Dividend Investing: Pros and Cons of Investing in Dividend Stocks! 💵📈

Dividend Investing: Pros and Cons of Investing in Dividend Stocks! (Should I invest in dividend paying stocks) Investing in dividends is becoming more and more popular. Dividends provide passive income to investors and provides and immediate return on investment. However, before deciding on a dividend investing strategy it is important to understand the pros and cons of investing in dividend paying stock and dividend paying companies.
Video Outline and Time Stamps so you can quickly jump to any topic:
• Con#1 - 00:50
• Con#2 - 1:35
• Con#3 - 2:15
• Pro#1 - 3:19
• Pro#2 - 3:36
• Pro#3 - 4:38
• Pro#4 - 5:19
Con#1
• Dividends payments are not guaranteed - If a company begins to experience financial hardship the dividend payment may be reduced or suspended for an un-ascertainable period of time. Ford, General Electric and PG&E are examples of companies that have had to reduce or suspend their dividend payments. Diversification is very important when it comes to dividend investing.
Con#2
•Dividends are taxable - (With the exception of a Roth IRA) dividends are taxable as income when received, and taxes can easily eat away at investor’s rate of return over time. Growth and small-cap stocks normally do not pay dividends. The growth received on the investment is not taxable until sold so the growth compounds tax free and thus can be considered a large advantage over dividend paying stocks.
Con#3
•Slow growth or limited return on investment - Dividend paying companies may provide little to no capital appreciation on the underlying investment so your upside potential is usually limited. Companies that are able to pay dividends are usually established companies that have been around for decades. This means an investor may be missing out on the potential capital appreciation upside of newer companies. Sure it’s great to receive dividend payments based on a 3 - 4% annual yield, but if we are forgoing higher rates of return elsewhere our net worth may grow at a much slower pace.
Pro#1
•Immediate return on investment - As a dividend investor you will immediately start receiving dividend payments (usually on a monthly or quarterly basis). Watching real money being deposited into your account that you didn’t have to work for is an amazing feeling. It is truly passive income.
Pro#2
•Dividend income has tax advantages - Although we normally think of paying taxes as a bad thing the good news is that dividends are taxed at the more favorable capital gain rates if you receive “qualified dividend payments.” Capital gain rates range between 0 - 24%. A much more favorable rate than ordinary income rates. Next to tax-exempt income it is the next most favorable income for tax purposes
Pro#3
•Companies can increase their dividend payments - Profitable companies frequently increase dividends. As earnings increase, companies use dividends as one way to return value to their shareholder. Chevron and Proctor and Gamble are two companies are great examples of companies that have raised their dividend payments to shareholders overtime. I love when I income goes up and I do absolutely do nothing!
Pro# 4
•Less worry and less time involved - Companies that pay dividends are typically well established and usually have reduced volatility. This makes me feel at ease, because I know I’m investing in solid brand name companies such as McDonalds or Chevron or Kimberly Clark. I also find myself spending less time researching these companies, because I’m not entirely focused on capital appreciation. I know I’m going to receive a payout either way.
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[@irrelevantjoker37]

Should have had a bonus segment about buying muni/funds bonds. The tax advantages of those. Remember if you live in that state where you buy those municipal the dividends are tax free. Not the capital gains. They also always pay since they are forced to by law.

[@MoneyandLifeTV]

oooo great point Damian. I totally forgot to mention those, but you are absolutely correct. I often see these kind of investments when preparing peoples taxes. Thanks for always commenting and leaving helpful suggestions I really appreciate it.

[@irrelevantjoker37]

Money and Life TV.... Yeah perks of living in my area. I hate paying taxes. The libertarian in me. I setup my retirement accounts with regular stocks and ETFs such as the ones you mentioned I like the ETF div pays about 5 dollars per a thousand a month. I am working on getting enough funds in municipal bonds and funds in my state so my local taxes are paid for the year with the dividends. I am using Robinhood for that since I do not pay transaction fees. I am just worried about how to setup my kids 529. Yes I love having the chats here. I am surprised you are up this early on the west cost.

[@MoneyandLifeTV]

I love your idea of getting enough municipal bond funds to pay your local taxes. 529s are tricky, because the complaint I most often hear is the investment choices are limited and the fees can be high. My wife and I considered opening one of these for our niece and nephew , but have held off for now. Looking more into the coverdell option. To my understanding one would not be limited on investment choices like in the 529 plan.. Is coverdall savings account an option where yo live? Money grows tax free, but only downside is I think the max one can contribute per year is around $2,000.

[@Buzz-Of-Craze]

These Indonesia coal stocks give you largest dividend yield: ITMG - 17% HRUM - 18,5% BSSR - 18,5% PTBA - 8% MYOH - 9% MBAP - 19%

[@chewie1355]

Rudy Utomo can’t buy them in the states

[@MoneyandLifeTV]

Video Outline and Time Stamps so you can quickly jump to any topic: • Con#1 - 00:50 • Con#2 - 1:35 • Con#3 - 2:15 • Pro#1 - 3:19 • Pro#2 - 3:36 • Pro#3 - 4:38 • Pro#4 - 5:19

[@carlgraham9018]

Money and Life TV r

[@freddiebutler3653]

That's exactly what I do, I invest in dividend stocks I love AT&T ,Coca-Cola, ETF, REIT,as well. Am work on building up my stock shares so that I can get more dividends, and I put them in a drip so I can get that compound interest. I love the passive income I just wish I had to start it in my younger days then me and Warren Buffett will be going out for lunch! Lol

[@MoneyandLifeTV]

Freddie, great to hear from you! How have you been? Thanks for leaving a comment. The drip systems is fantastic what stocks do you have on Drip?. It sounds like we have similar strategy when it comes to investing. The yield on AT&T right now is around 6% last time I checked. I think we all wish we would have started earlier. I know personally I wish I would have started at 21 or 25, but oh well live and learn. I really started heavily investing at 27. Didn't really have money to invest until that point, but now we are doing everything we can to help that compound interest wave grow as quickly as possible.

[@freddiebutler3653]

Money and Life TV with the DRIP for dividend stocks it takes your earnings and automatically reinvest it where you are buying shares of their stock at a fractional cost.

[@MoneyandLifeTV]

I think its time I finally setup a DRIP account. I've been meaning to do it. Thanks for the words of encouragement.

[@billyjohnson9166]

Hey Freddie I feel the same way I wish I started when I was younger, but it’s never to late.

[@CreeperCruz]

@@freddiebutler3653 I'm currently 15,when should I start investing in dividends?

[@shmackydoodRon]

I just started dividend investing. Can’t wait for that first payment.

[@MoneyandLifeTV]

Congrats to you Mr. Cat Man :) Love that name by the way. It is fun and rewarding watching those cash payments roll in. I'm anticipating my total dividend income this year will be around $3,000. It starts off very small, but the more money you can throw at it the faster the compounding will occur.

[@Mrtkm]

Rando Chando how’s your progress so far?

[@thomaslynch7838]

Hope your portfolio is going well. Can you give us an update now that your a year in, hows it going for you?

[@kobiljonkamolov6655]

yeah usually companies pay 40 or 50 cent quarterly , no way you can make money by collecting dividend

[@dreamfire5210]

I'd love to hear an update on your dividend journey. Most dividend stocks seem to return about 3-6%. We run a passive income copy trading program on the dreamfire52 channel. We just started (Day 16) and we are already at 5%+.

[@MoneyandLifeTV]

Hi everyone thanks for watching and supporting the channel as always. Just to be clear 60 - 70% are for dividends and the other 30 - 40% is focused on growth. We estimate we will make $2,000 - $3,000 in dividends this year from Roths, and brokerage account. Love you guys thanks for watching and I hope you enjoy the video.

[@drakedamon5956]

Money and Life TV hey I’m new to the channel and investing. I liked this video a lot btw but what are Roths and brokerage accounts?

[@u2-tv899]

⁠😢 💭 Imagine $500K to get $500 returns in a dividend stock that fluctuating back and forth. If you’d have invested it into a stock with a good balance sheets like Apple, Google, Amazon, Facebook where you’d probably get 15-200+% returns out of the initial investment… VOO-IVV-SPY-SPLG etf are much appreciated than all dividends with 10+% returns…

[@MoneyandLifeTV]

***Do you prefer dividend investing as a strategy why or why not? What other pros and cons did I leave out if any?***

[@emikami1]

It depends on personal situation. Berkshire Hathaway pays no dividend because Warren Buffett believed if you need the money, you'll sell some shares anyway and if you had held the the shares for more than a year, you get the same tax rate anyway. If you didn't need the money at the moment, you can defer the tax if the stock paid no dividend simply by holding it. Since the qualified dividend tax rate has changed both directly and indirectly through additional stealth tax, companies have sometimes raised or lowered dividends in reaction to changes in tax law. Companies cutting dividends typically aren't looked favorably but if you didn't have a dividend to begin with, it doesn't manner. Flip side. If you have capital loss, you may not want to take any long term capital gains in the same year because the 2 will cancel each other out and you lose the favorable tax rate on the long term gain tax rate that canceled out against your capital loss. Because qualified dividends do not cancel out with capital loss, you can take the loss at your ordinary income and continue to pay the lower qualified gain tax rate in the same year and pocket the difference. One gotcha is that the states that tax qualified dividends do not have favorable tax rate at the state level but there's still a savings at the federal level.

[@MoneyandLifeTV]

Emikami1 I fully agree with your analysis. A+ analysis. Through reading and watching interviews with Warren Buffett he seems to prefer companies that pay little to no dividends. He wants companies to reinvest their money back into their business rather than to payout in the form of dividends to shareholders to further the growth of the company. Plus he liked this money growing tax free. Thanks for mentioning capital loss rules and state taxation rules. In California all investment income is taxed at ordinary income rates which can go as high as 13%, but at least their is potential savings the federal taxation side. Thanks so much for watching and commenting.

[@emikami1]

As always, top notch content here and I think this channel will grow over time. My comment on Warren Buffett was more about Berkshire itself not paying a dividend and not on his stock selection criteria.

[@MoneyandLifeTV]

Thanks emikami1! I hope to continue to grow this channel and community. It is a lot of fun. Gotcha, on the Berkshire comment. Have a nice weekend :)

[@attonapz6081]

Hi. I'm new to this whole investing and dividends and such. Where would be the smartest place for a beginner to use/invest 10,000$? Thanks.

[@83jbbentley]

Subbed for the Cockatiel graphics and dividends.

[@7ajhubbell]

Thank y’all.

[@dwightwellings]

If anything, the prominence of YT tutorial videos prove that there is no greater advantage a newbie trader can have above the guidance and assistance of a reliable financial advisor. Little wonder why mentees go so far in a short while.

[@rayneraltunok]

While this is true, we can't underestimate the power of time and chance, a newbie can achieve a lot on their own through sacrifice and dedication...

[@dwightwellings]

@@rayneraltunok I'm talking specifically about those newbie traders that don't have the luxury of excess funding to 'sacrifice' in the quest to learn the ropes of trading.

[@tyler-wills]

well said!!

[@rayneraltunok]

@@dwightwellings Well in that case, its obviously wiser to hire seek professional help. The only issue here is how does one locate these professionals, they're very hard to find even though most folks would gladly pay for such service. Any recommendations?.

[@chriskitzlinger]

@@dwightwellings You said it best man, everyone would be an expert if they had enough money to sacrifice to learn exactly the most profitable techniques to trade with.

[@blackworldtraveler3711]

All of my oil/gas,REITs,and Dividend Achiever stocks are in my Roth accounts. Have the option of $1k-$6k/mo. in dividend income at retirement.

[@11Alisher]

Great pros and cons of dividend stocks ) 2019

[@TheDividendExperiment]

I thought I would come here and watch and disagree with something, however, seems like this video is spot on! Subscribed

[@MoneyandLifeTV]

Thanks , (Nice channel name by the way). I made sure I did my homework on this one. I always learn a few extra things myself each time I produce a video.

[@TheDividendExperiment]

Haha thanks - its what my channel is all about! Well good job look forward to more videos in the future

[@TripleJ69]

That's my strategy. Investing in dividends. 4 ETFs and the rest are dividend stocks. My only stock without a dividend is Berkshire B.

[@MoneyandLifeTV]

Nice John! Most of my investments pay dividends as well. I love seeing cash hit my account. I'm a cashflow investor at heart.

[@heprovides5604]

Great info/video Mike!

[@MoneyandLifeTV]

Thank you Chico! Welcome back to KZbin my friend :)

[@badass6656]

Great video. Subbed

[@MoneyandLifeTV]

Thanks Bad Ass, and bad ass screen name! Rock on.

[@InvestingBookSummaries]

Great points

[@MoneyandLifeTV]

Thanks investing book summaries. Love your channel name. Can't wait to check out your content.

[@jpizzel9629]

Would you recommend for younger people (I am 20) to invest more heavily in dividend stocks or growth stocks? I ended up investing in a global real estate index fund, international index fund, small cap index fund, US large cap growth index fund, US large cap value index fund, and 2 marijuana companies (aurora cannabis and canopy growth). All the index funds are through schwab btw. I don't have anything invested in companies that pay dividends. Is that a mistake? Still pretty new to investing. Oh and this is all in a roth ira. Btw great channel! Looking to become an accountant and found you that way. Keep up the good work!

[@MoneyandLifeTV]

Jpizzel hows it going? Thanks for the kind words. I appreciate it, and good luck becoming an accountant. This is awesome that you are only 20 years old and already investing. You are well ahead of the pack so congrats. In terms of investing for dividends or for growth, I do a bit of both, however I lean more towards dividends. There are certainly advantages to investing for growth. You could hit some big home runs and grow your account balance really quickly, however, when the market isn't so hot those investments can drop pretty fast. I think the place to start is ask yourself "what are my long-term investment goals" What do I want my portfolio to do for me? Answering these questions and coming up with an investment strategy will help you determine what type of investments you want to buy. For myself personally I invest about 25% growth and 75% in dividend paying stocks. My main goal for myself is passive income in retirement. An income that keeps regenerating year after year after year so I do not have to sell off my investments and risk running out of money due to market volatility. The downside of investing this way is i'm getting slower growth in some areas. But the good part is even if the market is trending down i'm still receiving an income. For your situation think carefully about the questions above and what you ultimately want to do with the money in your portfolio. Its not a mistake to invest for dividends or to invest for growth, but not having a long-term investment plan for yourself is one of the biggest mistakes I see new investors make. Don't worry It took me a few years to figure out I needed a plan and then things started to become more clear. You might check out this video here: The top 4 investment mistakes new investors make: kzbin.info/www/bejne/jX6vXoCGoKmqeMk With you learning this stuff at age 20 I think you have a bright future ahead of you

[@jollen70f99]

so how are you buying your dividend stocks, are you buying selling options puts?

[@MoneyandLifeTV]

Hi Je Fu, great question. Currently not utilizing options. Keeping things simple for now and just purchasing shares normally., Will likely use options in the future.

[@moresugartradercc2744]

good points dividends are better for most people they require less work which is a bonus if your holding a job down

[@MoneyandLifeTV]

Hi Moresugar I totally agree. I know with my job and my wife's full-time job we don't have a lot of spare time. Usually the last thing I want to do is spend hours researching investments. Occasionally I will, but more often than not I prefer investing in investments that increase my yearly cash flow while simultaneously protecting the principal of my underlying investment. This is where solid performing blue chip companies come into play. I can invest with confidence and spend my time and my life doing things that yield more value and enjoyment in my life. Thanks for watching and for commenting :)

[@shmackydoodRon]

I work at a grocery store and plop $3 into Robinhood and $2 into Acorns Later. It would be the dream if I could get $1000 a month in dividends.

[@MoneyandLifeTV]

Have to start somewhere brother :) $1,000 a month in dividends is totally doable.

[@adriansmith6853]

Great video!!

[@MoneyandLifeTV]

Thanks Adrian!

[@RetireonDividends]

Nice and quick Good job

[@MoneyandLifeTV]

Thanks! I've learned that people tend to enjoy the videos more if they are as short and concise as possible.

[@jakobh6257]

Great points 👍

[@MoneyandLifeTV]

Thank you Jakob!

[@frostsmaker8966]

As long as I can fight inflation, I'm all in. :)

[@ATaylor369]

What i don't get is if I am reinvesting all of my dividends is it still taxed as earned income?

[@MoneyandLifeTV]

HI Ataylor thanks for watching and for this great question. The answer to your questions is "Yes" although, technically, dividends would not be "Earned income" they would be considered "Passive Income" Whether you receive the dividends in the form of cash or as additional shares (re-invested dividends) It is all treated as earned income. Even though we re-invest the dividends into additional shares it is still viewed by the IRS that you received cash and therefore taxable income.

[@nguyennnn01]

Please correct m if Im wrong. Im trying to learn. So dividend around 2%-6%/year. Average 4%/year. If I let 100k sit for 1 year without touching it, I will get around 4k in dividend?

[@MoneyandLifeTV]

Hi N, that is correct. You should get something around that amount with $1,000 invested depending on your net average yield of the investments in your portfolio.

[@laithqaisi2285]

Great video!!! Very educational!!!

[@MoneyandLifeTV]

Thanks! Glad you enjoyed it. Thanks for watching.

[@inquirer1016]

Good informative video and clearly stated. Dividend paying stocks are a great way to earn income with little effort, mainly research. I think AT&T, Verizon are solid dividend paying stocks. One riskier one, but a good one, is MORL with big dividend.

[@MoneyandLifeTV]

Inquirer hows it going? Its funny you mention AT&T and Verizon, because I own some of both lol. I'll have take a look at MORL. You have me curious as to what type of company they are. Thanks for watching and for leaving a comment.

[@inquirer1016]

Hi Mike. MORL has been good for me. I bought it years ago and the monthly dividend pays for the stock itself. MORL is not an easy company to explain as it's an ETN and not ETF. It has an average dividend return of 20 percent which is fantastic. But it is a risky stock as it's interest sensitive. It's not for everyone. But I like having some high dividend paying stocks and am tired of low bank CD and savings accounts interest rate. A good buying range for MORL is between $12-$14. Besides dividend, it can bounce back to the 52 week high of about $18.50 making a very nice profit. I also have CTL (Centurylink) which pays 10.45 percent interest, again, a little more risk involved. It's good you have AT&T and Verizon as they are solid dividend paying companies. I'm getting over 7 percent dividend as I bought them when they were in the low and mid twenties. Good luck with your investment.

[@MoneyandLifeTV]

Thank Inquirer for all of the great information!

[@MrJason9142002]

I think we all want growth in some way. We want an increase in our investment. But we also want big returns.

[@TridentPodcastShow]

Thank you for sharing - interesting stuff ~ i am very similar

[@ResourceTalks]

Dividend investing definitely has some giant pros but also some cons, but when it comes down to actually building a portfolio I don't think you must stick with either dividend or growth investing, I think it's okay to have both dividend and growth stocks in your portfolio.

[@MoneyandLifeTV]

Whats up Baby Investing :) 100% agree and that is exactly why I have a mix of both. I got to see Kevin O Leary from shark tank speak at an event I was at in Las Vegas. He spoke about investing in the stock market and he all for a 2/3 income and 1/3 growth type portfolio layout. Thanks for watching as always. You are so close to 500 subs congrats.

[@croftech7113]

I would like to hear a show about the Muni funds that Mr. Loback refers too as well!

[@MoneyandLifeTV]

Thanks Rob! I appreciate the feedback Mr. Loback had a great recommendation. I have added the topic to my list of videos to do. :)

[@financeguy8444]

It is a great idea, lower risk, with great return.

[@MoneyandLifeTV]

Totally agree. Thanks for commenting financeguy. Love the name.

[@NickOloteo]

A pro of dividends over real estate and other investments is that you don’t have to really worry about anything. No need to get tenants, no need to repair or replace anything, no need to buy insurance or deal with vacancies.

[@MoneyandLifeTV]

Amen brother.....dividends are a true source of passive income with virtually no involvement.

[@NickOloteo]

@@MoneyandLifeTV what brokerage do you use? I saw that M1 Finance only insures up to 250k

[@MoneyandLifeTV]

Hi Nick, I used to use Scottrade, which converted to TD Ameritrade.

[@doright8355]

You started by trading stock. From the stocks profit, you put it in the dividend stock, is it not? IMO, buy low sell high would make more dividend over time.

[@lrhomesold]

Actually one other thing I wanted to know.......if you own the stock 5 days prior to the dividend supposedly you're supposed to get the dividend but do they give you the entire amount? in other words people that have owned the stock for the whole quarter do they get the full amount of the dividend while other people who only owned it 5 days prior to the dividend do they only get a portion of it or do they still get the full amount of the dividend?

[@MoneyandLifeTV]

Fantastic question. From my personal experience if you do not own the stock for the full quarter your share of the dividend would only reflect a pro-rated amount.

[@Gh..o..s..t]

Yes if you own the stock at the ex date for dividend you will get the whole amount . I ownat. Got .50 of 1 share 3 days after bought it. I think I happen to buy the stock just in time. I have yet to notice another stock do that. I did but some trust funds and sale them in single day and still got the dividends

[@andrewswanson9831]

Good video

[@MoneyandLifeTV]

Thanks Andrew! I appreciate the feedback.

[@acrandleman7404]

Man you forgot to mention dividend reinvestment programs and the fact they are the real reason to invest in dividend stock and unlock their wealth building potential.

[@MoneyandLifeTV]

Hi AC great point. However, I got DRIPS covered in this video boss. kzbin.info/www/bejne/rJq4lXyGnLaje8U

[@aveno66]

To make money in dividends you must purchase at lease 10 to 20 stocks or shares to see some money because some of this companies they only paid 10cts or 25cts to a 1 dollar per share which is very Little.

[@MoneyandLifeTV]

This is true, it is a slow but effective way to build wealth. Does require a lot of money to make it lucrative, but it is 100% passive income which is hard to come by.

[@trancastore2107]

How can find and where to invest in dividends? Tnx you

[@xaldath4265]

Personally, I would say dividend investing is better for those who are older, more established, and/or close to financial freedom. The growth aspect that is lacking in solid dividend stocks is extremely important to the early years, as are the tax benefits of tax advantaged growth. 3% is a pretty low roi but is fine if you're just looking to stablize and get your financially free budget in check.

[@MoneyandLifeTV]

Hi Bobb, thanks for watching and for commenting. I totally agree with your points. I certainly hope to maximize growth in my younger years and eventually transition those funds into cash flow producing investments like dividends or real estate, etc. as I get older. The majority of my income producing stocks are in our Roths.

[@xaldath4265]

Thanks for the reply. I'm glad you are doing well and have a plan. To clarify, I didn't mean yours is bad. Moreso, just that I feel it is best when nearing the time to actually stop/minimize reinvesting the dividends and use them as more of a stability factor for personal finance rather than growth. Roth IRAs are great for those young few who are conscious about money and will actually make more in their twilight years based on that, instead of the traditional work til 59 1/2+ and start dispersing minimalized "income" amounts. That being said, I think a traditional can still be better if done right by using non-retirement tax advantaged methods in the later years, like real estate. I assume you've given this thought in your own plans, though.

[@xaldath4265]

Man, I just woke up. Sorry. You already told me you've thought about it. I get carried away with my passions, sometimes.

[@MoneyandLifeTV]

Hahah its all good Bobb, don't worry i was not offended by anything you wrote. You make great points. Real estate is defiantly part of my long-term investing plans (I just haven't talked about it much in any of my videos). Infact my wife and I have $80,000 set aside right at this moment to purchase another property when the market looks more reasonable. We will then turn our current home into a rental, but for now we are hanging tight. I hope to have at least 2 - 3 rentals generating cashflow in retirement. As far as traditional vs Roth IRA, the higher the income tax bracket one is in the more a traditional IRA makes sense, because the tax deferred savings now can potentially outweigh the tax-exempt benefits later. This is especially true if one has started investing later in life I would probably suggest a traditional IRA most of the time. I think each person needs to weigh their choice carefully here, because the answer could be different from one person to another. If you start off investing really young though (in twenties) than I think A Roth can be really powerful. Thanks for sharing your thoughts I really appreciate it.

[@ivanrazo8943]

For those who have been investing dividend stock for years what do you guys do to avoid taxas as much as you can?

[@geronimo9097]

Put the divvys in a Roth IRA or a HSA.

[@cosmicdarkmatter1128]

guy says: "you will see REAL MONEY" same guy: *holds up play money lol

[@MoneyandLifeTV]

Haha true, I keep the real stuff invested brother.

[@lewpaul6310]

Can you do video about your top ETFs with high dividends, low expense ratio. Thanks

[@MoneyandLifeTV]

Hi Lew Paul, thanks for the reuqest. I"ll add it to my list of videos to produce. That would be a great topic!

[@notredamelockerroom376]

What do you think about Ave Maria Rising Dividend Fund?

[@mick7909]

Great video you just turned yourself another sub

[@MoneyandLifeTV]

Thanks Mic K! I really appreciate that.

[@AndrewHillard1]

As benjamin graham said an intelligent investor is an investor not a speculator.. I see no flaws in dividend stocks. No matter what stocks you buy you still have to pay taxes eventually. If you pick a good company most of the time the dividend is safe. And choosing undervalued stocks and practicing dollar cost averaging you can receive extreme capital appreciation.

[@MoneyandLifeTV]

Thanks AHillard1 totally agree. I just added up my dividends payout for 2018 and we received close to $3,600 in dividends for the year. Not bad at all :) For 2019 i'll see if I can get that number closer to $5,000.

[@AndrewHillard1]

@@MoneyandLifeTV very nice.. I starting investing about 1 year ago and listened to my friends and bought high risk at first but I was naturally drawn to the long term blue chip stocks that paid dividends somehow. Weird how I was drawn to the most boring form of investing but oh well lol. 6 months later I received 150$ of dividends in the 4th quarter. A low amount for most but I understand how powerful compounding interest is. And im still in college lol. I wish you the best!

[@MoneyandLifeTV]

Boring investing leads to a sexy retirement :) All the best to you as well. Since you are still in school some of the best advice I can probably give you would be to land a high paying job (the best one you can find when finishing school). 2. Start a side business. 3. Invest the extra money from the business back into the business or income producing assets such as real estate or dividend stocks. 4. Gain control of your time and life once your passive income grows to sustainable amount. Cheers to 2019.

[@AndrewHillard1]

@@MoneyandLifeTV thank you very much, and hope you have a wonderful year!

[@croftech7113]

When you have a Roth IRA and you receive dividends in it, does that decrease the amount of money that you can yearly invest in that Roth?

[@MoneyandLifeTV]

How's it going Rob? Love the question. The good news is the investment growth and dividends does not reduce the amount you can contribute to the Roth. So you could earn $10,000 in dividends within the account, and still contribute the max each year.....which is $6,000 - $7,000 in 2019.

[@jerrr09]

Can you make a video on where to buy dividend stocks? I liked you other video.

[@MoneyandLifeTV]

Hi Jerry, this video might help if you haven't seen it. This is the full process of how to start buying dividend stocks from scratch. kzbin.info/www/bejne/n6SnmnWle917Y8k Hope that helps. :)

[@Unclebuns72]

I was thinking about getting 6300 shares of GE. Is my math right in that it would pay a yearly dividend of $4095/4 =$1023 quarterly?

[@MoneyandLifeTV]

Hi TJ, how are calculating that? I don't currently own GE, but it appears they only paying about .04 cents per share right now :( 6,300 shares x .04 would only be about $252 per year.

[@Unclebuns72]

Money and Life TV 6300 x the div/yield = $3591/year

[@Unclebuns72]

Money and Life TV I just saw how I was doing the math wrong.

[@Chuck10112]

"Capital appreciation" is a speculative game. With a dividend or bond even if the market turns down, you will most likely still get your dividend payments. I'm in Kevin O'Leary's camp. Buy dividend paying stocks. Avoid overvalued bubble stocks like Amazon.

[@MoneyandLifeTV]

Hi Carlo thanks for commenting. I agree with you on the speculative nature of growth stocks. Amazon and Netflix, Nvida are so highly priced right now. I recently loaded up on shares of Kimberly Clark, Clorox, Colegate, and Proctor and Gamble, because they were down a good 10 - 20 % in value. Proctor and Gamble and Kimblery Clark have about a 4% yield, which is not bad at all in my opinion.

[@AshraJewels]

Great video. Dividend investing has been on my mind for a while now. What influences your pick of companies? Do you use an online broker?

[@MoneyandLifeTV]

Hi Hiren, I love your question. I do use an online broker at the moment. (TD Ameritrade) I used to use Scottrade, but it was purchased by Ameritrade. I like your question so much I make a video about this topic so thanks for asking the question. A few of the things I look for is: 1. How long has the company been around? 2. Are they a blue chip dividend paying stock (Popular brand name company) 3. I look at their financials to make sure there company is still strong 4. I look to see if they raise their dividend payouts each year. 5. I try to determine if that company has a future. The business environment has changed drastically so it is important to determine if the products they sale will be still applicable 20 to 30 years from now. 6. Do they sale a product that people need to live on a regular basis. A product that people will buy over and over again? Like toothpaste for example, or utilities. Those are some of the factors i look for. Hope that helps. Thanks for asking.

[@AshraJewels]

@@MoneyandLifeTV thanks so much for helpful reply 👍🏽😊

[@MoneyandLifeTV]

Anytime, thanks hiren. Happy to hear that was helpful.

[@Philson]

what about trading options for regular income?

[@MoneyandLifeTV]

Absolutely, great idea. Something I hope to start implementing myself. If done correctly it can be very lucrative

[@xpressfitworkoutz8752]

Around how much money do you have invested in dividends stocks for you to have a passive income

[@MoneyandLifeTV]

You can begin to receive dividends at any amount invested. However, if you want substantial income from dividends you would need several hundred thousand or a million invested to make it a sustainable income in retirement.

[@xpressfitworkoutz8752]

@@MoneyandLifeTV . wish i knew about this sooner so I could've start investing... Honestly my goal is to get a passive income to pay for bills or maybe vacation money.. Its seems a loooong way for me to invest houndred thousands to actually live off dividends

[@MoneyandLifeTV]

Hi Xpress no worries. This is true for most people. It is a slow going wealth building process, however, with consistent effort it can grow to a nice supplemental income in retirement.

[@notan_alien881]

Do you get paid monthly or yearly, or is it different for each one

[@JamesBond-ny8bq]

I assume you are talking about dividend payouts and in that case most us stocks (that pay a dividend) pay a quarterly dividend whereas most European stocks (that pay a dividend) pay said dividend once a year

[@irocid4637]

I will focus on dividends later in life, but I can’t justify giving up returns at age 18

[@MoneyandLifeTV]

Hi Tha, certainly i would suggest investing for growth besides just dividends. However, don't forget you can always achieve capital appreciation + dividend income at the same time if you choose the right investments.

[@irocid4637]

Rare Case Okay...

[@chewie1355]

I’m switching from growth to mostly Div investing.

[@MoneyandLifeTV]

Nice Chewie! I love dividend investing. It is so less time consuming. Although I still do invest some for growth. I'm about 70/30 (Income vs growth) 401(K) is 100% growth focused, but overall my favorite type of investing is investing for cash flow which is exactly what dividends provide.

[@subscripciones]

Is it true that if a $1000 stock value company pays a $1 dividend, the day after that company stock values will start at $999?

[@MoneyandLifeTV]

Hi Jose, nice question. I don't think this true. I'm not 100% sure , but I have not observed this. I think the price of that stock will fluctuate a bit right after the dividend payout, but it is not an exact science. It just so happens that people like to buy or trade the stock right around the dividend payout date.

[@SlippinJimmy420]

Yes true

[@michaeljperez45]

Yes it’s true

[@michaelfratipietro9674]

True.

[@christophercarrigg3775]

I could have sworn you only had to pay taxes on your dividends for reits. Because normal stock dividends are taxed before they are paid out

[@MoneyandLifeTV]

Hi Chris thanks for commenting. All forms of dividends are taxable at the personal income tax level unless they are specifically tax exempt dividends. Under the tax code Reits are not allowed to receive qualified dividend treatment (ie, capital gain rate treatment). Therefore, if you own Reits, I have found the most advantageous way to own them is within a Roth IRA.

[@brandonmorin1179]

Nothing on preferred shares and the dividends they offer? Preferred equities are a good alternative blue-chip common equity and corporate bonds since they always pay (or accrue, at the very least) dividends and they are higher in the claim on assets hierarchy than common equity is. Plus their dividends tend to be qualified so they are taxed at a lower rate.

[@brandonmorin1179]

A list of ETF products giving preferred stock exposure can be found here: etfdb.com/type/preferred-stock/all/

[@MoneyandLifeTV]

Hi Brandon! Thanks for stopping by and for sharing your knowledge :) You always have something great to add so I really appreciate it. Obviously I left the preferred shares out of the video, but I'm glad you brought this up. In a general sense I know how they work, but I do have a few questions. 1. Can anyone purchase preferred shares? 2. Do preferred shares typically cost more than common shares?

[@MoneyandLifeTV]

This list is great! I actually own 100 shares of PFF lol. One of my financial advisor friends told me about it. Thanks so much Brandon.

[@brandonmorin1179]

Money and Life TV no worries mate, always happy to help spread some financial literacy. Preferred shares can be bought through your local exchange. You just need to know the tickers (plus they'll have some screwy names with a letter suffix, typically). Best way to get them is through a dedicated pooled-fund instrument like a mutual fund or ETF (so you get the diversification benefit, but mind the tax implications of rebalancing). Are they more expensive than normal shares? Umm... Up for debate? They're certainly less volatile than common shares, partly due to their lower liquidity but also due to the fixed dividend they pay. They also don't typically carry voting rights as well, so that could weigh their price down compared to common equity from the same company.

[@MoneyandLifeTV]

I forgot about the lack of voting rights on the preferred shares. Great tips. Thanks!

[@Ubon94]

Do you have to pay taxes on hsa dividends?

[@MoneyandLifeTV]

For Federal tax purposes no, but possibly for state income taxes depending on which state you reside in. For California example they are taxable.

[@lrhomesold]

I never heard you speak about reinvesting the dividend back into buying more stock

[@MoneyandLifeTV]

Hi Lynda! Thanks for watching and for pointing that out. Although I may not have addressed it here specifically i'm a huge believer in compounding interest, and absolutely reinvest all my dividends to purchase more shares. We've watched our dividend income grow every year since we started. I think we started investing in 2014 and probably made only $100 - $200 in dividends for the whole year. This year in 2019 we will probably pull in about $4,000 - $5,000 in dividends so its pretty exciting to watch the compounding magic happen.

[@lrhomesold]

Yes, only wish I started sooner ! ;)

[@MoneyandLifeTV]

You and me both lol .

[@jeffreystern5886]

Good companies are Coke... Pepsi.... Altria... Exxon.... Wells Fargo... and Pfizer.

[@MoneyandLifeTV]

Thanks for commenting Jeff, of the companies you just mentioned I currently own, Coke, Pepsi, and Pfizer.

[@andrewmorales5485]

Personally if i could afford it i just invest in 20 different stocks dividends to earn$1,000 monthly to earn$20,000 monthly than double it to earn$40,000 monthly

[@evvie01]

How do I find a broker and how do I understand the price of a stock?

[@MoneyandLifeTV]

Hi Evelyn, there are countless brokers online. I utilize Amerirtade (which is now owned by Charles Scwhab). To learn how stocks work I started off years ago reading lots of books. I think that is the best way to learn this stuff in great detail. How to make money in stocks is recommend, and buffetology is another book i recommend.

[@evvie01]

@@MoneyandLifeTV Thank you for getting back to me so quickly. While you're here I was wondering what you know about the taxes for people who have had to stay in the Obama Care program with the US picking up the premium tab, I was charged a very low amount for my monthly payments, but apparently what the government paid was nearly 1,800.00 every month. It seems extreme to me and makes me fear that they over paid. I projected lower than I got. I have been out of work a lot due to health, so I projected low with the expectation I could pay it at the end of the year. I'd rather let any refund I get pay the tab than take it out of my check every pay period. But I wan it to be balanced, I don't want to pay out of pocket either. edit to remove extra word.

[@jblue1299]

What broker are you using?

[@MoneyandLifeTV]

Currently TD Ameritrade, but likely going to open an account with M1 finance or Robinhood soon.

[@jblanla]

401k without a match vs dividend growth taxable account after maxing out Roth IRA?

[@MoneyandLifeTV]

Hi James, up to you ultimately, but maxing Roth first is great. In theory the next move is to max 401(K) for tax deferred investing, however, I still do a combination of both. Some in 401(K) and some in taxable account for various reasons.

[@opufy]

I liked the video, the taxes on the dividends caught my attention also, why didn't you just use real money for the video?

[@MoneyandLifeTV]

Hi Pro pro hows it goin? Thanks for watching. I did consider using real money, but most of my real money is at work in dividend paying investments, and that is not an exaggeration :) Plus fake money is kind of fun to have. Reminds of me of my childhood.

[@user-ne6gm8zq2k]

If a stock doesn't offer dividends, I don't consider it !

[@MoneyandLifeTV]

K 2 that is usually my thoughts as well. In fact I remember Kevin O Leary saying those exact same words at the conference he spoke at. He is all for dividends, because he believes in the power of investing for cashflow.

[@jenneilgardener7250]

Great video! Can persons from third world countries invest in the US stock market too? If yes, are we still required to pay taxes? Thanks alot!

[@MoneyandLifeTV]

Hi Jennelil, thanks so much for commenting. I believe you can invest in US stock market from most other countries, but i'm not 100% sure, but I think you can. As far as tax law goes it is all based on the tax laws of the country you live in.

[@jenneilgardener7250]

@@MoneyandLifeTV thank you!

[@KevinPerez-fd9xq]

DIVIDEND INVESTING 🙌🏼

[@Wurdswurth]

So did I hear that right? If you have a dividend stock, you’re taxed on the unrealized gain??

[@troywalker2833]

Hey man. What IS “dividend investing”? I know you can’t do it with the Acorns investing app. But I am 45 years old & I have almost $10,000 with them. 🤷🏿‍♂️🤷🏿‍♂️

[@MoneyandLifeTV]

Hi Troy, dividend investing is essentially an investing strategy whereby one acquires stocks or etfs that pay dividends (either quarterly, monthly, or annually).

[@troywalker2833]

Money and Life TV oooohhhhh so Acorns just re-invest them. So I don’t get them? Ok, got it. 👍🏿

[@troywalker2833]

Money and Life TV question man Does it matter if I have invested a majority of the $10,000 into the ACORNS LATER account versus the ACORNS CORE account. Does it matter with that app? 🤔🤔🤔

[@kangaroo3223]

What is the point of investing on stock that don't give dividends..!!that is speculation not investment

[@domjervis]

A while ago, right when the Fed had just started raising interest rates, I attended what I thought was only going to be a class on Personal Organization. As it turned out, there was another speaker, a so-called Expert in helping people manage their Investments. Uh huh... He started talking about how bonds are one of the best Securities people could invest in. I almost fell out of my chair. But instead, I cut him off with a raising of my hand and a loud "Whoa!" He seemed insulted at being interrupted. I called him out, in no uncertain terms, saying "Are you REALLY putting people into bonds in THIS Interest Rate Environment?!" He hemmed, hawed, fumfuhed, stammered and stuttered, finally saying, "Uh well...yeah...there are some good buys out there in the Long Term Market." I said, "You cannot POSSIBLY be serious!" He said, "Okay Smart Guy, where would you tell people to put their money?" I answered, "First I'm going to correct your verbiage...replacing "would" with "did," as in for my Mother, a person about whose Financial Security could not be MORE Important to me. After attentively listening and thus assessing her Risk Tolerance, I put her into a mix of ~60% Top-Quality Utility Stocks and ~40% CDs." He gave me a "Pffft!" as if that would stop me. I continued, "What good is making 7% on a bond if two increases in interest rates cause a 7% decrease in your Investment? Oh yeah, and that 7% interest you made is not only taxable, but taxable at a MUCH Higher rate than the Preferential Treatment that Qualified Dividends receive. So you actually wind up LOSING MONEY. And if you bought a bond at a Premium and held it to Maturity, that Premium you paid is basically money you set a match to. Oh and one more thing. Those Utility companies I referenced go to their State Utility Regulatory Commissions when they need to charge their ratepayers more money, among other Reasons to pay their Shareholders. I would know. I worked in the Utility Regulatory Realm for six years. Those big utilities come in for increases like clockwork." He gave me a dismissive hand wave and moved on to another Question from the audience. Maybe I should have warned this Manolut (that's Italian slang...and trust me...it IS NOT a compliment) that not only was I an Accountant for decades, but I have been actively managing my Investment Portfolio since 1981. Guess what happened after the class? People came up to ME and asked if I offered Advisory Services, how much I charge, etc. I said, "I retired a few years ago (at age 55) knowing that I have more money than I could possibly even THINK about spending the Rest of my Life. I'll give you my email address. Got a Question? Reach out to me, and I won't take as much as a penny from you." And I made sure I said it loud enough so that Ol' Vinny Boom-Bahtz heard me LOL Thank you for yet another Excellent Video, Sir. All Best!

[@MoneyandLifeTV]

Dom, I love reading your comments. These investment advisors seem to know everything don't they? Way to call him out! Because he didn't consider your point it made you appear even more knowledge, thus the transfer of trust in the room went straight to you. Nice job sir wish I could have seen the expression on his face.

[@domjervis]

@@MoneyandLifeTV Yeah, he had the Ol' "Just ate a spoonful of fertilizer" puss on him LOL Two events have transpired since my previous Post. A friend, who will turn 62 in January, filed for Social Security. She should get her first check in March. Are you sitting down? She will draw $728 per month. UGH! That's what a spotty work history and years of self-employment without paying into FICA will do. She should serve as a Lesson to others. And I doubt they would admit it, but I strongly believe her sisters hope I will eventually "take care of her." Yeah right...they don't manufacture that much whiskey. Joey Buttafuoco will become Pope before that happens. Now the better one. Got an "Invitation" from a guy at Fidelity to come in and talk about "evaluating my full financial picture and consider their sophisticated investment strategies." I've already dosed people from Schwab (non-qualified assets) and TIAA-CREF (403(b)). Both times, I sent them a ~1,000 word narrative before our meeting detailing my Plan/Strategy. Thought maybe...just maybe...they would say, "Okay Dom, you got this. I can't add anything to what you're doing." Nope. They STILL wanted to meet in-person. Long story abbreviated, the looks on their faces when I left stated in no uncertain terms that they regretted having sent that invite LOL If I decide to meet with this Fidelity Goombah, I have a special little add-on I didn't give the other two, to wit: "Not only am I not draining my assets, my Portfolio value has increased from 5/31/14 (my first day or Retirement) to 9/30/19 by ~$225,000." The tacit underlying message, which he may or may not get: "You're going to tell ME how I can do better??!" And just to head off a likely question, "Oh yeah, and I have turned a lot of those gains into cash. So the Market can fluctuate all it wants and the only way I'll have any trouble sleeping is if I drink too much cola too late in the day." What can I say? Some people just ASK for it LOL Thank you for your Very Kind Words, Sir. Greatly appreciated as always. All Best!

[@roake0331]

MO should be on the board.

[@MoneyandLifeTV]

MO is a good one

[@RealLifeMoney]

Hey Mike! Awesome video! I completely agree, there are pros and cons to everything. I think the main way around them is to have the best in both worlds and diversify. Like you said, Having growth and income is a good way too. DRIPs are amazing for the long term, don't have to worry about them while they make you rich ;)

[@MoneyandLifeTV]

Thanks Nick! I'm starting to look at the DRIP system. I've been meaning to do it for sometime now. Thanks for supporting the channel brother. Hope you have been doing well.

[@RealLifeMoney]

Awesome man! Its been going well thanks! I shouted you out in one of my recent videos actually haha. Passion vs Money. I liked your video talking about how we need more than just a simple job. We need to save more and a DRIP plan is a great way to build our wealth.

[@MoneyandLifeTV]

Love this thanks Nick and thanks for the shout out :)

[@Kaep1023]

What broker do you use?...how do I know if broker is reliable?

[@MoneyandLifeTV]

Hi L&A, I'm kind of old and boring when it comes to brokers, but I typically have gone with the more established brokers. I'm especially thankful I took this approach due to what happened to Robinhood recently. I use TD Ameritrade which is now $0 commission as well, but they are much more established and likely have more systems in place than Robinhood or M1 finance. However, each platform has advantages and disadvantages to research before diving in. At the end of the day I suggest finding a platform that best suits how you would like to invest. For long-term dividend investing I recommend TD amertirade or M1 finance.

[@SauliusKAY]

I have just counted author's portfolio size. Roughly, whith invested 18385 USD you are getting 638 USD anually. Keeping in mind, that your stocks can slide half of the price, this not seems that atractive. Change my mind

[@mando8222]

Also you might want to invest in good companies that pay a higher dividend

[@nerad1994]

Does the passive income come in for the rest of your life as long as you hold on to the stock?

[@MoneyandLifeTV]

Hi Deeken, yes it does (assuming the company doesn't go under) the money will keep coming in for life.

[@jt8280]

Pros and cons of a cash dividend or drip.

[@MoneyandLifeTV]

Hi JT I think this would make another great video topic. The main pro of taking cash is you can choose how to reinvest the money. Some drip platforms limit investors to only reinvesting in certain stocks. The main pro of drip investing is that your money is getting automatically reinvested. In theory this would allow one's money to compound quicker. The fee structure for drips might be more advantageous than re-investing cash at a later date. There is a potential for lower commissions when repurchasing shares through a drip system. Some companies offer drips and some do not. Different platforms treat drips differently, but if you take those factors into consideration I think you will find that the majority of the time people are pleased using a DRIP investing system. I'll make a video covering this in more detail in the near future. Thanks JT!

[@jt8280]

I think you should take the cash dividend when the stock is overpriced based on financial statements. When trading at 52 week low then buy.. buy !! buy !! IMHO.

[@danielbeaulieu581]

You pay taxes on the total value of dividend. If you sell the same amount instead, you only get taxed on the capital gain part of that amount. Way better. And you can do it when you want, for how much you want and from the title you want.

[@MoneyandLifeTV]

Hi Daniel, in many instances dividends may be taxed at 0% if your income is under a certain amount, so you get paid and keep the asset. kzbin.info/www/bejne/opW9kneaosiKqsk

[@learn123gunsandguitars4]

I would say that I probably have to be careful doing either dividends or short-term day trades because my accountant advised me that after I make $700 in unearned capital gains in 1 year that my working class family can lose our tax return. It's quite a gap going from 45k a year to becoming wealthy.

[@MoneyandLifeTV]

Hi Learn123, interesting. Does your accountant mean lose your tax return deductions? How so? Do you file married filing jointly or single?

[@caesaraltamiranor.7789]

So the question is how much money you need to have to buy stocks?

[@MoneyandLifeTV]

Hi Jesus Newman, great question. The answer really depends on where one is at financially. Are you asking when a person should start investing? You can always start off small with a few hundred dollars a month and could easily purchase shares of etfs ,etc. Each stock of course will have a different price. Amazon for example is $2,000 per share, while stocks like Kimberly Clark are about $105 per share so it just depends. Regardless of how much money one has to invest I suggest determining an amount you can contribute to your investment account each month and do it consistently. Treat it as an expense that you MUST pay, because retirement takes a lot of money and most people are not investing which is really unfortunate. I would say a few hundred bucks a month would get you started.

[@MoneyandLifeTV]

To be very transparent with you my wife and I invest about $3,400 every single month.

[@caesaraltamiranor.7789]

@@MoneyandLifeTV awesome thank you for the information, your videos are very helpful, I'll keep watching them, thanks again.

[@MoneyandLifeTV]

No problem Jesus, thanks for letting me know the videos are helpful. That is my goal. I appreciate the support. As long as people keep finding the content useful I'll keep cranking out videos as quickly as possible.

[@flodareltih9407]

how does it work man...

[@tinicoleofficial]

Rich Uncles has a student housing program that you can invest as little as $5.

[@MoneyandLifeTV]

Wow, that is pretty cool :)

[@Fugeta20]

Ford = fix or repair daily, of course it's gonna screw the dividends. Lol

[@MoneyandLifeTV]

LOL nice. Hadn't thought of it that way. Then again I do not own shares of ford.

[@evolionbot]

3:17 says real money pulls out fake money

[@jasonlin9311]

does roth ira affect getting medicaid?

[@MoneyandLifeTV]

Hi Jason, I don't believe so, but you would need to check the rules to qualify for medicaid to be certain.

[@jasonlin9311]

@Money and Life TV I just checked and they say A Roth IRA has no RMDs, so it can never be in payout status. Thus, a state may consider a Roth IRA to be an available asset, no matter the age of the owner, and require it to be spent down before Medicaid benefits are provided. ... RMDs themselves are income subject to Medicaid's claims.

[@MoneyandLifeTV]

Interesting, thanks for sharing. That makes sense.

[@jasonlin9311]

@Money and Life TV so no medicaid if I have a Roth IRA account?

[@MoneyandLifeTV]

I don't think it is a simple yes or no answer. I think it would really depend on what other assets you have wouldn't it? I would think they would look at your total assets from all sources to determine if you would qualify for medicaid. Sounds like you have some further research to do :)

[@davebriscoe8259]

2% or 3% yield, is per year not per quarter.

[@Jaime6529]

ford has been paying .15 quarterly for last 3 yrs

[@MoneyandLifeTV]

Interesting. I'm curious to see how the company will evolve as the car industry evolves. There seems to be a push towards less car ownership and more focus on the automated driving vehicles, however, I feel like that is still quite a ways away.

[@Ddnhan9876]

I think people who believe dividend investing is bad because you have to paid taxes is stupid. You can't compare dividend to capital gains. Is Apple to Orange. Capital gains is good but if they drop to 0 or bankrupt you lose everything lol. I believe dividend is like a job or business or even real estate. You get a replacement form of incomes. You get a cash flow. In what countries today you don't pay taxes lmao

[@MoneyandLifeTV]

Hi Dung, thanks for commenting. I certainly enjoy investing for cashflow more so than capital gains. It is a slower process, but the most important thing for me in the future is a secure income and dividends are one way to help achieve that.

[@LesdaMen]

Can anyone start dividend investing?

[@MoneyandLifeTV]

Absolutely, I consider it one of the easiest ways to invest. It is certainly the most passive way to invest in my opinion. For example I receive $63 in dividends today.

[@LesdaMen]

Money and Life TV how do I start? I’m really interested on it

[@MoneyandLifeTV]

Hi Lesotho, first step is setup a brokerage account. I made a basic video that talks about how to get started. Here is the the link: kzbin.info/www/bejne/n6SnmnWle917Y8k I use Ameritrade still, and i'm happy with them overall, but M1 finance is also a great platform. Hope this helps :) Once you setup account you just need to transfer money into it, etc. In the video I discuss steps. Its easier than you think once you've done it a few times.

[@stangtrax]

DRIP your dividend not take out the cash in your account that way it is compounding shares until you decide to retire. Simple when one of the dividend companies in your portfolio stop increasing the dividend sell it immediately and replace it with another company.

[@MoneyandLifeTV]

Hows it going Stangtrax. Thanks for sharing your thoughts , I appreciate it. I made an entire video related to the pros and cons of DRIPs: You can check out here: kzbin.info/www/bejne/rJq4lXyGnLaje8U

[@stangtrax]

@@MoneyandLifeTV thanks for the videos and fast response. If someone uses a Roth IRA the tax con is not an issue.

[@MoneyandLifeTV]

Not a problem stangtrax. Thanks for the support. I totally agree with you on the DRIP within a Roth. If you are going to do the DRIP that is the place to do it :) What stocks do you currently have on DRIP?

[@stangtrax]

@@MoneyandLifeTV Short answer is currently none. Due to a divorce 3 years ago after 16 years of marriage it made me basically start life all over. This year I finally bought a house and getting back on my feet while helping my 3 kids get through high school. I wish I knew about the stock market 20 years ago but i didn't start learning the market until about 5 years ago. I am getting my teenagers to learn investments and compound interest. I found the book, GET RICH WITH DIVIDENDS good too. I personally hoping the market will continue to roll over so I can finally start get back into it. I wish this information was learned in all high schools. I hope to have myself in a place in no more than 3 1/2 years where I can put $2000 monthly in the market. Hopefully after Christmas I can start at least put $500 monthly in the market.

[@EasternElectric2012]

Your dividends should be reinvested so they grow tax-free. Why would you take them now and pay taxes?

[@MoneyandLifeTV]

Hi Eastern, good question. Unless your investments are held within a Retirement account like a Roth you will always pay taxes on dividends even if you reinvest them. This is a common misconception. Dividends are taxed whether or not you take the cash or if you reinvest them.

[@rgasta7765]

How about capital loss due to stock value going down? you may earn 100$ in dividend but losing $1000 as the stock goes down? THis analysis is incomplete.

[@MoneyandLifeTV]

Hi Robert, thank you for leaving a comment. Its been quite sometime since I produced this video, but i'm pretty sure I addressed this to an extent. I get what you are saying. Assets will dip in value from time to time, but doesn't mean they won't come back up if they are a good investment. One still needs to manage their risk carefully either way. Certainly you don't want to chase a losing stock for a dividend that's foolish. However, if you owned a good rental for example and the value fell $10,000, but you were still able to get steady rents and cashflow would you care?

[@rgasta7765]

@@MoneyandLifeTV oh well, real estate and equities are two completely different things. A stock is more sensitive to external factors, suck as bad news, economy trends, and may lose 20% in one hour and never recover. A house may suffer from periods of recessions but they can never lose 20% value. So, we need to the math on one of your holdings to get see if you made or lost money.

[@MoneyandLifeTV]

The house I ended up purchasing lost around 50% in value before I bought it so to say they never drop below 20% in value simply isn't true. . I've had investments where I was down 10%, sometimes more, but it ended up recovering, plus I made dividend income the whole way through. Regardless of what the market is doing or what price fluctuations are occurring (Up or down) knowing how to manage and investment comes with time and experience. Knowing when to hold vs when to buy or sale is very important regardless of investment goals or investment styles in my personal opinion.

[@zoefofo7769]

Dividend stocks are sucks except for microsoft

[@MoneyandLifeTV]

Zoe, hows it going man? Thanks for leaving a comment on the video. I take it you are a "growth" investor and not a dividend investor am I right?

[@emptybucket1988]

💩💩💩😂