This is Why You Should Invest for High Dividends OVER Growth

Great stocks and I just bought in on them, but I'm interested in making a short-term profit, let's say turn a $150K to $ 500K in 6 months, I'd appreciate tips on how what stocks to buy to make this much profit.

BDC's should be growing their cash distributions, ( irrespective of stock price ) at least higher than CPI/PCE. They should be growing revenue. The stock price should have low volatility, and increase with CPI/PCE. BDC's shouldn't be diluting shareholders--especially selling stocks at values below NAV--so much to reduce share value.

Analysis doesn’t include inflation.

Taking early notes from Warren as to the importance of sound asset diversification and risk management It can’t be overstated. I’ve been trying to grow my portfolio of $300K for sometime now, I would greatly appreciate any other suggestions.

Taking early notes from Warren as to the importance of sound asset diversification and risk management It can’t be overstated. I’ve been trying to grow my portfolio of $300K for sometime now, I would greatly appreciate any other suggestions.

If you do not need the dividends, it’s best to look at the total stock returns with dividends reinvested. I looked at all the SP500 Aristocrats and the ones with the best total returns have the lower dividends in the group.

I look at SPF and PFLT for the last 11 year (end 2011 thru 2022) and here are the results with $100,000 invested. *Dividends

PFLT
Dividends reinvested - total return was $286,544
Dividends not reinvested - total return was $234,612 ($106,602+$128,010*)

SPY
Dividends reinvested - total return was $375,037
Dividends not reinvested - total return was $346,385 ($304,725+$41,660*)

I appreciate your principles and sound fundamentals - as I’ve done much of what you’ve discussed - although I live in Canada 🇨🇦 - with different tax laws .. but thank you for your great insight and guidance 😎🤞

I know this video is a little older. But what are your thoughts on developing mid-sized positions (in comparison to my port value) and taking those dividends and rolling them into say SCHD? Or would that be detrimental? Lol thank you

Thank you so much. I am a millennial with a chronic condition cannot work in my government position any longer. Income investing is what I do. B tween your videos Howard marks and the book the psychology of money I feel so much better about my future

Over the last 5 yrs I started investing in dividend stocks. I have 52k in SCHD, 20k in some other good dividend stocks. Over the last few months I started putting money in high income type funds. USOI, TSLY, SVOL, OARK, CLM, CRF my total yield is 16.54% and I'm getting about 1500.00 mon on a 107k portfolio. Yes it is encouraging to see good dividends coming in every month no matter what the share price does! I'm reinvesting every dollar to grow my portfolio. I'm an older investor who doesn't have 25 years to grow a huge portfolio. Over the last few years I've been able to grow through all types of market ups and downs, this type of investing is definably for me. Love your channel

I began my investment journey at the age of 37, primarily through hard work and dedication. Now at the age of 40, I am thrilled to share that my passive income exceeded $100k in a single month for the first time. This success reinforces the importance of the advice mentioned earlier. It is not about achieving quick wealth, but rather ensuring long-term financial prosperity.

Fantastic presentation and information!

Like Warren Buffet said, dividends are only good if the business you're investing into can't make good use of that capital. So, if you're trying to invest in businesses with actual growth, looking at dividends is a waste of time. Why are you investing into a company if they're returning capital to you because they think you can make better use if it than they can. It's not much different from bond investing. The way I see it, if you have a $1 million at some point, that'd be enough to create a portfolio that would pay you between 50k - 70k in dividend income.

Because of dividends, I first began investing in stocks. It's important, in my opinion, to be able to live off of dividends without selling if you invest and make other income in addition to payouts. It suggests that you may pass that down to your kids and give them a leg up in life. Over the years, I've invested over $600k in dividend stocks; I continue to buy more today and will keep doing so until the price drops even further.

so are you doing this income investing in a regular brokerage account?

You can't win monopoly without cashflow

I started investing in the stock market because of dividends. What matters, in my opinion, is that if you invest and earn more money in addition to dividends, you will be able to live off of dividends without selling. It implies that you can pass that on to your children, giving them a head start in life. I've invested over $600k in dividend stocks over the years; I continue to buy more today and will continue to do so until the price lowers even further.

Instant gratification monkeys

Great video! I prefer investing in stocks that pay dividends. I look forward to watching more. Be well.

I invest in real estate for cash flow. I just started investing in stocks and i heard the argument between growth and dividend and to me dividend is equivalent to cash flow.

I truly enjoy your articles each week and are happy to say that we do have some of the same stocks and ideas. My question to you is PSEC. I have 100 shares (long time) and would like to add more but with a pay out ratio of 900% I just feel uneasy. What is your feeling when a stock has a payout so very high?

You're SO spot on.
I brought 600 shares of SCHD--250 of JEPI& 100 of SVOL----WOW---this aggregate snowball affect is easy to get extremely excited about.
Like I said to a non-investing friend " I'm eating lunch right now..but....... also making $$ @ the same time.
This is exponentially a fabulous path to " freedom"
I was driving a 2020 paid off car---sold to Carmax for 20K ( $ invested instead) I sold 3 Pokemon PSA 10 WC 1st edition Gold Stars for 12K( invested the $ instead)
It's a pardigmic shift for ,& I love $$ working 4 me instead of languishing in unnecessary " stuff".
Awesome video!

I like watching your videos but definitely don’t agree on some of your strategy,

SPY will outperform any income strategy. Period.

Also are we ignoring the decline in share price with most high yielding stocks or etf, incase of PFLT its down 25% in 5 years which wasnt factored in your calculation.

Yeah but you could just sell spy and buy the high yield stock in retirement

1 issue I have. The half life of a dollar is 10 years, so after 20 years, you’re earning 40k/yr in dividends, which is actually only work 10k in today’s money.

Hi, I have degiro in europe as my broker, except I can't find the ticker for Pennantpark (PFLT) do you perhaps know why I can not find it? Thanks in advance

One of the best videos I've seen on this topic. Top notch!

On the tax side - here in Canada - you can invest in Covered-Call ETFs - and much of the income is considered Capital Gains - not generic income - and are taxed favourably

i have to invest in dividend stocks because whatever I buy always goes down for years.

i don't wanna wait 20 years. lol

1. dividends don't lie, they are paid from the profits and available cash from the companies. A short term minded board of directors can cook the books and repel capital investment to a later date to make the company appear more profitable on a quarterly basis, but cash reserve doesn't lie. 2. Dividends can be tax efficient in some countries like Canada with dividend tax credits and registered investment accounts, Imagine investing (drip) into a Canadian TFSA and paying absolutely no taxes at retirement on dividend income from the TFSA account. 3. If you're like my retired dad and rely on selling your investments on a monthly basis, you can seriously hurt your portfolio value when you have to sell during a crash, like the one in March 2020. Sure, dividends can be lowered, but with a wide diversification, you can reduce this risk and avoid taking loses on your stocks during a market crash. 4. Most investment advisors hate dividends because they can't charge you a fee on it and make more money on overall portfolio growth. Most advisors/banks in Canada get paid a % fee commission on your whole portfolio, especially those old school mutual funds.

If you only make $30,000 a year with your salary, a small amount of dividends, say $10K, means the world to you. For low salaries I'd say start with high dividends. As a millionaire you may not want the tax burden.

you did not mention the fack that the NAV will decrease with high yield. This was not taken into account in your calculator, your 400k+ something would be more like 200k since most high yield lose 30-50% of their NAV value

After tax dividend + CAGR is one of my filter in accumulation phase.
High yield cash cow is OK in drawdown phase or to use in portfolio blending or as bonds substitute.
Don't pay tax until you have to. It is the brake of your investment portfolio.
The rest is to avoid duds. They are the potholes on the road to financial freedom.

I am reducing my stock positions to a select few stocks that are safe. I am going with Closed End Funds along with some REITs for monthly dividends.

The problem with your dividend calculator... you are setting it to invest $59,000 bucks all at once up front. If you slowly add the money over 20 or 30 years you will most likely add a little money at a time, not all $59K will grow interest all up front. It may work that way if you get an inheritance or something...

Very unlikely that a company will keep up 10% div yield for 20+ years
Its much more likely for a stock to grow 10% per year for 20+ years, gains are the same
The last option is also much better in terms of taxes as you mentioned in the video

Dividends are what got me into investing in the stock market. The thing to me is, if you invest and have other income outside of dividends then you will be able to live off dividends without selling. Which means you can pass that on to your kids which will give them a leg up in life. Have over $600K in my portfolio as I bought a lot of dividend stocks before, I'm buying more now, and I will buy more when it drops further.

Check out dsx

I make $2500-$3000 per month consistently... That pay check is why I invest and keeps me motivated. Retirement is just a few years away.

For me I like dividends because I know I'll never be a millaniar, I don't have the skills or earning to get there, the positive thing is I don't need to be millaniar, what I need and get out of dividend investing is and extra source of income. You know the extra bit to pay for my annual subscriptions, my insurance, and annual butcher bill. And then since I reinvest the divends I don't use back into buying more shares I hope to eventually have all of that and things like replacing my phone, computer, TV and such done for the rest of my life. I need a lot less than a million for that and it's such a load of worry gone not to have to worry how I'm going to pay for say my car insurance or taps every year.

The part where you spoke about investing really stuck with me, I'm a watch lover and I own a vintage military submariner Rolex(family heirloom), the goal is to become a multimillionaire, retire and live off my investments, I own a few real estate rentals, I play around with stocks and crypto but I'd love to take it very seriously this year, is it possible to retire at 45 with $20million, I'm currently 32 and that's my utmost goal.

Hello, I’m new into this and I would like to start investing in dividends ETFs a beautiful amount of money. Can someone please explain what is the tax part? I didn’t really get it how it works..

ZIM 100 percent Dividend

How is SCHD considered?

I’m thinking we might have a decade of sideways growth like the 70’s. So for me investing in high yield dividend stocks inside a Roth just seems like a perfect idea!

I fully agree and really enjoy watching those dividends rolling in. It also makes planning really easy. When my dividend income equals my goal, (which includes a percentage for reinvesting), then I'm ready to retire. And after I retire: I don't have to worry about selling shares in a really depressed market, like what we've seen this past year, which could decimate my portfolio to the point that it never fully recovers, simply because I was forced to sell too many shares.
The other item I've learned, that's not shown in these online calculators, is the affect of buying shares during a depressed market using the dividends. The calculators just use a yearly yield calculation, where as when you have a year like 2009, 2020 or 2022, the dividend portfolio is plowing a lot more money and accumulating a lot more shares, than what the calculator is using. Comparing 2021 to 2022 for example, while the dividends have remained consistent, the share prices have dropped, I've accumulated nearly 30% more shares this year than last year. Most of my holdings pay dividends monthly, which really takes advantage of the depressed market.

I'm investing in monthly paying CEFs in my brokerage account.

I will forever be indebted to you, You've changed my whole life and i continue to preach about your name for the whole world to hear you've saved me from a huge financial debt with just little investment,Thanks so much Luciana cruz

Chasing yield is a mistake.