Dividend Investing

[Sgt Pepper]

Approaching retirement with the objective of investing to secure a reliable dividend stream is it best to select stocks individually or invest in a Dividend Exchange Traded Fund? Any comments would be gratefully received

[peat]

depends on your skill set really.
The easy way would be the fund.
The hard way (stock selection) may do better - of course it may not, but it may also show more volatility in value due to less diversification.

Why dont you do both with half and see if you can outperform the fund. That'll keep you on your toes.

[percy]

depends on your skill set really.
The easy way would be the fund.
The hard way (stock selection) may do better - of course it may not, but it may also show more volatility in value due to less diversification.

Why dont you do both with half and see if you can outperform the fund. That'll keep you on your toes.

Sage advice.
A friend of mine did this before he retired.
Was pleasantly surprised he out performed the funds.

[alokdhir]

KFL is great investment for retired people . It outperforms market regularly plus give quarterly dividends as PIE income so no need even show in IR3 . Total peace of mind direct credit to bank every 3 months 2% of the NAV . They never missed any dividends ...even last March they paid dividend

[mondograss]

Could also look at Milford Diversified Income managed fund. I had some money in that for a while.

[beetills]

No expert for sure but i am nearing retirement in the weeks ahead and i have invested in the USA markets in REITS.Divies every 3 months and some even pay out monthly.
If you are a REIT by law you must pay out 90% of your profit.

[fungus pudding]

No expert for sure but i am nearing retirement in the weeks ahead and i have invested in the USA markets in REITS.Divies every 3 months and some even pay out monthly.
If you are a REIT by law you must pay out 90% of your profit.

Why not nz reits?

[beetills]

I just liked the USA REITS as they were invested in crop farming as well as rental housing.They appealed to me more than commercial buildings.

[RTM]

Approaching retirement with the objective of investing to secure a reliable dividend stream is it best to select stocks individually or invest in a Dividend Exchange Traded Fund? Any comments would be gratefully received

I faced this 10 years ago and decided to invest in stocks. Have accumulated around 40 NZ/OZ stocks over time. Been a great interest. However, there are no free lunches. Takes quite a bit of time and effort to keep on top of. Because of when I started it’s all been relatively easy (so far) as in general most things have been on an upwards trajectory. Not sure how well I would manage in a downtrend, wasn’t fun last year and I was like a possum stuck in the headlights for a bit. Also if I got sick, or couldn’t tend to them (eg because I lost my marbles) I wonder how it would go ? Having said that, in reality I now make only a few transactions a year, rarely selling and occasionally opportunistically adding to existing holdings. I haven’t concentrated solely on dividend stocks, having a bit of fun wth others such as Serko and Synlait. Overall, pleased with the outcome. Start small and add as you get more confident in your decisions.

[iceman]

Interesting discussion. I´m in the same situation nearing my retirement from my current profession. Have definitely been looking more for steady good companies on the NZX that are well managed, reasonably geared and most importantly, have a good chance of increasing dividends in the future.
I like the idea peat & percy mention to split it between a dividend fund and personal selection. I´m definitely keen on having some international exposure to avoid having all assets in NZ$