Many investors start their journey by buying stocks they like, chasing dividends, or diversifying across various assets, only to later realize their portfolio needs a serious overhaul.
Whether it’s portfolio allocation, dividend investing, or early retirement planning, the right strategy depends on clear financial goals. There are investors who hunt for high-yield dividends while others prioritize growth, only to find that their holdings are too scattered or underperforming.
Don’t Miss:
One such investor, a 36-year-old with a $253,542 stock portfolio has recently turned to Reddit for advice. Despite his substantial holdings, he earns just $4,200 in annual dividends and admits his investments are “all over the place.”
“I feel like my portfolio is all over the place. I certainly don’t feel I’m getting $4,000 annual dividends either. How would you restructure all this? Have no clear goals, but I’d like to retire early from work burnout,” he wrote.
His portfolio leans heavily into S&P 500 ETFs like Vanguard S&P 500 ETF (NYSE:VOO) and SPDR S&P 500 ETF Trust (NYSE:SPY) and tech stocks like Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT), but commenters noted overlap, inefficiency, and low yield as major issues. His post sparked intense discussion, with many Redditors pointing out overlapping ETFs and a lack of focus in his strategy.
Trending: It’s no wonder Jeff Bezos holds over $250 million in art — this alternative asset has outpaced the S&P 500 since 1995, delivering an average annual return of 11.4%. Here’s how everyday investors are getting started.
Investor With $253,000 In Stocks And Only $4.200 In Dividend Income Asks For Redirection–Reddit Delivers
Consolidate Overlapping ETFs and Ditch Underperformers
Many commenters pointed out that VOO and SPY track the same index, making one redundant, while others noted that individual stocks like Apple and Microsoft are already heavily weighted in his ETFs, creating unnecessary duplication.
“VOO and SPY are exactly the same thing, S&P 500 index funds. You don’t need both. Your SPY is smaller than VOO, so sell SPY and put the money into VOO. You don’t need VOO/SPY and [Fidelity ZERO Total Market Index Fund (FZROX)] too. Since VOO has slightly outperformed FZROX, I would sell FZROX and put the money into VOO,” a Redditor advised.
Suggesting the poster trim speculative holdings, this commenter recommended a focus on long-term sustainable businesses or broad-market ETFs: “First of all, simplify by selling stocks from companies you don’t know much about. If you’re interested in a company and want to invest in them, just make sure they can last another 20 years in business. Second, if you’re aiming now for a more long-term hold, try to even out the ETFs and dividends a little more.”
Also touching on the overlap, a Reddit user also mentioned the taxes the investor will need to pay if the dividend income is in a taxable account.
“Well, do you want to be in ETFs or individual stocks? You have overlap everywhere. Dividends are a waste since it is just your money being returned to you, and making a taxable event if these are in a taxable account. A lot of dead money in the Mikey market account,” he wrote.
“I don’t like this market, but I’d dump [Walt Disney (NYSE: DIS)]. Swap out [Advanced Micro Devices (NASDAQ: AMD)] for [Broadcom (NASDAQ: AVGO)]. Buy some [Cintas Corp. (NASDAQ: CTAS)],” a comment reads.
See Also: Hasbro, MGM, and Skechers trust this AI marketing firm — invest pre-IPO from $0.60 per share now.
Don’t Mix Dividends With Growth Blindly
Several Redditors argued that the poster is stuck between growth and income strategies, which is hurting his overall returns. Since he’s only 36 years old, many suggested prioritizing growth now and shifting to dividends later.
“Read the Simple Path to Wealth and Bogle. Then stop chasing yield. You’re giving up valuable years of deep equity growth,” one Redditor advised.
Suggesting a focused approach on either pure growth or a dividend mix, a commenter mentioned two different ETFs and possible allocations.
“In my opinion, your 3 options are: 100% VOO, 100% [Schwab U.S. Dividend Equity ETF (NYSE: SCHD)], or 50/50 VOO/SCHD. Keep it simple. Pick one strategy and stick with it,” he said.
A Redditor touched on bonds, saying he doesn’t think these assets are a good choice for a 36-year-old’s portfolio: “[Fidelity U.S. Bond Index Fund (FXNAX)] is a US bond fund. That’s the Boglehead influence. You don’t need bonds at 36 years old. Bonds aren’t going to grow your portfolio.”
“You’re young enough that you could simply buy VOO and nothing else for maximum returns and buy more dividends later, but if seeing a dividend amount returned every year motivates you, you could do SCHD as well,” a Reddit user recommended.
Read Next:
Image: Shutterstock
Up Next: Transform your trading with Benzinga Edge’s one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today’s competitive market.
Get the latest stock analysis from Benzinga?
This article 36-Year-Old With $253K In Stocks Says ‘Need Some Direction’ – Only Gets $4.2K Dividends And Reddit Is Losing It Over His Holdings originally appeared on Benzinga.com
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.