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Dividend Investing: 3 Success Strategies

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As a dividend investor for as long as I can remember, I am obsessed with passive income and cash flow. My goal is driving sufficient dividend income from my stock portfolio to cover all living expenses. As someone who has seen the dividend snowball take effect, I want to share three success strategies today that have personally helped me. You will not get rich overnight with dividend investing. In fact, you will likely not see meaningful, life-changing income for ten years. It's those first ten years that can be the most difficult. These three tips today are geared towards the dividend investor in his/her first ten years. I hope you enjoy my tips about: 1) Taking baby steps 2) Leveraging the power of paper statements 3) Tracking dividends and not portfolio value Disclaimer: I'm not a licensed investment advisor, and today's video is just for entertainment and fun. This video is NOT investment advice. Please talk to your licensed investment advisor before making any financial decisions.
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Text Comments (86)
What do you think of SLVO.
John Penniston (1 month ago)
I started using dividends to help pay for margin. When my lucky break happen I reinvested in dividend paying stocks. What happen was these paying companies doubled their payout after 6 years. I went from a guy stuck in a dead end no raise job to one enjoying his own raises. Yes it takes a while but over time you will start reaping benefits like help paying for a house instead of renting, owning the car instead of leasing. My decision is should I spend now or just make more income later. I choose to make more later down the road. Never put your eggs in one basket spread out your portfolio
Jae Task (2 months ago)
Ian, your channel is great but you need to stop thinking in budgets, they are the opposite of a good way to manage money. Last year I watched "Start late finish rich" which offers a really interesting alternative to budgeting. I have watched this course at least 10 times over the last 18 months and pick up something fresh from it every time. The way of looking at your income by working day hour is simply genius. I have done this in both my personal and business life and it has transformed both. https://www.creativelive.com/class/start-late-finish-rich-david-bach
Paul C (5 months ago)
Over the years, what has worked best for you in tracking dividends in Excel? Especially, what do you mean by keeping “a model of the dividends.” That sounds interesting.
Paul C (5 months ago)
Really enjoyed your thought about receiving paper statements in the mail. That would help keep an investor focused on a monthly basis.
cybershadowX (5 months ago)
I'm currently making about $3K per month from dividends! Goal is to hit $5K per month! Good luck to all!
ppcian (5 months ago)
That is some serious dividend income! Way to go, my friend. And, thank you for sharing. These types of real world examples are incredibly motivating for everyone here.
Kevin K (6 months ago)
Thank you. I really enjoy your videos and am considering going the dividend route for my non-401k retirement plan. Is there a book or course that fully explains you strategy? Or is this a method you developed on your own?
ppcian (6 months ago)
Kevin, I cannot thank you enough for the kind words and support! I don't have a book or course yet. However, I have a ton of free videos here on YouTube, with two new being published each week. There are quite a few books that have been key in my own education. Here are a few of my favorites: https://www.instagram.com/p/Ben-XbthX81/?taken-by=ianlopuch
Kevin K (6 months ago)
Also you should include a link to your blog in the video description. Thanks again for the great content!
Jason L. Petersen (7 months ago)
For your comments on a 'cash buffer,' I thin Dave Ramsey has good advice. You should have an emergency fund of 3-6 months worth of living expenses. I also have my savings account in Ally Bank. I think the interest rate for their savings is currently around 1.5%. It's currently not enough to beat inflation, but it takes out some of the sting of inflation.
ppcian (7 months ago)
Thanks for sharing that, Jason! both good pieces of info, and greatly appreciated. Thanks so much!
Maverick Lim (8 months ago)
Thanks man. I am only at my third year in this mkt that’s heading towards the tail end of price boom & sometimes I really feel shaky emotionally inside
ppcian (8 months ago)
You are incredibly welcome! Thank you for being here, and thanks for the support. On this very topic, I have another video that might be helpful: https://www.youtube.com/watch?v=Qwus0r322ak
Bob Magee (9 months ago)
Thanks Ian. I find your videos entertaining and motivating. As a 60 year old DG Investor I fully appreciate your passion. One thing you point out that I have added to my philosophy is not care much about the stock price after I buy as long as the fundementals have not changed. Also, I choose not to watch most financial media shows mostly because of their negativity. ..... you should see me dance when one of my companies has a 10% or more raise !! Thanks Ian
ppcian (8 months ago)
Bob, your comment made my day! Thank you so much for the kind words. It really means a lot. Wishing you huge success!
Dra O (9 months ago)
Might wanna include a graphical or real-world screen shots of stock purchase prices and dividend growth rate increases/losses over time.
ppcian (8 months ago)
Thanks for the great feedback! You are spot on. I'm now doing this in my newer videos. Definitely trying to keep raising the bar here!
Mark Christensen (9 months ago)
I started with a book , buying stocks with out a broker, sec. 332.62, if I remember correctly, at the library. I bought 10 different companies, at once, one share each, then signed up for their dividend reinvestment plan, yes it cost a lot at the beginning, but in the end I paid nothing in fees
ppcian (9 months ago)
Love it! Amazing story, thank you for sharing.
Mark Christensen (10 months ago)
It does work, I started mine over twenty years ago
ppcian (9 months ago)
Thanks for stopping by and sharing!
Millionaire Mob (10 months ago)
Nice post, I continue to buy undervalued stocks with low payout ratios. https://millionairemob.com/2018/01/11/robinhood-passive-dividend-income-portfolio-january-2018/
ppcian (10 months ago)
Thanks for stopping by, Millionaire Mob. Wishing you huge success on your blog!
nubserver (10 months ago)
3% dividend you would need 1M USD to make 30K/yearly before taxes...idk if it's worth it tbh, i'd rather just buy property and rent it out at that point...if we were talking about 10% or more then that'd be something
Dra O (9 months ago)
The dividend payments may be 30k per year but are you thinking about the appreciation of the stock prices - and stock splits - over that period of time? Likely will be significant. Just saying.
ppcian (10 months ago)
~3% is just starting yield. I have a variety of stocks in my portfolio yielding well over 10% on cost. Just takes discipline (buy at the right time and hold through many dividend increases). Thanks for stopping by and wishing you a wonderful 2018!
Ray Bush (10 months ago)
Great advice Ian
ppcian (10 months ago)
Wishing you all the success in the world. Thanks for the comments!
The Working Investor (11 months ago)
I just discovered your channel. I love your content.
ppcian (11 months ago)
Welcome! So happy to have you here. Thanks for the kind words.
William Branch (1 year ago)
Hello ppcian!! I am about to turn 18 and hope to start dividend investing. I have watched many of your videos and I absolutely love the content and your passion for this topic. Two quick question, At what age did you start to think about investing into dividends and what advice would you give to someone like me as a teenager?
ppcian (1 year ago)
William, thanks for stopping by! Great job getting started so young. I got started originally in my early teens. By the time I found dividend investing, I was still in my early/mid-teens, although I hadn't fully adopted the strategy 100% until later. Still had a bunch of trial/error ahead of me in other strategies. I actually filmed a video specifically for teenage investors. Check it out: https://www.youtube.com/watch?v=nYGXl1AnZsw
bernie lee (1 year ago)
What if your using a free brokerage like Robinhood. Sometimes my dividends are only $1 or less... Do you just hang on to that until you can buy more shares?
bernie lee (1 year ago)
ppcian thanks. I have looked into a couple companies that offer DRIP investment plans. However you actually fill out paperwork and send it to them for an automatic deduction from a checking account.. I would prefer being able to just makr deposit from my phone or pc as i get paid.
ppcian (1 year ago)
You bring up a good question, Bernie. My answer is a bit longer, so I'm going to queue this up for a video response. Stay tuned, and thanks for the great question!
Kana Natarajan (1 year ago)
Surely, you must sell if dividend yield and cover falls?
ppcian (1 year ago)
Hi Kana, thanks for stopping by. Seems like you are asking about the case where dividend yield gets cut because a company cannot cover the yield? If I made the mistake of selecting such a stock (it happens from time to time, although it happens a lot less frequently in recent years), and I believed that the issues were not short-term in nature, I would sell in that case. I only hold winners and want to double down on winners. If a winner turned into a loser, I'd definitely re-evaluate. The key here is to understand if the dividend cut/issues are short-term or long-term in nature. I am willing to weather through storms (for years on end if I have to), as someone with a very long-term view. I may do a video about this very topic, there's certainly a lot to cover here. Thanks for the question!
Gordon Talents (1 year ago)
Actually i have another question. How many months or years do we have to wait for the company share in order to get that divident(s)?? We shouldn't sell it during that time? But we can always add on it i think. -now i have 1 share for FORD, i am enrolled. Lets say if i add 50 more 6-7 months later what will happen(i am still holding them). Thanks :)
ppcian (1 year ago)
Tour Gordon, great question. In the United States, there is the concept of the "Ex-Dividend Date". This is the date by which one needs to hold shares to be eligible for the upcoming dividend. Typically, you cannot buy the ex-dividend date and be eligible since there is a settlement period when one buys shares sometimes of a few days. So, it's always beneficial to buy a few days before the ex-dividend date to be safe if one wants to guarantee the next dividend. All of this being said, I don't spend much time worrying about such dates since I'm in the stocks so long (forever). I know I have decades of dividends ahead so I just buy when funds are available and valuations look attractive.
Gordon Talents (1 year ago)
I am sure you will! We want to thank you for your advice and effors. I have a question please. Sometimes investors keep single shares of every types of industries. Why is that? Because of dividents? More research on that brand to invest more later? Or just keep hundreds of them for fun? What is the main readon do you think? Thanks a lot! :)
Gordon Talents (1 year ago)
ppcian thanks man. I appreciate your good explanation. :)
Gordon Talents (1 year ago)
ppcian thanks man. I appreciate your good explanation. :)
ppcian (1 year ago)
I know that for certain dividend reinvestment plans (DRIPs), you need a single share to enroll (you need to be a registered shareholder to be eligible for the plan). So, some investors leverage services to get that single first share. The goal, however, is typically enrolling in DRIPs and then accumulating more shares via optional cash purchases and reinvested dividends. As to just keeping one share across many companies, I think that would be an accounting nightmare (especially if one did this with many stocks). I could, however, see someone buying 1 share across a handful of companies, enrolling in the DRIPs, and then adding money to each of them over time. Thanks for the great question, and thanks for stopping by!
Gordon Talents (1 year ago)
Thanks for the video. You should choose a nice spot for your videos.
ppcian (1 year ago)
Thanks so much for watching. I try to mix it up and am testing different locations. After I hit 1,000 subscribers, I promised myself and my subscribers that I would invest in a more professional studio-like setting (with whiteboard).
Maximino Alvarez (1 year ago)
Hi, question i have a 401k , but i was thinking of stopping contributing to the plan and put that money into my dividend account, is because 401k have fees , but they match 25% of my contributions, but i think is just better to put it on the dividend acct. what do you think? Thank you
Dra O (9 months ago)
Max out your 401k first - you’re getting a free 25% return. Any extra should then fund dividend-paying stocks.
ppcian (1 year ago)
Maximino Alvarez Great questions! I just filmed a video today that addresses many of these questions. Video should go live next week. Thanks, again!
Dividends For Hope (1 year ago)
Great video. I appreciate all the knowledge you've shared allowing me to setup my personal investments to generate quality passive income. My next goal is to take this concept and apply it to charity work. If donations are pooled into an investment fund and the earnings are used to help people, we essentially create a charity that can exists in perpetuity. If you're interested feel free to check out my GoFundMe (https://www.gofundme.com/dividends-for-hope-campaign). Support from someone of your caliber in the YouTube investment world would be an incredible catalyst. Thanks again for all of the great videos keep it up!
Dividends For Hope (1 year ago)
See reply on other comment; in short, thank you so so so very much!
ppcian (1 year ago)
Thanks for all the support. I like what you're doing with Dividends For Hope! Look forward to following your progress. I just donated $25, and am thankful my YouTube channel is providing support, inspiration, and help in your journey. I pray that my $25 and your $25 match (and all of the other money in your charity) compounds for generations, providing the fuel for great good in society. I especially pray that donations are made to causes such as: hunger, homelessness, education, and children. Please keep me in the loop! And, any help you can provide to me - new video suggestions and overall support is much appreciated!
pitbullpappa (1 year ago)
Cash flow is king!  Here's a good article on how to build a dividend portfolio... https://www.simplysafedividends.com/build-dividend-portfolio/  and a great book to read is "Get rich with dividends" by Marc Lichtenfeld.  One of the things I learnt from reading the book is to check out dividend history of stocks by going to http://www.dividata.com
ppcian (1 year ago)
Thanks for stopping by and sharing!
Great Dragon (1 year ago)
use robinhood app, 100% free and 99% safe. Trust me folks. Make investing great again
Great Dragon (1 year ago)
no man, thank you for the videos and lifetime of knowledge! :)
ppcian (1 year ago)
Thanks for sharing your experience, appreciate it!
Frank Nolte (1 year ago)
I agree with everything this guy is about, especially in investing even a lil when you can't afford to do it, I started at the beginning of this year (2017) I had 1200 bucks saved I invested it all in dividend stocks and now have 5300 invested by adding anywhere from 100 to 500 at a time and if I can do it anyone can the dividend checks I receive in the mail are rewarding not huge but one day will be
ppcian (1 year ago)
Thanks for the kind words, my friend. I really appreciate it. Thanks for sharing your story. Great to see your dividends (and portfolio value) increasing with each day that passes. That's what dividend growth investing is all about!
SuicidelG (1 year ago)
Can someone please explain to me who is a good discount broker? If I invest $25 and get a $5 fee, which seems to be standard, I'm already at a 20% loss!!!
Frank Nolte (1 year ago)
ppcian couldn't agree more, that's why I go with Scottrade I figure they have been around awhile and I have talked to some of there employees at our local branch and they were really helpful and knowledgeable, one thing that I hear a lot about (a complaint) about the robin hood app is there is virtually no customer service if something goes wrong but I've never used them personally but think there a great way to get your feet wet in the market place especially if the trades are free that helps if your curious and just starting out buying a few shares at a time to see how it all works, great discussion here 👍😁
ppcian (1 year ago)
Great conversation and insights! Wanted to add my thoughts here... I don't want to promote one specific broker over another since I think there are many great options out there. That being said, here's how I like to choose brokers... I like to go with a broker that I can trust. One that has a brand name and has a track record. One that is member FINRA and SIPC. And, also has extra insurance above and beyond the minimums. Typically, brokers will cover the insurance they carry in their "About Us" and "FAQ" pages. In terms of buying stock, I typically aim for < 2% (as an absolute maximum) of my total purchase going to commission. Typically like commissions to be an even lower percentage, if possible. My thought here is that I can make that 2% back in 1st year dividends. Regarding reinvestment of dividends, I prefer to aim for no commissions.
MrGiggity890 (1 year ago)
People who don't like Robinhood are salty about their trades going bad. It's a good way to start building up some stock holdings for "free"
Frank Nolte (1 year ago)
MrGiggity890 yea I agree, I'm new to all this only been investing since the beginning of this year, I've heard of the Robin Hood app but heard some negative things I started out with the acorns app but they charge $1.00 a month so it's only worth it if you have a large sum in there to offset the fee with dividends
MrGiggity890 (1 year ago)
Well, investing is a personal endeavor and only you can determine how to achieve the goals you set forth for yourself. If you really do have limited funds, check out the Robinhood app - it's got no trading fees.
Cooper Hoang (1 year ago)
Buy undervalued stock with good record of equity growth and dividend growth and hold on those until you retire.
j t (4 months ago)
ENB AND ALA
ppcian (1 year ago)
Well said!
BB (1 year ago)
Awesome video!
ppcian (1 year ago)
Thank you so much!
Red Rider (1 year ago)
Do you hold dividend paying ETFs as well as individual stocks?
ppcian (1 year ago)
Thanks for stopping by and sharing your thoughts!
ppcian (1 year ago)
Within my dividend portfolio, I focus just on individual stocks. Thanks for stopping buy!
Clangviction Gaming (1 year ago)
Red Rider definitely doesn't hurt, some etfs pay really good dividends at value price compared to some single stocks, I also like the buy and forget about it factor with ETFs, but single stocks don't have a fee to hold so it really depends on what you're looking for, I like vanguard ETFs with low expense ratios
Red Rider (1 year ago)
Good Video. Keep it up
ppcian (1 year ago)
Thank you so much, really appreciate it!
Alan Beaton (1 year ago)
Great work. Look forward to your next video. Maybe something on spreadsheet to monitor dividends
ppcian (1 year ago)
Thanks so much. I have added your question to my queue of future videos. Definitely want to do a video covering this topic.
Hi Ian, I like your Videos. They motivates me a lot ! But i am just at the Beginning of my journey. Do U remember your very first Stock you bought? And why? Thx so much ! Regards
ppcian (1 year ago)
Thank you so much for your support! I am so glad these videos are helping you. I actually did a video that answers your very question... Check it out: https://youtu.be/en-6reixJVE

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