Fact is if you need cash flow now not just growth for future use investments that pay a dividend or yield is far more reliable than waiting for growth stocks and accumulation funds to grow value and then selling which is not as predictable. Should all be held in ISA and SIPP's.
Good video. As you know I am a dividend investor. My finances are capital comfortable income poor. I currently compound all dividends. I balance the portfolio on sector and risk. Overall yielding over 7% I have owned L&G for so long the yield on my investment is about 60%
Stumbled across this video searching for advice on dividends. I’m fairly new to the world of investing, and this video has been so insightful, thank you! Looking forward to learning more from you!
This was a great video, I’m new to investing and I was a little confused on the tax with dividends. It’s good to know that I don’t have to because I use an ISA 😅
Great video as always, I'm noticing how you hardly ever have anything static in your videos and keep objects moving around to some extent. I guess this helps with retention. I think I'll implement this going forward :)
Incredible how you Tony’s videos are exactly what I need to know and am thinking about. Keep it up, I’m learning lots. I think another difficult year lies ahead but I see blue skies in 2024…. Maybe time to invest heavy then?
To keep US withholding tax to a minimum make sure to sign a W8 BEN for for every investing platform you use. Otherwise you'll pay 30% not the 15% mentioned.
All depends what you're looking for but I do like the low cost dividend ETFs as the companies who they hold tend to hold strong in the long term. But if you don't need the dividend income, and just want grow wealth in the long term it might not beat the wider market, or something like the S&P 500
I am currently procrastinating about selling the few stocks I own and putting it all in my recently opened stocks and shares ISA or just leaving them be since my projected annual dividends are about £200-250. Is there more benefit selling up (I will have paid back all costs with dividends already received plus capital gains) and reinvesting or just leaving them be?
Up to you Lance! Personally for me I'm going to do everything I can to get my investments inside an ISA because that way the money is now always protected until i decide to withdraw it. You can always buy the same stocks inside an ISA too - personally i don't get hung up on gains/ losses if I can just re-buy them again.
The dividend allowance if you have a general investment account and an isa is it just counting dividends held outside an isa for the dividend allowance. I know dividends in an isa are not taxed but if you get more than the allowance in your isa is it tax straight away on any dividends in the general account. Hope that makes sense.
Hi, just discovered your channel and some great useful content! I have a few questions if you’d be so kind to answer (or anyone else in the comment section) I have some money invested in crypto and collectibles and I’m wanting to get into some stocks etc. Do you think now would be a good time to get into it and what would be the best platform for me to do that? (Example trading 212) Thanks in advance😊
Hi Jack. Always a good time to start if you’re a long term investor. I’ve done lots of videos on my channel about low cost index funds which is my personal view on where to start. Trading 212 is a great platform too, make the most of your ISA!
@@TobyNewbatt I’m going check out some of your other videos and do some research before any further action. Subbed and look forward to more content from you
Also, remember in a downturn blue chip dividend payers usually don't drop as much as the market. Plus you also the dividend. I for one like the idea of not drawing on the principle.
Yep just US stocks, any folks outside of the US have to pay it, some more than others, 12 have an agreement reducing ours from 30% to 15%. Doesn't apply to UK stocks :)
Re UK dividend tax, the senior figures in the Labour Party (which looks likely to form the next government) have indicated that they intend to equalise tax rates for earned and unearned income so a 20% tax rate (if you are basic rate tax payer) is on the horizon (more than double the current rate).
Regarding withholding tax, you don't get charged when using eToro but they don't have an ISA product. It would be good to have this if you have a portfolio of US dividend stocks but you will need to earn below the £2k threshold to avoid tax.
just be careful on etoro, you're often buying CFDs which is not the same as owning the stock which is how they get around the witholding tax. Hence why there is no ISA product, and all trading done in USD and how they make a fortune from people while claiming to be commission free.
@@St0ffel It's all about fees and charges. If you hold the CFD version for a long period of time you're basically giving money as you are holding a 'contract' not the asset. See the fine print on etoros website on fees - this is where they make all their money as people trade in and out. Plus, add that on to the fact that you can't hold that in an ISA, and then you have all the tax to worry about. CFDs are tools for gambling and losing money.
@@TobyNewbatt, there are no fees buying stocks when using leverage as it becomes a CFD. I've checked this on my statement as well. When buying stocks on no leverage, you are buying the underlying asset. I will keep a close eye on this but for me it makes sense to move all my US stocks to eToro to avoid withholding tax (provided I'm below the dividend earning threshold as well). I will however be subject to the currency fluctuations when money leaves the platform.
@@St0ffel This is from their own website mate: "CFD positions that stay open overnight incur a small fee, relative to the value of the position. It is essentially an interest payment to cover the cost of the leverage that you use overnight. Weekend fees are overnight fees that are charged for keeping positions open over the weekend. Therefore, a weekend fee is triple the overnight fee. Weekend fees are charged either on Wednesday or Friday, depending on the asset." You also have the spread cost as well. Etoro make a fortune from people, search their latest financial statements.
It always depends on your own situation what you want to do. But picking stocks is overwhelmingly more difficult to outperform the market over the long run and takes a huge amount of time to do well, and in my view unless you really love it, you will be much better off focussing on increasing your income.
I've made this comment before on one of your older videos but I can't get past the need to consider how much of a company I own. Does it matter if the assets of the company decreases everytime it pays dividends. Say Apple paid 10% dividends. If you hold a 1000 shares that's a drop in the ocean. Who cares how much of Apple i own before and after dividend i own as long as it's sustainable.
Yep it's all about sustainability with dividends as well as long term capital growth. Dividends and share buy backs are just different ways of returning capital to shareholders. Ideally we want both dividends and growth!
Thanks for another awesome vid. I love dividend stocks because i believe that companies that pay dividends tend to be less volatile. I also do agree with the dividend snowball theory. Dividend paying companies still have growth potential. Not as much as tech or small companies. The ftse global equity income fund is one of my favourite holdings due to dividends and the solid companies
