Starting my first investment plan

Hey guys :wave:

Im very new into investing, im reading a lot of things on the internet and stuff, but today i was looking into starting an investment plan and i hope i can have some good tips from people over here.

So what i want, is a plan with some divident stocks/ETF’s and just some companies that are healty and moste likley wont give me a headace haha.

So this is a quick list i just made

are there some better/qual investment options than i put in my list? My watchlist is filled with a lot of different ones… but for now, im mainly focussing on dividends and big companies ( not sure if im doing it right doing so, hope you guys can show me a way somehow :slight_smile: )

Is it recommended to have free investments next to my plan, or is this just harder for me in the end as a beginner?

Cheers! :slight_smile:

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It’s not a bad list. I’d add Microsoft and Shell to it.

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A few comments/questions. I wonder why you have both Coca Cola and PepsiCo. They are similar companies in roughly the same industry (although PEP does have products that are not drinks). These two companies are also in the SP500 at about 0.7-0.8% weight each.

Apple is also already in the SP500 at about 7% weight. Maybe you want even more exposure to Apple for some reason? This may be a well founded idea, but it goes against the principle of diversification/not too many eggs in one basket.

Any particular reason you chose for the distributing (dis) version of Vanguard S&P 500, as opposed to the accumulating (acc)?

Hmm… i see what you mean…

Yea i took PepsiCo and coca both, because pepsico has more kind of products insteqd of only soda for example,

To be honest i havent thought about them being all in the same ETF, same with apple, so i kinda can just invest in only S&P 500 and have all these companies at the same time.

So would be better to invest in the S&P 500 instead of 3 or 4 stocks that are in the same ETF?

The reason i went for Distributing ETF’s instead of accumulated one’s is that i found that Distributing ETF’s gives Dividend, and i couldnt really find what Accumulated ones do, instead of investing it back so the stock raises up in wealth. But couldnt really find out if i would get the free stocks or the price just raised over time, if you know what i mean.

So… what would you change?

I was thinking about
Removing:
Pep, coca and apple (maybe BMW)
add:
McDonald’s and S&P 500 (dis) or (acc)
SHELL
Microsoft

I recommend you dig into the knowledge center a bit to learn more about ETFs:

Regarding distributing vs accumulating (or accumulation) ETFs: all ETFs with dividend-paying stocks in them, well, pay dividends. The difference is that accumulation ETFs re-invest the dividend, whereas distributing ETFs pay out the dividend. Which one is better, depends on your goals: long term growth and compounding vs income generation.

It’s difficult (and possibly not even allowed) to give advice on what is best, especially since it depends so much on your situation: goals, age, timeline, risk tolerance, etc.

Again, I recommend you read up on the basics and keep it simple:

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Also, here is the list of stocks that’s currently in the S&P 500:

MSFT, SHELL and McDonalds are all there, as is 3M.

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Whether an accumulating or distributing is best for you personally depends indeed on a few things mentioned above, but additionally also where you live.

In some countries like Belgium, accumulating ETFs could be more interesting because you have to declare and pay 30% dividend tax to dividends you receive from the distributing ones, where you won’t have to worry about that with an accumulating ETF. Then again in other countries the opposite may be true. Something to look into for your situation.

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I’d say keep Apple, that is a company that will pretty much always do well.
Don’t add auto makers, like airlines they are a losing game, they hardly ever make money.

Add microsoft indeed, lose either KO or Pepsi (having both makes no sense).
3M is a gamble as they have major litigation going on so it could well drop further.

As for McDonalds, pretty much overvalued at the moment so I’d wait on that one till it drops. Instead look into Texas Roadhouse if you want to add a restaurant chain. It’s growing like mad and has effectively no long term debt.
Starbux is also still a good one to add as the market sentiment is still low on it (unjustly)

I’d add Google as well, they are not paying dividend yet but they are buying back stock so much that that’s effectively your dividend.

Other than that, look into US REIT’s like Realty Income, VICI etc. They will provide you with consistent reliable income.
Don’t bother with EU REIT’s, they are overall garbage and due to the wonky dividend tax system in the EU, you will effectively pay double the dividend tax you pay on US stocks.

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Thanks for the tips,

For now i in my list:
Apple
PepsiCO
Microsoft
Shell
Starbucks

Im looking into:
AMD or Intel
NVIDIA
For google, i am looking at Alphabet C stocks.
Texas Roadhouse
Domino’s Pizza

Also im going to read more about REIT’s soon

Maybe im stepping away at ETF’s for now. Because im not really sure which way to go in there

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May i ask where i can find such information about companies?

Same as for how i can find out companies that are for example investing/growing hard and to know if they have long term debts etc.?

Do you just search for a stock, and then google the company, or do you choose stocks based on info found in such sites ?

Yahoo finance, investor relations page, Seeking Alpha

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Seeking Alpha indeed, most figures you can find on there.
I also listen to quarterly calls of most of my stocks or read the transcripts.