Simple Dividend Formula So We Don't Overpay for Dividend Stocks

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Simple Dividend Formula So We Don't Overpay for Dividend Stocks

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Күн бұрын

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In this video, we look at how we can quickly and easily value a dividend stock to be sure that we don't overpay for a dividend stock.
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DISCLAIMER: I am not a financial advisor. These videos are for educational purposes only. Investing of any kind involves risk. Your investments are solely your responsibility and we do not provide personalized investment advice. It is crucial that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments. Please consult your financial or tax professional prior to making an investment.
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Пікірлер: 183

@jershir7599 4 жыл бұрын

Would love to see the dividend aristocrat valuation video

@LearntoInvest 4 жыл бұрын

Will do! 🙂👍

@shadowninja6689 4 жыл бұрын

I second this.

@robertoc.j.5563 4 жыл бұрын

@@LearntoInvest great!

@chunker6455 4 жыл бұрын

Would love this

@FcCopa90 4 жыл бұрын

👍🏼👍🏼👍🏼👍🏼

@SD4... 4 жыл бұрын

I am in my second year of my master's degree in finance and none of my professors were able to explain the fair valuation of stocks in such an easy way as Jimmy, best investment channel out there for sure.

@LearntoInvest 4 жыл бұрын

Thanks, I appreciate the kind words 🙂👍

@zeppeinvest-stockmarketvid1441 4 жыл бұрын

Nice words!

@Viper4ever05 4 жыл бұрын

lol if you want to confuse students just give them a lecture on options

@SD4... 4 жыл бұрын

@Open Ranks what debt? University is about $1K a year in my country lol plus this topic is like 2 hrs of class only. But it's obvious you're not familiar with schools.

@thumbodyelse21 4 жыл бұрын

Wow. That's not good to hear. My finance Prof taught us this in my bachelor's.

@thatsmyjam8403 4 жыл бұрын

Best investing channel out there, no bullshit about cars and getting rich fast. Just the simple facts. Keep it up !

@barrettjones127 4 жыл бұрын

Yes, I would be interested in seeing this fair value analysis over all dividend aristocrats. Thank you for this

@kiubixweb 4 жыл бұрын

Do one with the big ones. 3m, macy's and so

@MrRdiazfam1989 4 жыл бұрын

Please do aristocrat valuation im loving your videos its very exciting as you teach.

@jasonj7076 4 жыл бұрын

Awesome, learned something new. Would like to see a video on some of the aristocrats, also looking forward to your top staples choices

@MikeThaInvestor 4 жыл бұрын

I think this is the fastest I've seen this broken down Jimmy! And made things a little easier as well, thanks for making this video!

@GregK235 4 жыл бұрын

Thanks for working through the DDM computations. It reminds us not to use such formulae blindly without considering whether it's appropriate for a particular company. It would be interesting to see if the CAPM calculation could work as an input for r.

@gonzo432619 4 жыл бұрын

Yes!!!! please with the all companies on the Aristocrat list

@georgehadley7863 4 жыл бұрын

Jimmy - Very good video. The dividend aristocrat valuation video would be appreciated.

@robertoconnor2669 4 жыл бұрын

Love your idea of applying formula to the dividend aristocrats to see if they are over priced.

@pepleatherlab3872 4 жыл бұрын

Yes indeed Jimmy. Please make that dividend evaluation video happen. That would be awesome.

@marcusaurelius2991 4 жыл бұрын

This channel is the best of the best.

@jeanLetourneau1 4 жыл бұрын

Thank you Jimmy. Personnaly, I found this formula to sensitive to the input r and R to be used. You just demonstrate the huge impact on Fair Value estimate by changing the dividend growth rate from 5.0% to 6.%. And the impact of Required Return, say changing from 8.0% to 9.0%, is also huge. I do not buy dividend stock because I personnaly do not know how to calculate Fair Value. Does a Dividend Discount Method a better method? A video on Dividend Aristocrat will be great.

@Mysteryqueen86 4 жыл бұрын

I love the Math class today wow did I learn today. I like to see the ETF fair value.

@zeppeinvest-stockmarketvid1441 4 жыл бұрын

💸💸💸

@muradbabaniyazov81 4 жыл бұрын

When Sheldon Cooper realized that it was money and not the conservation of angular momentum that "makes the world go 'round".

@jagulba 4 жыл бұрын

I think I’m attending a course in a university... it’s perfect that you show where the formula fails and where it can be used... well done again ;)

@LearntoInvest 4 жыл бұрын

Thanks 😊 I'm glad you like it

@richnashin5448 4 жыл бұрын

Yes it would great to present a video with a list of dividend stocks like MMM, Johnson & Johnson, Atria Group etc on the over valuation of the price, thank you in advance if you could. You have an excellent way of sharing information

@DividendIncomeBloodhound 4 жыл бұрын

Rich Na'Shin i have mmm and looking at Johnson so would be interested

@AdventuresandUs 4 жыл бұрын

Awesome that you pointed out the benefits of two different formulas with apple

@PassiveIncomeTom 4 жыл бұрын

*Great explanation and examples Jimmy!* 👍

@christianh.riiser2807 4 жыл бұрын

Another excellent video from Jimmy regarding valuation of a dividend stock - more examples with dividend stocks please !!! - keep them coming !!!

@dltyler4023 4 жыл бұрын

Fricking awesome explanation. Thank you man.

@DividendIncomeBloodhound 4 жыл бұрын

dl tyler accurate!

@wheatonrunner69 4 жыл бұрын

Very interested in a simple dividend value for dividend aristocrat companies. Been thinking about investing in aristocrats recently but the market is near all time highs.

@chlo6348 4 жыл бұрын

Another great video! You made it so easy to understand. Thank you Jimmy. Btw, instead of binging on Netflix and turkey, I binge-washed a bunch of your videos on Thanksgiving break. Awesome work!

@thatsmyjam8403 4 жыл бұрын

Please do your video on the dividend aristocrats ETF.

@LearntoInvest 4 жыл бұрын

Will Do!

@MinhNguyen-xv2dc 4 жыл бұрын

Yes interested, but try to focus on the one that is near the fair price so we know the stocks at the right time!

@unbreakableer 4 жыл бұрын

Always love the videos. I would definitely like to see the video are divided stocks overvalued. I feel that your videos are always packed with great information without fluff.

@DividendIncomeBloodhound 4 жыл бұрын

Alex L nailed it!

@Thetatraderz 4 жыл бұрын

Great way to see if dividends are safe and likely will continue to grow.

@letsdanceonhere 4 жыл бұрын

Great as usual Jimmy and I would love to see your planned Fair Market Value vid. Thanks

@cstewart7056 4 жыл бұрын

Thanks, Jimmy! The explanation of when and when not to use this method was an excellent addition.

@williamsmith4764 4 жыл бұрын

As investors we look an many angles. Thank you for another tool in the tool chest!

@MrBAchompBAchomp 4 жыл бұрын

Jimmy that would be an awesome idea! I would love to see that formula used in more real work examples!

@joshuagreenstein1438 4 жыл бұрын

First and foremost, excellent video. Second, would love the breakdown of each of the individual aristocrats. Last, but much more importantly, a clear, discernible line between when and which companies to utilize DCF v. this formula other than just examples, would be appreciated! Again, great job, just subscribed, and looking forward to more content!

@LearntoInvest 4 жыл бұрын

That's a great point, I should do a video on when to use which formulas. Thanks for subscribing 🙂👍

@slvfelix 4 жыл бұрын

Yes, please do the video!

@Patrickduffy143 4 жыл бұрын

Jimmy when your video pops up on my screen it’s almost like listening to here comes the Sun by The Beatles

@LearntoInvest 4 жыл бұрын

Best compliment ever!!! 🙂👍

@georgehadley7863 4 жыл бұрын

@@LearntoInvest Jimmy - You are far too young to know who the Beatles were!

@venom62 4 жыл бұрын

Yes please do the dividend aristocrat vid. Great content as always Jimmy

@hanz2lk 4 жыл бұрын

Another great informative video Jimmy. Thank you!

@Ryan-wf7sh 4 жыл бұрын

Great video as always jimmy, definitely interested in seeing you analyze more dividend stocks

@DividendIncomeBloodhound 4 жыл бұрын

Completely agree

@steakcon 4 жыл бұрын

Thanks Jimmy!

@wp4310 4 жыл бұрын

Yes! Interested!

@BubbaBlackmon 4 жыл бұрын

Jimmy , I would love to know your background. Education, employment , etc. I have my MBA in finance and I really enjoy your videos. A great refresher course on things I learned years ago.

@YouAreJoy 4 жыл бұрын

Yes, very interested. This was awesome Jimmy!

@scottmerryman 4 жыл бұрын

Yo, I found this video super helpful! If I might make a suggestion regarding production: Maybe try to keep your notes behind camera so that you avoid checking down - right. It can be a tad distracting Otherwise, super useful man. Liked and subscribed

@JalapenoDNA 4 жыл бұрын

Holy crap, this is what they should've taught me in highschool. Maybe I would've paid attention!! 😂😂😂

@wilburgordon7606 4 жыл бұрын

would love to see you analyze the dividend aristocrats companies, I was thinking it as you said it!

@DividendIncomeBloodhound 4 жыл бұрын

Wilbur Gordon that would be useful!!!

@icarusthefly5458 2 жыл бұрын

My strategy is mostly using a target dividend percentage and the stability and the trust i have in a company. A higher trust/stability means i am willing to compensate the lower dividend percentage. I want a higher percentage for companies i dont trust as much/are a bit les stable.

@Chrisss6311 4 жыл бұрын

Like like like great video please do more just like this

@alexanderpike1936 4 жыл бұрын

Would love to see a dividend aristocrats valuation video!

@skrapsaker2035 4 жыл бұрын

Yes please! I am very interested🤗

@walthodgson5780 4 жыл бұрын

Yes from me for that aristocrats video!!

@lexandersantana8089 4 жыл бұрын

thanks bro, id def watch that vid for NOBL

@mindsinmotion2825 4 жыл бұрын

I Am going to have to watch this a few times to fully understand.

@silversaverg8718 4 жыл бұрын

Great video, anything else you can show us is much appreciated.

@dashadow231 4 жыл бұрын

Ok, I am now a fan

@SpeakerBuilder 11 ай бұрын

There is an alternative perspective to consider. I own commercial property that will yield 9% annual ROI after expenses, and I have $100k saved over the past few years that I am looking to invest. I purchased each of my properties for between 100k and 130k, so I could purchase another one and earn 9%. Therefore, any consideration for investing in stock must compete against this alternative. So, for me, the only acceptable dividend stocks I am willing to consider pay 10% or more in dividends. If not, I would simply look for another commercial property to buy.

@irmicepeterson2479 4 жыл бұрын

I'm very interested in the dividend aristocrat valuation video.

@robertwills8626 4 жыл бұрын

Great Video would definitely be interested in the video about aristocrats.

@DrThier32 2 жыл бұрын

Thanks Jimmy for sharing this knowledge for ordinary folks like us. Thanks man👍🏾

@StuJoyce 4 жыл бұрын

Hi Jimmy. So I've run this formula through BT.A stock. Do=15.4 g=5.6 r=8 works out fair value at 677.5 but stock is trading at 184. Why the massive difference? Great channel btw

@cato451 4 жыл бұрын

OR, you can just not buy or sell dividend paying stocks that yield less than 2.5% which is exactly what i do.

@davidschultz5874 4 жыл бұрын

Definitely interested in seeing that video about the other dividend stocks.

@PtearGriffin4 4 жыл бұрын

Please do that video. I wish this video had MMM or jnj in it

@Edu_RJR 4 жыл бұрын

if you take the under part of the formula and make it divided by 0.01 and then square the whole thing, this way you always have a positive number even if you growth is higher than required rate of return (would have to do a few adjustments then to the top part) edit: if you do [D0(1+g)]/[0.01((r-g)/0.01)²]

@davidhack2409 4 жыл бұрын

Brilliant vid man! Thank you for a epic content 🙌

@malloyrodriguez181 4 жыл бұрын

Please do the dividend aristocrats video

@cryptoinfinity3097 4 жыл бұрын

super nice video, thank you!

@baljeet1989 4 жыл бұрын

Thank you . This was very informative!!

@MinhNguyen-xv2dc 4 жыл бұрын

What company should we look to buy during the December month that historically gone up during this month ?!

@kubismatik2 4 жыл бұрын

Some people may prefer to look for stocks that go down at the moment and up in the future.

@harryallenpearce89 3 жыл бұрын

Finally! A video for me. *sees fair value formula* ...never mind.

@perpetualdividends6719 4 жыл бұрын

Very cool. Helpful formula

@sergiolopez1855 4 жыл бұрын

Is there a website or something that we can use this formula by just putting the company or numbers?

@lancechoo9460 4 жыл бұрын

Thanks, Jimmy, for your informative videos.

@shyamsuchak 4 жыл бұрын

Yes please do video on dividend aristocart valuations

@Ich_liebte_DeutscheLand1 4 жыл бұрын

Would love to see the dividend aristocrat valuation video THX

@MGAUT0 4 жыл бұрын

make that dividend video

@ichoudhury007 4 жыл бұрын

I would love to see fair value calculation next to all stocks in your future reviews. 😉😁

@bhindigosh1 4 жыл бұрын

Please make that video about the aristocrats

@jonathanduran5502 4 жыл бұрын

Do you think this formula can work with etf dividends? Or which formula do you recommend for etfs in order to know their fair value? Thanks, great content

@johnbob2871 4 жыл бұрын

Great video!!!

@nathanielcodina4056 4 жыл бұрын

Jimmy a video of fair market value for dividend aristocrats would be a great.

@mohammadkhan744 2 жыл бұрын

Love to see the fair price of the dividends aristocrats share prices and how to calculate them

@DividendIncomeBloodhound 4 жыл бұрын

Got to be aware of the hype factor!

@muharremozturk3070 4 жыл бұрын

I guest require return is poor way on this formula. Because you can get define it. But thanks you for different way of looking

@GeorgeKowalski77 4 жыл бұрын

Hey, Jimmy please tell me something about stock ETF HMMJ ???? should I hold or sell??

@lynnscanio5680 3 жыл бұрын

I would love to see the video as well!

@SergiMedina 4 жыл бұрын

Yes, please, do the aristocrat valuation! But it would be nice to do it with data from the first quarter of 2020, since I see the fair value could generally benefit from that? By the way, can you recommend some webpage to find this revenue and dividend data?

@jhtwenty 4 жыл бұрын

where that 0.08 came from

@ourielification 4 жыл бұрын

I would love to know more about etf as you asked at the end

@LVQ-so5th 4 жыл бұрын

WHY does this formula work? What's the underlying reason why this formula protects an investor?

@physictist 4 жыл бұрын

@Learn to Invest Yes, Jimmy, could you please explain the origin of this formula? Thanks.

@andyyu1642 4 жыл бұрын

Will this formula work well on estimating REITs?

@DanielGonzalez-ck9dx 4 жыл бұрын

My thoughts exactly !

@pranavbelgaonkar8634 4 жыл бұрын

Could you use Gordon's growth model here?

@ufopiloot 4 жыл бұрын

Is there a fast way to get those dividends histories for a company?

@jelmerdekker 4 жыл бұрын

3M has a CAGR in the last 10 years of about 10%. Although the dividend growth is slowing and I think it will in the near future stay a lot lower. I think that in the long term 3M could do same 10% again. Would'nt that give an insane value to 3M?

@TwoCarGaragez 4 жыл бұрын

Where does the 8% required return come from?

@LearntoInvest 4 жыл бұрын

I just picked on to illustrate the process. But using something like CAPM is likely a better step to determining a required rate of return

@tvamanadsloner7220 4 жыл бұрын

Do the video pls!

@oliverweldner8704 4 жыл бұрын

interested!

@hauntedhouse7827 4 жыл бұрын

is this the same formula as the bond discount formula?

@tonysanchez5621 4 жыл бұрын

So what do you think about LB. I made a purchase at 16$. I'm worried they will cut dividends but to be honest that is prob best for the company. I'm in this for growth. The high div is a bonus