An Individual Is Ready To Invest $10,000 And Turns To Reddit For Advice: 'I'm Looking For A Decent Yield And A Little Growth'

Investing money into dividend stocks can result in steady cash flow. Gradually putting money into these investments will increase your dividend income over time, but some people receive a windfall of cash that they can deploy right away.

One Redditor finds themselves in that position. The individual is set to have $10,000 sometime next week and has been following the Dividends subreddit for a while. Now, after consuming content from the group for a while, the Redditor is looking for advice.

"I'm looking for a decent yield and a little growth," the Redditor explained when asking for recommendations.

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In addition to the immediate $10,000 investment, the Redditor aims to invest $250 each month. Other Redditors shared their thoughts in the comments.

Stagger The $10,000 Investment

One commenter suggested staggering the $10,000 investment instead of putting it all into the market at once. This approach can help the Redditor capitalize on any price dips instead of unloading all of their capital and watching their assets lose value.

Many investors on Reddit seem to be jittery about the recent trade war. The popular consensus on Reddit is that the market will continue to tank, and that fear showed up again in the comments.

An investor who wants to dollar cost average as the market goes down may want to consider breaking the $10,000 investment into several investments. The amount of times you break down the $10,000 should depend on your risk tolerance, your thoughts about current prices, and what you think the stock market will look like in five to 10 years.

Accumulate ETFs That Align With Your Financial Goals

The original poster mentioned some ETFs and received comments that suggested some ETFs as well. The Schwab US Dividend Equity ETF SCHD was the first ETF the original poster mentioned. It's no surprise to see SCHD mentioned in the Dividends subreddit since it seems to be a fan favorite.

The SPDR S&P 500 Trust SPY, JPMorgan Nasdaq Equity Premium Income ETF JEPQ, and the JPMorgan Equity Premium Income ETF JEPI were some of the other ETFs that were mentioned in the post and the comments.

See Also: If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?

However, these recommendations don't mean much since we don't know much about the Redditor. One of the top commenters pointed this out.

‘What to invest in depends a lot on your personal situation. You didn't provide any details about age, income, investment objectives (other than decent yield and a little growth, which is a relative idea), risk tolerance, jurisdiction, investment currency, etc., so it's hard for any meaningful advice to be given."

The best stocks and ETFs for one person may be different from the best assets for another person. Some people pursue high-yield stocks as they get closer to retirement, while others buy growth stocks when they are younger to maximize their potential returns. Personal details like risk tolerance and income play a role in which stocks and ETFs make sense for you.

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