Questions about Building Dividend Stock Portfolio

[riro.invest]

Is there any tutorial where we can learn all the steps to build a Dividend portfolio in Japan? I currently have SBI for my NISA. I want to create a general dividend portfolio where I can make money which will be sent to my bank account. There are tons of tutorials on youtube but they are all in Japanese. Can you please educate me on this, guys?

You could also asks questions so knowledgable people can answer too!

[RetireJapan]

It's pretty simple: you just buy stocks that pay dividends and hope that they will continue doing so (and increasing them over time) in the future

A dividend stock portfolio will likely give you a lower overall return than buying diversified mutual funds, but some people find it easier to manage as you don't need to make selling decisions.

If you hold your stocks in the growth section of new NISA you won't need to pay tax on the dividends.

[captainspoke]

One factor to consider with dividends, esp when sent to your bank account, is that you're taxed on those as they are paid. If you need or want to enjoy the money, that's fine. But the alternative is to opt for share appreciation (which can be greater than the yield on many stocks).

Via share appreciation (thinking taxable account here), you still get a gain, but you then have some discretion as to when you'll sell/take the gain--now or in the future (and it could be a more distant future, minimizing taxable income now, if you don't need it).

Personally, I do have some dividend stocks, but in retrospect, I'd've done better by buying one or another index fund.

*

Separately, some funds have the terms 'dividend growth' or 'dividend appreciation' in their names. For these, rather than being focused on receiving ever-increasing dividends, that a company in such an index has paid (and perhaps ever so slightly increased), their dividend for x-number of years is used as a measure of a company's financial health/stability/longevity--in the same way that other measures would place a company in a growth/value category (revenue, profit, PE, PS, debt, etc, etc). An example of this kind of fund would be VIG--vanguard dividend appreciation fund ("This ETF tracks the performance of the NASDAQ US Dividend Achievers Select Index, which offers exposure to dividend paying large-cap companies that exhibit growth characteristics within the U.S. equity market"). Interestingly, its two largest holdings are apple and microsoft, two that might even be off the radar of people seeking a dividend-paying company.

[Tkydon]

https://simplywall.st/discover/investin ... -stocks/jp

https://simplywall.st/discover/investin ... tential/jp

[styxomaniac]

Hello,

https://simplywall.st/discover/investin ... -stocks/jp

That link is very useful, thanks. I plan to start small and test the waters by investing in this dividend stock through my Growth NISA. What do you guys think about this fund?

[RetireJapan]

Dividend yield 24%???

[RetireJapan]

What do you guys think about this fund?

Could you post a link to it please?

[styxomaniac]

What do you guys think about this fund?

Could you post a link to it please?

Sure here is the link from SBI: https://site0.sbisec.co.jp/marble/fund/ ... =203311135

[RetireJapan]

Sure here is the link from SBI: https://site0.sbisec.co.jp/marble/fund/ ... =203311135

1.59% annual fee is high
24% dividend means they are likely returning capital

Top ten holdings don't seem particularly unusual:
１ UNITEDHEALTH GROUP INC ヘルスケア機器・サービス アメリカ 7.7％
２ CATERPILLAR INC 資本財 アメリカ 6.3％
３ MICROSOFT CORP ソフトウェア・サービス アメリカ 6.3％
４ AMERICAN EXPRESS CO 金融サービス アメリカ 6.0％
５ TJX COMPANIES INC 一般消費財・サービス流通・小売り アメリカ 5.8％
６ AMAZON.COM INC 一般消費財・サービス流通・小売り アメリカ 5.0％
７ AMGEN INC 医薬品・バイオテクノロジー・ライフサイエンス アメリカ 5.0％
８ BANK OF AMERICA CORP 銀行 アメリカ 4.4％
９ VISA INC-CLASS A SHARES 金融サービス アメリカ 4.4％
10 INTUITIVE SURGICAL INC ヘルスケア機器・サービス アメリカ 4.2％

I don't understand this fund at all and would not recommend putting more than a fraction of your money into it

Anyone else?

[Tsumitate Wrestler]

Sure here is the link from SBI: https://site0.sbisec.co.jp/marble/fund/ ... =203311135

1.59% annual fee is high
24% dividend means they are likely returning capital

Top ten holdings don't seem particularly unusual:
１ UNITEDHEALTH GROUP INC ヘルスケア機器・サービス アメリカ 7.7％
２ CATERPILLAR INC 資本財 アメリカ 6.3％
３ MICROSOFT CORP ソフトウェア・サービス アメリカ 6.3％
４ AMERICAN EXPRESS CO 金融サービス アメリカ 6.0％
５ TJX COMPANIES INC 一般消費財・サービス流通・小売り アメリカ 5.8％
６ AMAZON.COM INC 一般消費財・サービス流通・小売り アメリカ 5.0％
７ AMGEN INC 医薬品・バイオテクノロジー・ライフサイエンス アメリカ 5.0％
８ BANK OF AMERICA CORP 銀行 アメリカ 4.4％
９ VISA INC-CLASS A SHARES 金融サービス アメリカ 4.4％
10 INTUITIVE SURGICAL INC ヘルスケア機器・サービス アメリカ 4.2％

I don't understand this fund at all and would not recommend putting more than a fraction of your money into it

Anyone else?

Good god, stay away. This is a Dow Jones tracker with insane fees.

All it does is keep the price pegged to around 10,000 (Completely arbitrary) and distributes any excess.


Warning
Commission rate at time of purchase (tax included) 3.3%
Total trust fees, etc. 1.6%