Honestly at the moment I am just aiming to just improve my dividend income each year. It’s as simple as that that way I don’t have a time pressure on me to hit a target by a date etc
Fantastic, your channel was instrumental for my averaging 71p per day, £20.44 per month and £260.02 per annum, I started February 2022 and I am not drinking away my free cuppa daily but reinvesting it chasing a daily Big Mac meal (albeit on a low carb diet). Thanks for sharing.
Love this. I’m in the US and I’ve been doing my best to diversify my portfolio. I’m 25 with a solid 28,200$ invested. I hope I can retire by the time I’m 55
I’m so far on 12.5p per day. Never really thought about it like that but pleased with my journey so far. I started my journey on the 21st December 2021. Thank you for sharing your adventure and inspiring me to start my own!
I cannot wait! I am finally investing at age 24, I feel I should Have started earlier but I'm not keeping single penny in my bank account that generates me no overall benefit, I'm going to diversify my portfolio and always put 80% of my monthly savings into stocks that pay dividends rather than in the bank! I can't believe when I talk so friends my age and they are comfortable keeping their years of savings at such a young age just in a bank account gathering dust!
Reached my Goals retired at 55 and living off dividend income £660 this month so far - I mainly use investment trusts and REITs rather than stocks I use Merchant’s Trust for ftse 100 firms . I know charges are high but the IT structure allows them to hold 15% back in good times to allow them to pay divs in bad times, no divs were cut during Covid in fact they increased. I think their divs have increased for past 20 years +
Nice video BTW on a side note would you think of doing updates on your Portfolio when you change or rebalance your Portfolio. The shorts you did with monthly dividends is an example. Just a thought, it seems you have a growing following and content boosts views. You may become larger than you think. You have witty content, balanced views(you give none which is good), weekly updates, very informative and so on. On a side note I bought back into GSK and sold Aviva, rebalance Portfolio is a good way forward. The market moves fast with news and sometimes people miss an opportunity.
Thanks Magic Finance for your kind words and suggestion. I really appreciate it. I’d like to post more regularly but with a full time job there is a balance / compromise on time to be made. Regarding Aviva, I took the capital (recent return of capital) and reinvested it elsewhere. I haven’t done anything with the GSK / Haleon split although I notice Haleon has not done particularly well so far. Perhaps it will be taken over at some point so I’ll hang on for now. Recent purchases over the last month or so... Unilever, S&P500, Rolls Royce, Croda. I haven’t really sold much this year except giving BP and Shell a bit of a haircut as they were dominating the portfolio as I loaded up with them during the Covid crash.
Great video, I really enjoyed the content - thank you. I think now is the perfect time to really be doubling down on value investments and dividend stocks for the sake of our market. However, regardless of the conditions we are experiencing DGI just works... I started in 2019 and now my portfolio is sitting nicely above $100K at $108K... onward to $200!
I’ve just started my dividend journey (I got around £50 last year but it wasn’t my focus) and I’ve done my own forecast for the next year and I’m looking at about £200 so far. I have more capital I will drip feed into my higher conviction dividend stocks over time as most stocks seem a bit inflated right now compared to when I was more aggressively buying in may-early July. I’d love to hit £250 in my first year and I think this is a reasonable target. I’ve also started buying premium bonds and will use that as an emergency fund as I think it’s a wise move. Thank you for your inspirational content 🙂
Thanks so much for your support and sharing your investing journey. I like the way you are setting targets and working towards them. I find premium bonds really good as an emergency fund and also a bit of competitive fun at the start of each month. All the best on your investing journey
@@TheCompoundingInvestor I take it the barclays stocks and shares ISA you mention is more for seasoned investors? I saw on the page lots of mentions of fees and stuff which put me off a bit? I dont trust a lot of these random investment websites you see around and in youtube ads. Though I will look at freetrade as you reccomended it. Thanks.
I’ve been with Barclays since the start (2009). They are fairly expensive but I guess you pay a bit more for a traditional platform which has stood stood the test of time. I recently opened a Freetrade account for my ‘viewers portfolio experiment’ and no issues so far. Still relatively new I guess and untested. If I was starting again from scratch I’d still probably use a traditional platform but that’s just me. I think I’d go with Hargreaves Lansdown as they are a bit cheaper than Barclays.
Great video again. One thing people forget even if dividends were abolished we would still have a lot of money we could live off taking money out each month for living etc.
That's a great point Sam, and the share price would potentially increase further as the money would be going back into the business / and or share buybacks. Thanks for your support.
I really like this. A different take on goals… So many investors lose hope with not seeing the “gains” or “growth” they think they should be getting. I remember my first dividend payment a whopping 50p, I was so happy. Since then I have tracked my dividend growth on a monthly but looking at it on a daily basis may also be interesting. Thank you as always for taking the time and effort for a very entertaining video
Thanks so much Phil, I really appreciate it. The flow of income however big or small can be so motivating and seeing it rise from year to year is a really powerful thing. I remember my first dividend from Aviva, it was a lightbulb moment for sure. All the best on your journey.
I’m working towards retirement income. Got 20 odd years to go and currently sitting at £292k fully invested in VWRP. My goal is to generate £1k per week by the time I retire.
Really liked this video. The food made me smile. Well done for the #40 pounds a day in dividendes, really impressive and inspiring, I am almost at #25 and I am already really happy, it helps a lot, especially with the inflation nowadays. I wish you good luck in the investments and increasing your dividendes. Bon appetit !
Thank you for sharing this video. Love the way you break this down in your videos. As new investors we are in a race to get rich quickly, so dividend investing can feel frustrating at first but it does not work like that in reality. So happy to have got to £100pm with my own snowball. Always happy to hear that ping On my phone and read about a new dividend payment. My ultimate aim over the next 10 years is to get to £1000 per month. You have shown that by being consistent this is achievable. 👌👏
Great target setting Mr P and you are making excellent progress. £100 a month was my toughest target to reach for sure and I was seriously hooked at that point. All the best.
Great videos! New subscriber.... I'm looking to start investing, but still unsure of the process. Basically if I put in £100 to the Ftse100, and it pays out dividends of 5%, twice a year. Does that mean I'll get 5% of my initial £200 equalling £10. Then re investing it, the next dividend pay out will be 5% of £210 and so on? Very new to this! Again great videos!
Thanks Bob, much appreciated and all the best on your journey. So basically the FTSE 100 pays out about 4% a year so £100 invested would earn £4 in dividends. Reinvested you now have £104 and the following year you could expect 5% of £104 and so on. Hopefully you would get some capital growth on this also but that’s never guaranteed. This year the FTSE 100 has remained fairly flat.
@@TheCompoundingInvestor Thanks for the reply! I'm just building on my knowledge just now! Again great video and great channel. Very simple and easy to understand! 👍🏻👍🏻👍🏻
@lawrence parker True, I’m making a big assumption here that the share price doesn’t change as we don’t know if it will go up or down in the short to medium term. This was just to simply for the purposes of comparing with interest rates. At the end of the day it’s the total return which is the most important factor.
@@TheCompoundingInvestor thanks for your message. I have been investing since I was 18 and iam now 43 . I too have a large portfolios in different things , from stocks and shares, cypto, properties, art , watches , just to name a few . Investing as always been a bit of fun for me . I pay a lot of money to HL & Charles Stanley ( my wealth managers) , which I dont mind . It's only the last 5 years I have played an active part . My wealth managers do they thing and I do mine . Totally separate. My accountants over see 's Everything. The yield is a percentage of the share , Times the amount and not the capital! It's wrong to give people wrong information. If your lucky , you can make money from the capital and the dividends. Unfortunately a lot of people dont understand dividends and the concept. Even the fact , that when companies payout dividends, they shares price goes down . Unfortunately you have to have £100's of thousands of pounds to make any real money in dividends. 20 odd years if you haven't got much of a capital. Wont even mention inflation . I remember when I started , Tessa , PEP and now ISA. Shouid be a very interesting few years for new investors. One thing we have in common, we got in early. I love work , regardless how much money I have , iam not retireing any time soon . Keep the good work up . I enjoy investing. To easy to sit back 🙊🙉🙈
Another fab video, entertaining and informative. Do you take value into account? For example I love Diageo too but at 3880p for me is quite over valued. It's PE ratio is higher than Alphabet and Meta! But maybe we are paying a premium for their strong portfolio of brands?
That's a very valid point Liam. There are times when I've maxed out the ISA so I need to buy something which I believe in long term but does not pay a very high dividend (to keep my non-ISA dividends below the £2000 limit). Diageo fits the bill for this purpose. I have been buying more of them this year but stopped a while back as I saw better value elsewhere. Mainly been focusing on the S&P 500 and of course Unilever over recent weeks.
Really great videos and very inspiring. I'd felt my investing had become very unfocused and your videos have helped me focus on dividend investing and kept me motivated. Keep up the good work
Thanks Jimmy and I agree, motivation and the psychological aspect of investing is so important. Setting small targets along the way and focussing only on the next step is a good way to achieve this. All the best for 2023
Thank you and thought provoking. Here in AU (Banking) part of what is assessed includes a person's GLEE ie say 36,500 pa ($100 pd). Consider if able to contribute $10 - $20 pd and Inc over time so as the combination of Inc returns and this amount ultimately reaches your goal = GLEE being covered with regular (asset) purchases ie M,W...together with compounding. Keep punching 👊
Morning Sir, Another fascinating video, I’ll be sharing this with my 20yr old son, we’ll be setting up his SIPP next week, a great way to explain his future journey and how it works in a basic but extremely interesting way. Just checked my own stats, from August 2021 to August 2022 I have received £9,376.33, I do have a lot of shares that are not dividend paying but this will change over the course of time when the market allows, my main goal in the near future is to achieve £1000 a month on average, I believe this to be possible in the next year to 18 months, I’m really enjoying the journey. Keep them coming and kind regards Tony
Thanks so much for sharing your journey Tony. £1000 a month is a great target to aim for. That's a very impressive total so far. Good luck to you and your son on both your investing journeys
Hi Compounding Investor. Great simple video. May I ask how much in total you have invested, how much has this grown by and what level of investment is required to generate the average £1100 per month passive income. Like you I too want to quit my job.
Hi Jon, thanks for visiting the channel. A few weeks ago I did my latest portfolio update. In that video I do a complete breakdown of all my holdings and how much I have in them. Towards the end of the video I show how much has gone into the portfolio since 2009 and the current performance. You will probably find it quite useful as I think it has everything you need.
Initially I aimed for between £500 and £1000 a month but as the years have gone by I’ve added a bit more. The average over the course of 14 years is £1300 approx
Top video really interesting, just found the channel. If you had a starting pot of £50k today Oct23 would you max PB or dividend paying ETFs. Great info. Cheers
Thanks. That’s not an easy question to answer as everyone circumstances are different e.g. tolerance to risk, size of emergency fund, time horizon etc. My own method was to first become totally debt free including the mortgage. Then I could concentrate solely on investing without any financial distractions. When the market was soaring and breaking records I’d put less in and buy premium bonds with some. When the market was crashing I’d buy fewer premium bonds and add more into the market to capitalise on cheaper prices
I’ve done a video on this subject. I’ll leave a link to below. None of this is investment advice of course, only what I personally would do in my own situation. For long term investing I’d personally choose a stocks and shares ISA and if I was starting out with a smaller portfolio then I’d probably choose a commission free platform like Trading 212 . If I was only investing in Exchange Traded Funds I’d consider InvestEngine as the costs are very low. Some investors with very large portfolios however might choose the more traditional platforms like Hargreaves Lansdown. They have better customer service and have stood the test of tile with many decades of experience. I use a Barclays Smart Investor which is a traditional platform and I’ve been with them for 14 years. The downside is the fees and ongoing charges are more expensive. I hope this helps. Which Stocks and Shares ISA For 2023? th-cam.com/video/nZ1TKe2e55Y/w-d-xo.html
I’m from Australia and I’m 51 and generating approximately $127,000 pa in dividends. I want to grow this to between $360,000 to $480,000 pa in passive income each year.
@@TheCompoundingInvestor, my strategy has been to invest in high growth US shares and then convert them to high yield Australian shares, ETF’s and Managed Funds. This has served me well over the years, as Australia has Franking Credits on the majority of its shares, which means that income from dividends and distributions are taxed very favourably, in comparison to earning that same amount of money through working in a job. I would rather earn an income from dividends and distributions than from working in a job. I do however do both at the moment, so that I can divert some of my active income into shares, ETF’s and Managed funds, and then reviving passive income. My Australian shares are spread across several sectors including banking, energy, mining, healthcare, utilities etc…
Thanks for sharing your story, Glenn and well done indeed. As you say it gives you options regarding work. It’s great that dividends are not taxed too heavily in Australia. Nice one 👍🏼
@@TheCompoundingInvestor, thank-you! I still have a little way to go but it is very satisfying seeing the larger amounts of dividends and distributions appear in your bank account for doing nothing. I make it a rule to reinvest at least 10% of what I receive back into my Managed Fund. I did use reinvest all of my dividends/distributions but I’m now at a point where I would like to enjoy that money. No point being the richest person in the graveyard.
Great beginners guide video! However, rather than starting off with buying shares in individual companies, it may be safer for beginners to first start buying one of the excellent ETFs you've highlighted and then, at a later date, start buying shares in individual companies. I recall having bad experiences with BP and Tesco who stopped paying a dividend for a while. At least with ETFs you should always receive a dividend since they contain many companies. Just a thought! Keep up the great content!
Thanks Derek and I agree with you concerning the ETFs. It’s a great way to start. I’ve been buying more of those recently in particular the S&P 500 (IUSA) as I’ve maxed out the ISA and need something with a lower dividend yield to keep below the £2000 limit. The FTSE 100 tracker (ISF) is another one I’ve been buying in recent years. ETFs were not a mainstream thing when I started this portfolio but I think they are an extremely good asset to have.
@@TheCompoundingInvestor Absolutely. I actually divide my dividend shares into three distinct categories: Individual companies (50%) , ETFs (40%) and REITS (10%). I'd be interested to know do you consider such percentage splits and categories when developing your own dividend portfolio or you don't have any particular percentage targets for shares, ETFs or REITs? Your videos have been very helpful to me in developing my own dividend portfolio and I am very grateful for that.
That's a good question Derek. Since EFTs have become mainstream I'm starting to favour them more and more. It gives me greater diversification and also overseas exposure. I still like individual companies however as when I see bargains I can take advantage for example Shell during the pandemic and Unilever this year. I think I'm around 90% individual companies and 10% ETFs at the moment but I really want this to be more balanced. Perhaps a 50 : 50 split would be something for me to aim for, going forward.
Many thanks for getting back to me on this. It's reassuring to know that I'm not too far off the mark with my individual company ETF split. I'm now in my mid 60s. My idea, as I get older, is to slowly increase the weighting of ETFs and slowly decrease the percentage of individual companies thereby gradually decrease my portfolio risk and increase the certainty of receiving dividends and eventually end up with a one third individual company and two thirds ETF split.@@TheCompoundingInvestor
Hi I have a question? How do you get dividends so if I buy shares via Barclays or eToro how does they companies know you own the stocks and shares. I have never done this thanks
Hi Tony. The share dealing platform has to notify a central register. The company who pays out the dividend pays the platform a lump sum and the platform then divides up the dividends between the shareholders. This sometimes takes a day or two. In over 13 years I’ve always received all my dividends from Barclays without any issues. Just in case you don’t know this, always best to use a Stocks and Shares ISA if you intend to invest for the long term as dividends will be tax free. Outside of an ISA you have to pay tax if your dividends go above £2000 a year. This may not be a concern initially but say 10 years down the road you may wish you had started with an ISA. I was late starting with my own ISA and made things a little more difficult. Good luck 👍🏼
British stocks are great for international investing with tax free/pension account thanks to lack of withholding taxation. Got some of those, aside them Airtel Africa AAF is great for growing emerging markets exposure.
I love these videos. Thanks for the effort involved to create them. I find saving as a hobby , sad as that may sound and now I then I do need to stop and actually treat myself occasionally. It’s addictive, investing, dividends, checking the ex-div date, logging into your platform to check the dividends have been paid, checking when it’s been reinvested. Monitoring share prices to guess a good time to top up if the share price has dipped. Then of course looking at all that free money that arrives. My aim, like many is to put as much away as possible, then as I get older hopefully I can slow down and find a part time job with money coming in from investments. That’s my plan anyway.
I can relate to all of this Barry. The whole process can be very absorbing especially when you see the capital and dividends growing and then accelerating. Good luck on your journey.
Is this Stocks and shares ISA a UK thing? Tax free dividends sounds outlandish in my country. I live in Denmark and the ABOSLUTE minium amount of tax you can pay on stock/dividend gains is either 17% in a "stock savings account" which has some weird rules i dont really like. Or just a normal portfolio which is 27% up to the first 6700£ a year and then 42% anything above that. It makes dividend investing even more difficult and almost seems impossible
Yes in the UK we can shelter £20,000 a year from tax, otherwise I’d have to pay almost 34% tax on dividends. Outside of the ISA you are allowed dividends of £2000 a year before paying tax.
Left the rat race at 53 two weeks ago. Dividend isa is really important as all your income is tax free but does take awhile to build up 20 yrs plus unless your lucky on a aim stock or similar. Dividends aren't guaranteed plus your initial capital can fall but hey Compounding is the eighth wonder of the world 🙂 one tip be patient and wait for 52 week lows you can pick up some great yields if your lucky I don't really touch anything under 6%
Thanks dubs dolby. That’s really impressive and thanks so much for sharing. Patience really is the key and of course good use of a stocks and shares ISA. What countries / sectors are you mainly invested in?
@@TheCompoundingInvestor thanks. My main biggies are legal and general ,direct line ,rio tinto . British American and imperial brands. Vodafone, m & g insurance and a few more. Recently got into more etfs mainly American Market. I really look to buy at close to year lows if possible foe a greater yield 🙂 from experience you get maybe 2-3 chances a year to get those sale prices 👍
@@dubsdolby9437 Thanks that’s very useful. I hold fairly similar companies and tend to add more when I see bargains. Bought Shell and BP quite aggressively during the pandemic. Also buying a fair bit of an S&P 500 ETF recently. First got into that when the US market dipped dramatically at the start of covid.
@@TheCompoundingInvestor ditto ha! Think I got shell at around £13 sold about £19 and bp sold wish I'd kept abit longer tbh. Legal and general has been the most solid performing stock 👌
Great video mate... I used to go big on VHYL but with nearly half its weighting in USA it was some what a copy cat of an S&P 500 ETF, so at times it would move up and down in the same way
Would be interested to see how much you invested each year to reach the level you have now. So obviously for the first year to raise £8 a month how much did you put in? Will show the level of compounding you have too in the later years!
That’s a good suggestion Tom. I’ve not looked at that before but I’m pretty sure I should be able to dig that data out at some point for a relevant video
Thanks for watching and commenting. My Barclays platform has only ever allowed me to buy individual UK companies and not overseas shares. I’m gradually getting into ETFs however including the S&P500
@@TheCompoundingInvestor Thanks. Love your unboxing videos each month. In terms of yout stocks, are you nervous about the debt loads with the likes of DGE and NG? (More so NG)
Thanks. I'm glad you like the unboxing videos. I think high debt with NG is common throughout the industry and they basically have a monopoly, however if interest rates continue to rise then yes there could be a problem. If we have a change in government there is always the fear of nationalisation and this is always at the back of my mind. Not too worried about Diageo. They will do ok in a recession. People tend to keep buying their products.
Thanks Sybaritic. I recall around that time I was really focussing on dividend companies with higher yields and transitioning away from growth stocks and more speculative companies.
I've tried Moneybox, put a hundred quid in a month ago, and ten quid a week. So far its +£4.89 in profit. I'm crap at maths, but I would assume that's a good interest rate/return for £140 invested?
Young and have begun investing. have chosen an etf along with investing in companies such as unilever , ba tobacco, bp , national grid , green coat and aviva . Put a portion of my monthly earnings in and enjoy researching new companies to invest in .Your videos have opened my eyes thank you
Glad you are enjoying it and you are clearly doing plenty of research. It can get really addictive once the dividends start rolling in. Good luck on your journey.
This is all very nice but aren't dividends ruined by large drops in percentage values of a business when they fluctuate by minus 5-10% as this means your investment amount will also drop by this percentage ?
Nice video. My own view of this is that a single stock - say Vodafone or whatever - needs to generate a higher % dividend than an ETF for it to be worth holding it. Any view on that idea?
I would generally agree Simon. However in my case there are times when I still buy stocks below the yield of the ETF for example at the moment I've filled my stocks and shares ISA so I need to buy quality companies outside of the ISA with lower dividend yields in order to keep dividends held outside the ISA below the tax free allowance of £2000 a year. Secondly a company such as Diageo may pay a lower dividend than the FTSE 100 ETF but they grow their dividend faster than most so the return on your original capital will probably be quite significant over the long term. A final reason why I might buy a company with a lower yield is if it is experiencing a short-term shock and therefore a bargain. For example when BP stopped their dividends after the oil disaster I saw this as an opportunity. The share price had crashed but I suspected their dividends would return in the future.
@@TheCompoundingInvestor Thanks for the decent reply….You might also think bout buying the Acc version of ETFs rather than low yielding stocks? You probably know more about this than me though….
unfortunately distribution and accumulation versions are both liable for dividend tax in the same way. With the accumulation version a dividend was still technically paid but automatically reinvested instead of you actually receiving it. The amount is still liable for tax.
Thanks for watching and commenting Charlie. I don't know any myself but hopefully someone on here will point you in the right direction if there is one. Personally I just use excel to track all my dividends and I enter them one by one with the company and date. I can then easily see what my average dividend per day or month is over the last year. I find that half the fun of all this is recording my dividends in excel and watching the average month amount go up over time.
I just started this year and I would like to make 200 pounds this year in dividend :) so far since I started investing in April I made about 140 pounds in dividend :) I have mainly uk stocks :) but two of my stocks is American one of them is pharmaceutical company Merck :) and other one investment trust which pays monthly dividends and has over 8% dividend and been increasing dividend for last 20 years
I have worked it out to be 78p per day! Nothing from McDonalds yet , but maybe a can of coke or 2 tins of beans a day! If I ever lose my job and I keep my portfolio I will never starve!
So are you or were you at the start investing roughly £600 a month at the start? Just looking at the jump from 2010 to 2011, the fact it was over triple in daily returns, which based on a base math you went from a portfolio of 8.7k to over 27k in one year? Curious how you managed that otherwise even compounding it doesn't stack up
Thanks for commenting Whiskah, and you may have just given me an idea for a future video. I should be able to find exact amount I put in each month from the very start. The figure did vary considerably from month to month however when I first started many of the companies stopped paying dividends or suddenly abolished them soon after because of the financial crisis fallout, hence the lack of dividends early on. I then started buying ones which did and also ones I already owned started paying again as the economy recovered. That could explain the sudden leap in returns.
@The Compounding Investor aha awesome thanks look forward to it! Would definitely be interested (as someone who only just got started on the dividend bandwagon) to see a rough play by play/how much you invested roughly per month per year etc even just aim for as you say a cuppa to £1 to £10 whatnot
Yeah you can use the same one and add 20k of new money into it each year. With Vanguard however you are limited to vanguard funds and can’t buy individual shares
Yes that’s correct. You can only use their own funds / ETFs but there is nothing wrong with that. They have some very good index tracking ETFs and you can choose ones which pay dividends or not depending on your preference
@@TheCompoundingInvestor thank you. Would I be able to open an account with Trading212 or Freeshare and do the same thing, or not as I have a S&S ISA already? Thanks
£201 from National Grid today, just waiting for my BAT payment to arrive! Both on 17th august. Then I have 6 in September, BP. Direct Line M&g. Rio tinto sse and diversified energy. September will be a bumper month! Easily over 4 figures National Grid valued at £8100 and 703 shares…. I love this game
Nice, your broker is obviously more efficient than mine. Can’t see a National Grid or BAT payment yet on my Barclays platform however I did get a dividend paid from United Utilities and Tate & Lyle earlier this month. Very motivating when those payments come in especially when you put them straight back to work generating even more dividends.
Really good video as always 😀 A mix of personal experience and motivational advice for new investors that should help some join the compounding family 👍🏻
Why do you personally go for dividend over growth? Also, why do you decide to pick individual stocks instead of a dividend ETF? Great video by the way, I love your content, keep it up!
Hi Joseph. Thanks so much for visiting the channel. Hopefully I’ll get some growth as well as dividends at the end of the day but it’s the passive income through dividends which motivates me to continue and I’m just as excited about the process now as I’ve always been because of the psychological nature of passive income flow. The ultimate goal would be to generate more passive income than my actual day job but I doubt I’ll actually achieve this. About ETFs, they were not mainstream when I started so I’m accustomed to buying individual UK stocks which I guess goes all the way back since I was a teenager and that’s all I could buy. More recently I’ve transitioned to ETFs and have been actively buying a FTSE 100 ETF (ISF). In recent week most of my investments have been in an S&P 500 tracking ETF (IUSA) but this is mainly because I’ve filled the Stocks and Shares ISA and so need to buy low div assets outside of the ISA so I don’t go above the £2000 limit. Sorry about the long reply but you did ask a couple of great questions.
@@TheCompoundingInvestor Thank you for the detailed reply! I personally invest in a S&P 500 ETF (VUSA) and a FTSE All world ETF (VWRL). But I’m definitely looking to build a dividend portfolio separate from this with the view to the same goal as you. Do you have a background in finance at all? You say you started young, curious as to where your interest began?
Hello Sergiu, If you are outside of the UK then I'm afraid I don't know the answer to that. There may be a withholding tax but I'm not sure. Best check with your broker who may have more details
In the UK you are allowed to receive £2000 in dividends per year without the need to be taxed on them in a general investment account. In a Stocks and Shares ISA all your dividends are tax free
Great video mate. I follow the 10-20 principle. I invest minimum of 10% of my wage and pay myself 20% of my yearly dividends (with that I pay off an interest free loan I lent myself, currently got a 6k driveway I’ve got to pay off, which should take about 18 months to pay off. I’ll let you work out the maths of my total dividend income) I’m surprised you don’t do the same mate as you’re still reinvesting 80% of your dividends but able to realise some capital to pay for things you don’t really want to buy ?
Thanks for the suggestion David and explaining your own strategy. I’ve not heard of the 10-20 principle. Could you point me in the right direction so I can read more about it or is it something you have developed yourself? In my own case I don’t want to withdraw any funds from my stocks and shares ISA and obviously want to max out the 20k a year allowance as much as possible. For emergency funds etc I have the full amount of premium bonds which I can tap into when needed.
@@TheCompoundingInvestor it comes from the richest man in Babylon ( you can listen to it free on TH-cam). There a some very good money rules to live by
Hi Stephen, that's a very good question. It's been on my shopping list for Ionger than I can remember but never managed to pull the trigger on it. I think there are a couple of reasons for this. Firstly I already hold two other big insurers, Aviva and Direct line and secondly I hold quite a large number of companies in the financial sector now so my appetite for another is not that big. However I do agree that Legal & General looks very attractive and I continue to monitor it closely.
What generally happens is that on the XD date the share price will fall by the same amount as the value of the dividend so you will neither gain or lose anything in theory. On the XD date the dividend no longer belongs to the company so the value of the company is less than it was and the share price is automatically adjusted down to compensate.
Comps don't always fall on XD, might have to wait a while till they rebound, don't like holding shares for a year to get a 5% div. Little bits often is my method...
What investing target are you currently working towards?
£1000 dividends a year. I enjoy measuring my dividends in real world items so I use Meal deals as a progress tracker 😂
Honestly at the moment I am just aiming to just improve my dividend income each year. It’s as simple as that that way I don’t have a time pressure on me to hit a target by a date etc
That sounds like a plan. There is no magic formula for any of this. Best wishes.
I'm trying to invest as much as I can into my portfolio ,On a monthly basis. .
@@malcolmbirkett1347 That sounds like a solid plan Malcolm. Good luck on your journey
Fantastic, your channel was instrumental for my averaging 71p per day, £20.44 per month and £260.02 per annum, I started February 2022 and I am not drinking away my free cuppa daily but reinvesting it chasing a daily Big Mac meal (albeit on a low carb diet). Thanks for sharing.
LOL. Thanks so much CK 888. Onwards and upwards towards that daily Big Mac!
Love this. I’m in the US and I’ve been doing my best to diversify my portfolio. I’m 25 with a solid 28,200$ invested. I hope I can retire by the time I’m 55
Plenty of time on your side for the magic of compounding to do it’s thing. All the best on your journey
I’m so far on 12.5p per day. Never really thought about it like that but pleased with my journey so far. I started my journey on the 21st December 2021. Thank you for sharing your adventure and inspiring me to start my own!
Glad you are enjoying the process. Will be fascinating to see that grow as time goes by. Excellent work.
I cannot wait! I am finally investing at age 24, I feel I should Have started earlier but I'm not keeping single penny in my bank account that generates me no overall benefit, I'm going to diversify my portfolio and always put 80% of my monthly savings into stocks that pay dividends rather than in the bank! I can't believe when I talk so friends my age and they are comfortable keeping their years of savings at such a young age just in a bank account gathering dust!
That sounds like a plan and you have plenty of time on your side to ride out market fluctuations. All the best my friend
You’re starting a lot earlier than me good luck
Reached my Goals retired at 55 and living off dividend income £660 this month so far - I mainly use investment trusts and REITs rather than stocks I use Merchant’s Trust for ftse 100 firms . I know charges are high but the IT structure allows them to hold 15% back in good times to allow them to pay divs in bad times, no divs were cut during Covid in fact they increased. I think their divs have increased for past 20 years +
Thanks so much for sharing your journey Retirement Investor. This will be very useful for others to read. Well done indeed on your achievements.
Can u invest in REITS using Freetrade?
Yes I believe you can invest in REITs
Honestly mate that was such a good way of explaining it keep up the good work av just hit my target of £100 per week for doing nothing
Excellent work Duncan. £100 a week is a fantastic milestone. Thanks so much for your support
Duncan which companies have you invested in to generate £l00 per week
@@catseyes8377 Loads mate never spent any just reinvested divs
Nice video BTW on a side note would you think of doing updates on your Portfolio when you change or rebalance your Portfolio. The shorts you did with monthly dividends is an example. Just a thought, it seems you have a growing following and content boosts views. You may become larger than you think. You have witty content, balanced views(you give none which is good), weekly updates, very informative and so on.
On a side note I bought back into GSK and sold Aviva, rebalance Portfolio is a good way forward. The market moves fast with news and sometimes people miss an opportunity.
Thanks Magic Finance for your kind words and suggestion. I really appreciate it. I’d like to post more regularly but with a full time job there is a balance / compromise on time to be made. Regarding Aviva, I took the capital (recent return of capital) and reinvested it elsewhere. I haven’t done anything with the GSK / Haleon split although I notice Haleon has not done particularly well so far. Perhaps it will be taken over at some point so I’ll hang on for now. Recent purchases over the last month or so...
Unilever, S&P500, Rolls Royce, Croda.
I haven’t really sold much this year except giving BP and Shell a bit of a haircut as they were dominating the portfolio as I loaded up with them during the Covid crash.
Great video, I really enjoyed the content - thank you. I think now is the perfect time to really be doubling down on value investments and dividend stocks for the sake of our market. However, regardless of the conditions we are experiencing DGI just works... I started in 2019 and now my portfolio is sitting nicely above $100K at $108K... onward to $200!
Great work Ari and thanks for your support. Good luck with your investments and your great finance channel
Impressive! Wish I’d known about investing in my teens, or twenties!
Thank you. Never too late to start. I think we all wish we had started earlier.
I’ve just started my dividend journey (I got around £50 last year but it wasn’t my focus) and I’ve done my own forecast for the next year and I’m looking at about £200 so far. I have more capital I will drip feed into my higher conviction dividend stocks over time as most stocks seem a bit inflated right now compared to when I was more aggressively buying in may-early July. I’d love to hit £250 in my first year and I think this is a reasonable target. I’ve also started buying premium bonds and will use that as an emergency fund as I think it’s a wise move. Thank you for your inspirational content 🙂
Thanks so much for your support and sharing your investing journey. I like the way you are setting targets and working towards them. I find premium bonds really good as an emergency fund and also a bit of competitive fun at the start of each month. All the best on your investing journey
I've tried other investment videos but this is my favourite by far. Keep up the good work.
Thanks so much, I really appreciate it.
My next target is pay my gas and electricity bill
If you had bought energy companies it would have paid it for you plus a lot of change
Nice one, you must be in the position to eat afternoon tea at the Ritz 🙂🙂🙂. Well done 👏👏👏
Lol. Thanks K N and all the best on your journey
Brilliant, time to get me free cuppa tea! I'll have to re-do the figures though as I need a sweetner in it every day ;)
Nice one MrButuz!
@@TheCompoundingInvestor I take it the barclays stocks and shares ISA you mention is more for seasoned investors? I saw on the page lots of mentions of fees and stuff which put me off a bit? I dont trust a lot of these random investment websites you see around and in youtube ads. Though I will look at freetrade as you reccomended it. Thanks.
I’ve been with Barclays since the start (2009). They are fairly expensive but I guess you pay a bit more for a traditional platform which has stood stood the test of time. I recently opened a Freetrade account for my ‘viewers portfolio experiment’ and no issues so far. Still relatively new I guess and untested.
If I was starting again from scratch I’d still probably use a traditional platform but that’s just me. I think I’d go with Hargreaves Lansdown as they are a bit cheaper than Barclays.
Great video again. One thing people forget even if dividends were abolished we would still have a lot of money we could live off taking money out each month for living etc.
That's a great point Sam, and the share price would potentially increase further as the money would be going back into the business / and or share buybacks. Thanks for your support.
Excellent video. No bullshit, no pontificating, just straight up pragmatism and objective statements.
Thanks for your support Da Bx. Glad you enjoyed it. All the best on your journey
Not Nutritional Advice😂😂😂😂 That line had me!
I really like this. A different take on goals… So many investors lose hope with not seeing the “gains” or “growth” they think they should be getting. I remember my first dividend payment a whopping 50p, I was so happy. Since then I have tracked my dividend growth on a monthly but looking at it on a daily basis may also be interesting. Thank you as always for taking the time and effort for a very entertaining video
Thanks so much Phil, I really appreciate it. The flow of income however big or small can be so motivating and seeing it rise from year to year is a really powerful thing. I remember my first dividend from Aviva, it was a lightbulb moment for sure. All the best on your journey.
I’m working towards retirement income. Got 20 odd years to go and currently sitting at £292k fully invested in VWRP. My goal is to generate £1k per week by the time I retire.
Wow that’s excellent progress and quite a bit of time on your hands for further compounding. Good luck on the rest of your journey
Good video school leavers should watch this
Really liked this video. The food made me smile. Well done for the #40 pounds a day in dividendes, really impressive and inspiring, I am almost at #25 and I am already really happy, it helps a lot, especially with the inflation nowadays. I wish you good luck in the investments and increasing your dividendes. Bon appetit !
Thanks Trunky, all the best my friend
All this time I have been following stock Moe, Kenan Grace, and a few others. Only started watching your channel since yesterday.
Thanks Pot Noogle and all the best on your investing journey
Thank you for sharing this video. Love the way you break this down in your videos. As new investors we are in a race to get rich quickly, so dividend investing can feel frustrating at first but it does not work like that in reality. So happy to have got to £100pm with my own snowball. Always happy to hear that ping On my phone and read about a new dividend payment. My ultimate aim over the next 10 years is to get to £1000 per month. You have shown that by being consistent this is achievable. 👌👏
Great target setting Mr P and you are making excellent progress. £100 a month was my toughest target to reach for sure and I was seriously hooked at that point. All the best.
Great videos! New subscriber.... I'm looking to start investing, but still unsure of the process. Basically if I put in £100 to the Ftse100, and it pays out dividends of 5%, twice a year. Does that mean I'll get 5% of my initial £200 equalling £10. Then re investing it, the next dividend pay out will be 5% of £210 and so on? Very new to this! Again great videos!
Thanks Bob, much appreciated and all the best on your journey.
So basically the FTSE 100 pays out about 4% a year so £100 invested would earn £4 in dividends. Reinvested you now have £104 and the following year you could expect 5% of £104 and so on. Hopefully you would get some capital growth on this also but that’s never guaranteed. This year the FTSE 100 has remained fairly flat.
@@TheCompoundingInvestor Thanks for the reply! I'm just building on my knowledge just now! Again great video and great channel. Very simple and easy to understand! 👍🏻👍🏻👍🏻
I thought it was a percentage of the share price X the amount of shares you have ????and not your capital ..
@lawrence parker True, I’m making a big assumption here that the share price doesn’t change as we don’t know if it will go up or down in the short to medium term. This was just to simply for the purposes of comparing with interest rates. At the end of the day it’s the total return which is the most important factor.
@@TheCompoundingInvestor thanks for your message.
I have been investing since I was 18 and iam now 43 .
I too have a large portfolios in different things , from stocks and shares, cypto, properties, art , watches , just to name a few .
Investing as always been a bit of fun for me .
I pay a lot of money to HL & Charles Stanley ( my wealth managers) , which I dont mind .
It's only the last 5 years I have played an active part .
My wealth managers do they thing and I do mine .
Totally separate.
My accountants over see 's Everything.
The yield is a percentage of the share , Times the amount and not the capital!
It's wrong to give people wrong information.
If your lucky , you can make money from the capital and the dividends.
Unfortunately a lot of people dont understand dividends and the concept.
Even the fact , that when companies payout dividends, they shares price goes down .
Unfortunately you have to have £100's of thousands of pounds to make any real money in dividends.
20 odd years if you haven't got much of a capital.
Wont even mention inflation .
I remember when I started , Tessa , PEP and now ISA.
Shouid be a very interesting few years for new investors.
One thing we have in common, we got in early.
I love work , regardless how much money I have , iam not retireing any time soon .
Keep the good work up .
I enjoy investing.
To easy to sit back 🙊🙉🙈
I truly loved this video, good luck with your Investing journey
Thanks Jubair. Good luck with your investments and your finance channel 👍🏼
Another fab video, entertaining and informative. Do you take value into account? For example I love Diageo too but at 3880p for me is quite over valued. It's PE ratio is higher than Alphabet and Meta! But maybe we are paying a premium for their strong portfolio of brands?
That's a very valid point Liam. There are times when I've maxed out the ISA so I need to buy something which I believe in long term but does not pay a very high dividend (to keep my non-ISA dividends below the £2000 limit). Diageo fits the bill for this purpose. I have been buying more of them this year but stopped a while back as I saw better value elsewhere. Mainly been focusing on the S&P 500 and of course Unilever over recent weeks.
@@TheCompoundingInvestor I would love to see diageo pull back to around 3000p if possible! I would load up for sure
Really great videos and very inspiring. I'd felt my investing had become very unfocused and your videos have helped me focus on dividend investing and kept me motivated. Keep up the good work
Thanks Jimmy and I agree, motivation and the psychological aspect of investing is so important. Setting small targets along the way and focussing only on the next step is a good way to achieve this. All the best for 2023
Thank you and thought provoking. Here in AU (Banking) part of what is assessed includes a person's GLEE ie say 36,500 pa ($100 pd). Consider if able to contribute $10 - $20 pd and Inc over time so as the combination of Inc returns and this amount ultimately reaches your goal = GLEE being covered with regular (asset) purchases ie M,W...together with compounding. Keep punching 👊
Morning Sir,
Another fascinating video, I’ll be sharing this with my 20yr old son, we’ll be setting up his SIPP next week, a great way to explain his future journey and how it works in a basic but extremely interesting way.
Just checked my own stats, from August 2021 to August 2022 I have received £9,376.33, I do have a lot of shares that are not dividend paying but this will change over the course of time when the market allows, my main goal in the near future is to achieve £1000 a month on average, I believe this to be possible in the next year to 18 months, I’m really enjoying the journey.
Keep them coming and kind regards
Tony
Thanks so much for sharing your journey Tony. £1000 a month is a great target to aim for. That's a very impressive total so far. Good luck to you and your son on both your investing journeys
Hi Compounding Investor. Great simple video. May I ask how much in total you have invested, how much has this grown by and what level of investment is required to generate the average £1100 per month passive income. Like you I too want to quit my job.
Hi Jon, thanks for visiting the channel. A few weeks ago I did my latest portfolio update. In that video I do a complete breakdown of all my holdings and how much I have in them. Towards the end of the video I show how much has gone into the portfolio since 2009 and the current performance. You will probably find it quite useful as I think it has everything you need.
Excellent channel, many thanks .
Thanks so much Dan, I really appreciate it. Good luck on your journey
How much roughly did you invest every single month? Thanks
Initially I aimed for between £500 and £1000 a month but as the years have gone by I’ve added a bit more. The average over the course of 14 years is £1300 approx
@@TheCompoundingInvestor wow that is alot of money considering the cost of living every month and rents. Congratulations awsome saving skills!
Top video really interesting, just found the channel. If you had a starting pot of £50k today Oct23 would you max PB or dividend paying ETFs.
Great info. Cheers
Thanks. That’s not an easy question to answer as everyone circumstances are different e.g. tolerance to risk, size of emergency fund, time horizon etc. My own method was to first become totally debt free including the mortgage. Then I could concentrate solely on investing without any financial distractions. When the market was soaring and breaking records I’d put less in and buy premium bonds with some. When the market was crashing I’d buy fewer premium bonds and add more into the market to capitalise on cheaper prices
Rookie here. How does one decide on one's choice of trading platform?
I’ve done a video on this subject. I’ll leave a link to below. None of this is investment advice of course, only what I personally would do in my own situation.
For long term investing I’d personally choose a stocks and shares ISA and if I was starting out with a smaller portfolio then I’d probably choose a commission free platform like Trading 212 . If I was only investing in Exchange Traded Funds I’d consider InvestEngine as the costs are very low. Some investors with very large portfolios however might choose the more traditional platforms like Hargreaves Lansdown. They have better customer service and have stood the test of tile with many decades of experience. I use a Barclays Smart Investor which is a traditional platform and I’ve been with them for 14 years. The downside is the fees and ongoing charges are more expensive. I hope this helps.
Which Stocks and Shares ISA For 2023?
th-cam.com/video/nZ1TKe2e55Y/w-d-xo.html
I’m from Australia and I’m 51 and generating approximately $127,000 pa in dividends. I want to grow this to between $360,000 to $480,000 pa in passive income each year.
That’s amazing. How long have you been investing and in which sectors?
@@TheCompoundingInvestor, my strategy has been to invest in high growth US shares and then convert them to high yield Australian shares, ETF’s and Managed Funds. This has served me well over the years, as Australia has Franking Credits on the majority of its shares, which means that income from dividends and distributions are taxed very favourably, in comparison to earning that same amount of money through working in a job. I would rather earn an income from dividends and distributions than from working in a job. I do however do both at the moment, so that I can divert some of my active income into shares, ETF’s and Managed funds, and then reviving passive income. My Australian shares are spread across several sectors including banking, energy, mining, healthcare, utilities etc…
Thanks for sharing your story, Glenn and well done indeed. As you say it gives you options regarding work. It’s great that dividends are not taxed too heavily in Australia. Nice one 👍🏼
@@TheCompoundingInvestor, thank-you! I still have a little way to go but it is very satisfying seeing the larger amounts of dividends and distributions appear in your bank account for doing nothing. I make it a rule to reinvest at least 10% of what I receive back into my Managed Fund. I did use reinvest all of my dividends/distributions but I’m now at a point where I would like to enjoy that money. No point being the richest person in the graveyard.
Great beginners guide video! However, rather than starting off with buying shares in individual companies, it may be safer for beginners to first start buying one of the excellent ETFs you've highlighted and then, at a later date, start buying shares in individual companies. I recall having bad experiences with BP and Tesco who stopped paying a dividend for a while. At least with ETFs you should always receive a dividend since they contain many companies. Just a thought! Keep up the great content!
Thanks Derek and I agree with you concerning the ETFs. It’s a great way to start. I’ve been buying more of those recently in particular the S&P 500 (IUSA) as I’ve maxed out the ISA and need something with a lower dividend yield to keep below the £2000 limit. The FTSE 100 tracker (ISF) is another one I’ve been buying in recent years. ETFs were not a mainstream thing when I started this portfolio but I think they are an extremely good asset to have.
@@TheCompoundingInvestor Absolutely. I actually divide my dividend shares into three distinct categories: Individual companies (50%) , ETFs (40%) and REITS (10%). I'd be interested to know do you consider such percentage splits and categories when developing your own dividend portfolio or you don't have any particular percentage targets for shares, ETFs or REITs?
Your videos have been very helpful to me in developing my own dividend portfolio and I am very grateful for that.
That's a good question Derek. Since EFTs have become mainstream I'm starting to favour them more and more. It gives me greater diversification and also overseas exposure. I still like individual companies however as when I see bargains I can take advantage for example Shell during the pandemic and Unilever this year. I think I'm around 90% individual companies and 10% ETFs at the moment but I really want this to be more balanced. Perhaps a 50 : 50 split would be something for me to aim for, going forward.
Many thanks for getting back to me on this. It's reassuring to know that I'm not too far off the mark with my individual company ETF split. I'm now in my mid 60s. My idea, as I get older, is to slowly increase the weighting of ETFs and slowly decrease the percentage of individual companies thereby gradually decrease my portfolio risk and increase the certainty of receiving dividends and eventually end up with a one third individual company and two thirds ETF split.@@TheCompoundingInvestor
Great video. Instead of buying all those individual shares why not just buy isf etf or the other one. ?
Hi I have a question?
How do you get dividends so if I buy shares via Barclays or eToro how does they companies know you own the stocks and shares.
I have never done this thanks
Hi Tony. The share dealing platform has to notify a central register. The company who pays out the dividend pays the platform a lump sum and the platform then divides up the dividends between the shareholders. This sometimes takes a day or two. In over 13 years I’ve always received all my dividends from Barclays without any issues.
Just in case you don’t know this, always best to use a Stocks and Shares ISA if you intend to invest for the long term as dividends will be tax free. Outside of an ISA you have to pay tax if your dividends go above £2000 a year. This may not be a concern initially but say 10 years down the road you may wish you had started with an ISA. I was late starting with my own ISA and made things a little more difficult. Good luck 👍🏼
British stocks are great for international investing with tax free/pension account thanks to lack of withholding taxation. Got some of those, aside them Airtel Africa AAF is great for growing emerging markets exposure.
Some wise words there BotanixB. Thanks so much for watching and commenting. Good luck on your investing journey.
I love these videos. Thanks for the effort involved to create them. I find saving as a hobby , sad as that may sound and now I then I do need to stop and actually treat myself occasionally. It’s addictive, investing, dividends, checking the ex-div date, logging into your platform to check the dividends have been paid, checking when it’s been reinvested. Monitoring share prices to guess a good time to top up if the share price has dipped. Then of course looking at all that free money that arrives. My aim, like many is to put as much away as possible, then as I get older hopefully I can slow down and find a part time job with money coming in from investments. That’s my plan anyway.
I can relate to all of this Barry. The whole process can be very absorbing especially when you see the capital and dividends growing and then accelerating. Good luck on your journey.
Agreed, it is a hobby.
Is this Stocks and shares ISA a UK thing? Tax free dividends sounds outlandish in my country. I live in Denmark and the ABOSLUTE minium amount of tax you can pay on stock/dividend gains is either 17% in a "stock savings account" which has some weird rules i dont really like. Or just a normal portfolio which is 27% up to the first 6700£ a year and then 42% anything above that. It makes dividend investing even more difficult and almost seems impossible
Yes in the UK we can shelter £20,000 a year from tax, otherwise I’d have to pay almost 34% tax on dividends. Outside of the ISA you are allowed dividends of £2000 a year before paying tax.
Target are a great way to keep focused.
Left the rat race at 53 two weeks ago. Dividend isa is really important as all your income is tax free but does take awhile to build up 20 yrs plus unless your lucky on a aim stock or similar. Dividends aren't guaranteed plus your initial capital can fall but hey Compounding is the eighth wonder of the world 🙂 one tip be patient and wait for 52 week lows you can pick up some great yields if your lucky I don't really touch anything under 6%
Thanks dubs dolby. That’s really impressive and thanks so much for sharing. Patience really is the key and of course good use of a stocks and shares ISA. What countries / sectors are you mainly invested in?
@@TheCompoundingInvestor thanks.
My main biggies are legal and general ,direct line ,rio tinto . British American and imperial brands. Vodafone, m & g insurance and a few more. Recently got into more etfs mainly American Market. I really look to buy at close to year lows if possible foe a greater yield 🙂 from experience you get maybe 2-3 chances a year to get those sale prices 👍
@@dubsdolby9437 Thanks that’s very useful. I hold fairly similar companies and tend to add more when I see bargains. Bought Shell and BP quite aggressively during the pandemic. Also buying a fair bit of an S&P 500 ETF recently. First got into that when the US market dipped dramatically at the start of covid.
@@TheCompoundingInvestor ditto ha! Think I got shell at around £13 sold about £19 and bp sold wish I'd kept abit longer tbh. Legal and general has been the most solid performing stock 👌
Great video mate... I used to go big on VHYL but with nearly half its weighting in USA it was some what a copy cat of an S&P 500 ETF, so at times it would move up and down in the same way
Thanks so much and I totally agree with you on VHYL. A huge proportion of it is in US stocks and the fees are lower with an S&P 500 tracking ETF
Would be interested to see how much you invested each year to reach the level you have now. So obviously for the first year to raise £8 a month how much did you put in? Will show the level of compounding you have too in the later years!
That’s a good suggestion Tom. I’ve not looked at that before but I’m pretty sure I should be able to dig that data out at some point for a relevant video
@@TheCompoundingInvestor my creator fee is 5% of the videos earning! 😂
That will be somewhere in the region of £1 then 😀
@@TheCompoundingInvestor everything is worth having!!
@@tommarsters2453 equal to one cup of tea without milk or sugar :)
Thank you so much for making this video. Extremely inspiring. Question: Why just UK shares?
Do you buy non-UK stock outside of your ISA?
Thanks for watching and commenting. My Barclays platform has only ever allowed me to buy individual UK companies and not overseas shares. I’m gradually getting into ETFs however including the S&P500
@@dreadpiratebuffett8208 I buy an S&P500 ETF outside of the ISA
@@TheCompoundingInvestor Thanks. Love your unboxing videos each month. In terms of yout stocks, are you nervous about the debt loads with the likes of DGE and NG? (More so NG)
Thanks. I'm glad you like the unboxing videos.
I think high debt with NG is common throughout the industry and they basically have a monopoly, however if interest rates continue to rise then yes there could be a problem. If we have a change in government there is always the fear of nationalisation and this is always at the back of my mind. Not too worried about Diageo. They will do ok in a recession. People tend to keep buying their products.
Yet another excellent video. You did particularly well in 2013 I see, and nearly doubled your daily dividend in a year!
Thanks Sybaritic. I recall around that time I was really focussing on dividend companies with higher yields and transitioning away from growth stocks and more speculative companies.
I've tried Moneybox, put a hundred quid in a month ago, and ten quid a week. So far its +£4.89 in profit. I'm crap at maths, but I would assume that's a good interest rate/return for £140 invested?
That sounds like a good return if it can be maintained. I wish you all the best and thanks for visiting the channel Anonanon
Young and have begun investing. have chosen an etf along with investing in companies such as unilever , ba tobacco, bp , national grid , green coat and aviva .
Put a portion of my monthly earnings in and enjoy researching new companies to invest in .Your videos have opened my eyes thank you
Glad you are enjoying it and you are clearly doing plenty of research. It can get really addictive once the dividends start rolling in. Good luck on your journey.
@@TheCompoundingInvestor just worried about the economy down the line but I feel if I keep at it will work out in the long run 🤞
This is all very nice but aren't dividends ruined by large drops in percentage values of a business when they fluctuate by minus 5-10% as this means your investment amount will also drop by this percentage ?
Sure, share prices fluctuate in the short term but over the long term they tend to go up
In the past year I’ve earned £5000 in dividends which I reinvested Hoping for £6000 next year that’s my target.
Excellent target and amazing progress Alastair. Onwards and upwards towards £6000. Best of luck
Great vid as always mate! Love the idea about starting really small as you did 👍
Thanks so much, Toby. I really appreciate it. All the best mate!
amazing video editing !
Thank you Giannis. I really appreciate it.
All done on an old iPhone 10 with the free iMovie app
Nice video. My own view of this is that a single stock - say Vodafone or whatever - needs to generate a higher % dividend than an ETF for it to be worth holding it. Any view on that idea?
I would generally agree Simon. However in my case there are times when I still buy stocks below the yield of the ETF for example at the moment I've filled my stocks and shares ISA so I need to buy quality companies outside of the ISA with lower dividend yields in order to keep dividends held outside the ISA below the tax free allowance of £2000 a year. Secondly a company such as Diageo may pay a lower dividend than the FTSE 100 ETF but they grow their dividend faster than most so the return on your original capital will probably be quite significant over the long term. A final reason why I might buy a company with a lower yield is if it is experiencing a short-term shock and therefore a bargain. For example when BP stopped their dividends after the oil disaster I saw this as an opportunity. The share price had crashed but I suspected their dividends would return in the future.
@@TheCompoundingInvestor Thanks for the decent reply….You might also think bout buying the Acc version of ETFs rather than low yielding stocks? You probably know more about this than me though….
unfortunately distribution and accumulation versions are both liable for dividend tax in the same way. With the accumulation version a dividend was still technically paid but automatically reinvested instead of you actually receiving it. The amount is still liable for tax.
Just under £10k in two years.. Long way to go before I get to your level sir.
Great work Connor, all the best on your journey
Great video once again 👍🏽
Thank you so much
I'm looking at building out for a beer a day or a night at the pub once a week!
What a great target Roger. All the best!
@@TheCompoundingInvestor Cheers! 😂
Thanks for the video!
You are welcome
Is there any free trackers that allows you to see dividends over months or day periods. Thanks
Thanks for watching and commenting Charlie. I don't know any myself but hopefully someone on here will point you in the right direction if there is one. Personally I just use excel to track all my dividends and I enter them one by one with the company and date. I can then easily see what my average dividend per day or month is over the last year. I find that half the fun of all this is recording my dividends in excel and watching the average month amount go up over time.
@@TheCompoundingInvestor thank you. I will defo try the data in an excel spreadsheet. Love the videos. My alerts are always on. Happy investing
I just started this year and I would like to make 200 pounds this year in dividend :) so far since I started investing in April I made about 140 pounds in dividend :) I have mainly uk stocks :) but two of my stocks is American one of them is pharmaceutical company Merck :) and other one investment trust which pays monthly dividends and has over 8% dividend and been increasing dividend for last 20 years
sounds like you are enjoying setting targets and seeing those dividends rolling in. All the best on your journey
How much did you invest and in which companies?
I have worked it out to be 78p per day! Nothing from McDonalds yet , but maybe a can of coke or 2 tins of beans a day! If I ever lose my job and I keep my portfolio I will never starve!
Excellent work and not too far away from the milestone of £1 a day.
@@TheCompoundingInvestor very true and that is my internet bill & netflix!
So are you or were you at the start investing roughly £600 a month at the start?
Just looking at the jump from 2010 to 2011, the fact it was over triple in daily returns, which based on a base math you went from a portfolio of 8.7k to over 27k in one year? Curious how you managed that otherwise even compounding it doesn't stack up
Thanks for commenting Whiskah, and you may have just given me an idea for a future video. I should be able to find exact amount I put in each month from the very start. The figure did vary considerably from month to month however when I first started many of the companies stopped paying dividends or suddenly abolished them soon after because of the financial crisis fallout, hence the lack of dividends early on. I then started buying ones which did and also ones I already owned started paying again as the economy recovered. That could explain the sudden leap in returns.
@The Compounding Investor aha awesome thanks look forward to it! Would definitely be interested (as someone who only just got started on the dividend bandwagon) to see a rough play by play/how much you invested roughly per month per year etc even just aim for as you say a cuppa to £1 to £10 whatnot
haha love the McDonald's at the end 🤣
Thanks Feral Panda, sometimes small rewards along the way can make all the difference in maintaining motivation. All the best on your journey
From a cup of tea to Brewster's millions.
Not quite there yet but I’ll keep at it
I already have a stocks & shares isa with vanguard. Can I use that one or would I need to create a new one (if this is even allowed)?
Yeah you can use the same one and add 20k of new money into it each year. With Vanguard however you are limited to vanguard funds and can’t buy individual shares
@@TheCompoundingInvestor thank you for responding, so I can essentially use Vanguard but there is more limited choices for dividend funds?
Yes that’s correct. You can only use their own funds / ETFs but there is nothing wrong with that. They have some very good index tracking ETFs and you can choose ones which pay dividends or not depending on your preference
@@TheCompoundingInvestor thank you. Would I be able to open an account with Trading212 or Freeshare and do the same thing, or not as I have a S&S ISA already? Thanks
Yes you can as long as you don’t add more than 20k in total to all of them combined in a single tax year
My goal is £3500 a month that would mean me and my wife could retire if we wished.
That’s a great target to aim for. All the best on your journey.
Same here all the best 😊
Love your channel, I just hope you make it to retirement, what with all that junk food consumption.
Thanks Jamie, I’ve cut down on the apple pies at least
£201 from National Grid today, just waiting for my BAT payment to arrive! Both on 17th august. Then I have 6 in September, BP. Direct Line M&g. Rio tinto sse and diversified energy. September will be a bumper month! Easily over 4 figures
National Grid valued at £8100 and 703 shares…. I love this game
I think you have caught the dividend bug, Barry. Impressive return from NG. September should be great month.
@@TheCompoundingInvestor £129 with BATs today…. £331 for August…
Nice, your broker is obviously more efficient than mine. Can’t see a National Grid or BAT payment yet on my Barclays platform however I did get a dividend paid from United Utilities and Tate & Lyle earlier this month. Very motivating when those payments come in especially when you put them straight back to work generating even more dividends.
Really good video as always 😀
A mix of personal experience and motivational advice for new investors that should help some join the compounding family 👍🏻
Thanks so much Matt. I really appreciate your support.
Why do you personally go for dividend over growth? Also, why do you decide to pick individual stocks instead of a dividend ETF? Great video by the way, I love your content, keep it up!
Hi Joseph. Thanks so much for visiting the channel. Hopefully I’ll get some growth as well as dividends at the end of the day but it’s the passive income through dividends which motivates me to continue and I’m just as excited about the process now as I’ve always been because of the psychological nature of passive income flow. The ultimate goal would be to generate more passive income than my actual day job but I doubt I’ll actually achieve this. About ETFs, they were not mainstream when I started so I’m accustomed to buying individual UK stocks which I guess goes all the way back since I was a teenager and that’s all I could buy. More recently I’ve transitioned to ETFs and have been actively buying a FTSE 100 ETF (ISF). In recent week most of my investments have been in an S&P 500 tracking ETF (IUSA) but this is mainly because I’ve filled the Stocks and Shares ISA and so need to buy low div assets outside of the ISA so I don’t go above the £2000 limit. Sorry about the long reply but you did ask a couple of great questions.
@@TheCompoundingInvestor Thank you for the detailed reply! I personally invest in a S&P 500 ETF (VUSA) and a FTSE All world ETF (VWRL). But I’m definitely looking to build a dividend portfolio separate from this with the view to the same goal as you. Do you have a background in finance at all? You say you started young, curious as to where your interest began?
Hi Joseph, I did a video a few weeks ago on paying my mortgage. In that video I explain my complete investing story if you are interested.
@@TheCompoundingInvestor Awesome, shall check it out
How much did you invest to get £1k a month?
Since 2009 I’ve invested 220k, currently yielding an average of £1140 per month
what tax on dividends is applied if we invest in British companies?
Hello Sergiu, If you are outside of the UK then I'm afraid I don't know the answer to that. There may be a withholding tax but I'm not sure. Best check with your broker who may have more details
@@TheCompoundingInvestor what about the uk? Are dividends tax free if under £4000?
In the UK you are allowed to receive £2000 in dividends per year without the need to be taxed on them in a general investment account. In a Stocks and Shares ISA all your dividends are tax free
why are they not teaching this in schools
Good video, but i have about 6 cups a day.
Thanks Dave. I’m around that number of cups too 😁
Great video mate. I follow the 10-20 principle. I invest minimum of 10% of my wage and pay myself 20% of my yearly dividends (with that I pay off an interest free loan I lent myself, currently got a 6k driveway I’ve got to pay off, which should take about 18 months to pay off. I’ll let you work out the maths of my total dividend income) I’m surprised you don’t do the same mate as you’re still reinvesting 80% of your dividends but able to realise some capital to pay for things you don’t really want to buy ?
Thanks for the suggestion David and explaining your own strategy. I’ve not heard of the 10-20 principle. Could you point me in the right direction so I can read more about it or is it something you have developed yourself? In my own case I don’t want to withdraw any funds from my stocks and shares ISA and obviously want to max out the 20k a year allowance as much as possible. For emergency funds etc I have the full amount of premium bonds which I can tap into when needed.
@@TheCompoundingInvestor it comes from the richest man in Babylon ( you can listen to it free on TH-cam). There a some very good money rules to live by
Thanks David, I’ve been wanting to read that for some time. Just finished the Psychology of Money. I’ll be sure to check it out. Thanks
Hi, Ive noticed you don't hold Legal & General in your portfolio. As a higher paying dividend company, why is this?
Hi Stephen, that's a very good question. It's been on my shopping list for Ionger than I can remember but never managed to pull the trigger on it. I think there are a couple of reasons for this. Firstly I already hold two other big insurers, Aviva and Direct line and secondly I hold quite a large number of companies in the financial sector now so my appetite for another is not that big. However I do agree that Legal & General looks very attractive and I continue to monitor it closely.
Thanks god i dont add milk to my tea so i can compound that extra 0.7p a day extra ✌️
LOL! An immediate 23% cost saving
My target is the pay for Netflix
That's a great target to aim for. Onwards and upwards. Best of luck on your journey Andrew.
any good acc etfs?
I’ve only got two distributing ETFs I’m afraid Russell, ishares FTSE 100 (ISF) and ishares S&P 500 ETF (IUSA)
@@TheCompoundingInvestor distributing means divedends get reinvested right?
@@russellpetrie119 distributing pays out a dividend as cash while accumulating automatically reinvests back into the fund
Buy before XD then sell after, buy another comp before XD then sell it after...
Don't hold on to anything....
What generally happens is that on the XD date the share price will fall by the same amount as the value of the dividend so you will neither gain or lose anything in theory. On the XD date the dividend no longer belongs to the company so the value of the company is less than it was and the share price is automatically adjusted down to compensate.
Comps don't always fall on XD, might have to wait a while till they rebound, don't like holding shares for a year to get a 5% div. Little bits often is my method...
Heard you need £250000 to get a grand a month income, not if you chase divs IMO...