Great video again! I'm celebrating a $600K Dividend portfolio today. I went all in with about $150,000. Have invested much time and money into this. I am also with the right Investment Advisor, who handles my portfolio and executes my trades. Now I have steady dividend income and time for my family as well❤✅
Amazing! I have Liquid $150K to put into stocks, but I want to ensure good profits & safety. With tons of Advisors now, how did you find the right Investment Advisory?
Great video, but I feel like there a video need for the retirement ready person where I don’t feel the 1.2% will cut it. You got the New Tech portfolio, how about the Ready To Retire portfolio and video series.
Growth stocks can be the ready to retire potfolio. Buffett doesn't pay a dividend and says Shareholders can sell a portion of their portfolio in lieu if a dividend. That way they are taxed only once, at the Shareholder level. 💁
Growth stocks are inherently volatile, so you won't be sleeping very well at night. If you haven't figured out asset class allocation by the time you retire, you're going to be hurting. We've covered this topic extensively over the years. The simplest method would be to use a three ETF portfolio and sell 4% a year until you hit the bucket ;) Covered here: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1LYR3hD8VFA.html Very few retirees are just sitting there with millions in cash twiddling their thumbs wondering what to do, so not sure "Ready to Retire" might make for a good video series.
@ivessels This is a great topic to raise on our Discord server though, or if you're a paying subscriber, fire us an email and we'll try and understand your situation and put together some content to address your dilemma and other will benefit as well :) Joe P.
I appreciate the content, however the calculations here and in other places that ignores taxes on dividends gives an inflated return expectation. Maybe pick something like 25% (15% capital gains plus around 10% for high income tax state) as a figure to plug in. I think most people in US will be in the range of 15% - 30%, so 25% seems like is a decent number to use. It is at least closer to reality than 0%.
Taxing all those gains is a good problem to have ;) Dividend taxation isn't nearly as big a problem as investors tend to think it is. We covered it here: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-7SEFiAvdKmA.html
@@Nanalyze “A good problem to have” and “isn’t nearly as big a problem” statements are not reasons to ignore taxes in calculating returns in my opinion. A 25% yearly tax on dividends would mean reinvestment of dividends and would be 75%, not 100%, as 25% will need to be used to pay taxes.
@@dwpardee You cannot just say "subtract 25%" and call it good. It's far more nuanced than that. Every single investor will have a different situation. There is no "one size fits all" adjustment. This video talks about that: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-7SEFiAvdKmA.html
@@Nanalyze Using 0% tax in calculations is also a one size fits all approach. I think using a 25% tax would be closer to what most investors experience, or at least closer to worst case, and more in line with the conservative approach to investing analysis presented by your company.
@@dwpardee We'll always use what we think is most appropriate approach based on our research along with considering feasibility and flexibility. Thank you for the feedback!
If the plan is to reinvest the dividend, wouldn’t you be better off investing in a business that doesn’t pay one to begin with and then uses that cash to drive growth instead? It would be far more efficient from a tax prospective standpoint and would accelerate compounding.
There are benefits to investing in both growth and value stocks. We covered dividend taxation here: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-7SEFiAvdKmA.html
Hello thank you for your content. How do you rate the payout ratio of 53% , are they going to be able to increse dividends as payoutratio increases over time?
You're most welcome! The average champion in our universe has a payout ratio of around 62% as a benchmark. There are a lot of moving parts for any dividend champion that need to be considered. We developed our entire strategy around that question -> which dividend growth stocks are most likely to increase dividends over time?
Discounting high yields is a bad idea, as well. You take $MO, Altria, 9% yield. I assume a 4% dividend CAGR. Like you said, it's a company you just own and assume they get it done, so I haven't checked in a while. What most people don't think about is with that DRIP turned on, your personal dividend CAGR is going to be a lot higher than 4%, something closer to 13%. That's CAGR on an already high yield. That compounds even more when considering your dividend buys are usually done at suppressed rates compared to fundamentals, as is the case with $MO. What's the analysis on something like a .8% yield and an 18% dividend CAGR with DRIP turned on? Say a solid company like $V, Visa. Obviously, income now is going to have a higher premium than income in the future in an efficient market, but who says the market is efficient. I feel like ESG and other societal factors create a lot of opportunities for alpha.
Probably one of the biggest mistakes we see investors make is paying too too much attention to yield. If a high yield is not consistently predictable, it is useless for compounding over time.
@Nanalyze True. A high yield is usually the sign of high short-term risk and a precursor to a dividend cut, but not always. $MO has been on the cusp of a dividend cut for 70 years! $ET and other MLPs are other examples of unwarranted depressed valuations. They offer great tax efficiency in deferred dividend taxes as well. I'll check that video you linked out right now.
@@sociolocomtsac Hardly an "ad." It's a lesson on the importance of total return, among other things. Learn something and/or contribute to the conversation please.
Because Dividend Kings are no "secret". The secret is out. Buffett's Coke Equity Bond was compounding oer share PreTax Income at 15% and yielded 10% PreTax Income per share. $ITW is 8% and 6% roughly.
