How To Value a Dividend Company | Joseph Carlson Ep. 50

The Fed's balance sheet is exploding, but it's "not QE". Steve Eisman (Steve Carell on the Big Short) tells about the biggest problems in the market. And I go through the best method of buying dividend stocks in a dip.
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[@hoangz24]

Randomly came across this video and wow the way you value stocks now vs then is so vastly different. Your portfolio and style is so much different for the better imo. Thanks for the content, keep it up

[@tberg132]

Are you a bot?

[@mobn506]

I’m here driving thinking okay this is gonna be a nice 16 min video . When i saw 51 mins I’m like Joseph bout to go in lol

[@jamesm.3967]

You’re driving and watching videos?

[@mkmking1551]

Joseph you are absolutely amazing, the amount of value you provide is extremely generous and empathetic of you. I wish you much success. Thank you for these analytical tips.

[@henrikalexis4168]

you all probably dont give a shit but does anybody know of a way to log back into an instagram account? I stupidly forgot my account password. I love any tricks you can offer me

[@cherrytung]

You probably make the longest video out of all the dividend investing channels I follow, but I always tend to watch the entire time! So many golden nuggets 🎯

[@dialac1]

What other channels are you watching?

[@vincentchuvc]

And you comment on all those videos :-p

[@ucNguyen-kr4gf]

This particular ep has one of the best content you have to offer so far. A lot of informative information about value buying and I really like your interpretation on the Fast Money. Please keep up with the quality content like this :)

[@MissingYouser]

Didn’t you only have a few thousand or even hundred subscribers around January? Wow this channel grew more than the portfolio😂

[@stevencooper4422]

It's the real investment now 😉

[@harrellt1405]

vinter2ooo undervalued channel

[@rolanddeschain823]

I wish i could invest in this channel lol

[@UrbanJournal]

vinter2ooo Compound Interest😅

[@JASMEX1]

Do you offer a DRIP for this channel?

[@Drop321]

thanks for breaking down the commentary. Your breakdowns help me feel like Im actually learning real information instead of hearing entertaining light news.

[@allgood4729]

As an investor in her mid sixties I learn so much from you. I am your subscriber for quite sometime. Your pick on dividends features for M1 Finance is too good, I agree with you totally. Thank you for putting out such valuable content. 👍😊

[@sadworldwelivein2218]

About like 5 years ago I bought 256 shares of O for $38-$44. Sold them all in 2016 to pay off my student loans. Amazing company.

[@isettech]

Currently overvalued. PE is over 40. Yield is in the single digits. I buy on this sale stocks with PE under 20 and Yield in the double digits annually in critical infrastructure which has more protection from consumer discretionary spending in a recession. Utilities, some manufacturing, energy production and distribution such as pipelines. Amazon is too popular. Price is high so it is over valued, PE is over 110. Dividend and yield are both N/A.

[@annettetolbert1211]

Steve Eisman is a humble and chill dude. I enjoy hearing his opinions in various interviews.

[@notjoshcasts9296]

its cool coming back to these and seeing just how much more experience and how much you've improved this initial video formula compared to what you put out now

[@KelechIwuaba]

So much information. Anyone else get kinda challenged every time they watch these videos? But excited so much to learn, slowly but surely I will get there.

[@GenExDividendInvestor]

I love seeing dividends snowball! And I love analyzing companies :) Starting to watch as I drink my morning java!

[@GenExDividendInvestor]

@Rudy Definitely! The KZbin finance community is very cool :)

[@hagriever]

Hey Joseph, been a subscriber for a few months now. Really appreciate your content and your transparency. This episode was extremely helpful, as I was struggling with determining whether or not companies were under/over valued. Love the content!

[@isettech]

Well done. Showing yield shows a good picture. I look at 3 primary numbers when I buy stock, then investigate the company business model. For example you used. Microsoft. PE Ratio (TTM)30.77 Forward Dividend & Yield2.04 (1.10%) Yes you get FDIC insurance and 1.5% yield in some passbook savings accounts, not counting the paper value of the stock rising, which is not guaranteed. With the current market sale, I look for PE in critical infrastructure that is under 20 with dividends in double digits as the price is right. PE Ratio (TTM)44.13 Due to lower earnings PE is higher this quarter. Forward Dividend & Yield2.31 (7.20%) At the sale price I got this the Yield is over 12%. As a pipeline stock, earnings are expected to return with higher dividends. Even then I prefer these dividends over the small amount MSFT pays. MSFT EPS is $6.00. Dividends are $2.02. My other pipeline stock in comparison; EPS 0.73. Dividend 2.31. Yes they for the quarter paid more than they earned. The first quarter has a double impact of expanding the pipeline capacity while consumption is down 30%. Expect consumption and earnings to return. The bonus is the stock was on sale. Another pipeline with recent expansion costs. EPS (TTM)-2.40 This produced even bigger sale prices. Forward Dividend & Yield2.75 (15.52%) Worry over possible reductions in dividends hit the price, so yes great sale. In the news.. Cut an paste from The Motley Fool. Units of MPLX (NYSE:MPLX) have been under tremendous pressure this year due to the collapse of oil prices. The main weight has been investor concerns about the master limited partnership's (MLP) ability to maintain its big-time payout. But the energy company put some of those fears to rest by reporting solid first-quarter results. It also reaffirmed its support for the dividend (which yields more than 15% following this year's nearly 30% slide in its market value) even as it maintains its strategic expansion plan. I've used the recent stock sale to diversify out of tech stock into infrastructure stock. Two examples given. Low price with good dividends is a win.

[@JosephCarlsonShow]

M1 Finance (broker used in video): m1finance.8bxp97.net/3Wm4A Shortcuts to different parts of this episode: Valuing a dividend company: 6:05 The fed and "not" QE: 25:50 Steve Eisman interview: 31:35 Question and Answer: 44:24 The website used for the analysis on this video is seekingalpha.com

[@tilarmeister]

This is one of my first few dividend investing videos watched and really learn alot. Thanks for this ! Offers new perspective to investing!

[@aaronhokanson6718]

I've been consuming KZbin videos for knowledge while I work. This is by far the most comprehensive video I've come across thus far. Good work man (liked, subscribed, sharing...)

[@RobertTiger942]

And that marks the end of my binge watch. Now what? I need to WAIT for a new episode... Jee

[@brianfire7464]

Keep it up! I'm following your foot steps and growing my M1 Finance acct. You are an inspiration.

[@mirianadimitrova2112]

Finally - a comprehensible and interesting investing tutorial! Thanks for the great explanation and real-life examples, really made a difference! Could you please recommend a M1 alternative for Europeans?

[@b.sharp.]

This is my new favorite video on KZbin.

[@OliverHani]

He was far from right on shorting Tesla 😂. Anyways just wanted to share my gratitude to your channel. It’s quite interesting.

[@JarodM]

Excellent presentation on stock valuation Joseph, thanks~👍

[@jacoblloyd2573]

Joseph, the amount of competency you have with businesses and the statistics for stocks is so common sense to you that I might need to rewatch the entire series to better stick the knowledge with myself too. Mind you, I am taking on a similarly different portfolio with my target to achieve overwhelming compounding interest. The idea that money is cheap goes beyond just the stock market, and that is kind of makes sense when someone is frivolous with their finances in a bull market. A decently increasing economy in general.

[@nickhubert3804]

JNJ is so well positioned. Everything thinks of them as a pharma company and consumer product company (which they are and that's where they are facing legal trouble), but everyone seems to forget their rock solid medical device companies (Depuy Synthes, Ethicon, Etc.).

[@TheGoldenAgeofHardRock]

Joseph, thanks for the continued top notch content. It's always a great day when I see you've released another video!!!

[@marklittrell3202]

Very helpful video. Gave me some new ways to look at and use div yield numbers. Thanks!

[@billyjohnson9166]

Good info. I love dividend paying stocks 3-6% is my sweet spot. JNJ is a no brainier now. I hope it goes down Monday I’ll be a buyer.

[@subsonicflighttraining]

I really enjoyed this episode, good content on the valuation discussion and analysis of Steve Eisman's comments on CNBC...

[@ioannislazaridis4887]

Excellent video. Thank you very much for your valuable information. Cheers from Finland.

[@ten5039]

The notification squad is here. :D

[@wraithrunner2355]

Man I love that M1 Finance Company it really is too bad they don't offer their services in other countries makes me sad.

[@JonasGantner]

yeppp I want them here in Germany...

[@jamesblace5761]

Damn germany is worst country for investors... just bullshit Brokers.

[@hafizjamil9313]

Malaysia

[@SUHABOUT]

I am learning a lot... Thank you, Joseph!

[@Thetatraderz]

Good job researching stocks. I like to simply buy ETFs like sphd which follows a lot of what you covered.

[@isettech]

PE Ratio (TTM) N/A Yield 5.60% YTD Daily Total Return -25.29% Hope you sold at a profit. Not looking good during the pandemic.

[@TheeChozzenOne]

It's nice when the news cast allows the much more knowledgeable subject matter expert do the talking. I was watching an interview with Ray Dalio recently and the same courtesy was not afforded to him...which is a real shame.

[@nathand8401]

Hey Joseph, can you please do a video on how your set the targets in your portfolio, not only between different industries, but also each stock? Thanks!

[@NickPeitsch]

Excellent video! This is super valuable for anyone wanting to pick their own stocks. I’m personally a value investor and I’ve seen good results 👍

[@PassiveIncomeTom]

Great work! 👍 Your portfolio continues to grow! I love dividends since they make up 95% percent of my portfolio.

[@HB-yq8gy]

Excellent video thank you great simple explanation.

[@robertchew2842]

very timely....thanks for the all the vids Joseph!

[@AC_916]

Love your videos, they’re so informative and not filled with BS! Can’t wait to see what other content you release in 2020! HNY!

[@luigirebollos9029]

I'm gonna invest in the same pie with $2k and $200/m for 2020. Wish me luck 😅

[@Benbow07]

Update this comment in 2021 for me please

[@CosmicSeeker69]

You are going to need all the luck in the World

[@larsdrost550]

Øath betrayer Joseph explains this in his video If you watch it, focus on The section from 9:00 till 13:00.

[@IanEckie]

Any updates?

[@CommandoMaster]

He's probably gonna forget to.

[@krisk03]

Steve's prediction about Zillow came true in 2021.

[@MrSalehovich]

Hello JC, love your videos. I was wondering, when do you think it's a good time to pause your auto invest, and just enjoy the steady cash flow you're getting from your dividends? Thank you...~

[@frapeyou]

hey Joseph, could you do a video on starting at 18 from 0$ or even -10,000$ in debt, like how to get to your stage around X age, like what general steps you would suggest to copy what you did plus tips you learned the hard way for people to avoid

[@mainscale2570]

Earn more, spend less, pay off the debt ASAP if the rate is high.

[@halimamumin8164]

Very informative, thank you. I was dabbling in Robinhood prior, but you were my introduction to M1 and dividend growth investing. I transferred an old 401k, converted it into a Roth IRA that I invested in dividend ETFs, and got started chipping away at the yearly contribution cap. I’d like to open an individual when that becomes feasible. I’m curious to hear about your opinions and positions on financial literacy outside the stock market world, if you care to share or venture out, since this was pretty demystifying. Somehow I doubt this is your only focus.

[@Lindamal34]

Great video!! So helpful, Thank you!!

[@lolsih101]

Hi, love your videos. I have really learned alot and hope you continue uploading in the future. I was just wondering, knowing that your strategy meant to survive both good and bad financial times, in a worst case scenario how fast can you go liquid if you have to? Thanks again!

[@ryanharris1815]

Interesting to see where you are too where you were brother. Nice journal, enjoy the roller-coaster

[@PapaCharlie9]

Given the extremely low rate of retirement savings of recent generations, some experts are recommending that instead of opening a 529 when you have a new baby, open a custodial Roth IRA for them. College funding can be managed one way or another, but managing retirement funding if you haven't saved for decades is much harder. And think about the compounding! An extra 20-30 years will have a huge impact on their retirement. And, any principle more than 5 years old in the Roth can be withdrawn penalty free, if that's the only way to help pay for college.

[@TaylanYalniz]

What is your favorite research tool online? i.e. Yahoo finance? Fidelity Screener etc? when looking for ETFs with Dividends info etc? Thank you for the great content

[@Nard313]

Amazing video and information. Thank you for what you do.

[@LetsbeYannis]

Hi Joseph. I have been watching your videos for a while now and my question is, could someone substitute what you are doing on your regular account just by buying SPHD and maybe a couple more ETFs and just feed those every month? Is the reason you do not want to do this the expense ratio of 0.2-0.3 a factor or you think your strategy beats those ETFs? Thank you and great work!

[@ianwilliam9531]

John K This is a good question. I’ve had similar thoughts, but I have a portfolio with around 40 different holdings (including 3 or 4 ETFs) and I enjoy trying to pick some big winners. Joseph mentioned the awesome return he has had with Realty Income, and that would not happen if he only held ETFs. In my portfolio it was Qualcomm that rewarded me. Just my two cents ✌🏼

[@LetsbeYannis]

@@ianwilliam9531 It is true single stock picking can be lucrative but that also needs a lot more work to calculate when to buy when to sell because there should be always a time to seel because companies won't be successful for decades. Look how Apple has only been successful since 2004 and after that take research and a lot of time which beats the purpose of passive income it's more like active job like an analyst.

[@cg219]

Hey Joseph. Love the channel by the way. I watch every week. I have a question on dividend taxes. I know that they are taxed as income or as capital gains if they are qualified. But I can never find WHEN I have to pay these taxes. So for example. If I make $1000 in dividend earnings this year and just reinvest them or never withdraw it from my account. Come April 15th, do I have to pay the taxes earned on that at that time?? Or do I only have to pay the taxes if I withdraw it during the year. In case of the former, does this mean I have to sell assets to pay the taxes on these earnings if I never planned on withdrawing?? Thanks!! I hope I made sense!! - Mente

[@anomaliesanonymous]

Tax must be paid whether or not you withdraw the dividends

[@bestofa-z9751]

50th episode! Nice work Joseph

[@faith_lim]

Hi Joseph, I’m new to your channel (and investments/investing 😅), so far I find myself agreeing to your analysis since I’m also interested in dividend growth investing. However I’m really weak and inexperienced with stocks analysis, was wondering if you could do videos on the key ratios or metrics investors should look out for and what do these values mean when analysing certain industries (e.g. Banking HAHA) Thank you!

[@Chew_Oui]

thanks Joseph, I just started on the stock market and I've been researching how to figure out which companies are under or over valued. This may not be the secret, but I may be part of it.

[@isettech]

For me PE under 20. and annual yield in double digits, again not possible with price too high. When price is too high for the Earnings, the PE is high. Example Amazon.. Amazon is making record earnings, but also record price keeping the PE too high for investment. PE is over 110 today. Dividends and Yield are N/A.

[@Precisionmagert]

Great video. I'm a newer shareholder. This video was very informative

[@arnasleusinas3544]

commenting for the youtube algorithm. Like the video!

[@danielgrass5290]

I have a couple questions! Around 8:20 you say that the dividend yield (FWD) would be a red flag if above 6%. With the stocks hitting new lows it seems like everyday. I was really interested in flooding money into a lot of good dividend stocks. I was thinking about ticker SPG. But it has a high dividend yield. Around 18% at the moment. Do you think the dividend will be cut to make up for the high percentage or is the stock just oversold and will it go up in value quickly. Thanks! Love the videos! Even though we are in a bear market right now!

[@aleckaden3562]

Love your content, great content. So glad I subscribed. Question, how much cash did you truly start with?

[@jbeard3390]

300$ plus 50 per week. Im up to 302$ just started this Monday

[@richardcsillag2459]

Great job Joseph excellent content

[@joshnuno6060]

Great episode

[@guyredares]

I enjoyed the video, it is important to consider inflation in such a comparison

[@AMM0beatz]

Very informative! 👍🏽

[@kalvincalvert]

You're killin it man. Keep it up.

[@hassaninvesting]

Always providing values!

[@Coda1850]

Excellent episode. Very interesting content!

[@psy8428]

I've watched a most of your videos but not all. Is there somewhere you talk about your Roth IRA (a little more than in this video)? I see you have a link to it in the description, but is all of your Roth in M1? Why do you think dividend investing is the right strategy for _both_ your personal account and your Roth account?

[@michaelspangler9086]

I been subbed to you since esp 1 you got hooked on M1 finance

[@wilsonkyled]

Just found your channel & watched this video today. Great info! I recently started my portfolio and have paid attention to dividends, but this video gave me some great ways to analyze dividends better than I had before. Now I went through all the stocks I have so far to reanalyze using your method, and fortunately I'm reassured that I've made good choices. My question is what do you deduce from the dividend history of RCL. That's a stock that has been on my radar recently, but I'm not sure if I'm convinced it's a good 5-10+ year hold. Curious what your thoughts are. The dividend history was basically flat for 10+ years, and has seen good growth over the past 7 years. The yield has spiked up recently, indicating the stock is on sale, but is 7 years of dividend growth long enough of a track record? Also, the payout ratio is 57%, so I have some concern that they won't be able to increase the dividend much more in the future, though I'm not up to speed on typical payout ratios.

[@AndrejD303]

thank you for your video, exactly this kind of vids im looking for

[@vintr1x759]

so funny to hear you say Deutsche Bank Greetings from Germany

[@panda2]

jap zu . gut XD . cheers

[@alessandroesposito5207]

Ha ha yes is right

[@Texpilot22]

great video, very informative thank you for valuable information

[@JB-1490]

I am thinking of transferring my money from Vanguard account to M1 Finance. Does M1 Finance tax program easily communicate with Turbotax?

[@kim15742]

I love this channel! I have one question about taxes, though: When do you pay taxes for dividends? If it's immediately, then your 12%growth basically drops down to 10%. But how would they check when you have to pay taxes at the end when withdrawing? I know in Europe that you pay the taxes immediately.

[@ChristiantrospectiveGamer]

You pay taxes for dividends when you file your taxes the following year.

[@kim15742]

Scrobacca I see, is this the same for income and capital gains? In Europe income tax is deferred, but capital gains are paid immediately

[@ChristiantrospectiveGamer]

@@kim15742 No, all taxes are paid at the same time. The only time you really pay taxes during the year is when you own your own company or when you have ONLY income from non-labor sources. Then you pay your taxes every quarter.

[@tomasrozas8102]

Hi joseph! I have a question for you, where do you find consolidated information about companies ? you use any page that collects info or just take it from finantial reports directly ? i tried using yahoo finance and seaking alpha but i don't know if the information they provide is reliable (i sometimes compare the data the give me with each other and they always give diferent numbers) Thank you!

[@Ricardo1988000]

Thank you very much for your videos. Im learning a lot.. following your screening process, Ive found Spark Energy (SPKE) and Cheniere Energy Partners (CQP). What are your thoughts about them?

[@BostonLouie]

I might have missed it ,but can you tell us how much you have gotten paid in dividends since you started the portfolio ?

[@Snafu2346]

I wonder where that "I INVESTED FOR A WHOLE WEEK" guy?

[@TheDreamGreenShow]

lol RIGHT!

[@AmericanBulldogFit]

"is that". Invest in some English classes.

[@KinseySwartz]

@@AmericanBulldogFit I think the "is" should go at the end of the sentence, not before "that."

[@UnplayedGaming]

What does everyone think of investing in brokerages them selves? TD Ameritrade has a 3% dividend yield and is on sale because of the free commissions

[@jeremiedumas8555]

@Rudy in fact their earnings gonna get hit a lot. Their commission was accouting for around 20% or more (I don't have the precise %) of their earnings.

[@jerlinjoseph6865]

Listen to the earnings call that is coming up next week and go from there

[@treeblaster32]

Very excited to watch !

[@garrettjensen5647]

Great stuff man. Keep up the great videos

[@GolfsMyGame]

Joe, do you ever determine a stocks intrinsic value based on a dividend discount model or a discounted cash flow model? In other words, using one of those models to to determine the present value of a stock’s future cash flows and adding in a percentage based margin of safety (ie 10 to 20% below NPV) below it’s net present value (NPV).

[@koolaidsman451]

This is a good dividend stock valuation strategy, but it does has his flaws like he was saying. For example microsoft has changed from a dividend/value stock to a growth stock. Their management has changed to focusing on revenue and profit growth and they have accomplished that. You are not really paying for the value you are paying for future growth. Like he said since it is a growth stock if their growth starts to slow investors will sell out, personally I dont think this will happen in the next few years but im sure it will eventually.

[@OKMX5]

Was just going to write this. MSFT is my top holding.

[@koolaidsman451]

@@OKMX5 same for me as well

[@tyrenick8]

too bad I can't use m1, am new with divident investment and this platform is really something I need, easy to look at, ridiculously clear, auto-invest button> < nice charts just a nice platform that I and probably more people are looking for but still a pity that I can not use it I come from the Netherlands

[@pockysticks1910]

Great Video!!! I was wondering what your opinion is on the NVR stock. Would you buy it, would you not? Thanks if you see this comment!!

[@Cutekumber89]

Hey Joseph, Happy New Year 2020 to you and your family. I have been watching your vids for sometime now. Great content! I recently caught the Dividend Growth Investing bug and just recently opened up a Roth IRA account with Fidelity. I figured that with the Roth, I want to get started and grow it to the point where I just have to monitor it and just let it do it's thing. If you had 1 piece of advice to give to someone who is completely new to the dividend growth investing game... What would it be? I'm a broke college student so I am starting off very small it's almost laughable. The way I see it, it's better to be a tortoise that is moving than one who is not moving at all.

[@manp1039]

do you have the Free M1 Finance acct or the M1 Finance Plus acct? Have you used any other investment brokerages? I am wondering what you think about the differences between the ones you have used. Have you used the M1 Finance debit card?

[@pacifictv7214]

On average, how long do you invest in a company? So other than your conviction companies like apple, do you tend to re allocate your profits once you feel a company is over bought?

[@gil2904]

This channel is amazing.

[@Thomas-wc8zv]

What research tool are you using for the dividend yield and dividend history graphs?

[@qlau4578]

At year end tax reporting could it get complicated to keep trach of dividends of lists of company ?

[@jamesrijanto7378]

What do u think of MO? Very high div yield, growing div rate, but also company & industry wide problems

[@byronvangeyzel7398]

Great presentation and study guide, Joseph. Can I purchase M1 Finance tool in Australia

[@stevegunawan421]

i think that DCF might be a better valuation method, but your method is definitely easier for a quick valuation

[@theunit5939]

Hey Joseph great content, so I became inspired by alot of youtubers and build a dividend portfolio about a year and a half ago, our portfolios are very common and I have almost 60 dividend paying stocks as you can imagine my portfolio is doing amazing however I work 60 to 70 hrs a week as a normal and probably dont put enough time in watching and making sure my portfolio is doing ok and the companies inside are doing great, for a person who just dosent have enough time to be able to watch there portfolio all the time would you recommend in switching to a ETF based dividend portfolio, pick 5 or 6 solid ETF dividend stocks and just contribute to it and let the ETF managers do all the work for you?

[@Andrew-nq2dt]

Everyone should look at the balance sheet now

[@marketbeans]

How did you decide on the percentages 🙏