I’m very new to this, 22 and I started a few months ago. I hope to achieve your levels of success but I was wondering at what rate did you invest in order to achieve those dividends? Do you have a rough figure in mind? It of course increased through the years as you reinvested those dividends but I am trying to understand how much gets me there. Currently I’m set up to do £600/month but I feel I could possibly contribute more. Would love to hear your opinion on this - thank you!
Thanks for watching and your comment. When I started my plan was to invest between £500 to £1000 each month. I had paid off the mortgage before starting so this meant I could concentrate fully on investing without other financial distractions. Over the years wages do tend to rise significantly so over the full 15 years my average of new money going in from wages is 1.4k per month.
Thanks for the clarification, really enjoy watching your videos they are quite motivating for a young investor! Yes, it’s as you said over the years throughout my career I hopefully intend to progress to higher paying roles which can allow me to contribute more. Thanks once again and enjoy the rest of your weekend!
@@mohima8247 Yep, you're quite young, so starting with that monthly amount and assuming you bump it up for average inflation of 2-3%, it'd take 15-20 years to compound to the size of CI's current pot. It seems like a long wait, but in practice the years just fly by. :) It will take less time if the markets are favourable and longer if they are bad or so so over the years. Also worth bearing in mind that the relationship between the savings rate and compounding return is not linear. That is - doubling your savings rate on its own does not halve the time it'll take you to reach your goal. However, by the same token, the more money you can stash away earlier in your life the more significant the impact down the line. In terms of % of income, this does vary significantly with income, expenses and desired outcome, and there's a number of budgeting and cashflow modelling tools for retirement available. But if you start with 20% of your after tax income, if you can, and head towards 50% savings rate without hurting your lifestyle and opportunities, you won't be disappointed. Don't forget that if you're employed and enrolled into your work's pension scheme, then that helps too! :)
Got my first dividend this week after starting watching this channel! A paltry 23 pence but it’s all going back into the pot! Thanks for the inspiration !
My first dividend was 54p from Unilever back in August last year. The first step on the long journey. Soon enough, the pennies become pounds and then the pounds become notes... Enjoy the journey
The main thing is that you started - my first dividend was 29p, it’s now a few hundred per month. Keep going, it’s surprising how quickly it gets moving.
I lost interest in shares after I got burnt 2009. Your videos, coupled with a friend, convinced me to start afresh. I got 25pence this month. Thank you.
Yeah that was a tough time and I remember it well, especially when I invested in the UK banks just before they got effectively part nationalised. Scary times. All the best on your new investing journey.
Just started with trading212 and dividend investing this month after watching your videos! looking forward to seeing how this goes and receiving that first cup of tea, paid for by the companies I've been paying all this time!
Thanks. Such an inspiration. I got a total of 6.41 of dividend payouts after 2 months of investing. Not bad I guess for a beginner. Invested on US, UK and some EU stocks that has growth and pays good dividends. I also have bonds that pays decent dividends. I am a great fan of yours! 👏
@@TheCompoundingInvestorthanks Mister. Keep on inspiring. I’m still experimenting some ETFs. Try looking into wisdom trees ETFs, they have growth and yield is higher than Vanguards. Just a bit pricey.
You can actually do something very similar to VWRL by buying a vanguard developed world (VHVG) and emerging markets (VFEG)😅 etfs at a ratio of 9:1. The big advantage of this is the developed world etf has significantly lower fees (0.12) and the emerging markets etf has the same 0.22 fees - this works out to a combined fees of about 0.13. It's not massive. About a £150 saving over 10 years for a 10k portfolio but it's better than a poke in the eye with a sharp stick!
Nice report! I live in the USA and started dividend investing in March 2018. First June received $240.48. This past month I received $3469.48. Still keep investing new money every month! It is euphoric to watch dividend money rolling in every week.
3 years ago I decided that my investment strategy would be for dividends. unfortunately I discovered that in my country(portugal), with the fees of the brokers I use, with the price of transfers and exchange rates, the profit from dividends disappears. Then I still have to declare everything in individual income tax. I invest mainly in dollars and use USA. I can say that since I saw your first video, this has become one of my favorite investment channels. in the last video it seems like I realized that your dividends are 100% profit? no taxes? Is it like that in the UK? Thank you for being so brilliant in your videos
Thanks so much. Yes in the UK we are very lucky in being able to invest 20k of new money each year into a stocks and shares ISA. All capital gains when we sell and also dividends are tax free.
It's been 1 year since I took the plunge and began investing a set amount of money each month. I've grown the amount I invest by triple by making better choices with my spare cash. A large part of this is down to you my friend.. Onwards and upwards.
BA, BBOX, TRIG, VHYL, VFEM and scraps from the US tech companies (although they have gone up massively this year) a good month….even the premium bonds came in with a ton.
Great to see how far you have progressed and it is excellent news. I was wondering and you don't have to answer but is there a amount you want to get to then retire (from work and investing)? My ISA dividend account is to cover the bills, subscriptions etc., my pension to cover our life experiences (holidays etc), wife's pension to pay for charity payments etc. and her ISA account will be to buy cars etc.
Thanks for watching and commenting. There is no real figure in mind as I currently enjoy the day job which is not just about money as it gives me a sense of purpose and achievement. If that changes however then passive income does give you the option of going part time or giving up some work responsibilities. It's good to have options.
Well done on your portfolio. I also love to see those dividends drop into the isa. Im definitely considering selling one of my companies and putting it into GSK.
Well done. It must be very rewarding seeing years of saving and investing paying off with some hefty dividends! Have you got any thoughts on REIT's? I've recently invested in a couple as they pay a decent dividend and I'm hoping we have hit peak interest rate and as interest rates fall the share prices will hopefully go up.
Thanks. REITS are not a sector I know a lot about i'm afraid. There was a time way back when I considered SEGRO and Big Yellow Group but never pulled the trigger.
Thanks, its a long story with Persimmon. Originally bought them in around 2010 or so after the financial crisis when property was on the recovery again. I bought them as they were the biggest housebuilder in the UK. The price was around £6 and I sold at £8 feeling quite pleased but then to my horror they carried on going to over £30! I said the next time they crash I'll buy again but this time hold for the long term. They went below £10 last year but I didn't get round to buying. I've just put £500 in at the moment just to force me to track them. You could say I've got unfinished business with Persimmon lol.
@@TheCompoundingInvestor thanks for getting back to me! I love watching your videos every month and tend love to rewatch your last years video of the same month before the new one come out. For me as I use trading212 I either put a stock into a watchlist or buy exactly 1 share of them. Then after a while i would buy 9 more or 99 more shares as I have a love for round share numbers :D i guess its just how human mind works since it makes calculating dividends easier. Over time i had to break that habbit though since the amounts after 100 get usually quite expensive for me so i just do 200 or 300 and so on. But persimmon is just at 1 share for me at the moment. Im still thinking it over as it is one of the more volatile ones. Another stock id like to know your opinion on is burberry. In the video you showed that it had one of the highest dividends in ftse. Are you also tracking it? Waiting for it to bottom out or you generally avoid stocks that are more volatile?
Thanks Thomas. March, June, Sep and Dec are generally pretty good months as I have lots of the quarterly payers and those months are when lots of them pay out
Love the motivating videos! However I came across an error in your Year To Date Premium Bonds Prizes. Your Expected (£925) and Actual (£675) are exactly the same as what you presented in last month's video. So the Actual YTD figure should be £825. Can you please clarify what the Expected YTD figure should be? Thanks again for sharing your monthly dividend progress.
Thanks, I completely missed that. I calculated the figures and created the new graph but obviously used the previous one by mistake. Well spotted. The figures should be expected £1,100 and actual is now £825 as you mentioned. Apologies.
Started in February and have £2.19 in dividends to date :-) admittedly I am investing small amounts but happy with that so far. Onwards an upwards. Thanks for your videos they are very motivating, an example is I've cut down on coffees when out an about as I am now thinking oh that £2.80 for a coffee I can bring in a flask is about £20/month worth of shares I could be investing haha.
Thanks for the feedback. When I started investing I noticed also that it helped me cut back on my spending in much the same way as you describe. All the best on your journey. It can get quite addictive when the dividends roll in.
I’ve been fortunate to have found your channel only recently so have enjoyed catching up on all your previous content! I’ve put your knowledge to good use tinkering with my own portfolio so thank you and keep up the great work!
i just started 4 months ago at the age of 19, i currently have 6K invested almost 90% of my wages as im living at home (just about to finish my apprenticeship) and roughly 2% down due to NG and LGEN dropping recently, i managed to average down alot 😁
Plenty of time on your side. I did a similar thing as a teenager and invested for around 10 years in mainly UK companies before selling everything to put down a deposit on a house. I then threw everything at the mortgage each month until it was gone. Then in 2009 I started investing again as I was debt free.
@@TheCompoundingInvestor that sounds very similar to my plan :) did you ever consider keeping your investments and paying the mortgage with the dividends? im not sure what the best method would be
@beluga.7761 At the time you could only borrow around 3 times your salary to buy a house so I needed every penny I could find to get a mortgage in the first place. Only the Nationwide would give me a mortgage as I wasn’t earning much. All the shares had to be sold. I had no other option
@@TheCompoundingInvestor ok fair enough 👌 i think what you did may have been the best idea anyway just for piece of mind knowing your house is paid for
Just read through some of the comments below here and couple of thoughts: 1/ be careful with big pharma 9becaue of law suits and patent run-off) and GSK is a serial underperformer - the winners have been Novo and Lilly on the back of obesity drugs; it's likely to stay that way for now 2/ a cheap way to tap US markets for tech is to use Interactive Brokers - $1 in and $1 out - doesn't get much cheaper than that and they are excellent 3/ be careful with any share that might be subject to political interference, especially with a possible Labour government (that includes SSE and NG) and 4/ LGEN have a new CEO recently and based on cash flows the dividend may be re-based, so be careful topping up at recent lows
I use Barclays for my main portfolio but they are very expensive. For those first starting out and with smaller portfolios then Trading 212 is very popular and worth considering.
@@TheCompoundingInvestor thank you for your reply I am relatively new …so will start with trading 212 , from your point of view is it worth learning scalping ? And then allocating a % off the profits towards dividend stocks To hold ? Or should I buy dividend stocks and learn scalping with the dividends?
With scalping do you mean short term trading? That to me is speculating rather than investing. I’ve tried that in the past and it’s not been successful. These days I simply reinvest the dividends. I stay away from short term trading.
@@TheCompoundingInvestor agin thank you for your input I think all go trading 212 then and invest into s&p500 and reinvest the dividends and hopefully when time for reiterate comes .i can live out somewhere sunny ..preferably tax free 😉
I did mention it in the video. I pay zero tax on my dividends. All investments inside a stocks and shares ISA do not incur dividend or capital gains tax
Thanks so much Chris. Both give global diversification. VHYL is higher dividends so that goes into the ISA. VWRL is low dividend so that goes outside the ISA
I like to choose where the dividends go but yes many people prefer an accumulating one. I've done a quick search for you. There is a Vanguard ETF called VUKG which looks like it is an accumulating FTSE 100 ETF. Might be worth having a look.
It is a mind blowing amount of passive income average of £1,340 per month which you have achieved in 15 years of hard savings. I wonder what would have been the effect on your portfolio if it was not in an ISA wrapper after 15 years ?. It would also be interesting but a big job if you had invested your money into a cash isa what the comparison would work out to be compared to your stocks and shares ISA. This month did well over 1k, but as stated before i now am on an average of £1,000 a month per year, and for me it is mind blowing sum of money for doing nothing, but pressing a few button on a computer. When compared to 40 years of work, passive income is a better route to choose, i wish i could have started earlier and have been more focused instead of chasing growth which came but can crash on one press release.
Thanks Michael. Yeah thank goodness for ISAs. Not sure I’d be as motivated to do this without an ISA. I agree with your comment on growth stocks, they are wonderful in hindsight and there is a lot of survivorship bias at play. We never hear about the 60% which go bust within 10 years of starting. I’m happy to invest in the boring old giants which plod along churning out cash.
I'd love to see your entire portfolio and the amount you have invested. To get the dividends you're getting you must have 1/2 mil squirrelled away over 15 years which is around 30k invested every year. How on earth can average Joe manage that.
The value of the portfolio today is not the amount I invested of course because shares rise in value over time in a similar way to house prices. I’ve only ever had a very ordinary full time job as a school teacher, so I’m not a high earner but I made sure all my debts were paid off before starting this portfolio and I live very frugally. I do full portfolio updates once every quarter if you want the full breakdown of what I’ve put in and the current value. You can see these if you visit my channel. I’m doing another one in later in July. To see my early journey of how I paid off my debts before starting this portfolio then you can click on the link below.. Totally Debt Free With An Ordinary Job! ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-s-YpNhVsGOk.html
Will look forward to that video thank you. My fingers are crossed that in 15 years I can be where you are today. And I wish I'd started 15 years ago. Love the content.@@TheCompoundingInvestor
@timcoupland5824 Thanks and good luck on your journey. I think unless we are Warren Buffett we all wish we had started earlier. I believe he started compounding aged 11!
What are your thoughts on National Grid? It still hasn’t recovered and I am reading this as a good time to build my holding. Would be interested to hear if you think otherwise?
Its a matter of personal choice. It the stock market was coming out of a crash and there were bargains everywhere I might do a bit of both. Otherwise my main objective would be to pay off the mortgage first and literally throw everything at it and then have more money to focus on investing without any distraction. Each time you make an over payment on the mortgage it has a guaranteed outcome and once the debt is gone, its gone for good. The stock market is a risky place and nothing is guaranteed. Just my personal opinion however. I just like to fight one battle at a time. I find that very motivating compared to having resources divided and going to several places each month.
Firstly that 5% will probably not be around for much longer with inflation at 2% and coming down. Secondly there is capital growth of shares? Not only do they pay dividends but the price of the shares tend to go up over time. The value of my portfolio at the start of the year was 415k. The value now is 475k and I've only put 8k of new money in. Thats a net increase in value of almost 13% in 6 months.
Thanks. It won’t be a very long video as I don’t pay any tax at all. In the U.K. we have something called a stocks and shares ISA. All investments within it are protected from dividend and capital gains tax
Thanks so much. It's taken a fair few years but it's a case of just sticking to it regardless of what the market is doing and of course living frugally.
Have a check where the ETF provider is domiciled. Mine is in Ireland (iShares) and they have a special tax agreement so as far as I’m aware there is no form to fill in. Worth checking for sure
Why would you include the dividend amounts in the video but not talk about the capital you put in each year to obtain that goal?? What's your total invested to achieve £1340 average dividends per month?
I do a portfolio review each quarter showing how much I’ve invested, current value and performance. Another one coming out mid July. The most recent one is below.. Revealing My Entire £450K Investment Portfolio: Quarterly Update ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-oHRN5GDu3r4.html
It’s an absolute fortune. I can find out if you really want to know but I wouldn’t recommend them for those first starting out or who have smaller portfolios. There are far cheaper options out there. I’ve been with them so long now that I’m reluctant to change in case anything goes wrong with the transfer especially where ISAs are concerned
@@TheCompoundingInvestor . I’m in the same boat, have ISA with Barclays. Each trade is £6, £10k invested you pay £25 yearly fee. I’m not sure, if trading 212 will add fees at a later date. So not sure if switching is worth it, could be a lot of hassle.
Yeah, sometimes its better the devil you know. They have been around for a long time. We really don't know how some of the newer platforms would cope with a serious economic downturn.
In 2009 I started with a lump sum of £5000 to get the ball rolling. The idea was to then put between £500 - £1000 in each month from wages. I did go a bit overboard in the first year however and the total was probably close to 20k for the full 12 months. I used every bit of savings I could find. I had also paid the mortgage off before starting this portfolio and was totally debt free so it did give me more money to invest with. The average of new money from wages going in each month across the entire 15 years works out around 1.4k a month.
Are ETF’s better than funds? What are good ones? Are ETF’s income or accumulation like funds and do you only get a dividend if its income. Trying my best to start investing, may be a bit late as i should of started 20 years ago.
If the ETF is "ACC" it means its accumulating. Dividends are still paid but they get reinvested and by more shares of that ETF. Better financially but more difficult to work out the dividend tax. You still have to pay the tax. "Dist" are the distribution versions and you get the dividend as cash. You can reinvest it yourself into that ETF or something else or even take the cash out. Slightly more expensive if you are reinvesting it as there will be fees. I choose the distribution ETFs as I like to choose where the money goes. A couple of very popular ETFs are those which invest in the S&P500 and those that invest in the All World index. Bear in mind an All World ETF like VWRL will be around 60% composed of the S&P500 anyway. Not investment advice of course.
What are good S&P 500 ETF’s when i search for them several options appear. Perhaps vanguard is a good one. It will take years to get up to 10K in shares however i suppose everyone has to strat somewhere. Thanks for the videos? Do you read any investing magazines if so how often and do you read them on-line via a subscription? Thanks for your videos.
I've reviewed the platforms below. If in the UK it might make sense to open a stocks and shares ISA account for tax purposes. ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-HW_be1fU-G8.html
Most index funds also pay dividends. Accumulating ones will reinvest the dividends back in while the Distributing ones will give you the cash. If you can cope will the rather dull and boring nature of index fund investing then its actually the way to go for most people. ETFs were not mainstream when I started but these days they are a major part of my investing strategy.
Loving my investing journey, I’m sticking mostly with ISF etf, need a ishares all world. But do enjoy individual stock picking. So far I have Legal and general, National Grid, Haleon plc, Greggs (off set buying my lunch from them lol) Tesco, Pennon group.
Thanks. All my shares are distributing as I like to choose where the money goes, often with new money going in as well. Another reason is that most of my ETFs are outside the ISA and at some point I'll have to pay dividend tax when the £500 allowance is exceeded. You still have to pay tax on an accumulating ETF and its harder to work out how much that tax is if its not paid to you in cash.
@@TheCompoundingInvestor That is pretty good going percentage wise. I have £548,804 and that has only had a 4.38% yield up to end of march. Started investing August 2019 so took a bit of a hit from Covid :( I need better ideas on where and how to use my money. Expecting some volatility around the time of the general election nothing too serious hopefully
@ollyb360 Yeah at the start of Covid my portfolio fell from 230k to 170k in what seemed like a few days. I tend to buy more when that happens. Put quite a lot into Shell and BP when they crashed
Should those with Hargreaves Lansdown change to 212? Why are they prepared to lose business by keeping charges so high? Almost every youtuber recommends 212. Its strange of HL have not responded to this. There must be a catch somewhere.
Some investors are prepared to pay more for a company which has a proven track record for many decades and better customer service. The traditional platforms like HL don't lend your shares out to third parties like some newer platforms do. I've heard it said a few times that HL are "reassuringly expensive". I guess at the end of the day it is down to personal choice. My own portfolio is with Barclays which is even more expensive than HL. When I started in 2009 there was not a lot of choice. I'm reluctant to change now in case anything goes wrong with the transfer especially where ISAs are concerned. I've not had any issues with Barclays in all this time.
Appreciate the reply thanks, I was more wondering do you only keep within the tax free allowance when investing? As it would take a very long time to build up. If there any other way to invest over 20k without incurring tax
@bestvids446 when I fill the ISA I invest outside it but only buy low or zero dividend paying companies to keep the dividends below the non ISA allowance. This year the allowance has dropped to £500 so that will be a big challenge going forward. You might consider premium bonds. Not really an investment but the prizes are tax free at least. The other thing worth considering is a SIPP.
Yes as long as the amount of new money you put in does not exceed 20k split between the two of them in any tax year. For example you could put 10k into each type.
I’ve had a quick look and I don’t think it’s available in the US because of tax restrictions. Not 100% sure so you might want to double check on their website or Google T212 and US
It’s a long story and dates back to when I first started investing. They were then the largest U.K. listed housebuilder. I bought the shares at £6 and then sold at £8 feeling quite pleased but then to my horror they carried on rising to £35. You could say I’ve got a bit of history with them 🤣 I’ve always tracked their price ever since and planned to get in again when they are sub £10. I meant to buy last year but didn’t.
The All World is a very recent edition after listening to a podcast by Pension Craft. Perhaps you know the channel. Very clever guy who did some analysis on the S&P500 v All World.
Looks impressive, but if you're getting £100 dividends with a stock that only pays 1.1% 2:30 I'm guessing you must have tens of thousands invested in each stock!! So getting just £100 dividends isn't really so great!!
If you look at the long term performance of the two in terms of total return (share price growth and dividends combined) then ISF performs significantly better.
My main portfolio is with Barclays and they don't allow the purchasing of fractional shares. I don't have a pie I'm afraid but I do list the value of all my holdings in the quarterly portfolio updates. New one coming out in my next video.
But you could replicate your portfolio on 212 with the same shares and percentages with just £100. So ppl could not only sign up via your pie link they also have the same portfolio 😊
There are two reasons I don’t create a pie, firstly the time taken to constantly update it as I buy shares on a weekly basis now. I barely have enough time to get one video out each fortnight as I have a full time job. Secondly and more importantly is my belief that it’s not generally a good idea to copy someone’s portfolio. What is suitable for their situation might not be for others. There are things I buy purely because of my own tax circumstances. We also have different tolerance to risk, investing timeframe and end goal. Remember I don’t out-perform an index tracker like VWRL or IUSA. Most people would do far better just buying an index tracking ETF and holding for the long term. I’m just showing my own journey which I believe suits my particular circumstances. Yes someone could copy my portfolio from my quarterly updates but I don’t like to encourage it for the reasons mentioned.
I have a full time day job in the education sector which I enjoy so no plans to stop. If that changes then passive income does give you options e.g. to go part time or give up some work responsibilities. It is good to have options.
