It ain't much but it's honest work

That was funny 🤣 A1 comedy 👌🏿

Love the term! I think I'm gonna start using it.

Your att crop has gone bad

Poison dogecoin stock

If the funding source of the dividend is not coming out of cash flow produced by operations, then it might be better to NOT receive a dividend. Some companies will resort to tomfoolery in their accounting just to deliver a “dividend” to shareholders. It masks poor performance and can hurt you later on down the line. A legitimate dividend? Bring ‘em on! We love them.

Ty for saving me 8 mins

bingo. I love the first of the month. Those direct deposits are lovely.

@D Mack but that is pretty tough if you are self-employed. How do you even place independent stocks in a retirement account. I thought you had to buy a bundle of stocks (sort of like an ETF) when creating your retirement account(s)?

Roger Nevez I

hyou zan ren Sounds like you were holding GM shares.

That's standard operation procedure in Australia.

So sell mcdonalds and Coca Cola right now? Maybe you should rather look out for What made them pay dividend out of them borrow money to pay dividends. Coca Cola and MCD for example repurchased tons of shares so they did not have enough cash flow to pay dividends. Yet they still did since they are dividend aristocrats

@@leonschallenberg sell brkb before selling those

Dividend EPS payout ratio and dividend cash flow payout ratio are important.

Very true! I agree that a lower price does not mean that a stock is impaired, payout is a great way to check the pulse of a company's dividend yield.

Augustin Wai kk

Trouble is, markets are rarely too irrational. Markets, for the vast majority of cases are efficient. Falling share prices are indicative of a company that is failing.

@@MrMineHeads. eh, if all other pointers say otherwise its more likely just a market correcting an overestimation of a stock price

@@MrMineHeads. I would disagree. I mean, I would probably grant that they're long term efficient, but the frequency of irrational trader behavior is far too high for me to ever agree that markets are truly fundamentally efficient. It's a good enough approximation if you're diversified and long, but anyone putting down all their money on GME at highs during the Gamestop nonsense under the assumption that the market had efficiently determined an appropriate price would have been an idiot. That kind of activity pops up over and over and over again. Even at the level of market risk, we call them bubbles in that scenario. And popped bubbles don't mean a company is necessarily failing.

As you plan your retirement, be sure to talk with a financial advisor who can help you make the most of your retirement investing scheme.

@@harrisonjamie794 Very true, If you're looking for help building a retirement nest egg, you most likely want a certified financial planner with expertise in retirement planning. With the aid of a coach, I grew my reserve from $160k to almost $600k during this Red season.

@@DavidAntony-gq7id How can one find a verifiable financial Planner, I buy the idea of employing the services of a Financial Advisor because finding that balance between saving and living requires counsel.

@@harrisonjamie794 KRISTIN GAIL CUNNINGHAM. On the internet, that’s the financial advisor I use. She’s verified; you could also read more about her and then communicate with her. it’s always good to do your research before putting your money into any investment.

@@DavidAntony-gq7id Thank you so much! Found her webpage and left a message. Hopefully, she responds.

DRIP is tax free*

@@mmmbiscuits1211 It depends on the type of dividend, but most of them are not tax free in the US

I live in the USA. Dividends are tax free when you sign up for DRIP. If you just take the dividends they are taxed at 15.1% on the 1099-div IRS form. @@louisphily1

Actually, you’re probably better off doing the reverse. The bounce up is much higher w/ speculative companies. Theoretically, if you thought you could time the market, you’d shift to low beta (blue chips) during the good times to get a relatively mild fall. Then you’d tilt towards speculative stocks for the bounce up. The above said, you should almost certainly NOT try to time the market.

Timing the market is generally a dogshit strategy and you're pretty much always better putting money in every month unless you have perfect market information (you don't)

@Josh Landon Just look up the "Dividend Kings" and "Dividend Artistocrats" list. Pick stocks that you like, and build a portfolio.

@@joshlandon3327 HYLD 13.25% (rn I think?) An etf made up of mostly US stocks, so you get a high yield, low volatility, exposure to the US market on a TSX ticker, and if it's in your TFSA, no tax on those dividends

@@e.d.t432 covered calls are super risky investments. The dividends are paid out from the sale of call options, which is VERY different from a profitable paying out excess cash flow

Einstein was talking about compound interest in general, the quote doesn't specify money as you indicated. For example, gravity has compound interest effect for mass. The more mass you have, the stronger becomes your gravitational attraction, and so you accumulate more mass per unit of time. Like compound interest, this accelerates your accumulation in a passive fashion.

@@theamici Like a black hole that keeps eating matter around it?

A Human-Centerd Capitalism to combat Economic Automation. Its about time we ballout the American People. Americans know how to best spend their money. What if, put a $1000 DIVIDEDS a Month in every Americans hands. Democrat, Andrew Yang He Branded " Socialism " PERFECT

@@theamici are you saying someone miss quoted Einstein on the internet? No way

What einstrein didn't get was "stonks only go up. LOL" Check it out. There are stocks that reach a new all time high every few days.

Thanks Brandon!

You sound like a mom complementing their son. It is a great video though.

William Crosswhite lmao

@@Solid_Snake99 hahaha

@Erick Payan im gonna put my eggs in 20 baskets lol!

Put all your eggs in 10 baskets but not 100 baskets.

Not everyone own company just to want money back.

Exactly! The real goal is to eventually buy enough to get another share and use anything left to fund a new investment. Currently have 5 drips 2 of the buy multiple shares each month. Just bought 10 shares of Foot Locker on a 20% dip. Any stocks your looking into or that hold a big portion of your portfolio?

Imagine what would happen once you realite why the other stocks are called "growth stocks".

What do they focus on in France? Existentialism? Your president was a former banker.

@@rhythmandacoustics Money is very taboo in France.

@@Lozo39 do the gillet jaune people know what is going on right now economically?

@@rhythmandacoustics I don't think many people know because economics are not taught for everyone in high school.

@@Lozo39 insanity!

we live in a society

Don’t jinx it man, we want ppl to stay ignorant, can’t have everyone making smart financial decisions or the smart ppl would make less Broke bitches stay broke and complain, hustlers like us stay educating ourselves and making this money

@@Dankyjrthethird and you suffer from greed, we should wish for better for everyone. The world would make more money together if we could educate people better on things like this. Economic growth> a small percentage of population making alot of money

TheDankLord but more people in the market More cash flow in the market

Investments are very subjective. Taking the advice of someone without a FiNRA license is just plain foolish.

Thank you!

Totally agree, I am actually far from an advocate of dividend-only strategies. The video was more so a commentary on why some people go that route, but as with every strategy there are pros and cons!

The Plain Bagel got it. Excellent primer!

That’s so much work tho....

This comment gave me anxiety lol. No evidence to suggest renting properties gives higher yield than stocks. You’d have to own properties in every country in the world to have the diversification you would need to come close to competing with stocks with just real estate. No one knows enough of what they are doing to invest in start ups at just the right time to consistently make money that way. Those that make money off of start ups consistently are very rich, they have enough capital to get hit with many failures before stumbling on a winner. Basically if you have enough dice to roll, you’ll eventually get a six. That doesn’t work if you have 1 dice to roll. If you only have $100,000 to invest, investing it into 1 extremely risky investment like a start up is almost certainly going to lead to you losing your money. If you have $1 million to invest, you can invest in $1,000 start ups, increasing the probably they you’ll land on a winner. This is how VC companies make money. For the average person this is not a good way to invest money.

@@joelman1989 sadly, yes

Bryan Ho that’s basically what investing is though. If I invest $10 and the company grows by $2, I have $12. I’ve just made two dollars. If you invest $10, the company grows by $2, and you get $1 back as dividend which you then reinvest, you are at $12. We are at exactly the same place. This is a gross oversimplification but basically you should be focused on total returns not dividends. Dividends are an important part of any portfolio but to invest exclusively in stocks that pay them is to ignore an important part of the market for what basically amounts to accounting differences.

You do know that dividends is not extra money

Always diversify your portfolio to hedge your bets.

If no gain then why feel good when dividend come?

You can always choose companies that both appreciates and gives dividend . A number of things can happen 40-50 years from now. You could be incapacitated by health issues and not be able to sell your CG stocks for income. There could be an event which causes the share prices to crash and you may not get the Capital Gain that you wanted for your immediate expense when liquidating the stocks. Relying on dividends for continuous income stream will help minimize tinkering with your portfolio at the age of 70. Paying more taxes now is not the end of the world and you can always create accounting structures to minimize present tax . I don't see any point in owning stocks that does not provide regular dividends. It would be like buying a rental property and receiving no rental income but waiting on capital growth to for income 20-30 years from the time of purchase. Investing = The productive use of money to obtain regular income. Relying on CG only is speculation.

RIP Bitcoin

You know speculation in stocks really comes down to speculating how much profit the company earns in its lifetime right?

@@bibo2728 Theoretically it should. Well, kind of. You can also short-term speculate on how others will invest in it, and if you expect stock prices to go up because people have been fooled or fooled themselves, you win. Even if the company won't produce profits.

@@cheydinal5401 I agree here. I think most people nowadays speculate on others trading trends rather than long term prospects of the company i.e. $GME

@@bibo2728 The problem right now is that people don't know a single thing about most of the companies they invested in ... they only follow the herd and pray for a rising price. They don't know about balance sheet or about futur prospect for the company.

well said, I'm one of those who prefer security

@@jacklan4103 Haha yeah, they have to have the extra money, that's true.

Thank you!

Look who it is.

I like VNQ and VYM. I own a few individual stocks but ETFs allow me to sleep better at night.

@@venictos My favorites are VCIT and PSA. Russian telecom giant MBT is a great, relatively little known among American amateur investors, high div. yield company

Just be aware they are not qualified dividends if they are a REIT, so it counts as taxable income

Unless it's Frontier Communications (FTR). First stock I ever bought... and possibly the last. It was a telecom stock with a good dividend, and I was interested in their performance because they took over Internet service from Verizon in my region. The transition was rough, but after several months, everything was back to normal. So I figured as people realized their service wasn't that bad after all, they'd stop losing customers, Apparently first impressions count for a lot though, and the company didn't have the best reputation in the pre-fiber days, so people just irrationally hate them now. A lot of former Verizon customers are basically angry that that they got forced into a contract with Frontier against their will that they can't terminate without a fee, and tend to switch out of spite.

T and VZ are the way to go. CMCSA and DIS are looking good too.

Thank you that’s very kind!

Coffey ...and bagel?

TheAndrew0085 Some companies see a better return on cash payed directly to share holders than if they invested that in their business. Think about large corporations that have large market share in their industry. The marginal benefit of investing that cash directly into their company’s growth may not earn them an equivalent increase in revenue since they already own a large portion of the market so they pay it out to investors as an incentive to either reinvest it or hold their stock waiting for the next dividend payout. Investors have an incentive to hold the stock and that contributes to the company’s market value.

Id like to hear that long explanation on the latter part~ : )

there are only two ways to make money with stocks: dividends and buy-low-sell-high...not rocket surgery...the rest is just sales pushing.

@@gatorbuilt there's Also intraday . Buy my course

Man, I'd love to know more about rocket surgery.

Yes sir! Usually we see the stock's price fall the day the dividend is paid out, though I used a flat price for simplicity

So basically dividends is not extra money

Thanks for the kind comment! Theoretically they are approximately equal in impact, though tax implications for investors can influence the total return they get from each. I’ll try to expand further in my next Q&A :)

Your logic is stronger than most people on this thread my friend. Be proud of yourself. They are basically the same thing.

Investors choice is the difference

@@joelman1989 i mean if thats true the arent dividends a percentage of a stock you sell

Cause it's true. A company's worth is decided by the profits they are generating, amongst other things. The company can use that money to bid for more projects, buy machinery, acquire other companies etc. This capex helps them to generate even more revenue which is factored-in in the share price as future growth prospects. But when they are giving out the money to you, they are unable to do any of the above. In technical terms, Share price=Market Cap/No of shares Profit/no of shares=Earnings per share (EPS) EPS x the no. of shares you own should be the return you make (theoretically, if the company liquidated night now). Let's say you earned $5 per share but were paid $1 in dividend, the EPS now is 4. Now, if the share price was $50, it will now be $49. And since, market cap (valuation) is usually calculated as share price/earnings per share [P/e], the market would dropped its share price, if they themselves didn't.

quietthomas the “highest yields” :P

look for the annualized dividend payout which is the amount that can be expected to be payed out yearly per stock

per stock share*

Kathy Tran m1 finance!

Yeah M1 is pretty f**king good👌

Robinhood has DRIP now

My grandma bought me different Dividend stocks when i grew up just 3-10 shares for every birthday. I remember when i learned to read it was so cool to get those dividend letters in the mail. I felt so adult, recieving grown up mail every month (Windowed envelopes). now every dividend reminds me of grandma, that sneaky old lady.

Kevin Street thanks! Glad it was useful

Stock buybacks exist which can preserve your ownership of a company while providing you with an income

And they are more efficient at generating RoCE. Although, I suppose it's human psychology of wanting $100 today more than wanting $105 tomorrow. As in, it's a sureshot hundred dollars today vs who knows what might happen in the volatile, unpredictable, evil markets tomorrow. And a lack of understanding the workings of the economy, share market, businesses and conviction growth stocks.

Thank you!

The idea that ,If a stock price goes down after let’s say 10 years u will lose all the dividends that u collected all these years, is terrifying

Yes but most people aren’t discipline. You buy a stock and it immediately goes down. You get scared and sell. Then the stock goes up and you cry that the market is rigged when in reality stocks go up and down every second of the day

If you are a newbie wanting to learn, I advise you to check Ben Felix channel because his explanations are much more based on facts and not investing clichés that will provide you less risk adjusted returns.

You do know that dividends is not extra money it's actually your money being taken away from you and given back to you

Yeah I caught that too.

@@ProductionJunction1 only a REIT dividend is taxed at income level, qualified dividends are taxed as capital gains. . . REIT classed dividends are great for Roth IRA portfolios

Withholding tax on foreign dividends are a bitch when you are from a small nation an want those juicy US, Canadian, or German dividend stocks.

If you own a church that is incorporated, you are not legally required to report the income the church receives, and any passive income source the church receives (rents, royalties, dividends, interest, capital gains, etc.) is tax-free! For example, I invested $250k into a single REIT with an extremely low volatility (0.2 beta), a very high yield on cost (12% when I bought in, back in January of 2018), and a high distribution frequency (monthly dividend payouts). At a gross yield on cost of nearly 24%, thanks to me leveraging this stock on 2:1 margin with 3% interest on $250k borrowed, I'm still netting a yield on cost of 21% annually. I pay no taxes on the gains, since they are held in my church corporation's name, and I am not legally required to report the income said church earns from the dividend distributions. Since I have reinvested all the monthly dividend distributions every month since January 2018, about 17 months in so far, I have managed to compound my stock by 1.75% per month, which is approximately 23% on an annualized basis--or 34% since I've owned it. Since I'm not paying any taxes on the gains, and I've reinvested all the dividends via my church-held stock, I've netted at least 30% after approximately one and a half years, adjusting for inflation, since January 2018. Assuming I can keep up this level of performance, I will have multiplied my money by 8 times in 10 years (120 months). Of course, that is assuming I'm capable of maintaining that return, which probably isn't going to happen, unfortunately.

And your church is? I too am a parishioner of that religion you preach...$$$

That’s certainly a likely outcome of rising dividends; I just kept the price flat to keep the example simple