IMPORTANT ANNOUNCEMENTS: Thanks for watching! Please don't forget to "like" and "subscribe". Please let me know in the comments below what you think about my latest portfolio update. HELPFUL RESOURCES: Here's my video from December, 2023 with my MASSIVE Altria (MO) buy order: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-Omn0RBY7qlA.htmlsi=whVZ1aZi_mIQ8kqW Here's my old school, OG, PPC Ian video featuring my thoughts on brokerage selection: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-qcuXZauMwZk.htmlsi=ToNMxTrBgd70LLtj Here's a recent video highlighting my decision to add to British American (BTI) in a major way: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-ojU8xk8vPG0.htmlsi=GKQNHheAc4CBW1Jv About a year back, I had to sell a good chunk of my portfolio, as discussed in today's video. Here’s a video about that experience: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-V6VQpBnEW2o.htmlsi=_98NtUGzafaH1X5D CHECK OUT MY PATREON: I'm sharing exclusive bonus content over on Patreon! I offer two tiers: Backyard Patreon and Corner Patreon. My Backyard Patrons see my stock trades, each accompanied by a blog post write-up. They also have access to 50 historical Patreon-exclusive videos. In addition to all Backyard Patron perks, my Corner Patrons also have access to my complete dividend stock portfolio (% allocation to each position) AND my complete bond portfolio (% allocation to each position). They additionally enjoy exclusive portfolio update videos, Corner Patreon virtual meet-ups, and more. Head on over to Patreon to join today: www.patreon.com/ppcian PPC IAN INSTAGRAM: I'm sharing some great content over on Instagram. Check out my Instagram stories and reels. I'm @ianlopuch: instagram.com/ianlopuch/ PPC IAN EMAIL LIST: Join my email list today for helpful updates, and a look at some of my historical dividend stock portfolios: www.ppcian.com/my-complete-dividend-stock-portfolio/ PPC IAN TWITTER: I'm always sharing fun updates on Twitter. Here's my dividend investing Twitter (I'm @ianlopuch): twitter.com/ianlopuch COOL DIVIDEND INVESTING MERCH: I offer some really amazing dividend investing merch: teeshirts, hoodies, mugs, and more! The designs are super stylish and on-point for the dividend stock investing community. Each purchase supports my RU-vid channel: teespring.com/stores/ppcian Thanks so much, everyone, for your support. I hope you enjoy the video today! (Disclosure and Disclaimer: I'm long MO and BTI. Please see video description for all disclosures and disclaimers.)
Something I've realized over the years that I don't think I really got from you is the tax implications of your retirement income coming from dividends, which are taxed at a much lower rate, as opposed to selling down growth that could see you losing a significant portion of your wealth in taxes. Would love to see you do a deep dive on that. Bonus points for if you include us in Canada in that too
The only stock I own across 2 accounts is PEP. Just because I was so excited about owning it 12 years ago, when I ran out of cash in one account, I started buying it in another😅 I hope you and your family are enjoying a relaxing Summer!
Many thanks for sharing, my friend! Wishing you a fabulous summer too!!! (I'm honestly very excited about PEP these days, and have been thinking about adding more. It's one of my favorites.) (Disc: I'm long PEP)
Great video, Ian! I got my single largest dividend payment courtesy of $MO myself. I've been sitting on unrealized losses at a cost basis of $44 for a very long time, so it's nice to see my position turn green. However, I don't mind if it trades sideways for a while so I can DRIP more shares for even more income! Investing in $MO is such a thug life move 🤑😆. Congrats!
Thanks for your very kind words! I'm not always so lucky, and have faced setbacks for sure, but overall I do feel like I'm headed in the right direction.
This reminds of some of your early, high level investment strategy videos. I love the idea of multiple accounts for the reasons you outlined. We need mental boxes like that.
I love the information and insight that you share. I don't mimic your strategies, but I don't understand why you would need separate brokerage accounts for covered calls. I sell covered calls on stocks, but I only sell what I am willing to be called away.
I own the same stocks in multiple accounts but slightly different: I have my 401k and then my personal stock account My 401k is much more conservative, but some stocks are in both. The personal account is for what you said: if I ever need cash for some emergency or a good opportunity comes up, I can sellshares /withdraw divdends as needed. That way I NEVER, EVER, NEEEEEEEEVER!!!! take any money out of my 401k for any reason whatsoever. The 401k is the "forever, cant touch" account Also thanks for that ABBV stock tip a few years ago, it's rolling nicely!
I like the account segmentation you talk about. I have been doing something similar for years. The account you talk about for big purchases is simply titled "life stuff" and is reserved for things like cars and college tuition. And I love M1 for my forever stocks right now. The dynamic rebalancing based on target allocation is a feature I love. Great video
BTI is taxed as a qualified dividend, to my knowledge. It's based in UK, and there is a tax treaty between US and UK, so no UK dividend withholding. To my knowledge, it functions just like qualified US dividend, although there are some nominal ADR fees that get taken out. (Disc: I'm long BTI)
Thanks for all the content Ian. I started dividend investing about 4 years ago after watching some of your videos. I love the content and keep up the great work.
Ian - is SCHD a buy and hold forever ETF? In my humble opinion I think it is! I have it as the position that I am doing around. It’s like the anchor of my portfolio to give me so much diversity and passive management. Would love to know your opinion!
SCHD is very core and buy-and-hold-forever for me! I'm trying to build it to a top 5 position, by size, over the coming year(s). Wishing you. all the greatest!!! (Disc: i'm long SCHD)
If everyone put their trades or investments in public there would be so many that don’t age well. I almost bought MO but I did pick up BTI a while back. I personally expect dividend type of stocks are going to continue going up.
i love covered calls!!! do them all the time... creates a lot of CF and income. the 'unlimited losses' are theoretical losses. you can set up your calls so that, even in the worst case scenario, you still profit. plus, 90% of calls i write expire worthless. also, i'm not concerned with the 'opportunity cost' of shares being called away and being forced to sell them for what's usually only a slight discount. (esp if you use probabilities when you make these decisions). my strategy is to just take that cashflow and put it right back into writing puts on the same stock, for more CF!!! ride that wheel baby let it keep on rolling! covered calls: even when you lose, you win!!
Hi PPCIAN! Maybe you don't see this comment but if you do I would like to propose a VIDEO IDEA for you. Many of us that follow you live in Europe, which means that we can't invest in many of the ETFs that you have in the US, like SPY, QQQ, SCHD etc... This is becuase of EU regulations. I would appreciate if you could make a video about Europeian alternatives to these highly reqested ETFs.
Hey ian thanks for the video! Been here a long time thanks for your content. Just wanted to add a use case for 2 or multiple brokerage accounts and that is taxes. In Europe or at least in Germany we pay tax on the first tranches (FIFO). By transferring stocks from one account to another account individuals may optimize their taxes by selling the highest cost tranches first, simply my transferring the older tranches to the other account. Disclaimer: No financial advice, just my own thoughts.
I have owned both MO and BTI. My BTI position was down 15%,so I sold it for the tax loss. Put the proceeds in MO for 31 days, then traded back into BTI. This allowed me to keep full exposure to the sin stock, get the tax loss and earn extra MO and BTI dividends because I timed the swaps where I ended up holding through the ex-dividend dates.
If dividends didn't exist i would not be investing in the stock market. And what the heck is capital appreciation?. Can someone explain? And how is that gonna change my life.
Ha ha, I told my wife look he is using the card board again even before you mentioned it. She says you should buy a board that you can wipe clean each time.
Many thanks for being here since those cardboard days!!! I appreciate it!!! Your wife is right, I do need to improve my setup at some point and just get a whiteboard! Wishing you a nice weekend.
In the US, if held in a taxable (non-retirement) account, it's generally taxed as long-term capital gains (for qualified dividends). The rates (as of now) are very favorable. Married filing jointly pay 0% on qualified dividends if income is
Normalerweise ist es entweder 15 oder 20% in den USA (es hangt davon wie viel Geld man verdient ab) . Unser Steuern sind aber ganz kompliziert, also kann anders sein. Für Altria soll es für Ian so sein, aber "REITs, Bonds, und ich glaube MLPs" sind anders behandelt. They're treated as "normal income," and are taxed at the same rate as your "earned income." I didn't feel like looking up the translation for that last part, but it was fun to use a little German, that I rarely get the chance to use anymore. Hoeffentlich hilft das.
@@d3rsch0rsch Danke. Ich studierte Deutsch als Nebenfach und habe ein Praktikum in Deutschland auch gemacht. Wenn ich selbst sagen können, war mein Deutsch fruher ganz gut, aber je langer denn ich das nicht nutze, desto schlimmer ist es leider geworden. Ich soll bald eine besuch wieder plannen.
What if someone bought MO at $70+? This wouldnt work out so well for them. With a massive loss. With stocks, even divided ones, its all about when and what price you buy in.
Very true. Understanding the value and fundamentals in finding a good entry point is key. Thankfully, I have been consistently lucky with MO. My best purchase price was $15.99. Of course, I'm not always so good. I have overpaid my fair share of times. It's all about getting better over the years, and consistently improving. And, luck goes a long way. A big part of me also likes the lower headache strategy of just dollar cost averaging into SCHD. (Disc: I'm long MO and SCHD)
Buying single stocks involves risk. And must be included in a DIVERSIFIED Portfolio. Altria is a stock with bond-like quality. Do not expect real longterm growth in stock price
If you bought at 70 the realized you were trapped, then you should have been DCA'ing all through the mid 30's -- With that done, it should have been simple to DCA into a profitable position now with the current values, especially with the added dividends over the last 7 years (because you would have been holding that long to have bought in at 70) -- DCA'd right you could have gotten out in 2022 above the mid 50s or stayed in for the dividends if you DCA'd to a point you felt secure.
A concern about owning the same stock in 2 different accounts is wash sales for capital gains taxes. Brokers will keep track of wash sales for you if the holding is just in that account but if you own shares in 2 different accounts you will have to manage wash sale calculations on your own. Another thing to consider is if you held an IRA in just one account your broker can tell you how much more in contributions you can do in that year. But if its in 2 accounts you broker in account one will not be aware that you are also contributing to another IRA. Again here you would have to keep track on your own.
Bingo! That is my conclusion. I honestly think the "sin stocks" are less sinful than many other industries, even ones that people think are completely "ethical". It's a weird world that we live in. (Disc: I'm long the sin stocks)
Another great video. I owned MO for several years. I had even averaged down a few times. Never was a large holding in the portfolio, and never turned positive from an average cost standpoint. Though the years of dividends compensated for the capital loss to the point where I nearly broke even. Because I don’t have much in contribution room and I could not see myself growing the position substantially in the future I decided to sell this year. The proceeds went to SCHD and PEP - larger investments in the portfolio.
Many thanks for sharing your real-world experience! And, thank you for being here all these years on the channel. I cannot argue that SCHD and PEP are of "higher quality". Those are two stocks I absolutely love. Recently, PEP had climbed to my largest position, but now it's backed off a bit (which makes me want to add even more). (Disc: I'm long MO, SCHD, and PEP)
I do prefer paying tax on dividends vs. on ordinary income, however. (Long term cap gains rate is favorable for those looking to live off passive income.)
