Is Dividend Investing Worth It?

[@TobyMathis]

Read more on our blog here: andersonadvisors.com/best-investment-accounts/?highlight=dividend.

[@techdiyer5290]

Do dividends get Taxed if they are received to a roth IRA? if so what % ?

[@luck9837]

Bro cornered the camera man 💀

[@702prodigy]

😂

[@1bannahpoam]

😂😂😂😂😂😂

[@opietaylr]

😂😂

[@ccxfrank109]

Thought it was awkward the entire vid. Just slowly walking towards someone recording you on some random room talkn about dividends 😅

[@kevinbedford3444]

😂😂😂

[@Ed-eq8ui]

I feel like I was about to get into a bar fight

[@MartinD9999]

I never buy a stock that doesn’t offer a dividend. The only thing exception was Berkshire Hathaway when it tanked in early 2020. If a company won’t share its profits with an investor, it’s not getting my investment.

[@TobyMathis]

That's a smart investment strategy! Dividends can be a great way to generate passive income from your stock investments.

[@me-myself-i787]

Every company will eventually share its profits with its investors. The question is when. Often, you would get better returns if the company reinvested the money rather than paying out a dividend.

[@bidmcms3]

Then you’ve missed out on the most astronomical gains from companies like Amazon, Nvidia and Tesla

[@grit1679]

@@bidmcms3 *unrealized gains

[@techdiyer5290]

@@bidmcms3 Yeah 100%! i Had nvidia amd and tesla. ive been doing pretty well. But , now i want some extra income in my normal account and im trying to find out where you figure out how to know what companies offer qualified dividends

[@Silbaugh4liberty]

The last part was the best part😊❤

[@thebeardedbear6806]

Dividends are the best. I am a young investor and after about 10-15 years I sold growth (all but 20%) and bought high yield. I am 35 and my portfolio is yields a full time job.

[@rajmk3747]

Great, may I know what are high yield stocks/ETF’s you have chosen.?

[@garrettspeakeasy]

Yes sir! I put REIT's and BDC's in my roth since those dividends would be taxed at normal income rates

[@christmas10023]

Monthly beats quarterly

[@MiniNinja258]

@@christmas10023what monthly ones you invest in?

[@tanalson]

Any recommendations for REITS?

[@tramelparker2085]

Good stuff … happy I found your channel

[@aces4873]

It made up 40% of the return because historically stocks paid a 4-6 percent dividend growth was limited and buybacks were illegal Nowadays the best companies pay little or no dividend and returns come from buybacks and growth

[@Daretoshi66]

Nailed it they need to start comparing everything just for the last 20 to 30 years max. We don’t compare airplanes back to the right brothers Balsawood plane.

[@Jonathan-Avila]

How many of the top 20 companies of the S&P500 existed 100 years ago? And, how many of those pay dividends? Buy top companies stocks, wait until the price at least doubles, sell half the stocks, there's your profit and you're still invested, and if it meets certain criteria a big portion of that money can be exempt from capital gains tax.

[@nrsunlimited]

I buy dividend stocks when it crashes the most, all time lows and what not. That way, you the profit on stock price recovery & the dividend payment. Have a portfolio of 5-7 different stocks that pay the most.

[@jrod7017]

Yes.

[@prateekbasavaraj3208]

damn, since when did james corden start giving out investment advice 😂

[@jovna5315]

😂

[@IsaacRibane]

Thanks b

[@LasVegasStateOfMind]

Agreed fully.

[@OptVit]

How do you know if the dividends qualify as tax-free or LTCG? I thought they were taxes as regular income.

[@skynet251]

Very underrated!

[@jyo5764]

If I'm maximizing both of my IRA's how do I pay dividend taxes that's reinvested in my taxable account? Just with my income?

[@anns8998]

yes, or else have a couple of dividend payers that you don't reinvest and use the cash from them.

[@Scott-cu4ol]

so true. you can even buy tax free municipal bonds. I recently picked up a highly rated and insured 5.125% tax free Maine state bond. When you’re living in a high income state like Maine, these tax free bonds, a sweet.

[@techdiyer5290]

Right, but how much can you buy before your social security starts to get decreased?

[@vi4reel]

5.12 is not a good return in this current market.

[@xhxpe8004]

Wait, so you pay no taxes on divedend earning ?

[@darronsadventures]

I have just started to do this, I copied a few pies that are for dividend return. I think this is good strategy.

[@nobody_8_1]

Wait a minute, I thought that was always how people made money on stocks. If they are not cashing out dividends, then how are they making the money? Purely from buy/sells? (Other than hedging/reverse hedging, of course).

[@devdhamija7585]

Yo! Tell me about that background! Is that a peg board full of tape and a triangle square?

[@sryavuz]

Where I live, I pay taxes for dividends. If the company manages it and grow more, it is much more profitable. You can see it from the Dividend ETFs vs Growth ETFs comparison as clear as day. Only positive side of dividend is psychological. Less upside and less drawdown. Or getting paid the same on drawdowns.

[@scottwalker4619]

Dividend investing is also safer during a bad market because they have a fairer valuation. If the market was to crash, Nvidia, Apple and the likes would see a far larger drop than the likes of Pepsi because Pepsi has a fair value whereas Nvidia is overvalued

[@jilillsimmons6782]

I invest in dividend paying stocks. I’m glad I’m taking control of my financial future.

[@TobyMathis]

That's a smart move! Investing in dividend stocks is a great way to build long-term wealth.

[@jilillsimmons6782]

@@TobyMathis yes indeed. I can’t wait until I receive my next dividend payment.

[@cpoore949]

Does the "No tax" still apply if you buy a dividend stock like vym?

[@samuelharris8830]

Any thoughts on SCHD

[@khafreahmose8768]

My fav

[@michaelhuber1107]

Can't go wrong with SCHD or JEPQ

[@Venom-x7t]

And they'll be more underrated now in a big up year, but when markets are down or flat for years at a time the dividend investors are quietly doing fine- largest dividend pullback was the Great Recession with a 25pct cut in dividends across the board- that was an outlier, and probably mostly from the weakest companies like troubled REITs or high-yield ETFs that went under.

[@theonenonly122]

How would you pay 0% tax on that income? Long term capital gains is not 0

[@davideyres955]

We have the equivalent of the Roth tax wrapper in the UK called the ISA. It’s just a shame that we get hit with withholding tax from the USA companies over here. It takes a lot of profit out of dividends for me.

[@TheAzmountaineer]

Another side to the story is: what if, instead of giving you the $100K, they used it to open another pizza shop? How much is the pizza company worth now?

[@Smuggler169]

I’m military retired and invested in the market while in. Dividends automatically bought more shares. Now? I have it that the dividend pays me. I have a nice retirement at age 51. I work by choice. I also have a Roth IRA I started when I joined the Army. Max it out every year. Age 59 1/2 tax free money.

[@TobyMathis]

That's fantastic to hear! It's great that your investments are paying off and providing you with a comfortable retirement at such a young age.

[@elistrauf]

Why does HR Block rip me off in taxes each year?

[@adude7944]

Yeah except you forget the part where the dividend yield is negligible. You buy $1000 of stocks, and you get a yearly dividend of 2%? How is it worth paying $1k to receive 20 dollars a year?😂 It would take FIFTY years to actually profit off it... At this point it doesn't even matter whether it's dividend or growth stocks you buy because if you'll make money off it, it's gonna be from selling...

[@BBDB1987]

You're only investing $1000 ONE TIME. You expect a million dollars in return? Go to a casino and gamble it. Dividend investing is long term investment. Put it in a dividend stock that pays monthly and put $50/month and you'll make a lot more with compounding interest.

[@adude7944]

@@BBDB1987 see, that's the problem. You put in 50 dollars a year, which means you start at $1000 and in a year you will be on roughly $1620 but $600 of that still comes from you. It's not even an investment it's just a way to store your money because it's gonna lose that much value anyways.

[@BBDB1987]

@adude7944 Then why are you here? Dividend investing isn't a quick money scheme. It takes TIME. It's for people who've got a little bit of extra cash that's otherwise losing value if not invested in hopes that it'll eventually turn into a passive income to supplement their current income. If you want a quick buck, go back to drug dealing or pyramid schemes.

[@TheTaxxor]

@@adude7944 You make it sound as if we'd loose the $1000 once we invest them. The value of your shares will also grow each year, together with the divivends. You make profit out of it right after the first year(well, if the stock price didn't go down that is)

[@dixidum2380]

@@BBDB1987 Every sane people wanna get the best Investment Return. Why choose the worst for the sake of your ignorance ideology?

[@ariefraiser140]

If you own a stock why so obsessed with dividends? Meaning if you want cash to live on sell a fraction of the stock equivalent to a dividend pay out to live on. You already acknowledged in the video the market essentially reduces the stock price of dividend paying stocks slightly to account for the fact they took out cash assets from the company and distributed it to their shareholders. I like dividends I just don't understand the hyper focus on them instead of just focusing on an overall stock growth portfolio strategy based on owning valuable, reliable, and economically sound companies regardless of their dividend payout policy.

[@TobyMathis]

You cannot spend the money you do not receive. For many people, they end up liquidating their portfolio to live, which, in my opinion, is not a good plan. So I like dividends and covered calls to create income on which you can pay expenses. Does not mean you ignore other investments, but I would not build a plan around something that is not creating steady cash flow. Just my two cents. Thanks for the comments - though - I really appreciate your interaction.

[@ariefraiser140]

@@TobyMathis That's a misunderstanding of how how stocks work. There is absolutely nothing magical about dividends. A dividend is is the company liquidating itself for you. Instead of the company reinvesting that profit into itself it gives you a dividend. That act is reflected in a lower stock price vs a company that decides to reinvest the money into the company. The dividend + the stock price is equal to approximately the stock price of a similar company that doesn't give dividends. Generally there's nothing magical or significant about dividends.

[@d4rkbeat]

@@ariefraiser140 In the end a company is a business and a business has to make you money. If a company pays you some of it profits that is the definition of making money, and its certainly not liquidating itself that way...

[@ariefraiser140]

@@d4rkbeat 😂

[@snakecharmer3587]

Agreed . Growth stocks give better returns unless you have a significant amount of money invested

[@roycewalters]

Question you should be getting is why not clean the haze of your damn camera lens before filming??

[@missouri6014]

You realize if they 5% dividend is paid then the share price the very next day goes down by 5% so therefore it is a wash at best Finally use whatever comparison tool that you use in compare your dividend pain ETF versus any growth ETF The growth ETF wins by a large margin every time

[@stevenv1302]

Im more confortable with a company taking their profits and reinvesting into their own company to grow and give me more growth. Dividends arent free money and the amount of money you have to invest to get a decent dividend a month is astronomical

[@bjrn2010]

Why leave it in the company? For company growth, makes sense, but depends on the company's growth prospects.

[@xhongxina286]

So does percentage matter 5% vs 2% is a big difference I would love to hear on this subject

[@MRkriegs]

Im not sure what ur asking. If ur asking if the taxes are different on a 2% yielding stock vs a 5% yielding stock no its its same.

[@7sevyn7_]

Are u asking about the yield?

[@BrianVelez]

I am confused by the production of this video. No body wiped the lens, set up a random light that wasn’t even used properly, and left all the unflattering lights in the room on. You’re in the gym, you’re just not doing the sets properly. 😅

[@TobyMathis]

I appreciate your feedback! =)

[@Won-f5x]

Quit stalking me bro 😂

[@Diogenesoruise]

But in order to make a livable passive income you need to invest as low as several hundred thousand dollars to as high as a million depending on the returns.

[@MartinD9999]

He didn't mention anything about living off dividends.

[@MuhammadAwais-im8nj]

🔥🔥💯

[@willowww12]

Dont get any closer

[@estimatingonediscoveringthree]

That’s all I do, after my Portfolio losing 50% 😢😂

[@tiagofreitas7659]

Two not mentioned. Dividend comes OUT of the stock price. So, you are simply losing future investment growth for the sake of today’s money. You could just sell the shares that money. Dividends are taxed so in the long run, the same stock, one that distributes and another that doesn’t, will be better off the one that does not pay dividends. I am not saying dividends are bad, just saying they are a strategy for people eho already have a lot of money and want constant payments.

[@TheJonOrtiz]

1) clear the camera lenses on the iPhone before recording 2) sit down

[@marcronches940]

I have dividend stocks. Of course. But it’s crazy that he promotes ONLY buying dividend stocks.

[@josephsaeteurn9158]

high yield ETF is getting popular..

[@johnouellet4099]

I only invest in dividend stocks and ETFs. JEPQ

[@midwestron8576]

White Horse Financial has paid a dividend of over 12% a year for several years now. The stock value is down a bit over the year, so there is some risk, or, it is a great time to buy in. You decide. WHF

[@Kung_fu_s2]

Stock price drops equal to dividend paid out.

[@dividendfire855]

Uhhh company’s pay dividends out of its FCF and when you receive the dividend ( depending your tax bracket) YOU pay taxes on the dividends also…. Basically double taxation. I rather the company buys back shares and increase my valuation and I pay no taxes. Assuming you invest into a ROTH.

[@TobyMathis]

Some people like the cash:-)

[@aaronhall4361]

@@TobyMathis easy enough just to sell some profits from your growth stocks if you need cash.

[@shahriazshaon4300]

@@aaronhall4361but what if when you are trying to sell, your growth stock price is falling?

[@ariefraiser140]

There's no such thing as double taxation. You pay taxes once on the dividend you received.

[@caniripurjuul8142]

@@ariefraiser140 Dividends are paid after net income. Net income is after tax profits. Company distributes dividends to shareholders. Shareholders pay taxes on dividends received. That’s double taxation.

[@tantotanto9408]

In his own words .. this may be TAXED as long term capital gains.... Which means you will pay ZERO TAXES on that income. So for the stupid people like me tell me how you don't pay any tax ( the 'zero taxes') when you just paid a dividend tax???

[@tomriddle6968]

It has to do with the large deduction or exemption given for these.

[@curtisjessop8558]

This is a little misleading because you can't buy S&p etf and get a qualified dividend.

[@giuffre714]

So I own VOO... It yields 1.3% from dividends. Are those not qualified?

[@MRkriegs]

I think ur confused

[@me-myself-i787]

The dividends come out of the stock price. If they had done buybacks rather than paying dividends, they would've grown just as fast. Edit: "Why leave all the money in the company? They should be paying out shareholders!" Well, then, why invest at all if you think your money is better off in your bank account rather than being managed by the company? Might as well put your money into SGOV. They have a 5% dividend yield with no risk.

[@sryavuz]

Definitely. And where I live, I pay taxes for dividends. If the company manages it and grow more, it is much more profitable. You can see it from the Dividend ETFs vs Growth ETFs comparison as clear as day. Only positive side of dividend is psychological. Less drawdown or getting paid the same on drawdowns.

[@adrianchatto1]

Because they could invest the £100k in new pizza shops and make more money. You said said 40% is dividends, 60% is not!

[@ferdinandp21]

You pay tax no matter what on dividends. Even if you reinvest

[@TobyMathis]

Agreed - although qualified dividends are taxed at long term capital gains rates, which are zero for many taxpayers.

[@heisrisen560]

You also pay taxes on any price appreciation on stocks after you sell, there’s no free lunch 🤷‍♂️

[@UHOHTONIO]

I think you may need bigger pants my guy

[@chrismcalister4428]

10 % a yr 😂 BTC 60% a yr 🤑

[@calamfischer7009]

It should be rewarding its workers!!!

[@CoinGoblin97]

It SHOULD be, but the US runs on the almighty dollar and will grind as many people to dust as it takes to get it

[@ripplerfx]

What if the stock goes down? Doesn't my dividend go down too?

[@MRkriegs]

Normally no they dont. But a stock can cut its dividend at any time for any reason. Check the stocks dividend history. Many companies been increasing their dividends for 25-50 years straight

[@GeorgeFitness-yo8bl]

Of course its worth it. I retired on my 18 dividend stocks!

[@Nero-ho6gt]

How much invested and how much dividends? The numbers are what matters here.

[@umbertopappalardi8667]

Your stock evaluation is wrong. Choosing a stock only because it pays dividends is the same as picking a wife based only on her hair color.

[@Bradbajc]

and the stock price goes down by the amount of the dividend.

[@MartinD9999]

Guess you gotta start picking the right ones instead.

[@bdtrap]

Which means you can buy subsequent shares at a discount.

[@heisrisen560]

Yes but the price recovers in a matter days, all my stocks I own are div stocks and the majority of them still have great capital gains (50+%) cuz I’ve held long term plus I’m getting the dividend I dont have to sell to get paid

[@robb2650]

Dividends are only any good if they can be sustained long term and you own alot of the shares otherwise it's a few pennies which yes you get it but the company value goes down so you lose your gains

[@YvngGoat_]

But even if you lose your gains can’t it be used for a tax deduction?

[@garrettstickel1189]

and this is why companies cant keep good help. they dont reinveest that money into the good workers and then they leave

[@JamMaul]

Hopefully trump eliminate taxes

[@ericneering6357]

Yeah, it’s a way to rip off the employees room for the people that are at the top to make so much money that the employees can’t get fed. Ridiculous. I need to get rid of the stock market. Get your ass up and go to work and spend cash.

[@MartinD9999]

WTF?! 🥴 Derp! 😂

[@FutureDreamZz]

Lmao you okay?

[@MRkriegs]

Lol 😂😂😂

[@heisrisen560]

The employees (or anyone) are free to buy into the market and get the same gains/dividends as any one else on any company they want to buy you can invest as little as $5 at a time really no excuse not too invest

[@ananditagangwar9988]

LIFELONG DIVVY INVESTOR. NOW INTO COVERED CALL ETFs. ZERO REGRETS...

[@tiagofreitas7659]

Two not mentioned. Dividend comes OUT of the stock price. So, you are simply losing future investment growth for the sake of today’s money. You could just sell the shares that money. Dividends are taxed so in the long run, the same stock, one that distributes and another that doesn’t, will be better off the one that does not pay dividends. I am not saying dividends are bad, just saying they are a strategy for people eho already have a lot of money and want constant payments.