How to Start Dividend Investing for Beginners!

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  • Опубликовано: 28 дек 2024

Комментарии • 167

  • @Dividendology
    @Dividendology  6 месяцев назад +9

    Access Tickerdata and my Spreadsheets: tickerdata.com/
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  • @TheYaq
    @TheYaq 5 месяцев назад +20

    I saw a video about Visa , and they said like , they have the best business model , they earn money when someone spends money , and i kinda agree pretty smart

  • @Lawyerup904
    @Lawyerup904 6 месяцев назад +28

    When I explain how I’m investing to my kids in a few years I’ll be showing them this incredible teaching tool / video. Excellent!

  • @PlaybookEmpire
    @PlaybookEmpire 6 месяцев назад +107

    Real estate never was passive income, Dividends will always be the true passive income

    • @ToTheNines87368
      @ToTheNines87368 6 месяцев назад +11

      Well, yeah except maybe the twice a year you should spend 30 mins checking up on the health of your companies. 😂

    • @misterbeach8826
      @misterbeach8826 6 месяцев назад

      What a naive comment.
      Real estate is about turning monthly expenses into wealth and property, which you should do as early as possible. If you pay rent and do dividends, it is better than nothing but inefficient.
      Real estate can return an interest if you have tenants, people who rent your real estate. You can even own a portion of real estate, which can feel like company dividends at times.
      Dividends are about investing in company shares and receiving an interest on your investment from that company, plus price appreciation of your company shares in time.
      Bonds are like dividends but they usually do not move so fast in price. But you also receive an interest on your investment called coupon rate. What makes bonds special is that they, at times, move differently to the stock market, which a skilled investor may use to his advantage.
      For instance, the Ukraine 2035 gov bond trails at a 7.235 % coupon rate (dividend), crashed from $102 (for $100, meaning you paid $102 for $100 bonds) in Dec 2021 to $20 (a hefty -80 % crash) which recovered eventually to today $26.83. So, you can make heavy profits or losses with bonds, plus an interest rate. The Ukrainian real bond yield (sort of dividend yield) is at 33.35 % annually, but the reason for it and for the crash is, much like corporate dividends, that the Ukrainian gov may default on it or postpone payments because of war. (Edit: Fortune reported yesterday, "Ukraine holds secret talks with bondholders as $20 billion debt deadline looms", preventing a Ukrainian default.)
      Company dividends became popular in the 2010s and were quite unpopular in the 2000s. The reason was two stock market crashes in the 2000s that wiped out all dividend gains. Bonds were more popular in the 2000s than they are today, not only because of the higher interest rates (before 2007). Interest rates reached 13 % in 1974 and 20 % in 1980/81. So you can imagine that bond investment was very popular during that time, and certainly more popular than dividends, in the 1970s because the stock market crashed -70 % in the 1970s, if I recall correctly, for years.

    • @konvaljen2
      @konvaljen2 6 месяцев назад +3

      How is real estate not passive income if you own a house that you rent out?

    • @loganbrock3942
      @loganbrock3942 5 месяцев назад

      @@konvaljen2its only passive if u have a manager other than that you have to deal with the maintenance and source all of that you have to make sure your tenant is ok and happy, periodic inspections depending on what real estate properties you have and you have to stay current on your laws etc as they frequently change, plus legal battle for those tenants that dont respect your property vs do research on a reit drop money in and let it do the rest check every so often quartely is what i do to verify the health of the company etc and thats it, no legal problems no worry about clients

    • @CatGamer-wc2ij
      @CatGamer-wc2ij 5 месяцев назад +4

      @@konvaljen2 Well, you have to pay off the investment, then it becomes one. Except it is not. You have to hire people to take care of it, rent it out, maintenance. It is far less active than a job, but not passive.

  • @RowanSmith-y9x
    @RowanSmith-y9x 6 месяцев назад +18

    Good vid thanks, I buy US, UK and Euro stocks to diversify further, fingers crossed it is working for me currently

  • @Lagerquist55
    @Lagerquist55 3 месяца назад +3

    I’m just starting out as a dividend investor. My short term plan is to target high yielding dividend stocks to reinvest those dividends into higher growth dividend stocks eventually. I only have about $8,000 which I have purchased mostly high yield stocks some growth ones also. I plan on putting a lot of disposable income into more growth stocks going forward.

  • @devinstucky6948
    @devinstucky6948 6 месяцев назад +12

    Great video. 1 question though, wouldn't your dividend growth stocks have to keep up their growth cagr rate forever to outpace income stocks over time? Or am I understanding that wrong?

    • @djherro1730
      @djherro1730 5 месяцев назад

      You would reinvest those dividends into your most suitable industry, keeping the risk rate lower and optimising the growth from what you gain!
      However saying that, I'm new to this, so I could be COMPLETELY incorrect! Lol!

  • @chucklast1690
    @chucklast1690 6 месяцев назад +4

    I can’t tell whether or not this is an insanely concise and clear video or if dividend concepts are a bit more simple than other financial phenomena. Regardless thank you

  • @Clasam09
    @Clasam09 3 месяца назад +1

    Thx for the quickstart guide!
    If you had far less to invest, and far less to contribute monthly/yearly, what is the top criteria you would use to pick stocks? Higher FCF ratio? Yield? CAGR? Thanks again!

  • @deucebartholomew3651
    @deucebartholomew3651 6 месяцев назад +5

    I can never understand the difference between payout ratio and FCF payout ratio. Can you break it down barney style? Also do you invest taxable or in a retirement?

  • @Jesse615
    @Jesse615 6 месяцев назад +1

    Another thing (I think) to think about, re: down markets, is that the overall market metric is derived as an average of the performance of 500 stocks in, OTTOMH, 20-odd broad sectors. But even in down markets, there are individual stocks and sectors that perform better than an index as a whole. It just takes a little work to find them!

  • @TheMr.M.
    @TheMr.M. 6 месяцев назад +5

    Another great video, very clearly highlighted the important metrics! Thanks for that.
    Could you also make a video explaining the difference between profit and cashflow (since it is such an important metric)?

  • @kdavids1009
    @kdavids1009 6 месяцев назад +5

    It’s important to note that growth and investing are different. If you’re for growth you’d look more to PLTR and chip stocks in my opinion.

    • @waynebaker7973
      @waynebaker7973 6 месяцев назад

      There’s much uncertainty now, I’m just trying to find out what’s stocks could be the next wave as regards growth over the next decade.

  • @HenryLopez-uw6hy
    @HenryLopez-uw6hy 6 месяцев назад +2

    As a beginner, could I just pick one stock from each sector to be diversified and just track those until I get the hang of it?

  • @Vergence
    @Vergence 6 месяцев назад +1

    A cool way to show the advantage of dividend growth stocks could be to show what a year might look like in the future using both the dividends and 4% rule, given your portfolio should easily be outpacing that mark.

  • @MinorityPatriot
    @MinorityPatriot 6 месяцев назад +4

    If you are looking to retire in 6 years @ 65 yrs old. I would think the strategy is to go for higher dividend yield now versus dividend growth over 15, 20 or 25 yrs. Thoughts?

    • @Dividendology
      @Dividendology  6 месяцев назад +7

      For me personally, if I was 6 years away then I wold focus more on high yield.

    • @MinorityPatriot
      @MinorityPatriot 6 месяцев назад +1

      @@Dividendology agreed.

  • @TCCL227
    @TCCL227 6 месяцев назад +2

    Thanks!

  • @car6196
    @car6196 6 месяцев назад +3

    Thank you for the great content! How do you reinvest the dividents back in your portfolio? Thanks in advance.

  • @captnawty7966
    @captnawty7966 6 месяцев назад +4

    Great breakdown of your data spreadsheets is telling us. Now, its 2024 so how do we update the data fields? Will you build an updated set of spreadsheets with 2024 and beyond in the data fields?

    • @Dividendology
      @Dividendology  6 месяцев назад +4

      yes! working on it now!

    • @captnawty7966
      @captnawty7966 6 месяцев назад

      @@Dividendology Sounds Great, this is why I have joined your service. You take care of your customers. Thanks

  • @alexanderjoshualee1247
    @alexanderjoshualee1247 6 месяцев назад +2

    Does it make sense to invest in high dividend yield stocks/etf for the first few years to build up the cash position before investing all of it into dividend growth stocks?

    • @alexanderjoshualee1247
      @alexanderjoshualee1247 6 месяцев назад

      For a longer time horizon

    • @thomaswallace8743
      @thomaswallace8743 4 месяца назад

      I think you will have to consider capital gains tax when you sell those high yield dividend stocks so you’ll end up with less to invest in the growth dividend stocks.
      I’m not sure if this would make it not worth it but it’s definitely something to consider.

  • @ryanbispham3301
    @ryanbispham3301 6 месяцев назад +1

    Would there be an advantage to starting with high initial yield companies and switching to dividend growth companies when their dividend reaches the same rate?

  • @THEBIGBURN-ig4jb
    @THEBIGBURN-ig4jb 5 месяцев назад +1

    I'm looking at starting to invest. You say that you started with $50 a month. Did you start with one stock or did you spread that out or did you start with a years worth and buy several different stocks? Thanks for the videos, they are very helpful.

    • @Dividendology
      @Dividendology  5 месяцев назад +2

      I started at the time with one single stock. Looking back, it would likely be much better to start with an ETF.

  • @greysongriffiths1439
    @greysongriffiths1439 6 месяцев назад +6

    🔥 video. My parents have never been into investing because they owned their own buisness. But I'm trying to get them into it now that they are out of the entrepreneurial world.

  • @tanko176
    @tanko176 2 месяца назад

    Maybe I am dumb or I missed something but why wouldn't you buy high yielding dividend payout stocks in the short term then when the long term growth stocks hit the same or higher payout than the high yielding ones you initially bought, you switch to them?

    • @Dividendology
      @Dividendology  2 месяца назад

      That’s not how that works. Google “yield on cost explained” and that will answer your question.

  • @julsia6798
    @julsia6798 6 месяцев назад

    Thanks. Question. Ticker KO. What had you done if you had invested in it in '13, then see their FCF plummet in '16 followed by a payout ration >100% in '17? Do you sell or stay put? Following years have been great.
    One of the problems I see spreading myself too thin is cost of entry/exit because too high.

    • @GrayWolf1192
      @GrayWolf1192 6 месяцев назад

      At that point, you have to ask yourself if Coca Cola will remain in business 20, 30, 40 years from.

    • @julsia6798
      @julsia6798 6 месяцев назад

      @@GrayWolf1192 I will never stop drinking the black juice!

  • @joshuagutierrez2267
    @joshuagutierrez2267 28 дней назад +2

    How many years have you been investing in this portfolio? When did you start?

  • @RamiSobhani
    @RamiSobhani 3 месяца назад

    wow your beginning story is very similar to mine. I was looking to get in real estate. I bought a property and realized its not passive. I just sold it.

  • @anthonyyelchibekov6488
    @anthonyyelchibekov6488 4 месяца назад

    Is there a reason we can't invest in the best paying dividend stocks and then move the money over to another stock once it becomes the better paying stock?

    • @Dividendology
      @Dividendology  4 месяца назад +1

      Because the share price of dividend growth stocks goes up over time as well, typically keeping their dividend yield around the same. But the dividend yield on cost will continue to grow.

    • @anthonyyelchibekov6488
      @anthonyyelchibekov6488 4 месяца назад

      @@Dividendology okay thanks, I thought that might have been something like that. So that point is essentially that as the stock grows, the equity I have invested grows and therefore I make more with dividends even if I don't add onto the position?

  • @jesusbalmasedajalvo3181
    @jesusbalmasedajalvo3181 5 месяцев назад

    How can i access the spreadsheets?

  • @Jackofalltradesmastersofnone
    @Jackofalltradesmastersofnone 4 месяца назад

    This is a great video. An idea if you haven’t made one like this if you have send a link please. Show like AVGO and then with drip turned on and how much you would receive after 10 years instead of $500 it would be like $700. If that makes sense.

  • @TheStationerd
    @TheStationerd Месяц назад

    Wow thank you for this video. Very helpful and easy to understand 😊

  • @garyschmelzer
    @garyschmelzer 6 месяцев назад +4

    At 55 which is better high yield dividend stocks or growth at this age time is not on my side

    • @duttysupra
      @duttysupra 6 месяцев назад +1

      youve go another 55 years left in ya bud, chin up

    • @8Arachne8
      @8Arachne8 6 месяцев назад +1

      My opinion, depends on how much longer you’re planning to work and if you have any other retirement accounts/plans. If you’re planning to work until 65-70 you’ve got plenty of time for growing dividends to be worth it, especially if you have other income streams at retirement (pension, social security, etc.). If you’re trying to retire by 60, and don’t have much else invested yet, higher yields may be what you want, but make sure they are still growing dividends even though it will be smaller growth.

    • @delliott777
      @delliott777 6 месяцев назад

      Perhaps use a screener and search for companies with a little higher Starting Yield and dividend growth that exceeds the rate of long term inflation with modest payout ratio.
      A smaller portion of your portfolio in “growth stocks”. There are CFA’s out there who can advise you.

    • @delliott777
      @delliott777 6 месяцев назад

      @@8Arachne8greats points here

    • @jugglemonkey1153
      @jugglemonkey1153 6 месяцев назад +1

      Probably growth ngl

  • @Jameschen352
    @Jameschen352 6 месяцев назад

    Does your spreadsheet work without paying for seeking alpha?

  • @hmerdad
    @hmerdad 6 месяцев назад

    I really thank you for the wealth of info you are providing. I understand that you are an income-based investor. But can you please do a video for those seeking a capital gain goal?

    • @Dividendology
      @Dividendology  6 месяцев назад

      Dividend growth will provide growing income as well as capital appreciation.

    • @hmerdad
      @hmerdad 6 месяцев назад +1

      @@Dividendology Thanks for your reply. I do understand that. But I mean the strategy that can be followed to determine if the stock will create good capital gains/capital appreciation. As you are doing with dividends by looking at the dividend yield, dividend growth, and dividend safety to determine if the stock is a good dividend stock. What criteria can we use to assess if the stock price will appreciate?

  • @jim4909
    @jim4909 6 месяцев назад

    Excellent video!

  • @rypsterhc8673
    @rypsterhc8673 6 месяцев назад +3

    That transition between coca cola and visa was nuts

  • @BSI_Inc.
    @BSI_Inc. 6 месяцев назад +2

    I'm from South Africa. If I were to purchase your dividend investing kit, can I adjust it to track South African companies?

    • @Dividendology
      @Dividendology  6 месяцев назад +4

      Yep! It can track stocks from over 70+ stock exchanges!

    • @BSI_Inc.
      @BSI_Inc. 6 месяцев назад +2

      @Dividendology Thanks. I'll be buying your stuff soon.

  • @ThomasGoldstepFinance
    @ThomasGoldstepFinance 6 месяцев назад

    Nice video - do you monitor yield on cost anywhere?

    • @Dividendology
      @Dividendology  6 месяцев назад +1

      Yes, I do on my dividend dashboard!

  • @zepranx644
    @zepranx644 6 месяцев назад +1

    im new to investing in general, really new, but my mindset regarding investing for me is more as if i was putting money in the banck with higher interest rates but with higher risk

  • @sandrayoung1586
    @sandrayoung1586 4 месяца назад

    Thanks for using coke for a example,signed up with Robinhood and of the free partial stock I chose it because I knew it had a dividend and that Warren Buffet has it

  • @eldersprig
    @eldersprig 5 месяцев назад +1

    "Dividend Income by Industry" should be "Dividend Income by Sector". They are two different things. Your diversification should be by sector. You should not hold more than 1 stock in the same industry (Not LOWE and HD).

  • @delliott777
    @delliott777 6 месяцев назад +1

    “Yield on Cost” is important. (I haven’t finished the video yet…)

  • @thetruth1446
    @thetruth1446 6 месяцев назад

    Is it best to wait and buy them low or just buy them anytime and dollar cost average?

    • @noobkid4579
      @noobkid4579 6 месяцев назад +3

      I did dollar cost average when i started. Because then you alwqys just wait and do nothing. Start to invest with small amounts first so that you get a better feeling and then invest higher amounts

  • @MassManicMedia
    @MassManicMedia 6 месяцев назад +1

    Fantastic breakdown for beginners, i woah i saw this video when i first started

  • @fightersfan5363
    @fightersfan5363 6 месяцев назад +4

    Can you do a video on Verizon?

    • @blazetino5713
      @blazetino5713 6 месяцев назад

      A video like that would be really helpful

  • @ElmerCarmonar
    @ElmerCarmonar Месяц назад

    Ticker orc can you please tell me if that’s a good dividend

  • @kflowerk6669
    @kflowerk6669 6 месяцев назад

    What do you mean when u say u invest $50 in a month ? Sorry dumb question

    • @Dividendology
      @Dividendology  6 месяцев назад

      Starting out, I used to put $50 into stocks every month.

  • @Rulzer
    @Rulzer 6 месяцев назад

    Great educational video!

  • @youngjesus5992
    @youngjesus5992 4 месяца назад

    This video actually helped me understand how to invest into dividends. Ima save this. I’ve been focused on investing into my retirement portfolio that now I wanna invest in my own brokerage account outside of retirement just to have money growing that I can access sometime in the future. But I am looking at a long term horizon. I got $40k invested at 22 for my retirement. Might slow it down once I reach $50k in a couple months and prbbly start investing into dividend stocks in a separate brokerage account. Not 100% sure yet but with time I learn on what to do

  • @rushdirazick7385
    @rushdirazick7385 6 месяцев назад

    Thank you sir, it was a lot of information but really appreciate your effort. Again good job

  • @SamsLiberty
    @SamsLiberty 22 дня назад

    What is your monthly investment?

  • @powerplayer1000
    @powerplayer1000 6 месяцев назад

    Just recently found this, love it.
    How do you think this tool would react to if you input the s&p500 or dow index in?

  • @1974dodgecharger
    @1974dodgecharger 6 месяцев назад +3

    Fam you just crossed the penny per minute threshold

    • @bsanchez3563
      @bsanchez3563 3 месяца назад

      Wait is thatva real tern or a sarcastic legit curiously asking I mean... if that is a term for finances etc..

  • @22gurramAnil
    @22gurramAnil 6 месяцев назад

    I need a copy of Excel sheet of dividend breakdown finished

    • @Dividendology
      @Dividendology  6 месяцев назад

      You can download it on Tickerdata.com!

  • @BigFrankGummy
    @BigFrankGummy 6 месяцев назад

    what ETF you have on your portfolio

  • @adrienb.5385
    @adrienb.5385 6 месяцев назад

    good video but I think fiscal friction of dividend investing should really be considered as well.

  • @ScootLogix
    @ScootLogix 6 месяцев назад +3

    Thank you. I'm a complete newb.

  • @eliasryane4726
    @eliasryane4726 17 дней назад

    can you help with building a similar spreadsheet?

  • @littlebluefishy
    @littlebluefishy 5 месяцев назад

    Dude you are the best!

  • @ksp_bkk
    @ksp_bkk 6 месяцев назад

    The content is very valuable 😊

  • @Steelersfootball45
    @Steelersfootball45 6 месяцев назад

    Any reason you have Lowe’s instead of HD

    • @jeffharris7777
      @jeffharris7777 6 месяцев назад

      Lowe's has done me VERY well 🤙🇺🇲

  • @karthikanil5261
    @karthikanil5261 2 месяца назад

    Your channel is a blessing.

  • @jarretmoore3858
    @jarretmoore3858 3 месяца назад

    Can you tell me about TSLY😊

  • @TheYaq
    @TheYaq 5 месяцев назад

    Can you share the google spreadsheet

    • @Dividendology
      @Dividendology  5 месяцев назад

      All spreadsheets are on Tickerdata.com !

  • @luisatiles9386
    @luisatiles9386 4 месяца назад

    Where can I get all the dividend information for free?

  • @fkazi123
    @fkazi123 2 месяца назад

    The only misunderstanding is I have with all of this information is how to make it tax efficient. How can you efficiently build a dividend income considering your entire dividend portfolio will not be in a Traditional/Roth IRA.

    • @Dividendology
      @Dividendology  2 месяца назад

      Here’s a video I made on taxes: How to Pay $0 in Taxes on Dividends!
      ruclips.net/video/iihCxg2Tcro/видео.html

  • @rezatiktak9140
    @rezatiktak9140 6 месяцев назад +2

    What app you use for investing?

    • @Dividendology
      @Dividendology  6 месяцев назад +2

      Try out interactive brokers. I've been using it lately and like it: www.interactivebrokers.com/mkt/?src=dividendologyPY1&url=%2Fen%2Fwhyib%2Foverview.php

    • @rezatiktak9140
      @rezatiktak9140 6 месяцев назад +2

      @@Dividendology ty boss

  • @henrikchristensen65688
    @henrikchristensen65688 4 месяца назад

    Love your videos! I'm learning so much watching them.
    Do you have any book recommendations about dividend investing?

  • @TheSharkasmCrew
    @TheSharkasmCrew 6 месяцев назад

    If CAGR is measured in dollar terms, then it's affected by the stock growth as well as any potential increase in percent-based dividend payment. CAGR also does not seem like a leading indicator - how do you know a company will continue to increase dividend payouts just because they have been consistently for the past 5 or 10 years? It feels like the better strategy is to bet on companies that you believe will perform well in the coming years and who are offering a dividend that isn't too high, regardless of the 5 year dividend CAGR. The FCF CAGR seems like a more useful metric to track than the dividend CAGR.

  • @1974dodgecharger
    @1974dodgecharger 6 месяцев назад +2

    Merica

  • @BenjaminHansen
    @BenjaminHansen 6 месяцев назад

    Thanks

  • @ericpowell4350
    @ericpowell4350 6 месяцев назад +1

    Have you had your calculators audited?

  • @JustPauloP
    @JustPauloP 6 месяцев назад

    The problem is some companies have very high expensive stocks, like VISA. In order to get 7 dollars, you need to buy a stock which costs around 275 dollars… so to get a good dividend, you need to spend quite some money!!

  • @moose1485
    @moose1485 4 месяца назад

    I'm accumulating MPW, it may be slightly risky right now but if things work out the divy is huge.

  • @egoiorobio5988
    @egoiorobio5988 Месяц назад

    Any low-commission brokers available in Europe? 😢

  • @bjehhie
    @bjehhie 6 месяцев назад

    This video is Gold!

  • @Aria.Sterling
    @Aria.Sterling 6 месяцев назад

    Dividend is fun, but the 30% withholding is very disappointing my man....

  • @kanidanielpaul
    @kanidanielpaul 6 месяцев назад

    Can you help me understand which of the following statements is false?
    1. Price of stock is determined by supply and demand
    2. Market cap is the total number of stocks times the price of one stock
    3. Market cap does not represent the assets/money a company has on the books
    4. When dividends are paid it reduces the companies assets/money on hand
    5. When dividends are paid out, price of the stock is reduced by the amount of dividend paid
    Now if all of them are true, why is the stock price reduced when dividend paid?

  • @TheGamingAthlete
    @TheGamingAthlete 4 месяца назад +2

    If I had a dollar for every time he said dividend I wouldn’t need financial advice

  • @joshuayork8362
    @joshuayork8362 Месяц назад

    Real estate feels like a game of hot potato

  • @raptorjesus959
    @raptorjesus959 2 месяца назад

    Dividends are not guaranteed. Just in case...

  • @tomertzur1638
    @tomertzur1638 6 месяцев назад

    How dividend investing pays off when you have to pay 25% tax on the dividend

    • @TJC6626
      @TJC6626 5 месяцев назад +1

      Have you ever heard of qualified dividends or a Roth IRA??

  • @alanhaynes9672
    @alanhaynes9672 6 месяцев назад

    Isn’t this all a waste of time? The highest yielding dividend stocks are under 4%. Just stick your money in a savings account at 5% and make way more.

    • @PatrickGreenSonVegeta
      @PatrickGreenSonVegeta 6 месяцев назад

      No growth stock appreciation, no stock positions, you are bound by the interest rate whereas dividends can keep growing and growing. Did you watch the video?

  • @Midnightservant1
    @Midnightservant1 4 месяца назад

    Very nice video!
    but questions, according to your metrics, and ofcourse depending on the companies invested. A portfolio of around ~5-6k will be able to generate ~100$?
    is that feasible? or am i tripping?
    I do have long term goals, but if I want to grow real fast at first (to recover from a crypto hack, possibly) then switch to more long term stocks, is that also feasible?

  • @rezatiktak9140
    @rezatiktak9140 6 месяцев назад

    Is there is anyway I can contact you I have lots of questions to ask ?