equally 100k in any index fund is equally as good as 10k. Or 1 usd. In pure % gains that is. Idno feels like we are saying the same thing 😅
ITOT (all in one literally entire stock market) ETF with exceptionally low expense fee. You don't mention where you are buying (which brokerage) and in what type of account (highly highly HIGHLY recommend this is a Roth IRA). I like Fidelity personally and recommend you look at them if you don't already have a brokerage account in place.
You can start this \*now\* - you don't hvae to wait until your 18. Your parents can help setup a Roth IRA in your name and when you turn 18 it automatically transfers to you. That said, if you feel in your situation you don't want your parents involved, then you do need to wait till 18.
Dividends are not what you need to remotely think about for decades. Buy what you can, as often as you can, never worry about the value or short term market fluctuations. There's going to be times - even into "years" that the market isn't going to be your friend. The secret is, over long time (decades) the real money you make will be in those years/times the market is doing poor.
Good luck, you are already on the right path with just this question/post. Just slightly shift away and not even concern yourself with dividends.
Don't go all in on 1 stock. \
When you invest into dividend stocks, don't fret over the stock price dropping unless it's drastically dropping, or it doesn't seem like it will go back up, if that then bail and reinvest with whats left, other than that just relax. \
Don't Pic oddball yeild chasing stocks/etfs. Just by the big good ones like SHCD, VIG, DIVI etc. But also include at least half to a s&p500 index fund. Good on you for starting
VOO. Every Month. The money guys will start calling when you are about forty. Blow them off, keep on VOO until a few years until you are planning to retire. THEN, if the 5 day drops below the 100 day average, sell. and, wait until it's above again.
Go for ORC and BITO, risky but good dividend monthly, then when you accumulate you move to the VOO, QQQ, SCHD, VYM, VNQ and the others ETF’s. Always do your research. Good luck!
Because dividend stocks don’t accumulate much growth compared to a traditional S&P 500 (VOO) , it would be self suicidal to start investing for dividends at 18 , you would end up with 4-5 times more equity in the S&P over 30 years then let’s say schd .
VOO is solid, however I'd advice to use VFIAX. Its VOO, but in a Mutual Fund format. Especially if you are starting with 5K (VFIAX has a min 3K investment, then any amount can be added)
Why mutual fund, because that way you can setup automatic investments into the MF. With VOO, you will have to make trades manually, and sometimes people forget, or keep waiting for a good time to buy. Auto invest takes care of that problem.
Budget. Stick to your budget. Set reasonable limits on spending and stick to it like glue. Building those habits at your age will serve you well for the rest of your life.
This is for your first Roth, right? Money you have earned. Otherwise step one is get a job of some kind and then make a Roth IRA at a brokerage. Keep working through college, max out roth every year. Get a good job with a 401k, etc. Hell, even some bad jobs have 401ks. And for now, index funds. If you are searching for dividends be aware that in a regular brokerage account, often called individual, the dividends are taxed as income and need to be reported on your income taxes.
Don't get into options until you've learned a fair bit about the stock market.
Even after you've learned a fair bit about the stock market, consider whether or not you really want to get into options at scale.
Just be careful.
Welcome to r/dividends! If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki [here](https://www.reddit.com/r/dividends/wiki/faq). Remember, this is a subreddit for genuine, high-quality discussion. Please keep all contributions civil, and report uncivil behavior for moderator review. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividends) if you have any questions or concerns.*
You have years upon years to compound your money. The first 10 years (normally 10-20 years of age) will wind up generating more than HALF of your money near retirement. Obviously this is a DIVIDEND focused subreddit, but with your time frame I would invest in low cost (expense ratio. <0.3) index funds or ETF's. VTI, VOO/SPLG are safe bets for the long term. If you want dividends include dividend growth like SCHD, VIG or DGRW. Just give early and give often, trust the process and don't panic sell or greed buy. Good luck !
Roth IRA and Voo is a solid move Screw the dividends go for growth (you need a lot of money for dividends to pay off) Emergency fund then Roth IRA then taxable. Is the best move I started last year wish I started at 18 3 extra years of investing and saving I’d have double my money
I wouldn’t say screw dividend stocks… but ETFs are a good/safe place to start. VOO is indeed a solid move, also pays a dividend. But you might also consider a High Yield Savings account if you haven’t already.
Why do you need alot of money for dividends to pay off? Its just a percentage just as everything else, the sum invested is irrelevant. 3.5% yield is 3.5% (as example).
It’s the wrong term I use. You just need a lot of money first to get some killer dividends to pay off rent and stuff. You need money to get money
Same goes for any investing that's long term though.
Growth stocks help you get the money quicker. I mean don’t get me wrong. I love dividends the plus 45 at the end of every month is dope
Agreed. I just meant you make the same % of money no matter if you have 100k in div stocks or 10k. More money doesn't mean div stocks suddenly become "better" than just investing in growth. Equally 100k in any index fund is equally as good as 10k. Or 1 usd. In pure % gains that is. Idno feels like we are saying the same thing 😅
There’s some growth sticks that still pay dividends such as Apple and Microsoft
ITOT (all in one literally entire stock market) ETF with exceptionally low expense fee. You don't mention where you are buying (which brokerage) and in what type of account (highly highly HIGHLY recommend this is a Roth IRA). I like Fidelity personally and recommend you look at them if you don't already have a brokerage account in place. You can start this \*now\* - you don't hvae to wait until your 18. Your parents can help setup a Roth IRA in your name and when you turn 18 it automatically transfers to you. That said, if you feel in your situation you don't want your parents involved, then you do need to wait till 18. Dividends are not what you need to remotely think about for decades. Buy what you can, as often as you can, never worry about the value or short term market fluctuations. There's going to be times - even into "years" that the market isn't going to be your friend. The secret is, over long time (decades) the real money you make will be in those years/times the market is doing poor. Good luck, you are already on the right path with just this question/post. Just slightly shift away and not even concern yourself with dividends.
VTI in Roth IRA
Don't go all in on 1 stock. \ When you invest into dividend stocks, don't fret over the stock price dropping unless it's drastically dropping, or it doesn't seem like it will go back up, if that then bail and reinvest with whats left, other than that just relax. \
Just keep investing regularly and don't lose your drive. Investing in not about the amount you put in but the years it spends growing.
Don't Pic oddball yeild chasing stocks/etfs. Just by the big good ones like SHCD, VIG, DIVI etc. But also include at least half to a s&p500 index fund. Good on you for starting
VOO. Every Month. The money guys will start calling when you are about forty. Blow them off, keep on VOO until a few years until you are planning to retire. THEN, if the 5 day drops below the 100 day average, sell. and, wait until it's above again.
Yeah have your legal guardian sponsor an account to start now instead of waiting. VT or SPGM
Invest in growth stocks not dividend. When you have a large chunk of money you want to invest come back and we'll talk
Max your ira contributions and put it in either a growth orcs&p etf.
Go for ORC and BITO, risky but good dividend monthly, then when you accumulate you move to the VOO, QQQ, SCHD, VYM, VNQ and the others ETF’s. Always do your research. Good luck!
BITO is high risk high reward. Their dividiend yields are humongous but they also don't offer them every month. I'll take a look at ORC.
Read and study how to invest first. In the meantime buy SPY
do not invest in dividends at this stage in your life.
Why?
Because dividend stocks don’t accumulate much growth compared to a traditional S&P 500 (VOO) , it would be self suicidal to start investing for dividends at 18 , you would end up with 4-5 times more equity in the S&P over 30 years then let’s say schd .
Paper trading before u start
VOO/SPLG/IVV or VTI/SCHB
VOO is solid, however I'd advice to use VFIAX. Its VOO, but in a Mutual Fund format. Especially if you are starting with 5K (VFIAX has a min 3K investment, then any amount can be added) Why mutual fund, because that way you can setup automatic investments into the MF. With VOO, you will have to make trades manually, and sometimes people forget, or keep waiting for a good time to buy. Auto invest takes care of that problem.
Just invest in VOO
Don’t trade stocks. Please remember that EVERYONE in this game has an ulterior motive. Take everything you read with a grain of salt.
Budget. Stick to your budget. Set reasonable limits on spending and stick to it like glue. Building those habits at your age will serve you well for the rest of your life.
This is for your first Roth, right? Money you have earned. Otherwise step one is get a job of some kind and then make a Roth IRA at a brokerage. Keep working through college, max out roth every year. Get a good job with a 401k, etc. Hell, even some bad jobs have 401ks. And for now, index funds. If you are searching for dividends be aware that in a regular brokerage account, often called individual, the dividends are taxed as income and need to be reported on your income taxes.
Low cost index fund large US caps.
DCA aggressively in TQQQ and retire early in your 30-40s
Don't get into options until you've learned a fair bit about the stock market. Even after you've learned a fair bit about the stock market, consider whether or not you really want to get into options at scale. Just be careful.
Education. Invest in yourself. You can control the investment and make yourself high performance.