It scares people when they see your overall book cost vs current value is in the red. But by following these rules you will make money and keep receiving income. After 2 years even though my book cost/current value is scary looking, I'm in the green overall and receiving 11% a year in dividends. It works and you can sleep at night. Thanks for the updates and vids
Yes it’s interesting you point this out. I like Adrian’a strategy which I do follow myself. But I also buy aristocrat stocks that have a 10 year history of consistent dividend growth and I only buy the ones that have a growth rate of over 75% over a 10 year period. I also don’t buy any that cut their div in the last 10 years. So I use both strategies (capital growth and good div payout).
In my experience you can see capital appreciation given enough time. As you said it is also important to add back the dividends and you will see you made $
Hi Adrian - Point #3 5:08 - Are you advising to avoid single stock covered call ETFs too like TSLY, PLTY ? I am planning to build portfolio of covered call ETFs and was thinking of including few such single stock high yield ETFs. Whats your opinion ?
I really don't believe in #3, but all the rest are great and ive been doing. To clarify though, I do own 30 different holdings in my TFSA, so i am well diversified across sectors already. I think for #6, its okay to trim down on high days and buy back on lower priced days to lower your average buy price, but to not sell off entirely, especially in bad times when your emotions can get involved. Long term hold is crucial, as mentioned!
25% of my portfolio are single stocks that pay nice dividends, and also have growth potential. The rest are ETFs, covered call funds etc.... same that are in your portfolios. I do enjoy watching and tracking my portfolio so always watching the single stocks. Thx for posting.
I like agree with follow most of what was said. I do disagree with Adrian's rule about not buying single stocks. I buy a mix of ETF's, and individual blue chip dividend paying equities. This allows me to not only achieve the dividend benefits, but the growth in the equities that I chose as long term positions. Its part of my diversification not just in sector allocation, or regional allocation, but in my asset mix. I give myself a 80% for following these golden rules.
yes i do not follow this rule myself, hehe, but remember I am not saying buying single stocks is BAD, it just creates a single point of failure ; and this video was really to "never lose money"
Great advice, Adrian. *I have one more rule:* *_Reinvest all or a portion of your dividends into your existing ETFs every month._* Should this be a rule?
I think it's great that you have a strategy that works best for you and for others. I think that's more important than being a good stock/fund picker or even better than being able to somewhat time the market. Unfortunately, I'm not so focused. I still have a problem following your strategy with all my heart so I ended up with a portfolio that is a combination of income investing and growth/value investing. Recently, I modified my spreadsheet to include Total Returns from Inception and Total Returns Annualized. This has shown me which of my holdings are performing best. My best and worst performing positions are with single stocks. My ETFs are all kind of middle of the road (as long as I got them at a good price). I previously believed in not locking in losses and selling. I changed that plan as I have had positions over the years that continued to lose so much that it would take multiple years to recover at normal index growth. I am much more likely to pull the trigger and sell if I see strong negative momentum and I have lost faith in a turnaround. Regardless of what I believe, I always enjoy your videos and you may still get me 100% convinced yet! Thanks.
I love your number 4 Rule. That is the most important advice . Lot of people are going to be in trouble with Mortgages due to overleveraging. :). I love all the other Rules. I understand your prospective I am in-sync with your mindset. Number 6: Is the one I am working on Never to sell :). Thank you Adrian. I am buying and putting it all on DRIP and bury it like a treasure chest and Go to sleep. and want to wake up in a few years and see my treasure grown lol.
I like to look at the ticker history and gauge my purchases base on how many periods they missed paying dividends. That's why Canoe and LBS are two of my favorites.
Question: Do similar dividend-paying ETFs exist for inverse SPY or VIX or similar so one could hedge against downturns in the market? It's that a thing?
Thanks, you make some good points but I do sell from time to time to balance my portfolio, especially when some new funds come out and I want to rebalance to include some of them Cheers
I now agree with the 100% stocks via ETF...To offset bonds (which also fell when stocks went down), I now use income covered call ETF. Thanks for your channel.
I pretty much agree with all the rules you laid out except for "never invest in individual stocks".....being a Muslim, I cant find any good dividend paying ETFs in Canada that don't have exposure to the banking/ financial sector who pretty much make their money by giving out interest-bearing loans and mortgages....so, I kinda have to devise my own ETF of dividend paying Canadaian companies....but I have diversified my exposure by compiling a list of 40-50 Canadian companies that are dividend aristrocats....so, I don't really invest in any one, single company at a time but more than a dozen companies roughly equally.
One question, shouldn't that rule also apply for covered call ETFs? The one single stock rule? Like TSLY, APLY, GOOY, etc.? I know it's Tesla, Apple, Google... but even they are not exempt from something really bad happening to them, right?
What's your take on speculative precious metal stocks? I'm investing in a copper mine with the prayers and hopes of a fool, I have DCPP with my job so I do have safe investments, I'm risking some of my take home income with high hopes of the EV push.
Not sure I understand your summary. Book value is 749,130, then show realized 300k profit. Where is the realized profit in your portfolio. In cash? Or withdrawn I assume
Question - Sorry I am not sure where to send this question. I recently became a member of the inner circle. I know get the emails like the one for the stock trade alert. Now my link from the email to see it is not working. When I go to RUclips it appears my membership is not recognized What do I need to do ? Or where do I send my question Thx
Hi, i do not see you as a "member" . if you click on the name of my channel, do you see a tab called "membership" next to the community tab? if you do, you are a member, if not, you are not. unfortunately this has to do with YT and completely out of my control. to ask questions for the members only livestream , you need to leave it as a "comment" on the members only community post about the livestream
Adrian, thanks for the 6 golden rules! I would say that I am 90% following these 6 rules. 😅 Still have just couple of single stocks, but my intention is to sell them and buy income producing ETFs. I especially agree with golden rule #5. Getting paid monthly on a consistent basis will free our emotions from all the market volatility and keep us invested in the market.
Once the NAVs are corrected by 50%+, it'll be hard to rebound due to being covered calls. Also, the smaller NAVs will ultimately lead to smaller option premiums and distribution cuts.
Ben Felix tells us nothing new. We know covered call funds have less total returns than the indices they follow. We know they are more expensive to own. But who is retired?
@@TheMally85 Your question implies Adriano is retired and Ben isn't, but the truth is they're both working, and Ben may even have a bigger portfolio than Adriano.
The Canadian dividend tax credit adds tremendous clout to my bottom line and so my focus is not hugely diverse - it's all about sustainable yield but maintaining tax efficiency - and thank you for your tips - especially leverage
Hey Adriano, great video! How are things in Panama? I was hoping you would make a video about cost of living there compared to cities in Canada. I think that'd be very helpful for people who like to move there someday.
I am in a dilemma with dividend investing. I dont have a business to write off certain expenses and so any dividend income I earn, most of it will go to the government in taxes. So if I focus on dividend income, I think I l end up paying more to government than if I were to focus on stock value appreciation capital gains. Thoughts? I have also read that covered call etfs will under-perform the regular equal weight etfs by a long shot in the long run. So while the covered call etfs might pay you 10%+ yield, they will still under-perform the equal weight blue chip etfs by a good percentage in the long run.
On your first point, your taxes on dividend income will not exceed the dividends themselves. This is like the fallacy "I won't work overtime because I lose it all to taxes". You don't "lose it all". Regarding capital gains, you get 50% of the gain "free", but you will pay tax on the other half of the gain. Whether dividends or capital gains are more tax efficient will depend a lot on your total net income, and what your top marginal tax rate is. Your last point is quite true. Almost all of the CC ETFs will under-perform when we get back into a bull market. They have performed reasonably well since the Covid peak in January of 2022. But say we compare the total return of XUU - the total market US ETF vs XYLD since January 2020. XUU has a CAGR of 9.91% while XYLD is only 3.68%. Yeah, XUU only pays 1.21% yield (as of today, and XYLD yields 12.52% (again, today), but XUU outperforms 269%. It will be very interesting in a couple of years to be able to make these same comparisons with the Hamilton family of ETFs.
Not 100% true, it seems i'll loss money and TFSA room with my HMMJ holdings at 12% total portfolio. This is a management failure. So rule #7 management quality and diversification
That’s kinda generic advice. Worldcom was a great blue chip, Enron was an amazing blue chip, Nortel was a Gorilla 🦍 all faded to nothing. Buy all in ones NUFF SAID!
Being relatively new to watching the market (only for less than a year) I see that bonds which are supposed to be so safe also went down w the market, so ya With my timeline I believe in 2 things for sure 1- all stock no bonds 2- no single stock (although my very first purchase was single stock before learning more oops) Great video thank you so much
Bonds themselves never go down. It's when they're being traded on the market that they fluctuate in value. So bonds ETFs are not as safe as bonds, but they're still safer than stocks since it only happened 3 times in the last 100 years that they lost value (the stars have to align for them to lose value). They still do what they're suppose to do in a portfolio, but there can be exceptions like right now.
Great video. I just found the line "Firefox DOES NOT Work! Chrome browser works best)" in your portfolio. No wonder I could not download it. Thanks again.
I really like this philosophy. But I'm poor (somewhat) and I might need capital when I retire to buy a house, or for any project. So I'm not all in on Passive Income, I still go with Boglehead philosophy for the majority of my portfolio. I'm always on the fence of switching everything to Passive Investing though...
It scares people when they see your overall book cost vs current value is in the red. But by following these rules you will make money and keep receiving income. After 2 years even though my book cost/current value is scary looking, I'm in the green overall and receiving 11% a year in dividends. It works and you can sleep at night. Thanks for the updates and vids
Yes it’s interesting you point this out. I like Adrian’a strategy which I do follow myself. But I also buy aristocrat stocks that have a 10 year history of consistent dividend growth and I only buy the ones that have a growth rate of over 75% over a 10 year period. I also don’t buy any that cut their div in the last 10 years. So I use both strategies (capital growth and good div payout).
In my experience you can see capital appreciation given enough time. As you said it is also important to add back the dividends and you will see you made $
when you say 11%, is that taking into consideration the losses of capital value that you describe ?
Hi Adrian - Point #3 5:08 - Are you advising to avoid single stock covered call ETFs too like TSLY, PLTY ? I am planning to build portfolio of covered call ETFs and was thinking of including few such single stock high yield ETFs. Whats your opinion ?
I really don't believe in #3, but all the rest are great and ive been doing. To clarify though, I do own 30 different holdings in my TFSA, so i am well diversified across sectors already.
I think for #6, its okay to trim down on high days and buy back on lower priced days to lower your average buy price, but to not sell off entirely, especially in bad times when your emotions can get involved. Long term hold is crucial, as mentioned!
25% of my portfolio are single stocks that pay nice dividends, and also have growth potential. The rest are ETFs, covered call funds etc.... same that are in your portfolios. I do enjoy watching and tracking my portfolio so always watching the single stocks. Thx for posting.
I like agree with follow most of what was said. I do disagree with Adrian's rule about not buying single stocks. I buy a mix of ETF's, and individual blue chip dividend paying equities. This allows me to not only achieve the dividend benefits, but the growth in the equities that I chose as long term positions. Its part of my diversification not just in sector allocation, or regional allocation, but in my asset mix. I give myself a 80% for following these golden rules.
yes i do not follow this rule myself, hehe, but remember I am not saying buying single stocks is BAD, it just creates a single point of failure ; and this video was really to "never lose money"
Phenomenol strategy and rules!! Thank you!!
Great advice, Adrian.
*I have one more rule:* *_Reinvest all or a portion of your dividends into your existing ETFs every month._*
Should this be a rule?
I think it's great that you have a strategy that works best for you and for others. I think that's more important than being a good stock/fund picker or even better than being able to somewhat time the market. Unfortunately, I'm not so focused. I still have a problem following your strategy with all my heart so I ended up with a portfolio that is a combination of income investing and growth/value investing.
Recently, I modified my spreadsheet to include Total Returns from Inception and Total Returns Annualized. This has shown me which of my holdings are performing best. My best and worst performing positions are with single stocks. My ETFs are all kind of middle of the road (as long as I got them at a good price).
I previously believed in not locking in losses and selling. I changed that plan as I have had positions over the years that continued to lose so much that it would take multiple years to recover at normal index growth. I am much more likely to pull the trigger and sell if I see strong negative momentum and I have lost faith in a turnaround.
Regardless of what I believe, I always enjoy your videos and you may still get me 100% convinced yet! Thanks.
I love your number 4 Rule. That is the most important advice . Lot of people are going to be in trouble with Mortgages due to overleveraging. :). I love all the other Rules. I understand your prospective I am in-sync with your mindset. Number 6: Is the one I am working on Never to sell :). Thank you Adrian. I am buying and putting it all on DRIP and bury it like a treasure chest and Go to sleep. and want to wake up in a few years and see my treasure grown lol.
Excellent strategy!
I ❤ your advice. After our 1 on 1 meeting you literally changed my financial life! Thank you!
Hi Adrian.
Have you looked in or consider to swap some HYLD to HMAX. Like 20 ~ 30% and how much it would bring up your monthly income?
I like to look at the ticker history and gauge my purchases base on how many periods they missed paying dividends. That's why Canoe and LBS are two of my favorites.
looking at the total return is always the ultimate gauge
hi, I would like to ask …would you say FTN and HMAX are similar or almost similar, based on diversification?
Solid wisdom here!
Question: Do similar dividend-paying ETFs exist for inverse SPY or VIX or similar so one could hedge against downturns in the market? It's that a thing?
yes there are some out there but income oriented ones are more rare, those are typically "growth" plays
Thanks for these gems 💎💎💎💎💎💎 Adriano. 👌🏽
Thanks, you make some good points but I do sell from time to time to balance my portfolio, especially when some new funds come out and I want to rebalance to include some of them
Cheers
I now agree with the 100% stocks via ETF...To offset bonds (which also fell when stocks went down), I now use income covered call ETF. Thanks for your channel.
I pretty much agree with all the rules you laid out except for "never invest in individual stocks".....being a Muslim, I cant find any good dividend paying ETFs in Canada that don't have exposure to the banking/ financial sector who pretty much make their money by giving out interest-bearing loans and mortgages....so, I kinda have to devise my own ETF of dividend paying Canadaian companies....but I have diversified my exposure by compiling a list of 40-50 Canadian companies that are dividend aristrocats....so, I don't really invest in any one, single company at a time but more than a dozen companies roughly equally.
Nice variety video, love this. Watched and liked, thanks Adriano!
One question, shouldn't that rule also apply for covered call ETFs? The one single stock rule? Like TSLY, APLY, GOOY, etc.? I know it's Tesla, Apple, Google... but even they are not exempt from something really bad happening to them, right?
Yes that’s true but it’s still lower risk than owning it outright
What's your take on speculative precious metal stocks? I'm investing in a copper mine with the prayers and hopes of a fool, I have DCPP with my job so I do have safe investments, I'm risking some of my take home income with high hopes of the EV push.
You said it perfectly with “prayers and hopes of a fool “ …. But at least you me doing it responsibly. I don’t bother with that stuff
Not sure I understand your summary. Book value is 749,130, then show realized 300k profit. Where is the realized profit in your portfolio. In cash? Or withdrawn I assume
Please see my “portfolio explained “ video
Awesome video man!
Question - Sorry I am not sure where to send this question.
I recently became a member of the inner circle.
I know get the emails like the one for the stock trade alert.
Now my link from the email to see it is not working. When I go to RUclips it appears my membership is not recognized
What do I need to do ?
Or where do I send my question
Thx
Hi, i do not see you as a "member" . if you click on the name of my channel, do you see a tab called "membership" next to the community tab? if you do, you are a member, if not, you are not. unfortunately this has to do with YT and completely out of my control. to ask questions for the members only livestream , you need to leave it as a "comment" on the members only community post about the livestream
What do you think about tsly etf for income (U.S.)?
ruclips.net/video/zhscCL-L8yk/видео.html
Thanks for the video. What are a good monthly divident that you recommend. I want to buy and hold it and enjoy the monthly divident.
I try not to “recommend” I just try to educate and should people what I do . Got plenty of videos for you to watch regarding high yield funds !
@PassiveIncomeInvesting do you have a video that list the international etf that pay monthly divident?
Best rules to follow if you want to sleep well at night. Looking forward to all my single stocks hitting the sell point.
Hmm i have $T $ENB $FTS single stocks maybe $UTIL or $HUTS or $UMAX?
Adrian, thanks for the 6 golden rules! I would say that I am 90% following these 6 rules. 😅 Still have just couple of single stocks, but my intention is to sell them and buy income producing ETFs.
I especially agree with golden rule #5. Getting paid monthly on a consistent basis will free our emotions from all the market volatility and keep us invested in the market.
im probably at 90% also lol
Looking good 😊
Great video 😊
what about split share DFN And FTN
what about them?
the symbols I looked some of them up and they dont exist for me in the US where are you from Canada ?
yes but i invest in both markets, all shown in my monthly portfolio update videos
Completely agree with these rules. Really appreciate what you do.
While the portfolio is sector-diversified, it is heavily tilted to covered calls which negates the diversification.
They haven't gone through a more traditional crash like the 2000 dotcom and 2008 financial crisis.
Once the NAVs are corrected by 50%+, it'll be hard to rebound due to being covered calls. Also, the smaller NAVs will ultimately lead to smaller option premiums and distribution cuts.
covered calls has nothing to do with diversification. why would it "negate it"? makes no sense to me at all
@@PassiveIncomeInvesting Because a diversified portfolio can rebound from a crash. Covered calls don't. Make sense?
What’s your thoughts on Ben Felix comments on covered call investing?
Ben Felix tells us nothing new. We know covered call funds have less total returns than the indices they follow. We know they are more expensive to own. But who is retired?
@@TheMally85 Your question implies Adriano is retired and Ben isn't, but the truth is they're both working, and Ben may even have a bigger portfolio than Adriano.
Thanks Adriano 🤑
The Canadian dividend tax credit adds tremendous clout to my bottom line and so my focus is not hugely diverse - it's all about sustainable yield but maintaining tax efficiency - and thank you for your tips - especially leverage
I guess i need to make some changes, 5.7% 20 year apr
Hey Adriano, great video! How are things in Panama? I was hoping you would make a video about cost of living there compared to cities in Canada. I think that'd be very helpful for people who like to move there someday.
Never say never!
I am in a dilemma with dividend investing. I dont have a business to write off certain expenses and so any dividend income I earn, most of it will go to the government in taxes. So if I focus on dividend income, I think I l end up paying more to government than if I were to focus on stock value appreciation capital gains. Thoughts? I have also read that covered call etfs will under-perform the regular equal weight etfs by a long shot in the long run. So while the covered call etfs might pay you 10%+ yield, they will still under-perform the equal weight blue chip etfs by a good percentage in the long run.
On your first point, your taxes on dividend income will not exceed the dividends themselves. This is like the fallacy "I won't work overtime because I lose it all to taxes". You don't "lose it all". Regarding capital gains, you get 50% of the gain "free", but you will pay tax on the other half of the gain. Whether dividends or capital gains are more tax efficient will depend a lot on your total net income, and what your top marginal tax rate is. Your last point is quite true. Almost all of the CC ETFs will under-perform when we get back into a bull market. They have performed reasonably well since the Covid peak in January of 2022. But say we compare the total return of XUU - the total market US ETF vs XYLD since January 2020. XUU has a CAGR of 9.91% while XYLD is only 3.68%. Yeah, XUU only pays 1.21% yield (as of today, and XYLD yields 12.52% (again, today), but XUU outperforms 269%. It will be very interesting in a couple of years to be able to make these same comparisons with the Hamilton family of ETFs.
Not 100% true, it seems i'll loss money and TFSA room with my HMMJ holdings at 12% total portfolio. This is a management failure. So rule #7 management quality and diversification
1st....😂 TIP: never sell in a loss, unless it is with a Stop Loss. Good companies rebound.
That’s kinda generic advice. Worldcom was a great blue chip, Enron was an amazing blue chip, Nortel was a Gorilla 🦍 all faded to nothing. Buy all in ones NUFF SAID!
Hey Adriano, any word when Purpose Investments will release those 5 new etfs? For example like the microsoft etf? JP morgan? Etc etc
im meeting with them this week :) but no official date yet.
@@PassiveIncomeInvesting wonderful, looking forward to these
Being relatively new to watching the market (only for less than a year) I see that bonds which are supposed to be so safe also went down w the market, so ya
With my timeline I believe in 2 things for sure
1- all stock no bonds
2- no single stock (although my very first purchase was single stock before learning more oops)
Great video thank you so much
Bonds themselves never go down. It's when they're being traded on the market that they fluctuate in value. So bonds ETFs are not as safe as bonds, but they're still safer than stocks since it only happened 3 times in the last 100 years that they lost value (the stars have to align for them to lose value). They still do what they're suppose to do in a portfolio, but there can be exceptions like right now.
you are ahead of the game!
What commodity plays do people like in single stocks and ETFs? I have done well in UUUU, and some others.
Very good video, thank you.
Great video! Thanks.
I thought you had CALL
And ENCC. 13 days ago? Sold both ? To buy more Hyld?
Great video. I just found the line "Firefox DOES NOT Work! Chrome browser works best)" in your portfolio. No wonder I could not download it. Thanks again.
The version of your escalator/elevator line I've heard is "the bull goes up the stairs, the bear jumps out the window".
You can only pick one fund, what is it and why?
XUU, for total US market return
I really like this philosophy. But I'm poor (somewhat) and I might need capital when I retire to buy a house, or for any project. So I'm not all in on Passive Income, I still go with Boglehead philosophy for the majority of my portfolio. I'm always on the fence of switching everything to Passive Investing though...
I'm cheating with TD shares, but the rest falls under the rules.
Agree re: single stocks. Learned my lesson No thank you.
great info
🥸