Looking for guidance on building a dividend portfo
Hello everyone, I’m looking to start building a dividend/income-focused portfolio and would love to get some thoughts from the community. I currently own XEQT, which I’m planning to continue holding for long-term growth. I know it pays quarterly, but I’m interested in adding some investments that provide monthly income/cash flow. I’ve been looking at ETFs such as DFN and HHIS, but I’m trying to understand whether these types of high-income ETFs make sense as part of a long-term portfolio, or whether I’d be better off focusing on more traditional dividend-growth ETFs/stocks. My goal isn’t necessarily to maximize the yield—I’d like to build something that provides a reliable growing income stream while still preserving/growing my capital. For those who have built dividend portfolios: • Would you keep XEQT as the core and add income ETFs around it? • What percentage would you allocate to higher-yield ETFs like DFN/HHIS? • Are there better monthly-income options I should be looking at? • Would you prioritize dividend growth over a very high current yield? Any advice or portfolio examples would be greatly appreciated!
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Mr Financial@mr.financial · 28dEdited
I would suggest you define what your goal is FOR the portfolio. Are you investing for a house? Is this a retirement portfolio? Do you have kids that need help with funding school or travel? Your goal, risk tolerance, risk capacity, time horizon etc should be a huge determining factor in the build out of your portfolio. And remember, as a rational investor, you want the best risk adjusted total return ... No matter your risk level. The funds you mentioned, dfn as a split share and hhis as a cc ETF both are highly risky, volatile assets that use leverage.
Nick Mizko@fireachieved · 28d
Keeping XEQT is a great core growth fund. Keep 1 fat king. That is what I like to call it. Build income funds around the one fat king. Funds like $HDIV$CDAY$HYLD are a great start
Jeremy Mcgraw@mcgraw · 28d
I’ve actually experimented with pretty much everything you mentioned and I think a lot of it comes down to whether you want cash flow now or growth for later. I’m sitting around 1,600 shares of $HHIS bought at different times. The distributions have been nice, but the share price decline has eaten up a lot of it. Including both distributions and price movement, I’m only up around 2.9%. $DFN has treated me much better. I have around 2,500 shares and I’m up roughly 33% between distributions and share price after holding it for quite a while. That being said, looking back I probably would’ve done better just putting more of that money into $XEQT or a growth/tech focused ETF. That’s probably the biggest thing I’ve learned from experimenting with income investments. A big distribution feels great hitting the account every month, but total return is what matters at the end of the day.
Zach Werner@zwerner · 28d
Highly recommend watching @adrian_pii@coveredcalletfinvesting@garygill videos, they cover most of the space in detail and ive built my portfolios after watching a lot of their content. A nice transition into the space would be something like $HDIV, $HYLD, $QQCL etc, lower yield more growth focused.
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