Dividend Investing For Passive Income

In Dividend Investing For Passive Income, I examine the different types of investments you can receive dividend income from and explain what is meant by dividend yield. I also discuss which are the highest dividend paying funds currently available in both the UK and US markets.
If you would like to access the spreadsheet that lists details of the highest paying dividend funds for the US and UK markets, then please become a member by supporting us on Patreon. To see the benefits of supporting us and becoming part of our community click here: / pensioncraft
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We rely on your support to keep producing free content via KZbin. Please help us to remain independent and producing new content by supporting us on KZbin kzbin.info...
This is what else PensionCraft Offers:
- Book a Power Hour with Ramin so he can answer your questions in a one-to-one coaching session via a video call: pensioncraft.com/register/pow...
- Understand investment in more depth with my online courses pensioncraft.com/courses-we-o...
Recommended PensionCraft KZbin Playlists
- There are many different types of investment strategies. In this playlist we look at a number of these so that you decide what is right for you. • Investment Strategies
- Bewildered by investment? Start with this playlist • Investing for Beginners
- Building blocks for your portfolio • Portfolio Building Blocks
If you like our content and want us to continue to produce it, you can support us with a one-off payment here paypal.me/pensioncraft
#DividendInvesting #PassiveIncome #PensionCraft

[@Pensioncraft]

We rely on your support to be able to make these videos. To see the benefits of supporting us and becoming part of our community click here: patreon.com/pensioncraft

[@wkb9683]

I love your channel. Thank you for the hard work you put into creating a brilliant channel 👏

[@Pensioncraft]

Hi @@wkb9683 that's very kind, thank you! Ramin.

[@djayjp]

Best investment channel on KZbin. You have profound skill as an educator. Detailed, well researched, yet very digestible. Excellent!

[@Pensioncraft]

Thank you @djayjp that’s really kind of you to say! Ramin

[@djayjp]

@@Pensioncraft No, thank you! 😊

[@davidgarth4285]

Well put djayp

[@mutton_man]

Alot of portfolios don't have any weighting to corporate or em bonds. Is there a reason for this?

[@pointoblivionuk4796]

One the greatest channels 👀💸

[@Pensioncraft]

Hi PointOblivionUK thank you! Ramin.

[@kumar50]

Keep up the great work, always love watching your videos!

[@Pensioncraft]

Hi kumar50, thank you!

[@PixelStacker]

sustenance up the great work, always love watching your videos! 100%!

[@Pensioncraft]

Thank you Pixelstacker your comments are much appreciated

[@snoopys14]

The man does not over simplify it and make it look like child's play. Well done sir

[@Pensioncraft]

Thank you - much appreciated T S

[@outdoorsman1140]

And the impact of divident witholding tax?

[@ONEMANUNITX]

What about GBDV?

[@Dj-uy1kp]

Great video

[@Pensioncraft]

Thanks!

[@gerry2345]

I like this vid. Good insight.

[@Pensioncraft]

Thank you GerrysPlace

[@addukaddu1]

Ramin, would love a video on perpetual bonds and how they work. Thank you!

[@Pensioncraft]

Hi Aditi, they're a very odd animal in the bond zoo so I think that might be a bit niche. UK war bonds were the classic example, but I think those have now been retired. It might be a good one for the PensionCraft community videos if you're a member? Thanks, Ramin.

[@simony2801]

I have been mulling over cashing in my pension and investing most of it in the above mentioned vanguard ftse fund - say around £700,000. At the moment it’s at a 20% discount. I would not be interested in selling, just the dividends. I am going to see an IFA next week - they tend to be commission led though.

[@sd3116]

Metals + Tech

[@8G00SE8]

Just keep it simple, your age in Bonds, Vanguard will offer a fund appropriate for your age with diversification built in.

[@tc9634]

@@sd3116 ... Nope

[@the1big1matt]

Fantastic content

[@Pensioncraft]

Thank you

[@Sight-Beyond-Sight]

And what would you say to someone who has been passively looking at the markets and exclaims, "I wouldn't buy into this market with stolen money!!"? Right now the markets look like they are drunk on cheap money and it would take much for them to dive head-long off a cliff. Great video BTW. I was previously considering buying into stocks specifically for dividend yield (MMM, SBR, OKE, VZ, STX) specifically, but would be looking into others with similar stability). Just waiting for everyone to get sober again.

[@robc8892]

Ftse is down and remains down. Once covid and EU trade deal sorted things will go up. US tech is due a correction imho

[@snoopys14]

You could also buy your own stocks and collect the dividends yourself , one good stock is worth 100 rubbish ones. You could end up diversifying out your gains and top dividends if you play to safe

[@nachannachle2706]

This is a good technical overview, as usual. It is just a shame that your videos rarely mentions external costs to investing such as brokerage fees, taxation and exchange rates. Those are the BIGGEST hurdles that ordinary/everyday investors have to clear in order to make a profit...which takes many decades to materialise. Meanwhile, all the whales in the market don't have to deal with these issues, since they set up the whole system as their playground time-pass game. TL;DR: "Investing won't make you rich", but it will certainly keep you entertain the illusion of being special.

[@Pensioncraft]

Hi Nachannachle I discuss platform (brokerage) fees a lot when I discuss platforms. I've heard some truly awful stories from clients about the fees that they pay. Thanks, Ramin.

[@isettech]

I got introduced to dividend investing an sold some tech stock high with a Yield of about 2%, and bought a bunch of beat down stocks in April. Now my yield on cost is averaging 25% annually. I compound this into whatever is solid with a low PE and high yield in dividend reinvestment, so my dividends buy about $1000 per month and growing. FRO has a current PE of 2.67 with a dividend yield over 30%. DHT has a PE of 3.17 and a dividend yield of over 38%. Yes the price has been falling, which raised the Yield on Cost. My lowest dividend yield is about 8%. It beat holding on stock that went too high on price for low returns. It pays to balance when some prices are high and others are low. The stock I sold high is now down about 20% in price, so the sale at high prices was a good move. If the price drops some more, so the Yield on Cost is much higher, I may buy some shares back, or I'll find another tech stock to invest in.

[@cookingthebooks901]

you didnt mention VHYL? They pay quarterly divs

[@richardtelford9446]

Always Hungry Like s

[@TaBaoHoBa]

Is it worth it, to risk your capital for such low return barely above inflation? Central banks and governments have left people no choice but become stock market gamblers or just consumers, what's the point of saving when tomorrow I can buy less with my money...

[@Gaz12360]

I like your videos and use what you have to say as a sanity check, because you seem very informed, balanced and reasonable and pretty much what you say falls in line with what I've been reading and experienced over the last few years.

[@Pensioncraft]

I appreciate that - I am glad you are enjoying the videos Gary

[@RobCLynch]

It's killing me that I have cash sitting in a bank account, paying zero interest. I fell for attempting to 'time' the market, instead of spending 'time in the market'! I was anticipating a 'crash' any time now and I wanted some cash to plough into the markets, when that crash occurs.

[@8G00SE8]

@sailorashore I hear Dutch Tulips are a better investment.

[@VINALDADDY]

Thank you so much for the great video! What do you think of the active vanguard fund "Global Equity Income Fund"? because I noticed it wasn't covered in this video. Is the 0.48% fee worth it for yield 2.74%, compared to a Vanguard FTSE UK 100 eft or USD Emerging Markets Government Bond UCITS ETF both with higher yield and lower expenses ratio?

[@jbullionaire2749]

I think I must be a perpetual instrument. I've not matured so far anyway...

[@Pensioncraft]

Ooooh nice one Bullionaire 8-)

[@petersimko4927]

Hi Ramin, thank you for your channel best I found on youtube so far. Considering subscribe on patreone after I listened many of yours videos while driving. Just need to find more time to sit down with calculator. Can you do video how to do valuation of company and decide if it is worth it's market price. Something like Warren Buffet is doing when buying. Valuation for begginers. Do you have lessons of that in the members zone?

[@kapoorvinny1612]

Preston Pysh youtube channel have videos on that. I recently finished the series. Happy to talk

[@petersimko4927]

@@kapoorvinny1612 thank you I will check that out

[@Pensioncraft]

Hi Peter I avoid investing in single stocks because I don't think I can beat the market. Most professional money managers can't beat the market either. But I often discuss valuation at the index level e.g. in my course on investing through the pandemic pensioncraft.com/register/investment-navigation-crisis/ Thanks, Ramin.

[@person.X.]

Apple worth as much as the FTSE All Share soon? I can see the obvious problems the UK has but that looks like a crazy overvaluation for what is basically a consumer goods company.

[@craccoon8764]

Hi Ramin you look a bit rough on this video

[@Pensioncraft]

I should have shaved, maybe? twitter.com/PensionCraft/status/1437409953984262152 Thanks, Ramin.

[@Tredegarfilm]

Thank you, another great video. Will study carefully and will be considering the pro's and con's where to invest. Also looking at property when/if the price drops in the spring.

[@Pensioncraft]

Glad it was helpful!

[@GavinLawrence747]

How do you feel about Bonds issued by Banks and Building Societies ? What would a Bank or Building Society have to pay you to have your money locked away for 12 months? I panicked in March and put away all my cash savings at 1.55%.

[@jennyli365]

Could you please tell me where you find the rate 1.55%?

[@GavinLawrence747]

@@jennyli365 Investec, the rates fell from 1.55 to 1.45, and then it plummeted when the central bank and the treasury intervened.

[@CaseyBurnsInvesting]

The beauty of investing is that it is available for everyone. Nearly everyone would love capitalism if they understood it.

[@Pensioncraft]

Hi Casey I agree, now more than ever with the huge choice of reasonably priced funds. Thanks, Ramin.

[@ii7990]

People who don't like capitalism don't like to work and spend more than they make. They're not savers or investors. The only savings they care about is yours!

[@matthieud.1131]

I disagree. I have an income in the top 3% in the UK, and I “play the game” by investing and by being knowledgeable about the way capitalism works. But I hate capitalism itself and I am convinced that it is far from the best system we could have. I know many other in this situation, including some who have worked in financial institutions.

[@matthieud.1131]

@@Lord_Saruman Unfortunately I don't have any suggestion. Capitalism is a tool, not an end in itself, and as a tool we shouldn't be asking whether we like it or not, but whether it achieves our objectives (and what these objectives should be). Capitalism has certainly been a great tool to put us where we are now (I would even say that it was the best tool): generally high consumption power, very developed economy, international trades of goods we wouldn't otherwise have access to, etc. Those were the objectives a few decades ago, and a few decades ago I would have certainly liked capitalism for that. But today's objectives are different: they should be the safeguard of our environment, the decrease of inequalities, etc. and capitalism is not the best tool to achieve those goals (if it's not even a counterproductive one).

[@apacheattackhelicopter8185]

@@matthieud.1131 You are confusing economic system and government system. Capitalism is an economic system, while the objectives you listed can only be achieved by government intervention. The beauty of capitalism and democracy is that those objectives can be achieved through market means, with no need to break everything down, and it is already being done. For environment we have carbon tax and subventions for clean energy, for reducing inequality there is differentiated income tax and welfare.