How I created a monthly income stream from passive dividend investing.
There is no investing strategy more popular than dividend investing and for good reason. Dividend stocks outperform the rest of the stock market and put cash in your pocket. Dividend investing is safer than other investing strategies and will help you reach your investing goals.
The only problem with dividend stocks is that most companies only pay dividends four times a year. That makes it difficult to create a monthly stream of income from just dividends. In this investing tutorial, I show you how to create a source of passive income from just four dividend investments.
You'll not only get constant cash flow every month but will benefit from price appreciation for double-digit returns. Stop chasing stocks and worrying about a stock market crash. Learn how to invest in dividend stocks.
This dividend investing tutorial will not only explain how dividends work but will show you a dividend investing strategy that includes monthly cash flow and upside returns potential. Learn how to invest in dividend stocks for income and double-digit returns.
Includes four picks for the best dividend stocks of 2018 and how to invest in all without losing hundreds in fees. Whether you need retirement dividends or just to grow your portfolio, don't miss this video!
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Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.
I do not have much to be putting into stocks. So i cannot screw up if i invest. Is this still relevent since last year?
If so, where do i start investing, (robinhood, fidelity, or somewhere else?)? Lastly, how much should i start with? I have perhaps 1k i can use.
If you look at other videos, I'm not 'pushing' any particular ETFs. I have several videos talking exclusively about Vanguard funds but they don't always offer funds in every theme. I go with the best fund with the lowest fees, best liquidity and best diversification within a theme. You have to look at the whole picture for a fund, not just fees or you might not get what you think.
I like MSFT and MCD for long-term plays but they didn't fit with the dividend scheduling theme. GE hasn't done well but I still feel it's a great long-term investment from here. Thank you for being part of the community.
Yes, GE and ATT. T pays over 6% now...if you hold for 5 years that’s over 30% right there alone.
10 years 60%.! I know there is always a chance of a yield cut but so far it doesn’t appear to be near that.
Let's Talk Money! with Joseph Hogue, CFA yeah so make less return doing less work. Yeah that’s nice. Nah I’ll pass rental income ALWAYS is the shit. Don’t buy a fucked up house in the first place and you won’t have to do any maintenance or remodel. Buy and rent simple. I’m not putting 100k up for $300 month it don’t make sense period buy a duplex 100% occ and sit back no brainer. Stocks is up and down when rent only goes up. No Brainer
It's not really the number of shares but the dollar amount you have invested and the dividend yield. For example, if you have a stock that pays a 4% yield and have $10,000 invested, you'll get $400 in dividends per year. (0.04 x 10,000)
I've watched a lot of videos, read quite a bit about getting going with investing, but have yet to actually. Truth be told, I'm scared; which I know it's an issue. My question to you is where do I start? And with how much would you recommend? Because I feel that every day that passes without action is wasted. Please be as detailed as possible.
Thanks so much!!
NEWBIES WARNING! - Don't buy a stock or ETF just because it offers a dividend. LEARN or get BURNED! A dividend will never make up the lose of capital if a stock drops 30-50%. Which is a sign of a weak stock. ONLY BUY STOCKS WHOSE 5 YEAR CHARTS AND FUNDAMENTALS ARE STRONG/POSITIVE REGARDLESS OF DIVIDEND! Remember ETF's are just mutual funds that are traded on the market. Which means they have management fees you pay regardless if you make a profit or not. This video mentions GE (General Electric) as good stock to buy. But a look at GE's 5 year chart shows that GE stock price has been in a significant negative downward trend which includes 2018 when this video was made. Understand that a dividend is not guaranteed money. The company can decrease their dividend any time they feel like it or stop paying a dividend period. The more the price of the stock drops, the more likely they will either decrease their dividend or stop paying a dividend. So don't bet your house note on getting dividends.
+Let's Talk Money! with Joseph Hogue, CFA -Remember I said check the 5 year chart and the Fundamentals! If a stock is overvalued that would be apparent in it's weak or poor fundamentals and should be avoided by inexperienced traders/investors. Note to Newbies -He is talking about buying an over priced house! If a stock is undervalued, again it's fundamentals will show that! the problem with undervalued stock is it can stay undervalued for 10 years in the mean time your money is not making any money or worst other things happen that cause you to loose money. Note to Newbies- How many times have you seen a house sit on the market for years with no buyer? You don't want to own a house like that! Stocks can do that too! It is just as easy to buy stocks that are performing now and a better idea. The whole idea behind buying stocks period is to make your money make money for you,NOT to loose money! The idea of buying stocks that pay dividends is to grow your principle plus get a dividend. If your loosing your principle at a rate faster than the dividend can make up it. Case in point there are stock preforming way better on their 5 year chart than GE (General Electric) and have stronger fundamentals right now too. So again I say to the Newbies Learn or get Burned!!!!!!!!!!!!!!!!!!!!!!!
I agree that dividends aren't everything and the fundamentals have to justify an investment but prior price (chart) means nothing. Just because a stock has gone up or down does not mean it's a good investment. The fact that it has been going up could mean it's overvalued or going down, undervalued.
I don't think you need to sell them out completely but I definitely would diversify into more than just two stocks. Look for a couple of funds plus maybe 6-8 more individual stocks and spread your money across all.
You can get started with less than $100 on most platforms. I'd use M1 Finance so you don't pay any fees and you can get fractional shares. How much you invest isn't as important as just getting started.
Sir you have me very curious, as I know I can apply dividend growth to my portfolio, I'm also a big fan of ETF's. I max out my 401k with a 25% contribution, that goes towards a Russell 3000 large cap ETF growth and a Russell 2000 small cap ETF growth, split 50:50. I probably won't be touching that money until im 59 1/2, but plan on retiring at 40 (I just turned 25). I'm heavy in the growth as I'm making a long play on being a king when I'm 60, I think either dividends or annuities would be a good investment outside my 401k to sustain myself on from 40-59. Any feedback you have is great, I have another $1,000 a month to invest outside my 401(k), I'm a minimalist
Thanks Nicholas and thank you for being part of the community. It sounds like you have the investing side planned out. Might try putting some in an IRA and Roth IRA as well for a little more tax-advantaged growth. I would focus next on setting up some side businesses, a few income sources you can build momentum in and them just let them run. These business ideas are some of the best investments you can make (most won't cost much money but only time). That's going to provide the income from 40-60 better than any stocks or bonds.
It's about a 4% annual yield, which means a little under $100,000 to generate $400 a month income. I know it seems like a lot but don't get pulled into the shams that say you can make 8%-12% dividend yield each year. Those kinds of stocks are rarely safe and price usually goes nowhere. Build a safe portfolio of 4% to 6% that will give you dividends and capital gains.
Hi Mr Joseph General electric is pretty much doom with a dividends of 1cent per share. I already own 1. AT&T the 2.I- shares appreciation 3.exxon Mobil. Is just general electric I dont want to use. Can you please tell me if there is another stock that pay on the same dates and higher dividends than general electric. Please can you let me know. I would really appreciate it . Can I use another stock instead of General electric. Am looking forward to hear from you Mr Joseph.
It looks like GE was paying January, April, July, October so it's a matter of finding a stock paying those months to fill in the gap. Look to our 2019 Dividend Portfolio for some possible replacements (not sure which ones pay in those months but all good choices).
So if I were to invest 80 grand into dividends with a 40% cash return rate, I would get 160 thousand dollars in 5 years, and 1.6 million in 5 decades, if I'm correct. So I'm basically goi g to be in my 80's before I can live comfortably off of this figurative investment, correct?
Not sure where you get that 40% cash return rate. Getting a 4% return is pretty good for dividend stocks but would only produce $3,200 a year. No, you're not going to live rich just on the dividends but that's not how it works. It will still provide a decent income to combine with SSI (best you can do if you've only saved up $80K)
Haven't looked into them in a while but the entire telecom space is consolidating, has been for a few years. Comcast may have less opportunities (I imagine it would have to be the buyer) but I wouldn't be surprised at all if Viacom is acquired sometime in the future. Have to check the ownership control though. There's two classes of stock which usually means control is held and doesn't want to sell.
Im 18, and in B.C. I cant even open a mutual funds account. I really want to put my money into something bigger tommorow. Right now I have been living paycheck to paycheck not gonna lie. I make good good money so thats not the issue. I make just over 3k a month. I pay 1000$ in bills a month before food and others. Looking to put away 500$ a month but I would like to invest it for my retirement. I wish I knew more or learned more in school. Been googling for months but I still am not confident enough to put my money anywhere. can anyone help?
The tax cuts turned out to be bogus bro. Smoke and mirrors. You don't get something for nothing. That's rule number one. That includes stock investing. GE now pays a penny per share and the yield is around -2.73, at the moment. I have high hopes for them, under Culp. Rule number two is that, in the end, you're playing craps. Roulette, if you like. A toss of the dice or a spin of the wheel. Your fate lies in the company's management and what king Trump has in mind. Past performance is no indicator of future earnings. If one is not religious, they find it when they get on that ride known as the stock market. Faith, hope, trust, and a good deal of praying. Possible and probable outcomes. It all could evaporate. All you have is a box of statements to prove you had anything at all. Rule number three. All you are buying is bragging rights. That's all, really. It's an ego thing. You are paid a pittance for the amount of money you give up on the altar of hope. They are leveraging your money into something that may result in billions of dollars for them, and, perhaps a few more pennies for you, per share. Big deal. Rule number four. Taxes, fees, and other tax related hits will eat you alive! You aren't the company, so you won't get the great tax breaks they do. So, for all the risk and expenses you have, what's your effective ROI? Talk about that for awhile. Can you insure against your losses? Can you borrow against your stock? Buy, hold, and pray. That's the credo of the devotee of the stock market bro. No control on that crazy train. Good luck.
GE and T
I have listened to several presentations regarding stock pics for 2019.
The weed stocks have been on fire recently and many work well for swing traders.
The biotechs are always interesting though I thought would be more active than they have been thus far this month.
So easy to go the value path and pic the worse performers as having grand potential for future growth.
Problem is, the poor performers were poor performers for a reason.
GE may have upside potential, but what took it down must be resolved before any upside will occur.
T has underperformed for years. Why would it suddenly outperform? It probably won”t.
We seldom have corrections in this bull market, and last quarter of 2018 was one of those moments. A healthy pullback that even got people thinking bear market and impending recession toward year end.
This is the time to jump into the quality stocks that have yet to return near their 52 week highs.
This is not the time to fill a basket with broken down stocks like GE or underperformed like T.
AAPL, AMZN, NVDA, NFLX, AMGN are solid picks, and will all outperform GE and T over the next few years.
I warned against AT&T in a more recent video on signs of a dividend cut. https://youtu.be/eRlSRYJ9qTM
I wouldn't say GE is broken down, especially not against the 10%+ increase today. They've had some tough decisions to make and I think they're finally getting credit for it.
I try to catch all the comments but am not always notified for older videos. There's really no reason to look at the stock price of an investment because it doesn't measure anything. I did a video on finding good stocks under $5 that explains why price doesn't mean anything. https://youtu.be/F8fheVUkMmQ
I'd use the core-satellite strategy, put about 75% in broader ETFs to get market exposure then 25% in individual stocks. I still like GE and some of the other names but you want to spread your risk around 10 - 15 stocks. Don't forget to have some in bonds and real estate as well.
+Let's Talk Money! with Joseph Hogue, CFA thank you for the reply sir.i will invest on these 3.on KEN looks like just started paying dividend..I will wait and see. I'm just looking at high payouts as possible
I like BPT but don't think the dividend is sustainable, still might not be a bad long-term investment. AGNC is good as far as mortgage REITs go but all mREITs will suffer as rates increase. Probably the best of the three here though. I don't know much about KEN, what do you like about it?
A little late to the viewing party on this video, but I just scooped up some T and I'm holding GE and XOM for the long term. I also have MMM and ABBV in DRIPs. I don't know if it's a factor of confirmation bias, but I feel a lot more confident in my choices. Thank you for your videos! I learn quite a bit from them.
I know you said you don't care for monthly stocks, but have you looked into shaw communications at all? SJR, They pay like 4.95% annually, so around 7 cents per stock per month. I'm using them as consistent income while adding to my holdings in GE, AT&T, and ET
I've talked with the founder and CEO at a financial conference. I like the platform and have used it myself to review for the blog. Hard to go wrong with robo-advisor portfolio because it's all done for you.
Man...life can be bullshit. Here I am. Black in an urban city Detroit. Grew up when it was extremely bad. Drugs ruled the household. They tried to teach me to stay out the gang life-go to school-get a degree so I can work for somebody else. Dependent on somebody to write me a check to live. I knew and I know nothing about the investment game. Nothing about owning a business till 35. I’m 40. Feel like it’s too late. I’ve wasted a lot of years slaving for money. The money is supposed to slave for me
Dude, I can relate. What worked for me is start investing in an IRA. Go to your library and start reading. Don't let your age stop you from making some wealth here. If you are a newcomer to investing, start buying an index fund or a an ETF. One ETF that pays monthly is DGRW. It is a dividend growth ETF from Wisdom Tree investments. When you look at the dividend growth compare the same quarter year over year (example: dividend for first three months of 2016 versus first 3 months of 2017) you will get a nice raise. don't get discouraged.
But let's face it, how many people in my work group have a "Hundred thousand dollars" to invest??? (How many hundred thousands---LOL)
I viewed this video with MUCH interest until you said an investor would reap about $400 dollars on a $100,000 dollar investment!! That's when I lost interest-----still a super video though!!
You don’t lose principal. You lose buying power.
$100,000 in the bank today, and kept until ten years from now, probably won’t buy you an Escalade.
But, will still be $100,000 and will allow for endless walks to fishing pier and enjoy many days and nights being one with nature.
Lose that $100,000 in the stock market, and then, you still walk to pier every day, but to clean fish others have enjoyed catching, or maybe you drive to pier to give the exhausted fishermen rides home while you work for your new boss, Uber.
It's $400 a month which means nearly five grand a year. Even if you don't have the hundreds of thousands, it's still valid. You still get the same solid cash flow and yield even if it's only on $20K. Fortunes aren't made overnight. Long-term planning and saving and you'll get to $100K and then some.
What about being taxed for withdrawing the dividends you earned from the account each month? Is it really cost effective to take that money out each month? Does anyone watching this video withdraw from dividends each month? If so, how much of a bite does it take out of you when it comes time to pay taxes in April?
It's a good question. Withdrawing monthly will mean you pay the qualified dividends rate (usually your capital gains rate). which will mean about 10% to 15% you owe come April. If you don't absolutely need the money, retirement account is always the best option for a dividend paying stock so you don't pay taxes for decades.
My dividends are automatically reinvested currently.
Qualified dividends only in my taxable account. Just look up qualified dividends on investopedia .
Majority of my dividend stocks are in my Roth accounts which are tax free.
Retiring next year with option up to $3k/mo. tax free dividends from about 40% of my Roth 401k.
And about $1500/mo. from Roth IRA.
i know this is an older video but what do you think about G.E. now i have 1 share that was paying 14 cent and it dropped to 1 cent will it have a come back ? today shares are $8.93 each please lmk thanks
I feel your pain on GE, believe me. I've been in it since $12 but have bought more shares and some options on the way down. Not much of a dividend stock now but it's starting to rebound and the sum of parts valuation is easily around $12 - $15 on the different assets. I think it's a good long-term play from here and they'll reinstate the dividend eventually.
I haven't looked at Gladstone though I do have a monthly dividend stocks video coming out on the 21st. I like MAIN, GOOD and SBR for monthly stocks. The biggest thing I look for in BDC companies is internal vs external management. External management means higher fees and doesn't always align their compensation with shareholder interests.
So I'm very new to this and am trying to understand the verbiage and all. I'm thinking of opening Ameritrade account, but have seen ads for RobinHood. Can you, please recommend anything and why would you choose one before the other. Thank you.
I've got a couple dividend stock videos coming out this month and am starting a year-long investing challenge where I'll be sharing my portfolio. As for monthly dividend stocks, check out MAIN - a BDC with high yield though the share price doesn't move much.
No problem. Price appreciation is the return you make from selling the shares (eventually) so the selling price minus what you bought it for.
Yes, to make that $400 a month dividend it would take about $100K portfolio. Quite a bit but can't expect to get rich on 4% yield. I'll do a video on stock price and post it to the channel.
+Let's Talk Money! with Joseph Hogue, CFA Sorry for the late response. Terms such as upside price appreciation?
Also, your plan is based on having 100K to invest?
Another question, what determines the price of a stock? I always wanted to know that.
I like it for a short-term investment on a quick move but not a big fan of the leveraged ETFs for long-term investments. Portfolio manager has to trade the derivatives daily to keep the leverage. That usually results in higher costs and underperforming the 2x.
I know a little more than most . All I have to say is if you own GE NOW, you are in for a lonnnnnng wait. ALSO, you aren't out of the "RISK" factor yet as there is much more cloud cover for GE. Layoffs are coming for employees. Stock and bond holders may get hurt. Rebuilding to something of a profitable conglomerate is at least 2 yrs away.
Is this after you’ve absorbed your (previous) losses in GE? It’d have to reach 25-35/share before that happens for most. No thanks and such a paltry dividend in the interim. If anything, it’s for growth/appreciation at this price, but I wouldn’t touch it with a 10 foot pole.
Uh, yeah, seriously. Let me guess, because the stock price has gone down that makes it a bad investment. Make sure to come back in a few years when the price has rebounded to $20+ a share and admit you were wrong.
Great assets - and a path. That path, IMO, is around the world. You’re looking at YEARS to come back - if they do. Look elsewhere like MMM, D, NEE, T, VZ. At present, and likely into our near futures, these companies are stable
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