I have had a career and saved for retirement, and I have recently taken the leap into retirement. My portfolio has mainly had growth stocks but in 2021 I have converted some of the growth into dividend stocks so I can get in addition to harvesting retained earnings as (long term) capital gains, those dividends. The long term capital gains are certainly more tax efficient than dividends but I figure I should have some of those quality businesses that can responsibly throw out dividends and grow them over time as well.
I did not have many dividend stock prior to 2021. Most of my portfolio is still in stocks that do not give out dividends. I have gotten a bit away from growth and I am glad of doing that especially after what we experienced in 2022. However, I still have a good portion of it in growth stocks. Regardless being a dividend payer or not, I need quality and durable businesses that can give me an income in the short term and continue to grow my portfolio in the long term.
What do you think of Wesco? and Watsco? What is your thesis for these?
tj