I wanted to see if my investment portfolio mix was better for the year 2025, and i started to compare different options that I am already invested in, or I plan to invest in. This by no means is a financial advice, please do your own research and make your own decisions. Do not follow a random guy on Hive.
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I am currently invested heavily in stocks and 50% of my portfolio consists of Dividend paying ETFs and/or funds. I changed the mix form 20% to 50% after years and thousands of dollars of of losses in growth stocks (i managed to recover most of them, but its a painful process).
Currently i hold
- JEPI - JPMorgan Equity Premium Income ETF
- SCHD - Schwab U.S. Dividend Equity ETF
- ARKK - ARK Innovation ETF
and some others.
and I am not invested in
- SPDR S&P 500 ETF Trust
To put this all into perspective, let me give you a little introduction of these first.
- JPMorgan Equity Premium Income ETF (JEPI) has an average Dividend Growth Rate of -8.61% over the past 12 months. Which means, it has shrunk down its dividend growth. Despite that, it has an Average Dividend Yield of approximately 7.13% as of January 30, 2025. Over a span of 4.7 years, JEPI's price has increased by 18%, resulting in a compound annual growth rate (CAGR) of approximately 3.63%.
- Schwab U.S. Dividend Equity ETF (SCHD) has an Average Dividend Growth Rate of 11.18%, over the past decade. As of May 7, 2024, SCHD's dividend yield was approximately 3.5% and Average Price Growth of 7.94% over the same 4.7-year period. SCHD's price increased by 66%, resulting in a CAGR of approximately 7.94%.
ARK Innovation ETF (ARKK) has no or little Dividend Yield as it is tracking mostly growth and innovation stocks, but when it comes to Price Growth (CAGR), ARKK has experienced significant volatility in recent years. In 2020, the fund achieved a remarkable return of 152.8%, followed by a decline of 23.38% in 2021. In 2022, it faced a substantial loss of 66.97%, but rebounded with a gain of 67.64% in 2023. As of 2024, the fund has seen a year-to-date increase of 10.75%. Given the absence of dividend payments, ARKK's total return is solely dependent on its price appreciation, which has been highly variable.
SPDR S&P 500 ETF Trust (SPY) as of January 31, 2025, SPY has a dividend yield of approximately 1.17%. Over the past 5 years, SPY has achieved a compound annual growth rate (CAGR) of approximately 13.17%. Combining the dividend yield and price growth, SPY's total annual return is approximately 14.34%.
And here is our very own HBD
The Annual Percentage Rate (APR) for HBD staking in Hive is 15%. To calculate the monthly interest rate, we divide the APR by 12:
15% (Annual) / 12 (months) = 1.25% per month
So, the monthly interest earned on staked HBD is 1.25% of your staked amount. While the annual returns are far more exceeding that all other others used in this comparison, and very close to SPY.
For example:
If you stake 1,000 HBD, you would earn 12.50 HBD per month.
If you stake 10,000 HBD, you would earn 125 HBD per month.
To put it all into perspective, let's compare them
| Investment Option | Dividend Yield | Price Growth (CAGR) | Total Annual Return |
|---|---|---|---|
| HBD Staking | 15.00% | 0.00%**** | 15.00% |
| JEPI | 7.12% | 3.63% | 10.75% |
| SCHD | 3.50% | 7.94% | 11.44% |
| SPY | 1.17% | 13.17% | 14.34% |
| ARKK | 0.00% | Highly Variable | Highly Variable |
HBD also has a reputation of going over standard stable coin range of $1 and sometimes it's pennies under. Who wouldn't like a dollar bill to sell for a Dollar and 5 cents?
I think HBD is a wonderful opportunity, at-least far better paying than dividend paying ETFs. The only catch is, to un-stake HBD and selling it is not as liquid as stocks. You need couple of days to un-stake and then sell your HBD.
What are your thoughts?
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I believe the same and after seeing your analysis, I understand that HBD is a good investment. Once I get some, I have a plan to stake HBD too.