Currently I'm just being smart and frugal with my money, I'm in the green 47% over the last 15 months and l've accumulated over $700K in pure profits from DCA’ing into stocks, ETFs, dividends and futures. However I’ve been in the red for a month now. I work hard for my money, so investing is making me a nervous sad wreck. I don’t know if I should sell everything, sit and just wait.
Nobody knows anything you need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving.
I agree, that's the more reason I prefer my day to day investment decisions being guided by a fin-advisor, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using a fin-advisor for over 2years+ and I've netted over 2.8million.
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same. Is there any chance you could recommend who you work with?
my advisor is "Margaret Johnson Arndt " she's highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market
Everything is cyclical. Money doesn't disappear, it just moves around. Things move in and out of favor. Look what happened to tech during 2022 and what dividend stocks did. Thanks Joseph!
Yeah. So many dividend/value stocks have sky high valuations. Earnings didn’t go well, yet the stocks held up in 2022 and 2023. They’re asking for a drop or to stay flat over a few years.
Money doesn’t disappear, but it can be moved out of stocks or locked in government facilities. TGA being refilled locks money up that would otherwise be in stocks or money markets. Or as people see stocks as risky flock to risk free savings accounts or bonds ( which have recently become an asset class again).
Technically money does disappear when debt is repaid. So if more money on balance is moving to pay down debt owed to private banks then the money has disappeared.
Dividends are a great thing, but they’re only really effective for passive income when you either have somewheres over 20 to 25 thousand shares of a high yielding stock. Meaning you likely need to have a few hundred thousand if not more invested in it. Re-investing dividends back into the same stock certainly does snowball with compound interest, but you only really start seeing it after 20 years of never stopping and likely needing to add additional money of your own with it….so it’ll be time consuming and costly. The way I see it if you have a million dollars at some point, that’d be enough to create a portfolio that would pay you between 50 to 70 thousand in dividend income
Like Warren Buffet said, dividends are only good if the business you’re investing into can’t make good use of that capital. So if you’re trying to invest into businesses with actual growth, looking at dividends is a waste of time. Why are you investing into a company if they’re returning capital to you because they think you can make better use if it than they can. There’s only one reason, and it is a place to park your capital to pay you a small return with large established businesses because you aren’t trying to grow your portfolio anymore, but to live off of it. It’s not much different from bond investing.
Anyone have recommendations for a reliable monthly investment? I hope to ultimately supplement my income from work with a monthly income from investments. I will still make long-term investments, but it would be wonderful to have a little additional money each month.
Even if we are not accustomed to such volatile markets with a little carnage, the widespread frenzy and worry are understandable given that the US Stock Market has been on its longest bull run in history. However, there are opportunities everywhere if you know where to look; with the help of an investment advisor whom helped diversify my portfolio I netted over $260k in profits the previous year.
No doubt, the stock market is definitely the most awkward teenager with the wildest mood swings! I began with a pundit by name "Catherine Morrison Evans’’ Her approach is transparent allowing total ownership and control over my position and fees are very reasonable in comparison with my ROI.
Dividends are what got me into investing in the stock market. The thing to me is, if you invest and have other income outside of dividends then you will be able to live off dividends without selling. Which means you can pass that on to your kids which will give them a leg up in life. Have over $600K in my portfolio as I bought a lot of dividend stocks before, I'm buying more now, and I will buy more when it drops further.
As a new investor it's always great to hear from a person who has gone through all the difficult times and come ahead of it. It's unnerving to see your portfolio go from green to red but as mentioned if you have invested in quality names just have to keep adding to them and stay the course
I see any market condition as an opportunity. So far I've made north of $260k in raw profits from just Q3 of 2022 under the guidance of my Financial-Advisor . i’m I selling? Absolutely not. I have purchased growth stocks too a little at a time over the past few weeks. I am going to sit back and observe how this all plays out.
@@berkrix4312 Please can you leave the info of your investment analyst here? I overheard someone talking about how a couple made $200k during this red season.
@@HarrietBemish It would be very innovative suggestion to look out for Financial Advisors like Julie Anne Hoover ’ who can help shape up your portfolio. Trying times are ahead, and good personal financial management will be very important to weather the storm.
Joseph, Gotta look at the higher picture as well with SCHD. Since its all time high of 81.72 back in early 2022. the price of it now is 71.50 or so. About a 12% Decrease. QQQ is 13% still from all time highs and SPY is 9%. If anything I can make the argument the last year and half with dividends and DRIP has continued to give the portfolio a safer return. The fact it sheltered the storm of the 30% QQQ and 20% S&P 500 drop is awesome.
Good point. Joseph only took a year to date. Not everyone hops in exactly on Jan 1 and only tracks from there. I add to SCHD whenever it drops below 70, so I'm sitting fine
Joseph you nailed it ...let's face it people should invest in quality companies that have strong balance sheets , don't chase returns. If it's not for 7 companies the S&P would be flat.
As a dividend investor the mind set is that of building your own pension. The value of the portfolio is irrelevant because you never intend to draw from the principal, but rather only take from the dividends. Quality stocks that have a proven track record of dividend growth keeps you ahead of inflation. Yes you can miss out on the Bull runs, you tend to be protected in the Bear markets and drops like this are more of a buying opportunity than anything.
Been wanting to focus on investing in both SCHD and QQQM but since SCHD is down and QQQM is up, I've been investing in just SCHD. I'll probably just keep at it until market conditions shift and to make QQQM seem more enticing than SCHD
Very great point on the indexes. To give you an idea right now on the current weight of the S&P 500 1. Apple (7.5%) 2. Microsoft (7%) 3. Amazon (3%) 4. Nvidia (2.7%) 5. Google Class A (2%) 6. Google Class C (1.8%) 7. Meta (1.7%) 8. Berkshire (1.6%) 9. Tesla (1.6%) 10. UnitedHealth Group (1.3%) These companies currently have the most weight on the index. Currently it makes up around 30% of the total index. If you look at the heat map most of these stocks this year and other tech stocks had massive double digit runs while standard blue chip stocks are either flat or down ytd. It makes me wonder where the indexes would be if we didn’t see this AI bubble and massive run up in tech?
I started investing in the stock market because of dividends. What matters, in my opinion, is that if you invest and earn more money in addition to dividends, you will be able to live off of dividends without selling. It implies that you can pass that on to your children, giving them a head start in life. I've invested over $600k in dividend stocks over the years; I continue to buy more today and will continue to do so until the price lowers even further.
It's always inspiring to hear from a veteran investor who has weathered the storm and come out on top. When your portfolio turns from green to red, it might be unsettling, but if you have invested in great companies, you should just keep adding to them and stick with your plan.
@@MakeamericaGreatagain-h7j she actually appears to be well-read and educated. I just did a Google search for her name and found her webpage, I appreciate you sharing
I used to think this but if you do the math it’s better to have low dividend or dividend less stocks as their growth out paces the dividend returns plus growth of large dividend payers.
Schd is my largest holding (55%). But luckily, my second largest holding is schg (20%), so I get exposure to both value and the big tech growth companies. I'm retired and appreciate the dividend income without having to sell shares.
Another reason SCHD is doing badly is because it’s heavily invested into financials and the bank stocks have largely mot recovered from the panic of the bank failures
Hi Joseph I appreciate your content. Question: So in previous videos you mentioned the benefits of a concentrated Portfolio. Even given video clips of Buffet philosophy of just investing in a handful of good stock. In this video you provided the example of the S&P equally weighted fund Vs a Market weighted fund. To my surprise you stated that the performance of the equally weight investment performed better. I would have expected that a Market weight investment would perform enter since the higher market weighted companies got to that position based on their performance as a company. What are your thoughts?
Market cap isn't 100% determined by company performance, it's determined by stock performance. Meaning that companies occasionally can go way up in market cap even without much cash flow or earnings to justify it. Consider that a year ago Tesla was at above 1 trillion market cap while only making around 8 billion in cash flows. Look at NVDA now, racing up in market cap. Buffett concentrates his portfolio into companies that produce growing cash flows and trade at reasonable prices, and he avoids much of the hysteria that other investors are continually caught up in (currently AI being the next big hysteria thing).
The financial sector and derivatives may have a Hindenburg moment if the US Treasury market collapses. Rising market illiquidity in the $14.8 trillion U.S. Treasury market, according to Bank of America, might affect other financial markets.
There are many opportunities to make fantastic profits, especially in this depressed market, but such complex transactions can only be carried out by seasoned market professionals.
@@richardhudson1243 I wholeheartedly concur, which is why I like giving an investing coach responsibility for making everyday decisions. Given their specialized knowledge and study, as well as the fact that every one of their skills is aimed on leveraging risk for its asymmetrical potential and limiting it as a buffer against certain unfavorable turns, it is practically impossible for them to underperform. Over the course of more than two years, I've worked with an investment coach and earned over a million dollars
@@maiadazz I've been considering taking that path. I've kept a lot of stocks, but they're starting to depreciate, and l'm not sure if I should stick onto them or sell them. I believe restructuring my portfolio would be facilitated by engaging your investing coach.
People aren’t buying dividend stocks because treasury and bank yields are high. I’ll take my lower priced dividend ETFs because they increase their dividend yield. Treasuries and banks don’t have a dividend cagr and eventually their yields will drop.
I’m mad cause the $285 I transferred today for 4 shares of SCHD tomorrow isn’t enough now. 🤣😏😞. I agree 💯 with your video. Top heavy outperformance, everyone else flat or down.
Looking at SCHDs composition, this iteration really has only 2 companies in its top 10 with a higher than market beta. Investors need to stop looking at SCHD as an individual entity and start looking at it as an index that sometimes consists of companies that won't necessarily perform well in every market.
i see alot of my stocks like coke going down and see this as the perfect time to add more share to my position. i haven't sold anything this year just dollar cost averaging down my positions, but not going to lie its been stressful seeing all my gains from last year disappear.
Same here. I've made some money on cruises but still big in Apple and adding Paypal to dollar cost averaging. All of them as they fell. Apple is fine, hope Paypal recovers for a W and hoping to make a position in Activision before 2024 :)
This video messed me up because I spent hours stopping and replaying off and on throughout the day so that I understood clearly. You had me sold on buying growth stocks over dividends. And then at the end, you say don't buy them, just hold onto SCHD because you'll do better with that than stocks now. What if you haven't bought either yet and you're starting out?
@@BusterDarcy I follow the core satellite approach. A large percentage in VTI, witu satellite positions in SCHD and some individual companies. That is diversified enough for me
I am once again bringing up the issue of closet indexing. When your two largest positions are the same as the two largest in the S&P you can expect your performance to be in line with the market.
Just looking at the holdings, without considering the weightings is completely, utterly, useless analysis. Please look at the weightings of my holdings and compare them to any benchmark. My performance is not in line with the index. The weighting is not close to the same. The QQQ does not have Amazon weighted at 40% or Netflix at 20%. The weighting is different and the performance is different. Closet indexing is built to mimic the benchmark. There not what I’m doing and every measurable result shows that.
Just to be clear... is that Dividend number on your Portfolio what you make per year 🤔 Or is that the TOTAL amount in dividends you were paid over the course of Six Years!? And are you signed up for the 5% Interest? I think it only costs $125 for the Plus account.
Everything eventually reverts back to the mean. Those overvalued gigacap companies will eventually come back down and money will rotate back to value. Time to load up on SCHD!
Perfect analysis. In fact, I am seeing dividend stocks and small caps starting to catch up already. The rotation may be happening as we speak. Your channel is no hype, just straight facts, unlike the pump boys we see on TH-cam. Keep up the good work.
This past 3 years were really easy mode for me, cash just go in cycle and i buy the good compagnies in sectors people dont want. Exemple this year defensive (bank, consumer stable, etc) are red while tech is green. I buy the red and in 8 months if its reverse and tech go red, the others will go green.
Joseph. Maybe some investors are making less profits then the S&P or other benchmark. But I wouldn’t say the are not doing great. Investing is also about risk. It’s possible that a dividend investor takes less risk. That could be better for some (or even most) people. Love your performance. Keep up the good work!
It's one major reason why I'm just staying diversified with a mix of individual stocks and indexes and I'm beating the S&P500. Granted I'm not crushing it by being in all Tech but I feel it would be foolish to fully swap to tech and chase the returns only to find out that for the 2nd half of the year it underperforms relative to the stocks that have not performed.
I think the Tech sector will correct and drop a bit, but long term I have to think it will be the leading sector over the next 10, 15 years. Followed by Healthcare. After the rates come down there will be big gains in REIT, if the office space issue sorts out. But it's a good time to take advantage of the struggling sectors now. But I think Tech will always lead over the long term.
Now is the time to buy the boring dividend stocks. Once earnings rebound the gains will come. I think we'll see a pullback on tech and a roll into value when earnings improve.
Yeah, I have to wonder if retail is a leading indicator. It's getting hammered lately. And tech certainly isn't going anywhere if consumers aren't consuming. So, cash flowing companies will continue to do well for the near term future in my opinion.
I appreciate this I feel like the dividend kids I've watched talk about this but not in detail. Helped confirm some ideas I had and set a more realistic look for me!
Not all dividend stocks are equal i.e. as WB states it is a market of stocks - not as stock market. What we are seeing is the weakness of ETFs. They mask poor performing stocks so when you deep-dive into the QQQ, you will find it is only a few stocks pulling the ETF up. I use an ETF to provide ‘diversification’ on my stock portfolio of individual stocks.
I was so scared right now that dividends stock’s are failing. Omg this insane. Should we buy more dividends stock’s in a Bear Market or in a Bill Market? Does P/E ratio matter or the higher or the lower the better? I want want the lowest price possible for buying opportunities in great companies!!!
For the past few days I am thinking to trim my pos in Apple. I am up a bit more than 20%. And I might rw enter at the next dip, but this is some guess work
The notional value of a dividend stock (or ETF) can be viewed as two components, the potential for capital appreciation and the ROR expressed in the dividend. That second component has most of the market characteristics of a bond, or other "fixed" income investment. As interest rates rise, the PV of dividend stocks tends to be depressed.
Never chase performance. It will beat you everytime. SCHD is down? So what. If anything, its a good time to buy. Buy low, sell high. I seem to remember someone saying that.
I’ve moved my growth portfolio almost 100% into high dividend etfs and reits. Historically they are much better in high interest rates. Not trying to time the market, but I can buy with the dividends if there is a crash. Dividend investing is a 20year game.
You used to look specially for dividends. As you've learned what a dividend is & what a dividend isn't - the securities you've invested in has changed.
Thanks for your hard work and efforts!!! Appreciate all of your insight. I tried looking for your your video giving reasons why you closed your position in $JEPI. I vaguely remember you mentioning taxes, but not certain that was the only reason. Anyway you can help me find that video or possibly restate your reasoning for me. I appreciate you and keep up the phenomenal work.
These are exceptional insights. Most youtubers either a) not impressed with them or b) they are accurate but too "basic" for me. Joseph is one of the very few who really knows how to analyze and get deep. Joseph really knows his stuff. Okay, so as a dividend investor my portfolio is underperforming so far in 2023. 8 companies are 30% of the market. 6 of those don't pay a dividend at all. The other two, AAPL and MSFT I do own, although not weighted in my portfolio. Why dividends and especially good dividend growers... because I don't want to have to guess about when to sell. I DON'T sell (unless occasionally selling one dividend grower but only to buy a different one). Take a guess, not interested in non-productive assets like yellow and gray shiny rocks either. Rocks can't buy more rocks. It is my belief that the bull will eventually come for the dividend stocks. Why? Because they keep growing the dividend. Investors are simply not going to allow a good dividend grower, that is growing the dividend at a (for example), a 12% clip... investors will not allow the current yield to get to 5 or 6%. Won't happen. We have no idea when the bull will occur for the dividend stocks. Yet, we should understand the difference between precision and certainty. I don't know with precision when that bull is coming. The remainder of 2023? 2024? Even later? I have no idea. I can say with pretty good certainty that it is coming and for reasons just explained in the paragraph above this one. I have been a dividend investor for 36 years. I have always said when the market is down (rather flat for the dividend stocks so far in 2023), that is the 2nd best thing that can happen. Buy more shares, you just got an even better yield on new money going in, reinvest dividends, that will pay off later. Focus on cash flow, increasing revenues and EPS, low payout ratio. As you can guess, I gave up a long time ago on trying to predict the market short term. I am focusing now on just buying more shares... relax.
As a dividend investor I am very happy when dividend stocks fall, why would I not buy something with discount of 30% if I was ready to buy it for full price ??? I eat golden eggs that my chickens lay, why should I care how much cost the chicken, if I never sell it. Cheaper chicken, more chicken I can buy, more eggs I eat. When there are too many eggs, than I can eat, I am buying more chickens
When the market dived in 2022, SCHD didn't decrease as much and paid a higher yield. A good etf for income growth and wealth preservation that isn't dependent on a thesis to be correct. It will under perform in bull markets, but offers stability during bear markets.
My investment strategy is to add money on my declining ETFs. This has massively improved my portfolio. Last year i was putting so much money into my nasdaq etf and was rewarded this year. Now i am putting money into SCHD and hopefully it bounces back when tech gets a correction from these massive gains this year. It is all about buying the fear. Don't get me wrong, i still buy into tech but not like how i was last year.
Joseph, thanks for the excellent observations. I have a small positions in a few techies - AAPL, MSFT, QCOM, TXN, & AMD. I also have a 401k portfolio with VIGAX & TPLGX, both of which are tech funds and have returns of > 30% ytd. But, I’m about to switch my active & 401K to SMH, a semi-conductor ETF, VFIAX, an S&P500 mutual fund, and for my retirement fund I’ll add a long-term bond fund, which pays >4%. In my active I’ll keep a few individual stocks but I’ll slowly decrease my tech positions, which, given the Fed’s “higher for longer” perspective, weakens tech stock growth potential and makes the returns on long-term bond funds attractive.
I've been wondering why these have been going down and I never realized it's because most of my portfolio is tech and that most sectors haven't been doing as well. Definitely stopping any purchases of tech
What's this kid talking about failing??? My dividend is killing it and has for years now. I'm doing very well with my dividend stocks, most of them are even gaining more capital then alot of my long term holds....Even if the stock isn't doing great or just sub-par, but u forget we still get paid either way...and usually just buy more when it's down ... 😂 Js...
By that conclusion that there would be a big dip in the market means that, the big companies who are lifting the market will dip. My reasoning with your conclusion is that when everything is concentrated so much in those few companies and the market dips that just means they will be sold out soon if thy were to happen.
I'm selling a bit of my tech stocks to buy into reits and SCHD. But still, I'm more bullish with tech stocks on a long term basis - I just think tech sector is a bit overbought at the moment.
For me 2023 has not been a good year. Although I do have several hundred shares of QQQ which I purchased in 2009 @ 29.50 and it's my largest stock I have nearly 30 other stocks. Much of the rest of my portfolio is dividend stocks and I do earn around $3k per month which has increased slightly but the dividend stocks, municipal bond ETFs ... have all lost value.
Starting early is the best way of getting ahead to build wealth, investing remains a priority. Even in a downtrend, the stock market/crypto has plenty of opportunities to earn a decent payout, with the right skills and proper understanding of how the market works...
Tech stocks are surging because they cut overhead by huge layoffs, its not something spectacular they did. So it interesting to see how long this lasts.
Could you please explain why dividend stocks are falling. So you mentioned Tech is doing well. And you mentioned the rest of the market is lagging. But why are dividend stock falling?
As always, Joseph, this video was great insight into the market this year. I actually just sold out of my schd, which was about 17 percent of my portfolio, and replaced it with visa united health care and s&p global. I sold it to make my taxable account more tax efficient, but a major factor was the underperformance compared to other companies
I really like this video. I have done my evaluations and there are deals to be found. It is a very exciting time for me. If the market does not favor a company but your evaluation supports a buy, then I personally am buying. In the long run keeping to a process seems to have worked for me. I just wished I had figured this out 10 years ago I still was in ETF's which is still a very good long term plan but really had no idea the how's or why's. What are your thoughts?
ETFs are fine, but never have been my choice to invest. I rather invest in individual stocks, keep a relatively concentrated portfolio of companies that I research extensively and that I know and understand well. I'm no super investor, but I enjoy the research, I enjoy finance. Many people don't and hence an ETF is a good choice for them.
Markets go up ,down,and sideways.Not worried about a year performance in a market.If something goes on sell I load up.I don't use etfs nothing wrong with them just not my style.The only exception I have is a commodity etf.I just buy income streams with 70 percent of my porfolio the other thirty is curently in commodities.I also sell OTM options to lower my cost.For safety I own physical gold,silver,and platnium. I also cam weather most fincial storms because I have no debt including home.I am contrarian and never buy with the crowd.I hold forever on divden postions my other postions I usually hold 5-10 years.Hapoy stacking/investing.
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Currently I'm just being smart and frugal with my money, I'm in the green 47% over the last 15 months and l've accumulated over $700K in pure profits from DCA’ing into stocks, ETFs, dividends and futures. However I’ve been in the red for a month now. I work hard for my money, so investing is making me a nervous sad wreck. I don’t know if I should sell everything, sit and just wait.
Nobody knows anything you need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving.
I agree, that's the more reason I prefer my day to day investment decisions being guided by a fin-advisor, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using a fin-advisor for over 2years+ and I've netted over 2.8million.
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same. Is there any chance you could recommend who you work with?
my advisor is "Margaret Johnson Arndt " she's highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market
I just Googled her name and her website came up right away. It looks interesting so far. I sent her an email and i hope she responds soon.
Everything is cyclical. Money doesn't disappear, it just moves around. Things move in and out of favor. Look what happened to tech during 2022 and what dividend stocks did. Thanks Joseph!
Yeah. So many dividend/value stocks have sky high valuations. Earnings didn’t go well, yet the stocks held up in 2022 and 2023. They’re asking for a drop or to stay flat over a few years.
Money doesn’t disappear, but it can be moved out of stocks or locked in government facilities. TGA being refilled locks money up that would otherwise be in stocks or money markets. Or as people see stocks as risky flock to risk free savings accounts or bonds ( which have recently become an asset class again).
Yep. Can’t wait until everyone and their mom gets back into bitcoin and Ethereum. I have mine ready for lift off in 2025.
Technically money does disappear when debt is repaid. So if more money on balance is moving to pay down debt owed to private banks then the money has disappeared.
@@kurniawanms2can’t think for yourself, huh.
Dividends are a great thing, but they’re only really effective for passive income when you either have somewheres over 20 to 25 thousand shares of a high yielding stock. Meaning you likely need to have a few hundred thousand if not more invested in it. Re-investing dividends back into the same stock certainly does snowball with compound interest, but you only really start seeing it after 20 years of never stopping and likely needing to add additional money of your own with it….so it’ll be time consuming and costly. The way I see it if you have a million dollars at some point, that’d be enough to create a portfolio that would pay you between 50 to 70 thousand in dividend income
Like Warren Buffet said, dividends are only good if the business you’re investing into can’t make good use of that capital. So if you’re trying to invest into businesses with actual growth, looking at dividends is a waste of time. Why are you investing into a company if they’re returning capital to you because they think you can make better use if it than they can. There’s only one reason, and it is a place to park your capital to pay you a small return with large established businesses because you aren’t trying to grow your portfolio anymore, but to live off of it. It’s not much different from bond investing.
Anyone have recommendations for a reliable monthly investment? I hope to ultimately supplement my income from work with a monthly income from investments. I will still make long-term investments, but it would be wonderful to have a little additional money each month.
Even if we are not accustomed to such volatile markets with a little carnage, the widespread frenzy and worry are understandable given that the US Stock Market has been on its longest bull run in history. However, there are opportunities everywhere if you know where to look; with the help of an investment advisor whom helped diversify my portfolio I netted over $260k in profits the previous year.
Please can you leave the info of your investment advisor here? I’m in dire need for one.
No doubt, the stock market is definitely the most awkward teenager with the wildest mood swings! I began with a pundit by name "Catherine Morrison Evans’’ Her approach is transparent allowing total ownership and control over my position and fees are very reasonable in comparison with my ROI.
Dividends are what got me into investing in the stock market. The thing to me is, if you invest and have other income outside of dividends then you will be able to live off dividends without selling. Which means you can pass that on to your kids which will give them a leg up in life. Have over $600K in my portfolio as I bought a lot of dividend stocks before, I'm buying more now, and I will buy more when it drops further.
As a new investor it's always great to hear from a person who has gone through all the difficult times and come ahead of it. It's unnerving to see your portfolio go from green to red but as mentioned if you have invested in quality names just have to keep adding to them and stay the course
I see any market condition as an opportunity. So far I've made north of $260k in raw profits from just Q3 of 2022 under the guidance of my Financial-Advisor . i’m I selling? Absolutely not. I have purchased growth stocks too a little at a time over the past few weeks. I am going to sit back and observe how this all plays out.
@@berkrix4312 Please can you leave the info of your investment analyst here? I overheard someone talking about how a couple made $200k during this red season.
@@HarrietBemish It would be very innovative suggestion to look out for Financial Advisors like Julie Anne Hoover ’ who can help shape up your portfolio. Trying times are ahead, and good personal financial management will be very important to weather the storm.
@@berkrix4312Thank you for this Pointer. It was easy to find her handler, She seems very proficient and flexible. I booked a call session with her.
As a SCHD investor I don’t worry too much about the capital gain, it’s the dividend growth which makes SCHD a great dividend stick to buy and hold
total return is the key.
@@blackcatcaptain2022 Dividend yield plus growth is total return. So, I think Aussie does actually care about total return.
Joseph, Gotta look at the higher picture as well with SCHD. Since its all time high of 81.72 back in early 2022. the price of it now is 71.50 or so. About a 12% Decrease. QQQ is 13% still from all time highs and SPY is 9%. If anything I can make the argument the last year and half with dividends and DRIP has continued to give the portfolio a safer return. The fact it sheltered the storm of the 30% QQQ and 20% S&P 500 drop is awesome.
This ^^^
Div investors skipped last year's falls in exchange for this year's gains.
Based response. I am aligned. Winning with a lower beta and cashflow is a bigger flex. 🎉
Good point. Joseph only took a year to date. Not everyone hops in exactly on Jan 1 and only tracks from there. I add to SCHD whenever it drops below 70, so I'm sitting fine
Love this. It's not sexy or exciting but still winning.
Joseph you nailed it ...let's face it people should invest in quality companies that have strong balance sheets , don't chase returns. If it's not for 7 companies the S&P would be flat.
As a dividend investor the mind set is that of building your own pension. The value of the portfolio is irrelevant because you never intend to draw from the principal, but rather only take from the dividends. Quality stocks that have a proven track record of dividend growth keeps you ahead of inflation. Yes you can miss out on the Bull runs, you tend to be protected in the Bear markets and drops like this are more of a buying opportunity than anything.
Been wanting to focus on investing in both SCHD and QQQM but since SCHD is down and QQQM is up, I've been investing in just SCHD. I'll probably just keep at it until market conditions shift and to make QQQM seem more enticing than SCHD
Very great point on the indexes. To give you an idea right now on the current weight of the S&P 500
1. Apple (7.5%)
2. Microsoft (7%)
3. Amazon (3%)
4. Nvidia (2.7%)
5. Google Class A (2%)
6. Google Class C (1.8%)
7. Meta (1.7%)
8. Berkshire (1.6%)
9. Tesla (1.6%)
10. UnitedHealth Group (1.3%)
These companies currently have the most weight on the index. Currently it makes up around 30% of the total index. If you look at the heat map most of these stocks this year and other tech stocks had massive double digit runs while standard blue chip stocks are either flat or down ytd.
It makes me wonder where the indexes would be if we didn’t see this AI bubble and massive run up in tech?
@@Anonymous-ld7je Nothing catastrophic but there is a big difference between being up over 12% to down like 3% to 5%.
How was the qqq compared to schd or the like in 2022?
I started investing in the stock market because of dividends. What matters, in my opinion, is that if you invest and earn more money in addition to dividends, you will be able to live off of dividends without selling. It implies that you can pass that on to your children, giving them a head start in life. I've invested over $600k in dividend stocks over the years; I continue to buy more today and will continue to do so until the price lowers even further.
It's always inspiring to hear from a veteran investor who has weathered the storm and come out on top. When your portfolio turns from green to red, it might be unsettling, but if you have invested in great companies, you should just keep adding to them and stick with your plan.
@@MakeamericaGreatagain-h7j she actually appears to be well-read and educated. I just did a Google search for her name and found her webpage, I appreciate you sharing
Odd that I've read this same story in another TH-cam video 😮🤫😂
Dividends are irrelevant
I used to think this but if you do the math it’s better to have low dividend or dividend less stocks as their growth out paces the dividend returns plus growth of large dividend payers.
I prefer NOBL for a dividend fund. Every company in it is roughly equally weighted.
Schd is my largest holding (55%). But luckily, my second largest holding is schg (20%), so I get exposure to both value and the big tech growth companies. I'm retired and appreciate the dividend income without having to sell shares.
Schd went up quite a bit today and growth going down
Are you me? I’m 40% SCHD and 20% SCHG. Guess it’s a common “strategy” 😂
Another reason SCHD is doing badly is because it’s heavily invested into financials and the bank stocks have largely mot recovered from the panic of the bank failures
Hi Joseph
I appreciate your content.
Question:
So in previous videos you mentioned the benefits of a concentrated Portfolio. Even given video clips of Buffet philosophy of just investing in a handful of good stock.
In this video you provided the example of the S&P equally weighted fund Vs a Market weighted fund. To my surprise you stated that the performance of the equally weight investment performed better.
I would have expected that a Market weight investment would perform enter since the higher market weighted companies got to that position based on their performance as a company.
What are your thoughts?
Market cap isn't 100% determined by company performance, it's determined by stock performance. Meaning that companies occasionally can go way up in market cap even without much cash flow or earnings to justify it. Consider that a year ago Tesla was at above 1 trillion market cap while only making around 8 billion in cash flows. Look at NVDA now, racing up in market cap.
Buffett concentrates his portfolio into companies that produce growing cash flows and trade at reasonable prices, and he avoids much of the hysteria that other investors are continually caught up in (currently AI being the next big hysteria thing).
The financial sector and derivatives may have a Hindenburg moment if the US Treasury market collapses. Rising market illiquidity in the $14.8 trillion U.S. Treasury market, according to Bank of America, might affect other financial markets.
There are many opportunities to make fantastic profits, especially in this depressed market, but such complex transactions can only be carried out by seasoned market professionals.
@@richardhudson1243 I wholeheartedly concur, which is why I like giving an investing coach responsibility for making everyday decisions. Given their specialized knowledge and study, as well as the fact that every one of their skills is aimed on leveraging risk for its asymmetrical potential and limiting it as a buffer against certain unfavorable turns, it is practically impossible for them to underperform. Over the course of more than two years, I've worked with an investment coach and earned over a million dollars
@@maiadazz I've been considering taking that path. I've kept a lot of stocks, but they're starting to depreciate, and l'm not sure if I should stick onto them or sell them. I believe restructuring my portfolio would be facilitated by engaging your investing coach.
"if the US Treasury market collapses" wow, "if" is doing a whole lot of work there, especially with treasuries paying over 5% LMAO
Hunderburg is here . What do we do ? Sell ? 😅
People aren’t buying dividend stocks because treasury and bank yields are high. I’ll take my lower priced dividend ETFs because they increase their dividend yield.
Treasuries and banks don’t have a dividend cagr and eventually their yields will drop.
I’m mad cause the $285 I transferred today for 4 shares of SCHD tomorrow isn’t enough now. 🤣😏😞. I agree 💯 with your video. Top heavy outperformance, everyone else flat or down.
I hate when that happens too. Im always too late on the good price for VOO and JEPI 😢
Looking at SCHDs composition, this iteration really has only 2 companies in its top 10 with a higher than market beta. Investors need to stop looking at SCHD as an individual entity and start looking at it as an index that sometimes consists of companies that won't necessarily perform well in every market.
What broker do you use? It's so organized
i see alot of my stocks like coke going down and see this as the perfect time to add more share to my position. i haven't sold anything this year just dollar cost averaging down my positions, but not going to lie its been stressful seeing all my gains from last year disappear.
Same here. I've made some money on cruises but still big in Apple and adding Paypal to dollar cost averaging. All of them as they fell. Apple is fine, hope Paypal recovers for a W and hoping to make a position in Activision before 2024 :)
@@backupraceres right on, just gotta weather the storm.
This is the type of episode that are great content and very informative. Thanks.
Buying such ETF as SCHD is based on long term trend rather than short term fluctuations.
This video messed me up because I spent hours stopping and replaying off and on throughout the day so that I understood clearly. You had me sold on buying growth stocks over dividends. And then at the end, you say don't buy them, just hold onto SCHD because you'll do better with that than stocks now. What if you haven't bought either yet and you're starting out?
Im buying good old Value stocks like Berkshire and UnitedHealth at the moment
Average uneducated investor
Keep in mind that Berkshire owns 915 million shares of Apple which accounts for 22% of Berkshire's total market cap.
It means buy SCHD now
This is why it’s important to have a diversified portfolio! When one thing falls you have another leg to stand on
@@BusterDarcy I follow the core satellite approach. A large percentage in VTI, witu satellite positions in SCHD and some individual companies. That is diversified enough for me
This is the first of your videos I’ve seen. Very nice. I appreciate the insight into which companies are driving the market right now.
I am once again bringing up the issue of closet indexing. When your two largest positions are the same as the two largest in the S&P you can expect your performance to be in line with the market.
Just looking at the holdings, without considering the weightings is completely, utterly, useless analysis.
Please look at the weightings of my holdings and compare them to any benchmark.
My performance is not in line with the index. The weighting is not close to the same. The QQQ does not have Amazon weighted at 40% or Netflix at 20%.
The weighting is different and the performance is different. Closet indexing is built to mimic the benchmark. There not what I’m doing and every measurable result shows that.
L take
Just to be clear... is that Dividend number on your Portfolio what you make per year 🤔 Or is that the TOTAL amount in dividends you were paid over the course of Six Years!? And are you signed up for the 5% Interest? I think it only costs $125 for the Plus account.
Stick to your strategy and ignore the noise. Everything goes in cycles and what is up now will eventually go down.
Everything eventually reverts back to the mean. Those overvalued gigacap companies will eventually come back down and money will rotate back to value. Time to load up on SCHD!
Perfect analysis. In fact, I am seeing dividend stocks and small caps starting to catch up already. The rotation may be happening as we speak. Your channel is no hype, just straight facts, unlike the pump boys we see on TH-cam. Keep up the good work.
This past 3 years were really easy mode for me, cash just go in cycle and i buy the good compagnies in sectors people dont want. Exemple this year defensive (bank, consumer stable, etc) are red while tech is green. I buy the red and in 8 months if its reverse and tech go red, the others will go green.
What do you think of Palo Alto Networks (PANW)
ps: great video as usual
Happy to see strong dividend names dipping. More long term passive income!
What about JEPI & JEPQ & SPYI?
I own JEPI etf... price YTD is breakeven and has an 11% yield
How do u know when to avoid... Reddit and or TH-cam hype .. buy vanguard ETFs. Sit. Retire.. VYM had gains ytd
Great points on what is driving the S&P. Market cap weight vs equal cap weight.
Have reduced some big tech highflyers and rotate to dividend stocks like in healthcare and consumer staple stocks.
Joseph. Maybe some investors are making less profits then the S&P or other benchmark. But I wouldn’t say the are not doing great. Investing is also about risk. It’s possible that a dividend investor takes less risk. That could be better for some (or even most) people.
Love your performance. Keep up the good work!
It's one major reason why I'm just staying diversified with a mix of individual stocks and indexes and I'm beating the S&P500. Granted I'm not crushing it by being in all Tech but I feel it would be foolish to fully swap to tech and chase the returns only to find out that for the 2nd half of the year it underperforms relative to the stocks that have not performed.
I think the Tech sector will correct and drop a bit, but long term I have to think it will be the leading sector over the next 10, 15 years. Followed by Healthcare. After the rates come down there will be big gains in REIT, if the office space issue sorts out. But it's a good time to take advantage of the struggling sectors now. But I think Tech will always lead over the long term.
Now is the time to buy the boring dividend stocks. Once earnings rebound the gains will come. I think we'll see a pullback on tech and a roll into value when earnings improve.
Yup target and dg
Yeah, I have to wonder if retail is a leading indicator. It's getting hammered lately. And tech certainly isn't going anywhere if consumers aren't consuming. So, cash flowing companies will continue to do well for the near term future in my opinion.
Nice Joseph! Appreciate the input.
I appreciate this I feel like the dividend kids I've watched talk about this but not in detail. Helped confirm some ideas I had and set a more realistic look for me!
Not all dividend stocks are equal i.e. as WB states it is a market of stocks - not as stock market. What we are seeing is the weakness of ETFs. They mask poor performing stocks so when you deep-dive into the QQQ, you will find it is only a few stocks pulling the ETF up. I use an ETF to provide ‘diversification’ on my stock portfolio of individual stocks.
I was so scared right now that dividends stock’s are failing. Omg this insane. Should we buy more dividends stock’s in a Bear Market or in a Bill Market? Does P/E ratio matter or the higher or the lower the better? I want want the lowest price possible for buying opportunities in great companies!!!
For the past few days I am thinking to trim my pos in Apple. I am up a bit more than 20%. And I might rw enter at the next dip, but this is some guess work
The notional value of a dividend stock (or ETF) can be viewed as two components, the potential for capital appreciation and the ROR expressed in the dividend. That second component has most of the market characteristics of a bond, or other "fixed" income investment. As interest rates rise, the PV of dividend stocks tends to be depressed.
Never chase performance. It will beat you everytime. SCHD is down? So what. If anything, its a good time to buy. Buy low, sell high. I seem to remember someone saying that.
I’ve moved my growth portfolio almost 100% into high dividend etfs and reits. Historically they are much better in high interest rates. Not trying to time the market, but I can buy with the dividends if there is a crash. Dividend investing is a 20year game.
You used to look specially for dividends. As you've learned what a dividend is & what a dividend isn't - the securities you've invested in has changed.
schd held up well last year
Buying T and VZ
Two months ago I chose JEPQ and JEPI over SCHD.
Too many TH-camr hype up SPY, and QQQ. I avoid dividend stocks that TH-camrs seems to hype up a lot.
Thanks for your hard work and efforts!!! Appreciate all of your insight.
I tried looking for your your video giving reasons why you closed your position in $JEPI. I vaguely remember you mentioning taxes, but not certain that was the only reason. Anyway you can help me find that video or possibly restate your reasoning for me. I appreciate you and keep up the phenomenal work.
These are exceptional insights. Most youtubers either a) not impressed with them or b) they are accurate but too "basic" for me. Joseph is one of the very few who really knows how to analyze and get deep. Joseph really knows his stuff.
Okay, so as a dividend investor my portfolio is underperforming so far in 2023. 8 companies are 30% of the market. 6 of those don't pay a dividend at all. The other two, AAPL and MSFT I do own, although not weighted in my portfolio. Why dividends and especially good dividend growers... because I don't want to have to guess about when to sell. I DON'T sell (unless occasionally selling one dividend grower but only to buy a different one). Take a guess, not interested in non-productive assets like yellow and gray shiny rocks either. Rocks can't buy more rocks.
It is my belief that the bull will eventually come for the dividend stocks. Why? Because they keep growing the dividend. Investors are simply not going to allow a good dividend grower, that is growing the dividend at a (for example), a 12% clip... investors will not allow the current yield to get to 5 or 6%. Won't happen.
We have no idea when the bull will occur for the dividend stocks. Yet, we should understand the difference between precision and certainty. I don't know with precision when that bull is coming. The remainder of 2023? 2024? Even later? I have no idea. I can say with pretty good certainty that it is coming and for reasons just explained in the paragraph above this one.
I have been a dividend investor for 36 years. I have always said when the market is down (rather flat for the dividend stocks so far in 2023), that is the 2nd best thing that can happen. Buy more shares, you just got an even better yield on new money going in, reinvest dividends, that will pay off later. Focus on cash flow, increasing revenues and EPS, low payout ratio. As you can guess, I gave up a long time ago on trying to predict the market short term. I am focusing now on just buying more shares... relax.
Brilliant! Subscribed.
As a dividend investor I am very happy when dividend stocks fall,
why would I not buy something with discount of 30% if I was ready to buy it for full price ???
I eat golden eggs that my chickens lay, why should I care how much cost the chicken, if I never sell it.
Cheaper chicken, more chicken I can buy, more eggs I eat.
When there are too many eggs, than I can eat, I am buying more chickens
When the market dived in 2022, SCHD didn't decrease as much and paid a higher yield. A good etf for income growth and wealth preservation that isn't dependent on a thesis to be correct. It will under perform in bull markets, but offers stability during bear markets.
My investment strategy is to add money on my declining ETFs. This has massively improved my portfolio. Last year i was putting so much money into my nasdaq etf and was rewarded this year. Now i am putting money into SCHD and hopefully it bounces back when tech gets a correction from these massive gains this year. It is all about buying the fear. Don't get me wrong, i still buy into tech but not like how i was last year.
My dividend portfolio is up 15.1% YTD, it is outperforming the S&P but trailing the nasdaq. I don't chase high yields, just good companies
cool
Joseph, thanks for the excellent observations. I have a small positions in a few techies - AAPL, MSFT, QCOM, TXN, & AMD. I also have a 401k portfolio with VIGAX & TPLGX, both of which are tech funds and have returns of > 30% ytd. But, I’m about to switch my active & 401K to SMH, a semi-conductor ETF, VFIAX, an S&P500 mutual fund, and for my retirement fund I’ll add a long-term bond fund, which pays >4%. In my active I’ll keep a few individual stocks but I’ll slowly decrease my tech positions, which, given the Fed’s “higher for longer” perspective, weakens tech stock growth potential and makes the returns on long-term bond funds attractive.
I've been wondering why these have been going down and I never realized it's because most of my portfolio is tech and that most sectors haven't been doing as well. Definitely stopping any purchases of tech
I started investing in august 22. Now my portfolio is down 17,5%. Is it ok?
Ben graham would agree
What's this kid talking about failing??? My dividend is killing it and has for years now. I'm doing very well with my dividend stocks, most of them are even gaining more capital then alot of my long term holds....Even if the stock isn't doing great or just sub-par, but u forget we still get paid either way...and usually just buy more when it's down ... 😂 Js...
Also lol, did you upload this to the wrong youtube account? 😂
Enjoyable listen
By that conclusion that there would be a big dip in the market means that, the big companies who are lifting the market will dip. My reasoning with your conclusion is that when everything is concentrated so much in those few companies and the market dips that just means they will be sold out soon if thy were to happen.
I keep buying under 70 but it looks like thats over cause schd is almost at 72
Lol damn, i been down since December 2021 and am still down 5% as of today. Bonds are killing my tiny stock gains...
Thank you! You’re insight is appreciated and I always come away with something worthwhile.
Timestamps would add to your nice videos ❤
Great vid!
I'm selling a bit of my tech stocks to buy into reits and SCHD. But still, I'm more bullish with tech stocks on a long term basis - I just think tech sector is a bit overbought at the moment.
SFY will outperform SCHD this year. 0.00 expense ratio for SFY versus 0.06 for SCHD.
For me 2023 has not been a good year. Although I do have several hundred shares of QQQ which I purchased in 2009 @ 29.50 and it's my largest stock I have nearly 30 other stocks. Much of the rest of my portfolio is dividend stocks and I do earn around $3k per month which has increased slightly but the dividend stocks, municipal bond ETFs ... have all lost value.
I put my portfolio to 100% in tesla when it was 112 dollars im doing pretty good😁
Thank you for that
Starting early is the best way of getting ahead to build wealth, investing remains a priority. Even in a downtrend, the stock market/crypto has plenty of opportunities to earn a decent payout, with the right skills and proper understanding of how the market works...
Good info this time
Tech stocks are surging because they cut overhead by huge layoffs, its not something spectacular they did. So it interesting to see how long this lasts.
Could you please explain why dividend stocks are falling. So you mentioned Tech is doing well. And you mentioned the rest of the market is lagging. But why are dividend stock falling?
Is Apple 'dominant' in cell phones ? I thought Samsung was - or at worst equal to Apple.
I wish SCHD was available to me!!!! But it isn’t. So instead I buy VHYL
no for me. I keep buying SCHD on discount.
As always, Joseph, this video was great insight into the market this year. I actually just sold out of my schd, which was about 17 percent of my portfolio, and replaced it with visa united health care and s&p global. I sold it to make my taxable account more tax efficient, but a major factor was the underperformance compared to other companies
Terrible time to sell SCHD
Remember they were saying 2023 was going to be the worst year in decades? I lost more money by not investing than in actual market.
I really like this video. I have done my evaluations and there are deals to be found. It is a very exciting time for me. If the market does not favor a company but your evaluation supports a buy, then I personally am buying. In the long run keeping to a process seems to have worked for me. I just wished I had figured this out 10 years ago I still was in ETF's which is still a very good long term plan but really had no idea the how's or why's. What are your thoughts?
NVDA price is over 450 now..... nonone has any clue about the future.
ETFs are fine, but never have been my choice to invest. I rather invest in individual stocks, keep a relatively concentrated portfolio of companies that I research extensively and that I know and understand well. I'm no super investor, but I enjoy the research, I enjoy finance. Many people don't and hence an ETF is a good choice for them.
excellent
If you were in REITs or renewable energy... 2023 was a pretty dismal year 😮💨
Didn’t I just read that the S&P 500 is about to have a correction in July to account for the overweight of tech stocks?
Markets go up ,down,and sideways.Not worried about a year performance in a market.If something goes on sell I load up.I don't use etfs nothing wrong with them just not my style.The only exception I have is a commodity etf.I just buy income streams with 70 percent of my porfolio the other thirty is curently in commodities.I also sell OTM options to lower my cost.For safety I own physical gold,silver,and platnium. I also cam weather most fincial storms because I have no debt including home.I am contrarian and never buy with the crowd.I hold forever on divden postions my other postions I usually hold 5-10 years.Hapoy stacking/investing.
No nvda or tsla? Seems you could of done much better. 😮