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My best dividend purchase was during the pandemic, when oil prices were very low. Paid 5.42 per share for some pipeline stock. Since then the price has increased, and more importantly the dividend increased with the higher oil and gas prices. The stock now pays 3.50 per share annually, so yes getting 64% returns annually. Currently my dividends are just over 1,000 per month.
I was buying at those prices too, I even buy them now at 15.25 a share still, it still has plenty of potential to grow. Just don’t go all in rn if you’re new to it because it could fall more over the years of course. Not FA
The "start investing at 20 or 30 or 40 years old" ship sailed long ago for me. Paying for a college education, a house and pissing money away on motorcycles and cars took prioriity. Early retirement is in the rearview mirror. But here I am, house and cars paid off and investment money in CD's right now. Trying to make up for lost time and gain enough passive income to retire without eating out of garbage cans. More years of work ahead. At least I like my job.
You start seeing the ability to maybe pay a power bill at first, then a car payment next, then pretty soon all your bills are being paid for as you grow your pile of ETF's and stocks. Oh... reinvest some of those dividends too.
Our dividend income could pay our monthly gym membership at the Y. But the first year we could have bought a pizza, one pizza ….for the whole year😂😂 our goal is to pay our HOA exclusively with dividends that mostly originated with the C*vid money. Of course all of it DRIP’s we never take out, we also never add.
You’re going too safe, you need to be a little more risky and get into covered call ETFs. I’m making around 500-600 a month with only 6500$ invested. Look at yieldmax funds… most pay above 50% monthly dividend..
Before the “internet age”, I loved how the company we invested in would send the investors nicely designed stock certificates to frame of put away which displayed your full name and the amount of shares one owned.
That's not all the changed, when they stopped sending you physical certificates, you stopped owning the stock. Now it's all controlled by a 3rd party and you're an "entitlement holder".
When you own a rental property and collect a rent check, your rental business became less valuable because you took the cash and paid yourself instead of reinvesting. I’m not sure why people see this differently with dividend stocks / ETF’s. I also don’t like individual stocks other than REIT’s. If I was retiring tomorrow, I’d go with SCHD and VYM for the ETF’s and probably 7-10 well researched REIT’s and re-evaluate the REIT’s once a year. If you only live on the dividend from a portfolio structured this way, you’d likely get a 4% yield or better and you’d never run out of income. You should also ensure that you live on less than you make from the investments or at least have flexible spending because you don’t want to be selling shares if dividends were cut in a bear market. (which is historically never close to as severe as a stock price crash.)
That's total bollocks matey! My rental business does NOT lose value after I take a rental payment. I own the propeties outright, they go up mostly in value every year. They absolutely don't lose value just because I get rental payments from them 😂
@@marcusparkus682 My point is that on paper your business would gain that money before being distributed to you. If your properties were publicly traded and rents were paid in dividends, the share price would decrease by the amount of the dividend after gaining by the amount of the rent check. When companies pay those dividends, they’re paying out profits instead of reinvesting them which is no different than you collecting your rent check instead of reinvesting it into other properties.
@@thebes118 Which adds validity to my point of dividends. Also Value has historically produced higher returns than both growth stocks and rental properties. Another approach which works well is the percentage of portfolio rule which is more similar to dividends but works for any all asset classes and pretty much guarantees you'll never run out of money.
I'm just at the point where I can pay a few bills with dividends/distributions if I need to. I usually reinvest all of them. It's a slow process but it's rewarding after time.
@@SnojetSteve The point is to get started. All snowballs start small. When it gets bigger, the dividends buy more stock that pays dividends. For example, once my dividends exceeded 100/month, the dividends were reinvested. Now the snowball is reinvesting just over 1,000/month for me. You may be having a hard time investing a couple hundered a month at the moment, but when the dividends start to exceed your contribution, the snowball becomes big enough to gain speed and grow faster on it's own. Hope to have dividend income to replace my job income when I retire. Retirement Social Security instead of being too little to live on, will just become pocket change in addition to my dividend income.
wow....this is such a great video. I learned a lot on stocks & ETFs. Thank you Jaspreet. You have like an encyclopedia on finance and investing. I learn so much from this channel.
So I can invest in VYM and be rewarded with a 2.7% yield but possibly lose 20% because it is the stock market OR buy a bank CD earning 5.3% with a 100% chance of keeping 100% of my principal. Wow, the stock market for income looks so appealing.
The problem with dividends is that these stocks are usually on a downward trajectory. So it makes no sense to buy lots of shares just to get dividends while losing money at the same time as the stock tanking to the bottom.
I got suckered into buying shares of a company that was paying a huge dividend of nearly 20%. Then they cancelled the dividend and the stock dropped like a rock. I lost my shirt because I missed the press release by a couple of days.
Invest in Monarchs or just invest in Dividend funds. Anyone can cherry pick problems but the solutions are easy. What if I lose my job and can’t by dividend stocks? See how I did that.
Dividends makes you Richer. I’ve been diligently working, saving and contributing towards early retirement and financial freedom, but since covid outbreak, the economy so far has caused my portfolio to underperform, do I keep contributing to my 401k or look at alternative sectors to meet my goals??
Agreed, having a good financial advisor is invaluable, my portfolio is well-matched for every season of the market and has just yielded 120% from early last year. I and my advisor are working on a 7 figure ballpark goal, tho this could take another year.
Depends: -Qualified dividends are not taxed if your W-2 income is below 47,025 (Single) or 94,050 (Married file joint). -Non-qualified dividends (covered calls, REITs, etc) are taxed as regular W-2 income. Only exception is growth in a tax advantaged account. Make slightly more than that number? Place money into a traditional 401k/IRA (not roth) to lower your W-2 income to desired amount (less than above threshold that applies). Disclaimer: I am NOT an attorney or tax advisor. Do not take above statements as financial advice. Do your due diligence and research/ask qualified/licensed persons.
What I said cover taxes for qualified dividends non qualified dividends are taxed at your ordinary tax rate. So it's taxed like employment income. Etfs mainly do not pay qualified dividends except for schd it's dividends are qualified.
Easy beginning evaluation, buisness has less debt than assets, more income coming in then income going out. Lol if at first glance a company is paying out more cash then it is bringing in theres probably a issue. Remember men lie woman lie numbers do not (they can be manipulated) but simple math (adding and subtraction) you should be fine. But once you do this youll realize that there arent many great companies to invest in. High yeilds id recommend not chasing. Understand the sector the company operates in your wanting to invest.
so did he just wink at me and tell me to blindly follow him, if that's the not the case what other beard should I follow? So confused.... Need Nigerians to help aid me with benefit advise any Nigerians?
If you work under the table I'd suggest that you open a roth ira so then atleast when you invest the money your investing will have already been taxed. And keep records of what you invest
Investing by buying shares is too risky, the market can go down because of unexpected events, and you loose a lot of money. The reality is different than theory, that's why I don't believe in what I hear 😊
Like I always say, Crypto is here to stay. The only thing that leaves is the people who don't manage their risks. Manage that or surely the market will manage it for you. But with the right strategies you will survive.
That’s why you diversify. The world could also end in nuclear war tomorrow. You don’t profit from fear. ETFs all day with some single stock sprinkled here and there.
