Diversification - how many stocks is too many?

FreeTrade is clearly not a set and forget etf focussed account. This is an active portfolio that requires individual rebalancing and monitoring.

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I think it is whatever sort of account you want it to be. It’s a very very cheap way of buying only ETFs and leaving it alone. If you want to actively trade: :+1::+1:

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Here’s another strategy with over 130 stocks, generating an expected dividend income of over $14k over the next 12 months.

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His fund size is $379k which makes the dividend income approximately 5% - Personally I don’t think I’d be happy with that return unless I had millions to invest, especially as he isn’t reinvesting any of it.

The page crammed with ads is a red light for me. Click bait nonsense.

Edit - Looking at this again I might have been a bit hasty and flippant with my comment, it does serve as a decent list of dividend stock to consider, its worth posting.

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What would you be happy with? And if willing to share, what are you currently at

5% dividend yield is pretty good imo

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But that’s in addition to any capital growth. 5% in dividends is pretty good, if you just go for the highest yields you risk buying value traps where the company is shrinking but the yield remains high based on their last few dividends. Diversifying and aiming to average about 5% yield is a decent dividend strategy IMO

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7-9% would be my target if I were so inclined. I’m not saying it’s bad, but 5% just wouldn’t do much to suit me at the moment.

I just moved back from NZ, so I can only give you my FT stats since end of January, but I’m up 28% (overall return not dividends).

I think you are confusing growth with dividends

5% is what they get from dividends alone

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Yeah that’s fair enough - as per above, I’m not saying it’s bad but it wouldn’t suit me.

I’m not - 7-9% dividend income would be my goal.

I’m not currently a dividend investor.

(Your question earlier I read as what’s my overall return)

What stocks on free trade are currently paying 9%?

There’s a few, Centrica and Persimmon are over 10% for example. However I’d caution against chasing yield without researching other aspects of the business

Edit, I think they have both cut the dividend, but BP is currently over 10% and they haven’t cut yet

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It isn’t what stocks are yielding 9% now but which you can buy now that will yield a 9% dividend on your investment. For example, Apple yields 1% but if you had bought it in 2008 at $20 then it would be yielding 15% now based on your initial investment. Picking stocks which will consistently grow dividends over time is the key.

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HA HA - always buy something shiny if it makes you happy - investing should be fun - with a view to making money as well. During lockdown - instead of going to Dominos or McDonalds - ive put the money in to the shares. I bought a Harley Davidson yesterday - makes me smile when I go out in the car and pass companies I own - Its like Share Bingo !!!

This is the advantage of Freetrade and the charges - it ok to buy one share because most of your money is not taken in fees like other platforms

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Retired on $14k a year at 33? He must live a pretty grim existence.

All he’s doing is pretending to be retired whilst really he has to maintain his blog in order to get affiliate income.

It should be - “managed to become self employed at 33”.

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He relocated to Thailand, so with a lower cost of living, it seems the $14k is probably more than enough for his needs.

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Lol, these FIRE people are all making money by blogging, vlogging and what else. None of them will admit that that is their biggest source of income. Somebody who is really retired early will not come on Youtube/blog to brag about it or write a book about it. Investing takes time and certainly if you have a normal job without a lot of disposable income.

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Even in Thailand $14k a year if he has wife and kids isn’t going to go far. What happens when he needs to fly to wherever home is to see his parents? One trip will eat 20% of his yearly income in flights alone.

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Because in 6 months you could turn one of those £100’s into another £600 before the second £600 has even arrived.

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