How to Build a Dividend Kingdom in 2024 and Beyond!
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- เผยแพร่เมื่อ 11 ม.ค. 2024
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In this video, I discuss some key lessons everyone needs to understand in order to build a dividend kingdom. Let me know your thoughts in the comments below!
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I am not a Financial advisor or licensed professional. Nothing I say or produce on TH-cam, or anywhere else, should be considered as advice. All content is for educational purposes only. I am not responsible for any financial losses or gains. Invest and trade at your own risk. Some of the links in the description may be affiliate links.
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Can you link them to sites like M1?
A big thing I feel that you touched on for beginning investors is don't get caught up on dividend yield percentages, don't yield chase. Awesome and well put together video!
You mean the diffrent type of dividend stocks and that there are more ways to build a portfolio to get income aside from only dividend stocks. The title states "how to build a dividend kingodom in 2024", he shows his gains and does not go over the fact that he has 50% of his portfolio in ETF's. MSFT and JPM don't even have great dividends especially if you take account for the % of inflation... Clueless and Ignorance is bliss.
@@dredoctor8271 well schd is a great etf to build on dividend income that still offers growth.
MSFT is a phenomenal dividend stock (depending on your goals). They have great long term dividend growth.
in investment, we do not focus on dividends for two reasons:
first, dividends slow down company growth. 2-3 % annually is a new factory or at least office building for many large corporations.
second, if you aim for 2-3 % dividends annually, then better get into bonds now. dividends were a millennial thing during low interest rates. with high interest rates, bonds give you a higher return annually. even us treasury bonds return today 5.074 % annually. brazilian bonds even 9.78 % annually, though, well, brazil...
if it is not about yields but having extra reasons for buying and holding certain stocks (especially beginners tend to buy and sell too often), then be honest about it. do not lie to yourself that it is about profitability. there is a reason why all hedge funds and vc's park their cash now in bonds, if the cash is not needed.
a tip: if your personal investments underperform s&p500 and us treasury bonds, it means you suck at investment. focus on bonds instead, at least in 2024.
@@Dividendologyso my goals are long term dividend growth. I don’t have the capital to just go with stocks that pay high dividends right off the bat and expect to live on it. As a working class person, my only hope for retirement is dividends, so what makes Microsoft a good dividend stock? For who?
Hi 10:22 I think you made an just example of a sum from which you can start living off dividends, I refer to the 5.1k a month, in fact I think I'll take you longer as you have to take into account the dividend tax the state deducts from the yearly amount each year. Those figures shown are to be considered as "before tax", that's why you may need more than 5.1k a month if your cost of living is 4k
My holdings are manageably geared towards capital growth. The yield interest on my dividend portfolio's remits 23k in passive income each month. It takes time and the magic of compounding for colossal rewards. it great to see!
That is awesome!!
it must be nice to see that regular income adding up from time to time.
Absolutely, at the start, during the pandemic my portfolio fell from 630k to 270k, That could scare a lot of people. It did! It revealed a lot, it’s more easy navigating with an experienced prospect.
I’ve trimmed my portfolio in ISA down to 24 stocks, im averaging £1,250 a month, so steadily growing with low dividend yields in them.
I’ve been a victim, I just want to model out what success looks like while also improving
A sound method would always provide more interest no matter what, which is why, despite the concerns of those who have lost money trading, there are those who attain profitable returns. Best possible way, is participating behind top experienced performers.
Those inputs @10:05 are not realistic, thus your output is not realistic.
A stock that appreciates at 7% while the dividend starts at 3.5% (initial purchase yield) and increases at 9% per year? How long do you think that opportunity would actually exist? The price to current yield would get very distorted. After 40 years that 3.5% initial yield would be a current yield (at the time in 40 years at last contribution) of 7.34%.
Very good video. You are now teaching dividend investing. Till now I used your Chanel to learn how to code in Sheets. I downloaded almost all your spreadsheets. But then I revised them to my liking. You are young and I am old, so my investing goals are way different than yours.
I watch your Chanel and Joseph Carlson’s Chanel. He used to be a dividend investor, but now he is going for growth investing. He is a great investor, like you. I tend to enjoy both of the Chanel’s. I guess I am anxious to see what your research spreadsheets recommend in your newsletters in the coming year. I want to buy stocks that pay high yield, growing dividends plus have potential for capital growth. That is what I am hoping will come from your new spreadsheets.
Dividend investing retired me years ago! always nice to see them role in on a quarterly and even monthly basis! Dont forget including the tax advantages of dividend income over capital gains is a great add on! Great video for beginning investors to remind them not to get caught up on dividend yield percentages, don't yield chase.
Does the stock of the company when pays dividends go down
How many dividend stocks do you own?
what’s best to do just invest and leave it years ?
There are NO tax advantages for dividends (at least in the US). In fact, they’re less tax efficient…
Great video sir. I appreciate your non stop efforts to provide us with great information ℹ️
Super helpful video on fundamentals of evaluating div stocks! I am on a journey to learn and understand how to evaluate div growth stocks and this was a huge help! Keep up the great work!
Glad it was helpful!
I find it interesting that most videos of this nature are willing to point out specific dividend stocks but do not seem to consider the price per (some of these) stocks. You provide some useful information but a stock at $1000+ per share is for a select group. If I’m going to build and amass, I’m not looking for a stock with that kind of price tag per share. Just my thoughts. Thanks for your content.
Most brokers offer fractional shares. When AVGO was $500 last year people were saying the same thing that it was overpriced, but what most people fail to realize is that AVGO has not split and the earnings per share show the true value of this stock. (Earnings per Share x PE = Share Price).
Fractional shares brotha
How do you find stocks to analyze for dividend growth. There's literally thousands and thousands of stocks. So how do you narrow it down to a shorter list for further review?
This is why I follow you my friend - Great video!
Nice video. But there is one thing which bothers me. You talk about the benefits that company a is better then company b because the growth of the dividend is higher. But at the end of the day company b still has the better dividend even if its inferior in the dividend growth... so my thought is why should I get a share with low dividend but good growth early when I can wait until it has a good dividend and in the meantime invest my money in a share which already has a good dividend. I am exited for answer:)
The reason is the mathematical wonder called compounding.
Real-life example. I have owned an insurance company whose stock ticker symbol is AFL for decades.
Sold some, but not all of my AFL shares in 2017 to pay for some home repairs. By 2024, the annual increases in the dividend caught back up to the dividends paid before I pulled money out.
That means the average annual dividend increase was a bit greater than 10% over those 7 years. Now my total investment is lower than it was 7 years ago, but my dividends received is the same or higher.
I think your missing a huge rule for investing. Don't put all your eggs in one basket. No i dont mean the S&P is one basket. I meam you have all your dividends in things that slowly grow your money. Where is that risk category? Where is the tsly, cony, amzy or heck jepy, qqqy and iwmy? I can understand a desire to merely dabble in those things as the risk is far greater. But the last three i mentioned track indexes just like spy does.
Love your videos!! Could you do one on UnitedHealth Group (UNH)?
I second this
Question 1) from 2015 to 2024 home depot raised dividends great nice, but did not everything also in the world? so how does that made you money? the 1$ dividend you got in 2017 could buy you a mcchiken and now in 2024 you get 2$ dividend but the mcchicken is 1,99$ now in theory nothing got "gained''???
Question 2) the way these work is you let a company borrow your money and they pay you monthly in dividends? so the money "works for you"?
1) if the yearly dividend growth rate is above the rate of inflation, then you are getting paid more every year.
2) when you buy dividend stocks, a company will pay you usually quarterly, but some pay monthly. Ideally you will also see capital appreciation and growing dividend payments.
Very simplistically explained and therefore very valuable. Well done!
Glad it was helpful!
@@Dividendology Only downside is that quality growth stocks tend to be highly valued. This is very logical, of course, but you do pay the premium price..
Your content is gold. Thank you. Is there any issue with low daily volume companies? Check PRI for example. Amazing metrics I believe but I see no one talking about buying PRI. It has 131k of daily volume... is it a problem?
you are doing great job ,
I am not a divident investor and don't want to be cause of tax wise ,
but I see your videos daily cause your transperancy and how you calculate the interensic values .
🤞🤞
It’s funny how dividends investors never bring up the tax liability, they make dividends out to be free money and claim it is a “return on investment” I don’t know anyone that has outperformed the market long term investing in dividend stocks.
I love to see a dividend investor looking at where dividends come from as opposed to looking at dividend metrics in isolation.
Great video man, and your point about there being multiple levers to growing your income is spot on. Contributions, reinvesting, and dividend growth is the holy trifecta 🏆
Thanks Ryne!
My biggest problem since I’ve started is deciding to add a new position or grow existing positions. I love the companies I’m in but also see some companies I like but have no shares of. That’s been my big issue recently.
I’ve got the same problem! There’s always something else I want! But, when I got to 30 positions, I said enough is enough. All companies I like, spread out over the 3 month cycle gets me consistent dividends every month. Buying just one more share makes that next payment bigger, and that’s pretty motivating! Setting goals of a certain number of shares or a certain dividend amount is helpful too. Seeing those numbers go up is almost as satisfying as adding another ticker symbol. Why make pennies on 50 stocks, when you can make dollars on 30, or 20, or 10! I like the constant influx of payments, because it keeps me motivated, but you get to a point where the bigger numbers matter more.
What I do is keep 10 stocks that are the best fit for me and keep adding to them. If the price is wrong for literally all of them ( usually at least one of them is priced fair) then I make a personal basket based on Joel Greenblatt’s magic formula and hold that until one of my 10 goes on sale. I also bet on a couple value plays like Facebook (nov 2022) each year. But nice the value play is not a value it goes into the best priced in my 10. That’s it, I beat the market and it feels easy. Stay away from crypto
Bro this video is gold thanks! I’m in Europe, does Seeking Alfa track also European stock? So I can look for great companies to invest?
Seeking alpha doesn’t carry support for many EU stocks right now, but my software TickerData does! It allows you to pull in stocks financials straight into your spreadsheet.
My snowball has started. But im still green in the grand scheme of things. It's discouraging to see the exponential growth doesnt even have a noticeable change for the first like 10 years. Then it gets faster, but it really doesn't take off until about 20 years into the portfolio. Living frugally, working hard, and continuing to add cash to a portfolio and staying disciplined for that long and nothing bad happening in life that could derail everything seems like a monumental challenge. Oh well, lol. Get rich or die trying i suppose.
The hardest part is simply getting started!
i’m right there with ya just getting started!
Do you have this pie on trading 212?
Awesome video, man! I hate the fact that I have to pay seeking alpha to see that information, when I can get it for free some other way. 😡
Thanks so much for your videos. I've developed a hybrid strategy that includes non-dividend companies with good fundamentals and a huge portion of that method comes from your advice.
Nice work!
Your high dividend yield example had 0% on the div. growth rate...which basically means you are treating it as a bond. Why wouldn't you use 2% for a growth rate here?
Yeah I also noticed this as well. Not sure why he just left it as 0. Should've at least put 2% even the VZ had that much. 🤷♂️
agreed. huge flaw to the video. 2% compounded over 30 years is almosot enough to 2x the dividend payout plus the effects of the increase s over the 30 year time period
Something I’d keep in mind is the semiconductor industry the US will likely triple the output by 2030 to keep up growing demand our alternative is a total market crash and then shift if we don’t. So US based companies in that field and in the energy sector to support that field will be a big boom soon.
Great video, unique name and thumbnail too! Hopefully someone doesnt steal it /:
Off topic
I just love watching and then rewatching your videos. I pick up so much helpful information.
Awesome! Thank you!
Who do you use for a broker platform?
I've been using Interactive brokers lately: www.interactivebrokers.com/mkt/?src=dividendologyPY1&url=%2Fen%2Fwhyib%2Foverview.php
Obrigado, és o maior por dar essas dicas de graça 👌
good stuff!
Good video. Would be cool to compare results from 'low yield-high quality' stocks like V and COST that have
nice idea!
Good video packed with sacrosanct truth. That said, I would make clearer the fact that this scenario is ideal for those of us who expect to live at least 30 more years. If not, then higher income divvy stocks are the way to go.
This is great information. I'm still new to dividend stocks and this helps immeasurably! I now have some better information to be able to grow my dividend portfolio. Thank you for this and I just subscribed to your channel.
Glad it was helpful!
What would be your favorite 3 companies to buy into for each of the 12 sectors?
At 2:10 those $2 dividends are not "every single year", they are quarterly.
Have you done an analysis on Moody’s Corporation?
not yet!
Excellent content!
Much appreciated!
Oooooo it’s sooooo fun! 🤩
❤
Gracias! Great information.
Actually better to have a 80-20, 70-30 of growth v high yield
LOVE THIS
You're so welcome!
Very beautiful thesis video!
Beautiful thesis video!
Thank you!
Love from india
Thanks for great information
Glad it was helpful!
Very good master class about dividend investing. The only thing to bear in mind is that those companies cutting dividends and with no satisfactory growth WERE good choices as dividend growth investments in the past.
P.D.: I don't disagree with your strategy (I use it myself) I just want to enrich the analysis. Thank you for all your videos.
Costco special dividend paid me 77 bucks today. Love my dividends
Really? 😮 How does that work? Per share?
Really? 😮 How does that work? Per share?
Really? 😮 How does that work? Per share?
Really? 😮 How does that work? Per share?
this video is blowing up for suree
Thank you!
Doesn't it bother you that TROW has a very high Dividend Payout Ratio, close to 70%?
You should have used Cracker Barrell as an example
should i invest in us dividend stocks with 30 withholding tax? I am non-us resident.
what is the website he is using to check the stocks information ?
Seeking alpha! Link to them in description!
This content is gold
Thank you!
I am at around 1.500 USD per month. Keep it up!
May i ask how big your portfolio is? Any maybe how many positions?
Does anybody think T and VZ are worth holding? I mostly hold them for diversity but communications hasn’t been very strong
I keep them, just for the dividend! I don’t expect any capital appreciation, but it is nice to see here lately. Luckily, unlike a lot of people, I got em at a decent price, and am sitting with a profit and decent dividends coming in. Most negative comments you hear come from people who got burned by the last drop. I’ve thought about selling because of the negativity, but the return on investment is hard to beat.
No, you’re gonna chase the yield while massively underperforming. I sold T 4 years ago, since then they are down 25+% while I’m up 43% and paying way less in taxes. Past performance is not indicative of future returns, so take that with a grain of salt.
Question, once you get paid a dividends you can spend as you will and you will pay taxes. Is there a way to reinvest ( buying more stocks) dividends without paying taxes?
If you set up an IRA Roth, that can be one way to do that but there are some $ limitations with it unless you do a conversion.
Still thinking that there is no unique right path you can also take advantage taking some high yield stocks and reinvest it in other some div. Growth
I believe there are opportunities with high yield as well. You just have to be careful with your selection.
Can you share how many stocks you are holding? And list of them?
Check out my monthly portfolio update videos! I look in depth at my portfolio in those videos.
What website is that
Seeking alpha. Link to it in description.
yes and no about broadcom. It makes sense because its had a 300%+ increase in valuation. At that point I dont honestly care much about the dividend vs the growth play
To me yield in cost is a mere vanity metric 😅
Great video ! What is the website you use to analyse the stocks ?
Seeking Alpha and my spreadsheets! Link in description to both.
This seems like it’s interesting. But I imagine taxes and inflation will eat all your dividends eventually. You’re not a congressman; you don’t get to win at the stock market.
Why noone never considerate in sum of yeald at inflation?!
What size portfolio are we talking about to replace my income (currently 102,000 a year will be around 120,000 by end of this year)
Depends in when you start and what growth rate happens. A ballpark portfolio would need about 3 million invested to safely earn 120,000 or so annually.
Roughly to get 100k in Dividends a year you'll need a portfolio of around 2.2 mill.
go to site for investing?
Seeking alpha and Tickerdata for research. Interactive brokers to actually buy stocks: www.interactivebrokers.com/mkt/?src=dividendologyPY1&url=%2Fen%2Fwhyib%2Foverview.php
Bro is that google finance? In the video? And another thing i cant find your patreon link below
Why would you use 0% dividend growth rate on the high yeild dividend stocks? Also with lower yeild dividend stocks valuations and price tend to be much higher. Due to higher prices unless your balling out and spending big boy bucks most individuals can only buy a few shares. If you ran that same experiment with a 1000 shares of vz and the same dollar amount in the higher growth stock vz would outperform in the longer run the more shares you have the easier it is to compound . the more shares that are being reinvested the easier the compounding .instead of fractions of shares your getting whole shares .Those shares can in turn buy more shares
Check out this post I put together on twitter: x.com/dividendology/status/1692923862529212638?s=20
You may be surprised by this case study.
I read what you have om x. I believe my point still stands .The volume of shares you would get from vz would return a higher income. The more shares you have the more shares you drip . You are compounding your total shares.Especially since vz hasn't moved much in price compared to lowes per your example.
Apologies for the spam phone glitched
How much money is have to invest to reach at this level
To actually live off of dividends? At bare minimum? You need close to a million invested in total. And that would afford you a 30 to 40k a year life style. Me personally I rather use more aggressive trading strategies. And put in OT at a job or business venture. Then dividen invest with large sums of money.
how many of the viewers max out HSA, ROth / traditional IRA and their 401K before doing taxable contributions.
Can you please advise it will be correct for beginner to buy at list 1 stock from all your list of 32 or better to focus only in some of the stock from yours 32 stocks?
Qqqy 1000 in dividends
This was a weird humble brag video that like many others focused on getting avgo at massive under valuation before semi conductor blew up. Or a rehashed dislike of Verizon.
nope, just examples. I've been sharing my wins and losses here publicly for years.
Don't forget that your 150k account is gaining you a record of $934 a month. Where my account that is 50k is netting around the same each month. Not bragging just adding to the point thay you need growth etfs as well as stable ones.
What growth eth do you have?
@@Truu.Izzyyy several cony, tsly, qqqy, jepy, IWMY. I also have an international fund that over the last two years has been net positive. Vxus. Lower yield ETF overall but very stable. Most days it's sideways green when everything else was plumbiting red.
Would you be willing to do a TH-cam video on how you do it. I am 18 and would love to see how you do it
@@zachpel1923 is pretty easy. Just do what warren buffet suggests but with ETFs. Get you.3-5 safe ones. Like ones that track sp500 and Russel 2000. Then get you some mid range ones but make those a lesser % than the first. And lastly get you some crazy ones like iwmy jepy or qqqy. Those still track the index's but also have 40-60% return annually on dividends alone.
in which world is a 3,5% dividend yield for a growth stock a "low" yield? 😂😂 if you want to bias ppl on one strategy you dont have to use an excel caus you miss out on a lot of things that can happen. You think a company can hold 9% growth over 30 years? yeah sure that CAN work but maybe the company wont hold this dividend growth for ever and falls down to the lower growth rate and declines...
1st :D
Yes you are!
Do you have to pay taxes on the dividends regardless of whether you take or reinvest?
Dividend income is generally taxable when earned outside of a retirement account.
Inside a traditional retirement account, the dividends accrue tax free, but withdrawals are taxed.
Inside a Roth account, dividends accrue, and as long as you meet the IRS requirements of when/how to withdraw funds, are never subject to tax.