Investing HIGH dividends vs. low dividends Update!

What is up. ladies and gentlemen and thank you so much for joining me again at the tech crank house. So this article will be covering the m1 finance app or some sort of investment type deal that actually works with the app and works well with it. So if you like that you’re in for a treat and feel free to leave a like share subscribe and hit that Bell button below to receive a notification every single time the tech crackhouse uploads another article other than that folks let’s go ahead and get right into it so recently an m1 finance I’ve been running a pretty interesting kind of experiment I think and I’ve been comparing a low risk monthly income portfolio with a high risk monthly income portfolio so when I say low risk. I mean securities that have oh god what’s the aggregate portfolio dividend yield for this one let’s go and take a look it’s seven point eight seven percent for the dividend yield of the low risk and for the high risk the aggregate dividend yield is twelve point two seven percent. So this is nearing what I would consider to be my comfortability of limit I really want to want to go much higher than this in terms of dividend yields however this portfolio is really jumping around to your life the low-risk monthly income portfolio the the dividend yield is honestly pretty reasonable okay. Now if you look at the projection projections here apartment for this one year over the past year this portfolio the the low-risk dividend portfolio would have returned roughly ten point two four percent in terms of growth the high-risk portfolio. Okay, would have returned roughly nineteen percent in terms of growth so is that true do those numbers hold true let’s go ahead and take a look. Okay, over this holding period for the low-risk monthly income portfolio which has been roughly a month or so the portfolio has generated roughly a one point four three percent return so multiply that by 12 and we’re looking 13% 14% so a little bit higher than the predicted outcome however. You know. one-month growth is not reflective of an entire year’s growth. I think that done goes without saying. But it is right around where it’s been estimated. Now if we go to the high-risk you can see that the one one month growth roughly is currently sitting at right about two two point three or two point one three pardon me who sent apparently I can’t read today so that is pretty much writing. You know. right on the money once again for the back tested yearly expectation so what we’re looking at here is we’re seeing a pretty accurate results this is pretty much what I would expect I did honestly expect the high risk dividend income portfolio to have a bit more fluctuation and that looks like that is. You know. pretty much holding true also we can see a bit more fluctuation here a few more downs and ups than the low-risk this is slightly more smooth with a slightly higher period here around the fourth this is slightly a little bit rougher a little bit more. You know. fluctuating here with a high period around the ninth so these are obviously very different portfolios. Now my real question was with the dividend payouts the more stable dividend payouts of the lower risk monthly dividend portfolio kind of. You know. bring to bear a good balance between the portfolio’s. Because I thought theoretically this one’s a lot more secure and the the dividends would be paid out more consistently and reasonably however when we look at the breakdown here see here let’s look at activity account value five hundred and eight dollars if we look here you can see the total dividends so far, for this one month period amounts to one dollar and sixty four cents. So if we go back to this portfolio here in the main page we can see here that we really have to. You know. allocate those dividends and. You know. really really kind of account for them so what and this is kind of like scurry to look at yours I apologize if this is confusing at all 508. Okay. You know. like I said let’s go back. Okay, so the dividends are being. You know. kind of excluded here which is something that we need to consider. So if we look at this and we go to the details which I’ve been kind of bouncing around in you can see that the total have values 508 dollars and seventy seven cents one dollar and sixty four cents of dividends paid out. Now if we go to the hirez portfolio two dollars and seventy seven cents of dividends paid out for a total value of five hundred and thirteen dollars and forty-one cents essentially what we’re looking at here is for one month the higher yielding dividend stocks did outperform the lower yielding dividend stocks. Because essentially they had a little bit more fluctuation. But that also led to slightly more aggressive growth and their dividend payments were consistent for the month period. Now that’s not to say that they would be consistent for the long term. Okay, monthly dividend stocks that payout at a higher rate tend to be less consistent they tend to drop dividends they tend to. You know. sometimes inflate dividends kind of artificially to get investors I’ve been more interested in whatever they’re offering and those are some good strategies they are necessarily great for the investor. But they tend to be pretty decent for the company. Now what I really like to see. You know. what I really am happy to see with these portfolios is a lot of these dividends are paid out frequently. Okay, 25 26 27 28 29 oh. You know. they’re at their frequent. Okay, their frequent which I really like to see. Because that’s essentially what I was going for with his portfolios I wanted to see if frequent dividend payouts especially. You know. kind of like a dividend payout per day. Now obviously if we’re looking at a 30 day period and we might have seven dividends here that’s not a dividend per day that’s roughly dividend every four days however if you’re growing it for. You know. income and you really do want some good income payments and you want income paid frequently you could set up a dividend portfolio with a larger chunk of cash using like emmalin finance or any sort of incremental PI based sort of a portfolio creation software type service thing or even Robin Hood something we’re hands-off and you can really set up a dividend paying portfolio to payout extremely frequently which is pretty important for people that want to collect income dividends are taxed so be wary of that. But all things considered these are both performed really pretty well I’m pretty happy with this. You know. the the higher yielding dividends did perform better. But this is only one month I probably am going to definitively end this test here. But if you do to see more tests like this in the future let me know. Because I’m always happy to kind of experimental things conduct some different experiments and it’s interesting right. So I think that’s gonna do it for this for this article thank you so much for joining me here at the tech crank house I really appreciate your viewership and feel free to share this article with your garbage can your dog’s your friends your parents your uncle’s maybe an aunt or two if you even if you really want to and. Yeah, that’s it folks so thank you again and adios if you enjoyed this content from the tech crack house feel free to leave a like share subscribe if you wish to support us monthly feel free to check out our patreon page until next time ladies and gents see you all in the next article this has been Mike signing off.

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