I would suggest that part of high income's outperformance is due to other factors other than simply the dividend. Perhaps more solid, older type establishment businesses tend to pay higher dividends?
Out of interest do you now know qyld or qylp (sterling listing) is now on London exchange and can be bought I’ve mentioned this a few times but don’t know if you have seen it.. you kept saying you wanted to buy it well now you can.. first dividend is paid tomorrow
Although the majority of my investing is in funds and etfs, I do take great interest and enjoyment building a dividend growth portfolio which I hope will snowball into a great income generator for me in years to come.
What's the point of dividends if the instrument you're investing in is falling in price? It is like they give you your money back and whatever you receive is taxable
@@dipenkanani7988 I just double checked. The total expense ratio is 0.40%. This is what you'll pay for the ETF regardless of where you buy it from. It does currently have a 12 month trailing yield of 6.01% though, which seems pretty good.
Typically companies that pay dividends are ones that are well established, have good cash flow and making a profit. Therefore your odds of catching high quality buinsesses are higher in a high dividend yeild fund. But of course, don't just blindly see a yeild and assume its safe.
I leant that Dividend paying companies are typically not going to grow in stock price as much and the overall market. But they do tend to be stable mature companies. I want to invest around 600K for retirement, is this good strategy?
Hi! I have a question, maybe abit dumb but...if one buys, for example, VUTY, does it automatically sell after the duration or one has to "time" the sell? In that case, why would a Yield to worst or YTM matter? I have quite basic knowledge about bonds - could anyone explain to me how it goes with bond based etfs? Thanks in advance 😀
The next or 2023 phase of the markets will be shaped by declining margins. What makes you think that in such an environment dividends will be stable? I'd be careful about what you assume.
More than chasing for high dividends the bottom line is that we should have a tilt towards value/quality and those generate more dividends than growth stocks. However there are other Covered call ETFs that outperformed the market taking advantage of the volatility. I don't believe these are good options in the long run although they could create a good diversification for a high interest rate environment where both bonds and stocks go down in sync as in 2022.
what is the most you can lose if you hold a bond until expiration? I was thinking as long as when you buy it and it promises to pay you a certain % of return and the issuer doesnt go bankrupt you should get that same % return, or not?
This seems like the worst period. Even the market are now very unpredictable. Started investing recently when the market prices were a bit high,today I am more than 60% down!
You should have used a Robo-investing platform or traded with Trev tait mozingo or any other regulated expert. As a complete beginner myself,I have made over $30k in less than 5 months with him
Sadly,if you are down that much you didn't do research Being down a few percent right now is fine due to the market,60% is crazy ! Watch different vids before investing in any other thing,go for low risk index funds or better still,try out Trev tait mozingo he is good. I can people have suggested already
It's true that the last 40 years have been exceptional for both bond and stock investors. The good news is that the results in this video hold over far long periods : value stocks (which are basically the same as "high income" stocks) have outperformed growth stocks over the very long term (100+ years of history). It's probably because investors chase exciting growth stocks because they all want to get rich quick. Meanwhile, the smart money invests in boring value stocks that (historically) have tended to give higher returns, "tortoise versus hare" style
@@VegasMilgauss What narrative is that, pray tell? Also you can't just pick a period when everything was historically rising and imply that it's a good argument for investment decisions NOW when the demographics, the geopolitics, and plenty of other things are wildly different. past performance does not guarantee future results.
I would suggest that part of high income's outperformance is due to other factors other than simply the dividend. Perhaps more solid, older type establishment businesses tend to pay higher dividends?
All your videos are incredibly useful and rewarding Ramin - but some much more than others. This is very much one of those. Many thanks.
Glad it was helpful @JohninRosc
Another great video, thanks Ramin!
Thanks again @David Meadowcroft
Thank you. Very interesting information.
Glad it was helpful @Mike Moreno
Out of interest do you now know qyld or qylp (sterling listing) is now on London exchange and can be bought I’ve mentioned this a few times but don’t know if you have seen it.. you kept saying you wanted to buy it well now you can.. first dividend is paid tomorrow
US Withholding tax eats away at the yield on these US funds. Is this lower on the U.K. listing ?
000
00
000
These American covered call ETFs can all be bought with Interactive Brokers here in Europe...
Although the majority of my investing is in funds and etfs, I do take great interest and enjoyment building a dividend growth portfolio which I hope will snowball into a great income generator for me in years to come.
What's the point of dividends if the instrument you're investing in is falling in price? It is like they give you your money back and whatever you receive is taxable
Ramin, would love to hear your thoughts on covered call etf's like JEPI.
Exactly the time to buy those growth funds/stocks that have heavily sold off (unless the bottom is not yet in lol).
Thanks for the great video, you mentioned ishares ISF, what are you thoughts on Ishares IUKD?
Doesn't that have a cost of 0.40 percent? Seems unreasonably high.
@@ba8898 not all platforms charge this, trading 212 doesn't for example. Compared to Semb this felt a better choice but I'm no expert.
@@dipenkanani7988 I just double checked. The total expense ratio is 0.40%. This is what you'll pay for the ETF regardless of where you buy it from. It does currently have a 12 month trailing yield of 6.01% though, which seems pretty good.
IUKD consistently lags ISF, though the divi is a bit higher
True but what about when you include the higher Div of IUKD wouldn’t that make the total returns higher?
Damien Talks Money has some further good points to this method of investing
Super video. Very informative. Thanks!
My pleasure @NFT UNITED
Typically companies that pay dividends are ones that are well established, have good cash flow and making a profit. Therefore your odds of catching high quality buinsesses are higher in a high dividend yeild fund. But of course, don't just blindly see a yeild and assume its safe.
The best thing is to continue working. If retirement comes with all this complexity and loss risk 😅
I leant that Dividend paying companies are typically not going to grow in stock price as much and the overall market. But they do tend to be stable mature companies. I want to invest around 600K for retirement, is this good strategy?
Hi! I have a question, maybe abit dumb but...if one buys, for example, VUTY, does it automatically sell after the duration or one has to "time" the sell?
In that case, why would a Yield to worst or YTM matter?
I have quite basic knowledge about bonds - could anyone explain to me how it goes with bond based etfs?
Thanks in advance 😀
The next or 2023 phase of the markets will be shaped by declining margins. What makes you think that in such an environment dividends will be stable? I'd be careful about what you assume.
Could I encourage you to look at BDC’s. Ares Capital, Main, etc… Held for years and living off the dividends!
More than chasing for high dividends the bottom line is that we should have a tilt towards value/quality and those generate more dividends than growth stocks. However there are other Covered call ETFs that outperformed the market taking advantage of the volatility. I don't believe these are good options in the long run although they could create a good diversification for a high interest rate environment where both bonds and stocks go down in sync as in 2022.
what is the most you can lose if you hold a bond until expiration? I was thinking as long as when you buy it and it promises to pay you a certain % of return and the issuer doesnt go bankrupt you should get that same % return, or not?
This seems like the worst period.
Even the market are now very unpredictable. Started investing recently when the market prices were a bit high,today I am more than 60% down!
You should have used a Robo-investing platform or traded with Trev tait mozingo or any other regulated expert. As a complete beginner myself,I have made over $30k in less than 5 months with him
Most of the pros on YT and IG copy trade him that's how they make enormous profits from seemingly unknown market.
Lol. I'm one of them. Not a pro though,started last year in all honesty wish I had known about him earlier.
Sadly,if you are down that much you didn't do research Being down a few percent right now is fine due to the market,60% is crazy !
Watch different vids before investing in any other thing,go for low risk index funds or better still,try out Trev tait mozingo he is good. I can people have suggested already
It's the market, if you can't be on it on the bad days,you shouldn't be in it at all.
please don`t exclude the rest of EU investors , we need insight also :)
Woot
Looks like you have an impersonator in the replies.
The 1976 - 2020 period is such a bad one to analyze, stock long term great bull market, bond bull market, gold bull market.
You can’t just write off history because it doesn’t fit your narrative though.
It's true that the last 40 years have been exceptional for both bond and stock investors. The good news is that the results in this video hold over far long periods : value stocks (which are basically the same as "high income" stocks) have outperformed growth stocks over the very long term (100+ years of history). It's probably because investors chase exciting growth stocks because they all want to get rich quick. Meanwhile, the smart money invests in boring value stocks that (historically) have tended to give higher returns, "tortoise versus hare" style
So you just ignore recent history? The world was a lot different when you go back so far.
@@VegasMilgauss What narrative is that, pray tell? Also you can't just pick a period when everything was historically rising and imply that it's a good argument for investment decisions NOW when the demographics, the geopolitics, and plenty of other things are wildly different. past performance does not guarantee future results.
cherry picking date