This Is When Your Dividend Snowball REALLY Takes Off 🚀
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- Опубликовано: 11 сен 2024
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We've all heard of the dividend snowball effect. It refers to the process by which dividends from a portfolio of stocks can be reinvested in additional shares of the same stocks, leading to an increasing number of shares owned and an increasing amount of dividend income received over time. This, in turn, can lead to a compounding of returns and an acceleration of long-term wealth creation. In this video, I'm going to talk about when the dividend snowball effect becomes noticeable and really starts scaling quickly for dividend investors.
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The ideas and opinions presented in this video are meant for informational and entertainment purposes only, are not intended to serve as a recommendation to buy or sell any security in any account, and are not an offer or sale of a security. They are also not research reports and are not intended to serve as the basis for any investment decision.
How much dividend income are you currently bringing in, and how long have you been investing for? Let me know in the comments below! 👇
My average monthly income for my dividend growth portfolio is ~$790/month. I started the portfolio MAR-20.
Dang! Man you’re crushing it. That’s awesome progress in just a couple years. Good for you 📈
Can you talk about epd
I'm just under 2 years in and I'm looking at £1850 a year for the upcoming year.
It's so nice when you start to see that yield on cost move upwards.
Ryan has good judgement. I have a good portion of the same stocks in my portfolio.
My yearly dividend income is around $100. I started from 0 just 7 months ago. Starting with investing a monthly $250. Aiming to bring in $200/year in about 6 months
I’m 13 and I’ve been investing for about 9 months and I’m bringing in a little over 10$ yearly from UNP, KDP, WBA, and PFE
Keep it up. Keep adding as much as you can before life has too many bills.
Well done and keep it up!
I felt I started early at 20, imagine starting at 13. That's a full doubling, 7 years 10% average market return. Sheesh
Dang that's awesome! Good job starting so young. It's going to be crazy to see what your portfolio looks like 10 years from now, and you'll only be 23!
Oh man, you are around the right time for investing. Word of the wise, don't worry about any recession or market crash. Time is on your side and look into value investing. You will find nice stocks with good dividend that are undervalued.
I’ve been doing this for three years only, and I’m really starting to see it. With about 28k invested in dividend paying stocks, I get on average $150 per month, which all gets reinvested in more stocks. Every month is a little bit bigger than the last. The most important lesson I’ve learned is to Think Long Term. Also, try to buy Quality Businesses.
Absolutely, sounds like you've made some great progress in those three years. Great job!
Yeah and remember as well that someone like me only makes that per year! Can't wait to catch up to you!
It seems 28k would be a sweet spot at the moment, where your dividend payment, can buy a full extra share of most companies. Each month, gaining an extra share will grow quickly. I’m so far behind but I’m trying lol. Congrats on your journey!
@@Pr3lude9 One of my goals is to have dividends pay for a full share each payment. I have a few positions at that point now. You all are doing great. Keep it up. Good luck and don't chase yield.
Seeing the dividend snowball take off is one of the most satisfying things to watch! People that get discouraged by the low dividend payouts starting out need to understand the power of compounding!
Couldn't agree more man. Dividend investing is one of those things that just gets better with time and never stops
I am Bachelor student and my 1st dividend was of 0.03 USD from Reality Income Corp. And now I am receiving 0.07 USD a month. I know it's not a big amount but with time it'll increase and will become huge one day.
Man that's awesome, you've already doubled your income with that one position. Keep going my friend!
I was there too. Now I'm up to $9.30 a month. I look forward to the days when I'll have larger amounts of dividends coming in. But right now even just watching the smaller numbers increase every month is still satisfying in its own way.
Believe me, kid…you’re on the right track, you will get impatient at times but you have to hang in there ! You will not regret it !
I started dividend investing about 40 years ago and it sure put a big smile on this older guy’s face
Yup me too I love o . Keep it up all
@@DARTHDANSAN yes, I am from India and it's my favourite stock...
I'm 18 I have an 11k portfolio now, so excited to see my dividend income grow every month as I grow up!
Man that's incredible! Just imagine what your portfolio is going to look like 10 years from now, and you'll be my age haha
Wow that’s awesome! Your age multiplier is 88 till 65!! Ever $1,000 will be $88,000 when your 65. As a old man I’m jealous of your time you have left. I learned investing late.
@@TknWhyBoy I swear it’s the evolution of technology that brought me to stocks. 10 years ago their was no Robinhood or Webull 0 commission trades, I think when you were 18 and if you had this technology, you would have been invested
@@TknWhyBoyik it’s been awhile since this comment but just curious how do you calculate that?
I love dividend compounding. It’s great to watch it multiply and grow. I have 8291 shares spread over 61 different holdings, with 58 paying dividends. Averaging $1260.00 in dividends being reinvested monthly. As always, love your videos as they re-enforce what I have been doing for the last few years. Keep it up
Dang that's so crazy! Almost $1.3k in dividends every month? I couldn't even imagine how awesome that is. Hearing that is super motivating...time to double down on these dividends haha
I'm not sure but I think I saw this same exact comment in the dividends subreddit lol
@@guanciale8815 not by me as I don’t do Reddit
Would it be possible for you to list those stocks? or atleast some?
@@artillero31 just a few. AGNC 224 shares, ARR 374, CWH 108, DX 110, ET 241, FRO 202, GIS 103, GNL 159, HRNZ 218, HTGC 105, JEPI 105, LTZ 106, MDLZ 122, MO 456, MVO 112, NEWT 104, PAA 345SBR 53, SHEL 108SLRC 107, T 264
The first dividend I ever received was 0.13 cents and I was pumped. I've since built monthly dividends to over a 111.00 average. I really enjoyed a nice 48.00 MPW payment last week.
That’s awesome Todd! And incredible MPW payment. I got a similar one from MO last week, my biggest ever. Feels good! 📈
Got 79 bucks from Mpw or 67 after tax, my first time making over 100$ in one day from Dividends 😍
Nice work guys. I got around $610 in MPW this quarter. Just keep buying more anytime it dips. That’s what I’ve been doing. Honestly at this price, it’s been a long dip. Buy away.
@@bass08053 that’s awesome
This is by far the most encouraging dividend video for a brand spanking new dividend investor I’ve seen on RUclips thus far! Thanks for making this long journey feel much easier.
Thank you so much! I'm really glad you enjoyed it, and congrats on getting started with dividend investing. Keep it up my friend!
I have been doing dividends consistently for about 14 yrs, played around before that. Im way more invested in real estate, but older I get and larger my dividend snow ball grows the more more I’m leaning to more dividends.
You think you’d ever sell out of your real estate to go all in on dividend stocks?
Great video. When I 1st started I deposited like $25/week (November 2019) I had $8,000 credit card debt and $5,000 camper loan debt. Originally Robinhood had whole shares only. So I bought several monthly paying stocks. (Horrible idea and beginner mistake) but it did help see the "wow I made $2 this month and continue to grow every month". Paid off credit card debt and camper loan as fast as possible and then started buying way more stock with the extra cash. In December I hit $250 in dividends and adding $250 back can buy like 4 shares or KO or whatever. So that's a great feeling.
Man that's so awesome. $250 in a month for doing absolutely nothing feels so cool. And I bet by this time next year you'll be at $350 or maybe even $400
@@rynewilliams it really does feel good. It's in a taxable Robinhood account and I just opened a Roth IRA account. So I'm going to pretty much max the Roth IRA 1st and then move over to the taxable account and add more. But it is still awesome to be able to buy a few shares from dividends, in the taxable, while I max out the Roth.
Absolutely. It's just so cool to be investing in something that just keeps getting better and better with time. It's unbelievable
@@FootballCardOlly Why do you say monthly paying stocks/securities are a beginner mistake ?
Monthly paying stocks and ETFs aren't good? What is your reasoning for saying this?
@@rileytakeohooge4997 oh no, I don't mean all monthly paying stocks are bad. When I started I found a list of monthly paying stocks and as long as they were fairly cheap, I added a few of each to get income going. Most of the cheap ones I picked were terrible picks. I have like Main, O, Stag, Gain, and several others now that have done well for me.
My dividends went up 10 folds in a year with help from dividends. I started with a mix of growth and dividend stocks. But as the market got worse, I tended to get more dividend stocks than growth ones.
Even if my portfolio went down, I still received dividends and re-invested all.
From $10 in Dec '21 to $110 in Dec '22 ytd is cool to see.
Man that's so awesome! Keep up the great work, but this time next year you'll easily be at over 200 in income
@rynewilliams At this rate, that is definitely doable. If I had not invested in AT&T (T) to get "free" WBD shares, my dividends would have been way less. It is all compound interest as you said in video. It was just cool to see this in video form. Cheers!
I started investing in 2008, in 2018 i started a spreadsheet to keep track of my monthly dividend income. In Jan 2018 i earned 516 dollars in dividends. December 2022 that number was 1,157 dollars. I would recommend keeping a spreadsheet it is very motivating punching those numbers in and watching your income stream grow. By my projections i will be able to retire within the next 15 years, my goal is to be retired by 50. I hope any young person reading this is wise with their money and starts investing early, financial independence is achievable if you make wise decisions with your finances.
Creating my spreadsheet was a game changer. It’s taken me about a year to fine tune it into it’s current version, but at this point, it’s phenomenal. I even formatted one column as stock tickers, so that you can put in a ticker, and then in the following cells, you can auto populate tons of information about the stock. I can literally watch my spreadsheet update in real time all day.
That's awesome, thank you for sharing all of that!
At 46yo I'm just learning this SMH. I wish I had people advising me when i was younger.
@@paulsantoro1235 Better late than never dude. So many people never get into it.
Joining in the community here. First annual dividend of 16.80 dollars 2 years ago, I am currently getting monthly 200 dollars now. Keep it up everyone! Keep the snowball rolling!
Dang that's crazy! What an insane amount of growth in just two years!
Will you share with us the company please
@@Alreadyfamous549 Hi! My portfolio now consists of GOF, PDI, QYLD, XYLD, RYLD. Last 3 are just for diversification purposes :)
My first dividend was 6 Cents from Nvidia back in 2017. In 2022 I made a little over 8000€ after taxes. This year the goal is 10k.
Dang that's insane! At that rate of growth, you'll no doubt hit 10k
Keep it up dividend King!
NVDA, THE BEST dividend stock.
Just over 100k invested. Yielding 7.1k across 62 positions. Only now is it really starting to get “fun”. I can see the light at the end of the tunnel. I still invest cash as well as roll my dividends. Trying to get to 1 mil.
That’s incredible! Really high yield for the amount you have invested. Are most of your positions higher yielding dividend stocks?
My average is like 140 a month and I'm like "woo i can see the end", but i live a lifestyle that includes 300 bucks a month rent. Congrats on passing 6 figures tho, they always say that's a pivotal milestone.
Man only $300/month for rent is awesome
@@rynewilliams against my better judgement I’m rather heavy in positions like O, STAG, MPW, AGNC, QYLD, RYLD, XYLD, etc. However I also own a good amount of the core positions like ABBV, MCD, 4 Canadian Banks, JPM, JEPI, MMM, HD, LOW, etc. I recently added 8k to CCI. I’m all in on them. Houston based communications/ network/ fiber, company.
That sounds like a pretty good balance actually, definitely seems like it’s working well for you so far haha
Ryne - Just came across your channel. I really like your enthusiasm and how you walked your viewers through the power of reinvesting ones dividends and visually explaining how it builds wealth. I wish that I would have had this knowledge when I was much younger. I learned through trial and error...but to your views I'm an example of someone who pushed the snowball off the cliff many years ago w/ dividends. I'm 60 now and on average receive over $9500 a month in dividends...I don't need the money right now, so I'm still reinvesting it. Anyway, what you are telling your viewers absolutely works and can generate considerable money if you are persistent (stay the course) and start early enough. Good job and keep turning out the videos...people need to hear this!!
James $9,500/month in dividends?? That's insane! Thank you so much for the comment. Hearing what's possible if you just stick with it is extremely motivating. I really appreciate you taking the time to watch my video and drop a comment. Keep up the great work!
I dont normally reinvest my dividends. I usually wait to buy another dividend payer at a good price. I think sometimes when you reinvest your dividends in the same company, they are often buying at a higher price. Thanks for the video.
Thanks for watching! I turned my DRIP off as well and manually reallocate those funds
I don't do the automatic DRIP because I think you end up with the worst price of the day because day traders know there will be a quick price jump that hour. It used to be that automatic was a free trade. Now that all trades are free manual reinvestment makes sense.
i CHANGE every month. Right now I rely on Jepi and Jepq to do calls until I learn to do it. Some stocks that go up and down like Main, I put money in when it is below $40.00. Well, that was before. Now it seems to go up and down from 36.00 to 38.00. It was around in 2008 and got thru that recession.
Some div reinvests may be at a higher price, but some will be at a lower coat. That’s Dollar cost averaging.
@@toothybj so true. I still prefer to diversify or if I really like a stock I own, I would rather wait for a better entry point. Nevertheless, both strategy works.
Dollar cost averaging everytime I have extra cash laying around. Better to have it working for itself than sitting and losing value against inflation and all time low bank rates or on stupid things I want but don't need to impress people who could care less.
Absolutely, good way to think
My update is I’m making about $12 in dividends a month now! I remember when it was about .28 cents last year.
That's so awesome! Keep up the great work, soon that $12 will be $120
I just started investing this month, so this is very encouraging.
@@MichaelM2K23 Woo congrats on starting!! It’s fun watching it grow. Keep it up!
At 60 Not looking for the big 1mil, just looking for an extra 2-3 k per month , to help off set my SSI in a few yrs , have just over 100k invested .with a current about 10k per yr with drip and a new 2k per month investment. Hopefully it’s not a unrealistic dream lol
I don't think it's unrealistic at all. An extra $2-3k per month would be awesome!
What are you invested in? 10% return is pretty good
I encourage everyone to get an education, either a 2-year degree, trade school or bachelor's and beyond. The doors it opens are tremendous and it greatly increases potential earnings.
Thanks for sharing that!
I’ve been dividend investing for going on 3 years now. I’ve got a portfolio worth 27K and I’m generating about $250 a month in dividends (averaged out over the year). It’s a painstaking process, but my projection is to be making about $420 a month by the end of 2023. Not crazy money, but steady progress. If I keep at it like this I’ll be generating 1K a month in no time.
Man that's awesome, your portfolio must have a high yield to be generating all that income! $250/month is no joke, and $420 by the end of the year is incredible
I can’t mathematically figure how $250 a month is possible on a 27k portfolio. Make me understand.
@@rynewilliams My yield too high for my liking, it screams RISK... I was dwelling on that today. I'm heavily weighted in REITs, which accounts for the super high yield. At this point, I'm aggressively diversifying into more stable, lower yield companies/index funds, etc. When the market rebounds I anticipate my yield to go way down, but that will be offset by the gain in share price. For the time being, it's awesome being able to get free shares every month/quarter. I completely connected with what you were saying when you expressed things in those terms. Getting free shares that will then pay you a dividend is the holy grail. My strategy has worked so far. It's not glamorous, it's a grind. Several of my work friends invest like crazy as well and they kind of chortled at me when I talked about my strategy to build a primarily dividend-based portfolio. This past week on a conference call several of them were lamenting money they've lost over the past year on Tesla, Intel, etc. I'm still up overall and have the steady drip drip drip of dividends to look forward to. I have a far amount of disposable income so I'm trying to put it to work for me instead of squandering it. We'll see how it goes....
How much are you investing per month
@@xterra4hire depends on the month, I usually spend somewhere in the order of 300-400 bucks.
I'm realizing I don't have to quit my job and live off dividends. That takes a couple of decades, if at all. More importantly, it can definitely help you live more comfortably. Help you buy things pay for things and of course, reinvest.
Spot on! I consider my investment "self-sustaining" when it can buy 1 share per month (3 per quarter) on DRIP. The snowball for some stocks can happen with as little as 100 or 200 dollars which can be great for new investors to see the snowball right away! (higher risk of course, however for a 100~200 dollar risk you can learn a lot and not risk everything) Soon you're buying 1.5 shares a month, then 2, then more and more! But it takes time to research the company/industry to make an educated decision. While I am building a position up to the self-sustaining point, I research future companies that I may wish to take a position in. If I don't find one, I redo one of my favorites (pretend I have 0 stocks per month and rebuild to 1), which gives me more time.
Happy futures to you all. Hope you find a strategy that works for you
Absolutely, 1 share per month is incredible! I’m ALMOST there with my ORCC position
i would never invest in something like ORCC, the earnings per share is less than the dividend pay out. it means they are losing money when they pay out, and its unsustainable, the stock price will continue to fall, and at some point the dividend will be reduced. some companies do this for years, until they are in debt, insolvent, and just go under, and you have 0 shares, and if all you did was reinvest those dividends in to the same junk stock, you lost all the money you put in, and didn't gain any dividends.
This year I will pass $200 / year, I know its going to accelerate and grow faster and faster! I believe my first Divided was from when I held VUG around 2 years ago. My first 2 investments was VUG and Russell 1000
Similar situation for me too … I ended 2022 making around 160, this year will be a lot better. I like schd and have a good amount in aflac, have been building other positions out
You got this man, $200/year is in your sights!
It is great when your dividend payment, covers the cost of a whole share.
Absolutely, it's very cool when that happens!
Snowballing will depend on how much you think is a big change, so I said "I would consider snowballing when I earn $1 more per month than prev month after reinvesting every quarter"
so i did some math and with at&t's dividend at 5.77% i would need $14,417... which sounds like a lot but with the idea that monthly income is increasing by 1$ every month... that's exciting to achieve!
I like that, and you'd be able to get to that point with T in no time!
Started my Roth at the beginning of the year. Currently making about $1 a month! Haha
Taylor that’s awesome! I started my Roth at the beginning of last year haha. That $1 will soon turn into $100 - keep it up! 📈
I just started mine this month as well. Much success to you!
Started a few years ago getting very small amounts a month. Now averaging around $500 a month.
Wow that's wild, $500/month without having to lift a finger. Great job!
Started with SCHD, JEPI and O in my Roth this year. Within 10 years all that income is tax-free!! Building with $250 every other week.
That's going to be awesome!
I’m just starting this but with a variation.
I am compiling a list, sourcing and studying dividend stocks and creating a list to HOPEFULY occupy every single weekday with a payout from a stock.
Then I am compiling all the ex-div days of the stocks. Stacking it next to the payout day list and pushed the ex-div list up 3 slots on the sheet.
My INTENTION is to get paid every week day and then take that payout and then invest in the stock that will ex-div in three days or less.
Instead of having to wait a month to 3 months for my stocks to come back around to realize the gain, each stock will increase the next stock, “turbocharging” the snowball hopefully.
Still just a theory right now.
Keep me posted on how that works for you!
I'm eagerly waiting to see a bigger impact from dividends. Currently, my broker estimates dividends to be around 550$ for 2023. I try to invest around 600-700$ a month, so that's almost like my year is an extra month longer! First dividends where around 0.05$ from Realty Income in june of 2020, this month I got 7$ from O!
That's a great way to look at it haha. With your income you're basically getting an extra month's worth of contributions
I’ve acknowledged this too. Back in 2018 I was making about 32k a year gross. Today I make 10k in annual dividends. However, on a good year I saved at best 5k on that 32k income.
I got a lot better job making 100k now, however my effective earning power is still increased by my 10k annual dividends, or 10% (so 110k total gross cashflow).
I have a high net savings rate at 50% of gross income, so 50k a year. Increased by another 20% with 10k in dividends to 60k.granted nothing is linear and your comment had me going through this similar thought exercise you have in your post.
I don’t see how anyone could dispute the power of dividends. I reflect on what I had to do to earn that 32k income as a mover back in 2018 (making $15.00 hr) and cringe. It would have taken me at least two years to effectively earn and save what my dividends can now provide in a year.
Keep that snowball rolling my dude 🙃
@@ThePhukst1k right on! thats so good to hear. Financial freedom from investment income is the way to go. and you dont have to break your back to do it.
Great video, Ryne!
JEPI, JEPQ, TLTW, and LQDW are my "Four Horsemen" of Monthly Income ETFs.
JEPI = Ric Flair. JEPQ = Arn Anderson, TLTW = Tully Blanchard, and LQDW = Ole Anderson.
SCHD = JJ Dillion (the manager of the Four Horsemen).
Frugal J
Haha I love that - the four horsemen
Jepi: “Woooooooooooo”
Great topic and the most important thing is to be consistent and the snowball one day will create an "avalanche of cash".🤘
Man I'm so looking forward to that
All that is true! For first year the passive income streams surpassed my recurring bills. It is definitely motivating once the ball starts rolling
That's so awesome!
I do think it’s worth saying for those less familiar with financial analysis - a high dividend yield is not necessarily a good thing at all - it doesn’t reflect the performance of a company and often times is a product of falling share price due to issues with the company
True. High yields require further research to determine why the yield is high in the first place and whether or not it seems sustainable
if you invest in a dividend ETF you are a lot safer from single company swings.
i started now using your videos to give me the courage i have been rewatching this exact video and now im at 500 dollars invested with 19.56 annually thank you man 😊
I love it! Great job getting started with investing, and keep up the great work. Let me know if you have any questions or anything, I'm happy to help.
You’re Awesome for getting started! Keep it up 🍀
Hey I would love your opinion on ford as a dividend stock and you talk about mpw but it’s not on your sheet
I think Ford is a great company but I don't like the stock. And that is correct about MPW - I talk about it in videos, but I do not personally own any shares. That is true for a lot of different stocks out there
Also I use Robinhood but would you recommend switching to m1
Love the idea of think about dividends buying entire shares. Cool concept.
Thanks! It’s a really exciting thing to think about
Once you have 100k invested it really take off.
Absolutely, I can't wait to get there! Hopefully in the next couple of years my portfolio will be at 100k
@@rynewilliams you will be there sooner than you think keep the content going.
@@rynewilliams I cant wait to see what diviends i will get. Before i was diviends investing.
Sold everything before the market cash invest it all in growth. Because i was told if you dont need the income now you should be invested in growth even with diviends reinvested.
But seeing those small payments come im kept me motivated.
I always wonder if diviends are reinvested is it the same as growth fund? Or do you actually get more captial appreciation in voo?
Props for the GangStarr shirt !!!
Thank you man - shout out Gang Starr!
I have a stake in BSTZ that almost is large enough to bring in another share each month.
SVOL Is currently giving me Two shares a month. That one is almost reached the dividend avalanche.
Also roughly 224 shares of RYLD. Depending on the Dividend that month in may bring in two shares.
Over 600 ARR are currently off DRIP being used to purchase little Royalty stocks to combat taxes. Otherwise that one would be pulling in around 8 shares a month.
The new acquisitions are just being built up. IFN, and UTG are currently being built up for self-sufficiency. Long way to go there.
I received my first dividend in 2012. I can attest to the fact that if you stick with it, the snowball is very real!
Man that's awesome Danny, thanks for sharing that! Keep it up my friend
4000 dollars annual income. Hopefully will have 1000 a month by 2030
Man $1k per month will be awesome. I think that’s totally doable in the next 7 years
Seeing this from Brazil perspective, where the average DY is about 10% above inflation is very strange, looks sooo painfully slow
Doesn’t feel painfully slow. I couldn’t be more stoked about the progress my portfolio is making
New subscriber here: thank you so much for your videos. I’m just getting into this now, late 20s, and I really appreciate seeing someone who is not a millionaire already and giving this advice so that way I don’t feel so alone in the process. Congrats on the current state of your investments, and I really look forward to seeing this channel grow.
Thank you! You're most definitely not alone. Keep up the great work
Subscribed based on the tshirt alone! 🔥🔥🔥
Heck yea, shout out Gang Starr!
Not going strictly for passive income right now but growth using betterment, but still the dividends growing each year is exciting. It won't be as high as a dividend focused portfolio. Happy that I am close to $300 a year now when last year I was barely over $100 for the year.
That's very solid progress my friend, keep it up!
I am 86 and just received my first quarterly dividend payment of $2 I can't wait to see it grow to a huge amount in the future
That's awesome! Keep up the great work my friend
That’s awesome hope you’re doing this for your future generation. Best of luck to you and them.
Hey Ryne, love this video but I have a couple questions. Between 2021 and 2022 what was your monthly contribution that you were putting into your investments? Roughly, what number of stocks do you need where the "Snowball" starts to roll own its own? Would it be enough where the dividend is enough to buy a full share? Dividend reinvestment is the key to amazing growth. I love looking at the FREE funds or dividends I get each month. Thanks again Ryne
In 2021 and 2022 I was investing between $200-$250/week. And yea I think things start to get really interesting when your reinvested dividends are able to buy whole shares!
@@rynewilliams Thanks for responding. I feel that your channel is more about friends sharing investing ideas. I am at the same spot you were at in 2021 and 2022. I currently invest $250/week. Love watching your videos on investment ideas plus what your subscribers are saying about their investment journey.
I'm getting my bachelor's degree from SNHU for FREE.
My employer is paying for all the tuition while I only work Fri-Sun. It's definitely a good investment. I slowed down my investing (no overtime, in exchange for going back to school)
The online classes aren't as bad as I thought. I'll be working with my sister as an accountant by next April 👍
Then ill be set for life
Man that's good to know! What are you getting your degree in? Accounting?
@Ryne Williams So they only offer the Business degree, but u can choose the Accounting branch to go with it and that gives you all the classes you need to start doing Accounting internships.
Oh man that’s awesome. How much longer until you get your degree?
@Ryne Williams started literally this month (Jan 2nd), and I'll be done by next April. 16 months total.
The way they set up the classes, you knock out 12 classes per year. Faster than regular college (8 per year, not including summer classes).
If you invest in JEPI, try to put in a tax advantage account like a Roth ira because jepi dividends are taxed at a higher rate than typical dividends due to it being a coverd call etf.
Good point man
I've made a dividend portfolio last fall and I'm already seeing the growth. 16 different stocks mainly ko o and JEPI
Man that's awesome! And by this time next year that growth will be even greater
I started in 2021, and I'm almost at $100/month AUD
Dang that's awesome!
I just started investing I'm in my 30s. I had Kept put it off because I was on SSI. and I could not have assets but I am finding out. That you also have to add some of your own money each month for to be worth while 25 cents a month in dividends. Does not buy enough shares and reality income for to really grow.
To be fair, its not called a Dividend Snowball, unless you have at least the minimum average of shares that nets you a new share or more per dividend payout.... as you are not in the compounding cycle until then...
Is that so? Can you please direct me to the definition of dividend snowball where it explicitly states that?
Such a great video bro! Once that snowball starts rolling, it gets VERY fun!!
Absolutely man, thank you! Dividend investing is the gift that just keeps getting better with time
Hi, I'm just getting started but don't know a ton about etf my first 4 positions are Pepsi, Starbucks, Mcdonalds and J and J. I really appreciate the video but that high yield for Jepi seems like a yield trap but like I stated I dont know a ton about etf..do they operate differently than an individual stock as far as yield traps
Sounds like you own some awesome stocks. And as a beginner, I'd stay away from JEPI. It's not necessarily a yield trap I don't think, but it's definitely a complicated ETF to own
You will see the snow ball effect when your monthly dividend reach $100 a month or $1200 a year.
With $100 monthly, you can buy at least 2 different shares (stock, etf) average cost around $50
Very true...$100/month is a really cool milestone, and can come quicker than many people realize
EPD is in Germany very complicated to buy and hold. There are taxes of 37 % on Dividends and its much more complicated to get back the taxes from US.
Limited Partnerships are a great Business-Model so i would do also if i ´m American. :-)
Epd is one of the best in the mlp sector, I have a little over 15,000 units and on my way to 20,000……Look into Mplx, which is my largest holding
Oh dang those taxes are crazy!
Awesome Thanks! First stock dividend was UPS 2 shares haha
Nice Tyler! UPS is a beast
Ryne with the big-time sponsorship! Congrats!...I didn't realize how fast that snowball can come! Great video, keep it up
Thank you my dude! And yea, it comes quick man. Dividend investing is one of those things that just keeps getting better with time
it never "really takes off". Every doubling takes roughly an equal amount of time once your work doesnt contribute a lot anymore. If anything its taking off the most at start.
The first $100K is the hardest to hit they said... I say just start dividend investing and the first $100K isn't hard at all
Haha that's what they say. I'm working hard to get to that first $100k
Hi Ryne.
Can you do shorts on
How much you will need invested in stocks/etfs generating enough div income inorder to get whole share of those stocks whenever you have time. It keeps me and I guess others as well very motivated. Thanks. Keep up the good work. And please do upload the videos of chitchatting with professor G often.....
Thank you for the video idea. I'd love to chat more with Professor G. I'm sure we'll get together for a video soon
looking back im realising just how rich this one teacher at school was, he said dividends are the best, because he comes home after a long day of dealing with shithead kids and opening a letter with a check for 3.5k. and that was back in 2014
Haha honestly I could see that being an extremely relieving feeling
Shirt is Tough! Got mine in Gray!!
Love it man, Gang Starr is awesome!
@@rynewilliams My favorite group! Moment of Truth is my favorite album!!
Nice shirt Ryne, I'm a big fan of guru and premier!
Thanks man, love me some Gang Starr. RIP Guru 🙏🏼
I’m sticking with intc Vz schd duke qqqm vti and wm have it all set on drip set and forget it not buying any more stocks
Love it Gary!
@@rynewilliams all the companies that I mentioned above I’m doing five dollars a day Monday through Friday and if I have extra money I will throw that in there as well. I’m hoping that in 12 years it should be nice.
Oh absolutely it will. 12 years from now you'll be sitting pretty with those dividends my friend. Keep it up!
@@rynewilliams thank you Ryne
My first dividend is $24. Don't know what my second dividend would be
Greater than $24, that’s for sure!
I'm diffident 😢
i just started my dividend journey and i should be getting around $6 a month, earing $82 a year.
Antonio that's awesome man, keep it up!
Thanks for making the dividend template tracker. I have a basic one I made for myself but yours is much nicer. Thanks for your content as well. Just found you and like it very much.
Thank you so much! I'm glad you're enjoying the spreadsheet
Dividend investing = forced taxable event and zero net gain from share price. prove me wrong
Long term wealth is key! Dividend investing defo takes time but when no doubt rewarding to see the amount grow!
It starts "really" taking off in your late 60s, if you start investing in your 20s
Oh I can imagine
Getting close to the 1k per month in dividend income. The snowball is awesome to watch.
Man that's incredible! I'm excited to get to your level
@rynewilliams be careful and consistently invest. You will get there.
I'm not sure why people keep saying it's not good to go after high yield. Not for every stock but just to have a few around.
What's the problem? The high yield might crash by half? Company go out of business? What if they have a long history of paying it just fine? Not clear on what the problem is.
I don't think people are really saying to stay away from high yield stocks. The conversation around high yield stocks is more so advising people to be careful. There are plenty of high yield stocks out there where the underlying company is low quality. To your point though, there are a ton of great high yield stocks out there. It just comes down to doing your research into what you're investing in, which should be done no matter what the stock's dividend yield is
@@rynewilliams Thanks. A lot of people are jumping on JEPI and JEPQ for example. These are really new ETFs created in the last couple years, and have super high yields right now. JEPI at 11.77 for 30-day and JEPQ at a whopping 17.63 for 30-day. I've heard you mention these. So would they be considered low quality? I can't imagine they are, since they are just ETFs but are actively managed by J.P. Morgan. They are also based on Nasdaq index (JEPQ) or JEPI which is all large-cap so that should be pretty safe.
That leaves me with the question, in what way would it be bad to invest in these to try and enjoy the higher yields for a while? Like what can go "wrong" with them to destroy my investment? Or why would I stay away from them? Even if the 17.63 got destroyed and dropped to 3%, that's still the same as dividends from other quality stocks. So I don't know what the "worst case scenario" is I guess.
Thanks again!
Sorry I missed happy hour this week, this was a great video though. Thanks for your hard work.
No need to apologize at all man, hope you're having a great weekend! Appreciate you tuning in
Hey Ryne, love your videos. You might want to re-evaluate MO, though. I know they're a dividend king, but they're kinda running out of smokers. Management, meanwhile, may as well be setting fire to large piles of cash; they've made some colosssal blunders in the last few years.
Thank you for sharing that Pete!
This year is my first year dividend investing. My goal is to get it to an average of 4,50 monthly 😁
Nice! You can definitely achieve that. Keep it up 📈
Shirt alone is worth a like 💯
Heck yea, love me some Gang Starr! Thank you my friend
Dope shirt bro!!! Guru is the man...RIP
Man thank you so much! And for real, super sad. Guru was the man
Good stuff, You’ve got a new subscriber !
You rock Cris, thanks so much for watching and subscribing!
I mainly invest in safe high divined yield stocks and monthly. Never quarterly or yearly. I make $764 a month and as an 18 year old still living with my parents it’s easy to live off of $$$ like that. I only spend $230 on bills and still work a job 40+ hours making $2475 per paycheck.
Nice!
How do i know which stock to invest in without losing my money if the market goes down. (As a European) god i wish i started doing this while i was younger. Im 30 now and feel like i missed out alot 😂
You just have to try and find companies that are good to own over the long term, even during times when the market goes down
I don’t like dividend investing because I don’t like paying taxes
Taxes suck!
5 years and it's going to take off. I'm on year 3 and I'm starting to see those quarterly payouts get fairly good to help stack.
Absolutely! That’s the thing about dividend investing, it just gets better with time
I only buy mass amounts of high yield dividend stocks and have about 16 diff ones in my portfolio rn.....my most favorite stable ones are jepi,jepq,schd,o...others i mess with for fun that are a tad riskier but still safe are zim,pbr,bak,sblk,gogl,nly,orc etc etc...start as young as u can & deposit into robinhood weekly or monthly and thank me later...its soo easy nowadays to become a millionaire without investing much
Well said! I don't recognize a lot of the riskier stocks you listed, but I'm all for starting young and investing regularly
@Ryne Williams u should check em out....there huuge money makers bro 💸 💰 😉...especially zim & pbr
@@mikelessard7492 ehh I’m not a fan of ZIM to be honest. I’ll check out PBR though
Liked off GP for the Gangstarr shirt! Dope vid!
Haha thank you! Gang Starr is awesome
What happens when your stock quits paying dividends,or the stock price goes down 50+%
If it quits paying dividends, then you'll need to assess why that happened and whether or not you still want to own the stock. The same can be said when a stock goes down 50%. Although, when a stock declines in share price, the dividend yield goes up
would be super interested in seeing the full spreadsheet to see what numbers you’re using to calculate the amount needed to earn 4 shares worth of dividends per year!
That pretty much was the full spreadsheet haha! The only thing not shown in the video was the annual dividend per share which was off to the side, but other than that it’s all there 🙌
@@rynewilliams it looked like there were other cells being used, but i’ll look back and check it out again. thanks!
Which companies or where should I invest 100k to get the best dividends return right off the bat?
Is there a reason you're looking for the best immediate return right off the bat? Dividend investing is a long term game
It’s not as easy as the concept seems. If somebody’s holding a good chuck of oil stocks like XOM or consumer staples like WMT, now would probably be a good time to trim some of these strong 2022 performers and reallocate the capital to beaten down tech dividend stocks (QCOM, STX). So rebalancing needs to be considered periodically. Also, where are you going to come up with the funds to pay taxes on the snowballed reinvested dividends? So you need to maintain or grow your other sources of income on an on-going basis and have the cash flow to be able to pay marginally increased taxes if your goal is to continue to reinvest.
How do you account for JEPI's insane expense ratio (0.35) though compared to, say, VYM at 0.06? I haven't seen charts before on how much more it really yields when you account for that high ratio. One reason I really like being in a diversified pool of dividend stocks vs. managed funds is avoiding that expense altogether.
JEPI's much higher yield makes up for the higher expense ratio, in my opinion. Just subtract the expense ratio from the dividend yield, and that will give you your net cash-flow return
Ian. JEPI is a much better cash flowing fund for many people seeking that. VYM has a 2.39% yield. You can beat that VERY easily in a savings account this day. Not exactly very enticing 12.18% yield. Even with a “high” expense ratio of 0.35 that’s still 11.76% about a 5x higher yield than VYM. Seems like a no brained for those who depend on the cash returns vs growth.
If only I had started when I turned 18. Lost a few years.
Agreed!
The first 100k is the hardest.
That’s what I hear!
I see u rocking the Gang Starr shirt 🔥🔥
Haha you know it! Gang Starr is one of my favorites
Ryne, you need to look at DIVO.
I will!