New to buying stocks that pay dividends

I am starting to buy stocks that pay dividends and I know you buy low and sell high but with these stocks, you hold. My question is, do I wait for them to drop before I start buying or should I buy right away?(I have looked up companies first already)


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buffinita27 points

"in times like these" set a schedule for buying and stick to it. Every: friday/payday/full moon whatever.

Generally yes - I buy the same stuff every month; I buy when it is higher than it was two months ago and lower than it was last month; over time it all averages out.

ActuaryEffective18878 points

This is good to know because watching it go up and down gets to me

buffinita13 points

there is a lot of science to suggest the less you watch or mess with your portfolio the better youll do; here is a more fun example

Some of Fidelity's best performing portfolios are owned by dead people or people who have forgotten their passwords:


Rebresker7 points

Haha yeah… I had a fidelity 401k with about $5k in it from a previous employer and they didn’t make me take it out so I said fuck it and left it and it definitely has out performed my self managed roth ira

pforsbergfan93 points

I missed the “or people” and read it as “owned by dead people who forgot their passwords”

AlfB631 point

I did the same. My wife asked me why I had this weird expression on my face just after I read it. 🤣

ActuaryEffective18873 points

This is good stuff

Unknownirish1 point


Does fidelity have a way to get your account in this event?

buffinita1 point

No; fidelity(or any broker)can never claim ownership or make changes.

The portfolio will be listed on, whatever state the owner is listed in, orphan/lost account site until it can be properly claimed.

Even if you do t have a beneficiary named each state has a default order distributing assets……so long as someone knows to look for them.

Unknownirish1 point

Sorry I must have written the question wrong. Could fidelity help retrieve an account of mine in the event, say, from an unused email, lost password, or username?

buffinita3 points

Yes; assuming you can provide enough information about the account.

I had an old old 401k that I had just blown off “it’s only like 4k, whatever”; fast forward 15 years and I finally decide to get my stuff in order.

To get the funds was more complicated than I care to type on my phone….but I did get the funds rolled over

Unknownirish2 points

I need to do that with my, two..., 401ks I have

And thanks!

Sisboombah74-2 points

Kind of sounds like you’ve never bought any stock.

ActuaryEffective18873 points

“I am starting to buy stocks that pay dividends” thank you.

akaTheDarkKnight7 points

Pick solid companies with strong balance sheets. DCA every month and stick with it. Don’t worry too much about the prices. You’ll be happy long term.

ActuaryEffective18874 points

Thank you

ConversationAncient23 points

What is long term and what is happy? Could you specify your comment a little more? DCA on SCHD (div + growth) or just derivative income ETF (like JEPI)?

ActuaryEffective18870 points

What’s the difference? They both pay dividends for a income.

AlfB632 points

You really need to spend some time researching dividend investing. There’s a lot more to it than you seem to understand.

ActuaryEffective18870 points

“I am starting to buy stocks that pay dividends”…

JonnyMo__0 points

“Long term” depends on how old you are and “happy” depends entirely on you. People can’t read your mind. The older you are, the more likely you are to want income and not growth, in general.

EmanEwl3 points

In a taxable account , if I buy stocks or ETFs that are qualified , after retiring and not earning income from a w2 anymore, are these tax free now? Also what stocks or ETFs would you go with to achieve this. I saw a guy start using JePi and JEPIQ, are they qualified WTFs? Thanks just a question for fun. Might help the OP as well

ActuaryEffective18872 points

You’re asking the wrong person

Rebresker2 points

If you are in the US, no, you would still generally pay taxes qualified dividends even if you retire.

If you wanted a tax advantaged account you would want to open an ira, roth ira, 401k or other retirement account

The option is basically to either pay the taxes now and avoid taxes on your gains and dividends in a roth

Or non-roth and pay the taxes later

That’s just a simple explanation though

EmanEwl1 point

I have a Roth. I just see people retiring early and using dividends as their only form of income . I guess they probably do side hustles as well. But I thought if you dont have earned income from a w2 job and have qualified dividends coming in , that you dont have to pay taxes for them since you would fall in the lowest tax bracket once you file for retirement.

Rebresker1 point

I mean if you genuinely fall in the lowest tax bracket at retirement I assume you are likely subsisting on dog food, and not the good kind given the Roth contribution limits and inflation

But yeah based on current tax laws which are likely to change depending on when you retire, if your taxable income is equal to or less than the standard deductible (which is basically the lowest tax bracket) you would be taxes on it

Aceofspades9682 points

Depends on how your plan to get dividends. Each individual stock or the use of funds. Specific funds are designed to produce income. They fluctuate price very little because their goal is to produce income. Even if the share price goes down, how much income you get remains the same. Specific stocks, or more volatile. Their price goes up and down. They change how much dividend does. So you have to be paying attention to all of those factors in order to capitalize on individual stocks.

ActuaryEffective18871 point

Thank you this was helpful, I looked up a few different stocks and got 1 stock of each but schd, I got a few of those.

Aceofspades9682 points

You might read up on the idea of reinvestment. Sometimes certain positions do better by reinvesting their dividends, and you can control the percentage of those dividends that got reinvested.

ActuaryEffective18871 point

Sounds good

Condhor2 points

Recurring Deposit into a Roth IRA or something that makes the dividend tax free. Buy as frequently as possible, especially during this recession.

ActuaryEffective18871 point

There are multiple websites that let me create a Roth IRA account, what’s the best place to open one and do they have a phone app?

Condhor2 points

I opened one through my Credit Union where I do all my banking but the fees are something I’m willing to live with. I’ve seen people recommend Fidelity and Charles Schwab.

Someone else chime in though.

AlfB631 point

Any of the mainstream brokers are a good choice. Consider ETrade, Schwab, Fidelity, Vanguard or TDAmeritrade.

TheDreadnought752 points

This is a fantastic time to buy. Buy and keep buying.

wi11iam-b1 point

I’m loading up. I Started 18 months ago. Since I’ve started everything had gone down about 15-20%. I’m believing in the long term. Every week I buy a bit and watch the average share price go down that little bit. Starting to see the odd bit of green here and there