Dividends vs Index funds. What's the better option

>>1582504
Are you comfortable selling out of the fund every month or so, though?

Dividends at least give you a budget. Taking out of the fund has to be very disciplined.

Why not both? My index ETFs pay quarterly dividends

>>1582534
T H I S F A M I L I A

>>1582516
How much can I expect with 2 million in dividends and which ones?

>>1582534
How does that work?

>>1582553
Not that anon, but here in NZ and index fund works just like any other company. Their share price goes up/down and you get dividends. I held two indexes for a couple years and just took my dividends as more shares (DRIP).

>>1582558
Lucky bastard. Here in Yurop Lyxor ETFs don't offer DRIP.

Finance illiterate here.
Whats a good dividend payoff?
I'm looking at some 50europoor stock giving a consistent dividend 2eur per year.

>>1582580
Good is around 4-5% annually.

>>1582598
Sounds good to go.

Would buying a few stocks each month out of my salary be a generally good idea?

>>1582580
A good dividend for common stock would be 4-5%; preferred stock would be 7-9%.

>>1582603
Depends on how much commission you pay per trade. As a general rule of thumb for dividend investing, the stock you buy should be able to cover your total commission for purchasing it on your first dividend payment. If it wouldn't do that, wait and accumulate more money to invest--while you have money set aside, have it in some kind of high yield savings account.

>>1582537
Can someone answer this?

>>1582627
No, because it's unintelligible.

>>1582629
No bully pls.

>>1582622
Savings accounts have crap rates, the only reason I'm looking into stocks desu.

>>1582504
>What's the better option for passive income?
Why do you need passive income? If you're unable to live on your employment income, perhaps you should invest in improving yourself (or curb your excessive spending).

Also, your question is stupid. It's like asking, "Fork or knife, which is better at cutting?" Just because index funds throw off a small amount of income (like almost any equity investment) doesn't mean you can replace it for real income-producing tools, like bonds or dividend stocks.

>>1582641
Working just isn't an option for me, I'd rather commit suicide. I will inherit a few million and need a plan so I don't blow it all in a year. I'll live frugally if I have to on my millions but I won't work.

>>1582652
Why are lots of inheritance fags so unmotivated.
As a non inheritance fag I can't grasp it.

>>1582504
>Apple or fruits, what's the best option for eating?

>>1582636
You missed my point. If you have $100 on hand to invest and your broker charges $10 in commission, you need to purchase a stock with an extraordinary dividend yield of 10% just to cover the cost, over the course of a year, of buying the stock. However, if you have $1,000 on hand to invest, you only need to find a stock with a 1% yield to cover the commission over the course of the year. By buying itty-bitty quantities of stock periodically, you're throwing a ton of money away on commission.

Instead of buying $100 worth of stock every month and wasting $120 in commission over the course of a year, it's better to put that $100/mo. aside until you have enough on hand to make a larger purchase. If instead you put that $100/mo. into a high yield savings account over a year and buy the stock in one trade--spending only $10 in commission rather than $120 for the same amount of stock. Like I said, as a general rule of thumb with dividend investing, you want your first dividend payment to cover the commission for buying the shares.

>>1582652
Oh, you're the the ever-popular poorfag NEET with an impending multi-million dollar inheritance. The ninth one to post this week.

Next time use a pepe meme so we know you're a role-playing faggot without having to ask.

>>1582671
See >>1582631

>>1582667
So basically once or twice a year, perhaps taking current stock price into consideration?

>>1582674
Well, that depends entirely on what your commission is. If you pay no commission, load up as frequently as you like. If you regularly have sizeable sums of money to invest every time you want to buy stock, buy as frequently as it's practical. If you have small sums of money to invest on a regular basis and your commission is ordinary, save your money until you can invest enough so that the commission won't obliterate your returns. A high yield savings account is a good vehicle to store your to-be investing money until you're ready to actually invest it on account of its superior yield to an ordinary savings account.

>>1582537
Reliable dividents are in the 1% to 4% annually. However, the thing is many companies have dividend growth higher than inflation, and has appreciation accordingly, so the earlier you begin investing, the better.

>>1582603
Yes, that is a really good idea.

If you invest a portion of your salary, say $1K monthly, into div. yielding stocks, eventually the dividend will yield more than $1K monthly. It's a matter of picking stocks with good, sustainable EPS and div. growth.

Just be aware of commission. Setting aside money every month is a good idea, but you shouldn't necessarily buy stocks every month.

>>1582706
What if you're using robinhood?