With long term dividend investing being a mission, which is better? Holding individual stocks or ETFs?
Nobody likes paying taxes and I don't like fees with the exception of what the fees are for and if they are justified in my mind such as a performing ETF with dividends and Holdings I prefer to see listed. Such as the top companies in Canada by yield in the TSX with some growth stocks added.
While I continue to buy stocks on my hit list such as Power Corporation of Canada (POW) and TC Energy Corporation (TRP) having ex-dividend dates in the last week of December, I'll be buying them on TD's App called Easy Trade with zero commissions for the first 50 trades. (Wealthsimple's unlimited "no commission" stock and ETF trades are another option). So, no fees/commissions going forward with the buying of individual stocks.
Oh baby, that's what I like! ... from the Big Bopper hit, Chantilly Lace.
Whether it be a portfolio of individual stocks or all ETF's, many have retired early with the sizeable growing dividends they produce and usually with a Side Hustle or two along with pensions when eligible. Side Hustles, where it's not recommended to retire on cash dividends alone and that advice can play on one's mind when they start spending some or all of their cash dividends, instead of reinvesting for further growth.
Particularly with individual stocks, there is what is called organic growth where companies and banks announce they are raising their dividend and that builds over time.
I guess I would call myself a type of hybrid investor where I like the monthly distributions a decent ETF can produce with some growth plus the quarterly dividends from my individual holdings. The ETF: RCDC being an example with a decent yield of just below 4% at this time that moves with the Markets.
Have a Merry Christmas and enjoy the holidays.
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