How to Find Great Dividend Stocks to Buy (Step by Step)

[@Nanalyze]

Want to see all 30 dividend growth stocks we're holding? Our Quantigence report shows you how we selected each of the 30 dividend growth stocks we're holding. 👇 nanalyze-shop.fourthwall.com/products/quantigence-year-end-2023

[@eddiechristianaguilarkleim7599]

Eddie here!! Nice video, I liked how you explained the yield part.

[@Nanalyze]

Great to hear from you Eddie, thank you for the feedback! Joe P.

[@MK-yt3ct]

Canadian here. Would love it if you guys covered the Canadian market in quantigance as well.

[@Nanalyze]

Canada will be featured in our International Dividend Champions report.

[@aaron6806]

Do you subscribe to any of the excellent Canadian sources for dividend growth information? There are free and paid services with screeners and spreadsheets updated monthly. I highly, highly recommend them.

[@Nanalyze]

@@aaron6806 Paying subscribers will soon have a report for all international dividend growth stocks, not just Canada. We highly highly recommend our Premium subscription which includes a wealth of benefits including access to all our research, our Quantigence DGI strategy, Discord server, tech stock catalog with over 450 tech stocks, trade alerts, Premium newsletter, and the list goes on. ;)

[@PremiumCollector.]

Generous! Thanks.

[@Nanalyze]

Glad you found this useful!

[@bewagoon7446]

Love your dividend growth investing content. What are your opinions on stocks that exclusively buy back shares rather than issue dividends? As a young person with room for lots of compounding, some would argue the tax implications of dividends make stock buy backs more compelling. If you have an opinion at all on the matter I’d love to hear from you guys

[@Nanalyze]

Note that stock buybacks reduce shares outstanding which serves to artificially increase dividends per share. But, that's a good question and the answer - as Buffett said - is simply this. It depends on the valuation. Only at a very good valuation does it makes sense for a company to buy back shares. What's a very good valuation? Probably just use historical valuations as a reference point. Companies often do both - pay dividends and buy back shares.

[@airnite7527]

Great video I've subscribed to your channel and have watched a few of your videos and I was wondering, is it more important to just DCA into a stock or is it better to wait for a margin of safety before buying seeing as it's all about time in the market as a pose to timing the market thanks

[@Nanalyze]

So this is the whole "do I invest or DCA with a lump sum" question. Most investors DCA because they get paid monthly and they don't have lots of cash laying around. If you get lots of cash suddenly, the academic literature leans towards getting it working for you as soon as possible so you might consider a hybrid approach perhaps - 50% in over a week or so and then the remaining 50% over 3 months or something. Just set some rules and pull the trigger.

[@airnite7527]

@@Nanalyze for more context I'm 50 yo with about 15 years to invest before I start withdrawals and, the 401k is on autopilot but I fund my Roth every year in January so that's where my question is coming from

[@BTBLive]

Buffett bought a lot of Sirius/XM. What do you think?

[@Nanalyze]

To have thoughts about a company that are worth sharing we need a day of research. This was raised on our Discord server before.

[@lb6774]

Love your content, thank you !!!

[@Nanalyze]

Really glad you found this beneficial, thank you for the feedback!

[@justinjohnson8398]

me being younger i like to look at 10+ yr dividend raises, usually these are still very high quality and growing the dividends in high amounts.

[@Nanalyze]

Makes good sense. The nice thing about this strategy is the flexibility it allows.

[@Dr.Dumpnpump]

May want to consider growth companies instead. Dividends are great, if you like forced sales, however if you are far from retirement and don’t need the income you’re far better off compounding.

[@Nanalyze]

@@Dr.Dumpnpump DRIP compounding works remarkably well. Income just becomes more money invested. And it's not either or. We invest in both disruptive growth and dividend growth.

[@Dr.Dumpnpump]

@@Nanalyze I understand, but generally the younger you are the more risk you should be taking, taxable dividends are not that ideal unless you need the income. Companies that pay a dividend are usually have a shorter runway and are typically towards the end of the life cycle, which isn’t the best long term hold for a young person, and forced sales (dividends) also negatively impacts compounding.

[@Nanalyze]

@@Dr.Dumpnpump Yes, young investors can on take more risk. What they shouldn't do is participate in the FOMO YOLO BS they see promoted everywhere they look. The odds of beating the market through concentrated stock picking is extremely low. Every investor - young and old - should have an asset class allocation strategy that breaks down their assets into risk buckets. As you age, you then take on less risk. We talk about this all the time because most pundits out there mislead newbie investors.

[@D1sturbL1fe]

What's your thought on Nike, soon a dividend champion and market leader

[@Nanalyze]

Looks like 22 years of consecutive payouts? So three more years. To have anything useful to say about any given company we spend a day (at least) researching it first. Nike isn't on our radar right now but will be in three years ;) Hopefully they don't go the way of VF Corporation (a somewhat similar champion we covered before).

[@Kassaflyt]

Backtesting these stocks haven't beaten the s&p 500 last 10 years, albeit being less volatile.

[@Nanalyze]

Speak of the devil, we've done our homework here. Our strategy absolutely destroys the S&P 500 - kzbin.info/www/bejne/oKObip-LmdqHepY

[@maltlickytexas]

❤

[@Nanalyze]

Thank you for the love!

[@investorslifepk]

Dividends stocks are key to growing passive income but 30% withholding tax (I am based in Hong Kong) is an obstacle to run this strategy for US businesses if based outside US (or at least in Hong Kong )

[@Nanalyze]

If you are a U.S. citizen you should have no problems. I am also based in Hong Kong (have citizenship) and also am a U.S. citizen and do not have to worry about the 30% withholding. For those who do have to worry about the 30% taxation, our International Dividend Champions report will be coming out soon. :) Joe P.

[@investorslifepk]

@@Nanalyze Looking forward to International Dividend Champions report. I am investing as foreigner in US equities so taxed at 30% withholding on dividends.

[@Martinit0]

International investors need to look into whether they can apply for partial waiver of the 30% withholding tax. It depends on whether your country has a double-taxation treaty with the US. Then you can submit form W-8 BEN to your US broker (assuming your broker is US). For me it cuts US dividend withholding tax from 30% to 15%. Google "double taxation treaty dividends USA " and/or talk to your tax advisor.

[@tinkernsfl8869]

How do you tell a champion is no longer a champion? If a company pays a dividend per quarter does the dividend need to go up every quarter? or does it work like adding them all up for the year? The reason I ask is that if a champion is no longer a champion that would cause a big sell off I assume. So you would want to be on top of that and sell ASAP.

[@Nanalyze]

Great questions! So, we always look at year over year (quarters can fluctuate). Deciding when the cut happens is usually a function of the company announcing something (as opposed to the actual cut happening) which means we need to make a judgement call at that time. We can't look to S&P Global because they'll do drops at index reviews, and also they don't cover all the champions we do. As you said, we always want to sell as soon as we confirm they (this is important) PLAN to no longer increase (as opposed to actually registering the non-increase. We stay on top of this and send email alerts to our subscribers (for the 30 stocks in our portfolio). We update the report twice a year and welcome new entrants and formally drop companies from the universe that are no longer champions. Great questions! Joe P.

[@aaron6806]

What about Tesla? Ok, it's not even funny for me at this point. Having put quite a few dividend growers into my Pessimist's Spreadsheet of Doom and charted the compounded returns out a couple decades I've begun to give a small bit of leeway to companies with somewhat inconsistent dividend growth if the average is still high/very high. For example, one company I own has averaged ~20% annual dividend growth for their entire 17 year history, which is far higher than my spreadsheet tells me is "kick-ass", so if they slowed that growth I would stick with them. I'm usually looking for a minimum of 5-6% so this one would have to crater to get to that level *but it would still be growing*, so I would hang on. If I held the company for a few years I could actually tolerate no growth or a cut and still be in the "kick-ass" range, but would be looking hard at why that was happening and wouldn't tolerate it for long. Also, just to counter the growth-is-better comments....this company also grows mostly through acquisitions and has no debt. Probably organized crime now that I think of it......

[@Nanalyze]

@@aaron6806 Our universe of over 80 stocks has grown dividends - on average - over 8% per year over the past decade handily outpacing inflation. These are high quality enterprises that have been increasing dividends - consistently - for 25 years or more at least. Consistency is critically important to this strategy. Unpredictability is what will lead to not being paid when you need stability the most - during times of economic turmoil.

[@aaron6806]

Exactly

[@Fzp450]

Thanks. But I notice, and others may disagree, that I find it difficult to follow you most of time because you move from one idea/point to another quickly.

[@Nanalyze]

This is excellent feedback. Can others chime in here on whether I'm moving to quick in these videos? I will consciously think about pace because I'm pretty much going at my normal speed most the time and that can get out of hand quickly. Joe P.

[@PremiumCollector.]

Pacing is fine, imo!

[@aaron6806]

I would say it depends on the experience level of the listener. I have no problem at all keeping up and digesting as you go, but I also only invest in dividend growth, so it's all language I already understand. Also, the playback speed is adjustable, and pausing to read slides and take notes is easy if needed. So.....carry on. You are very adequate. ​@@Nanalyze

[@Nanalyze]

@@aaron6806 Thank you for the feedback. Mr. Beast says improve one thing per video so we're always trying to do that. It's tough to break old habits but will think about pace going forward - Joe P.