The Best Dividend Stocks Guide You’ll Ever Watch!

[@Nanalyze]

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[@George-f8h]

Notorius J.O.E.

[@Nanalyze]

Yeah, this video is dedicated to all the teachers that told me I'd never amount to nothin'

[@mk-ki3jc]

Easily top comment ever.

[@George-f8h]

​@@Nanalyze The best revenge is to become the kind of person they are not. I once sought out the advice of an academic counselor as a last ditch effort to avoid dropping out of community college. I never forgot what he said to me. He told me that, "some people are meant to be trash men" and if I wanted to know what classes that I need to take, I should figure it out myself. I left that meeting in shock and in anger. I would have dropped out of school if not for my English professor Mrs. Rose who surprised me one day by reading my essay in class. She did not know at the time how her kind words had changed my life.

[@Nanalyze]

@@George-f8h That's a great story George, thank you for sharing! My comment was actually from the great Notorious B.I.G song Juicy, but actually is quite true too ;) We must always take the time to guide youth when possible because the smallest things can have life-changing consequences. Joe P.

[@George-f8h]

​@@Nanalyze so many good lines from the song. Some of them bring back childhood memories... "Born sinner, the opposite of a winner. Remember when I used to eat sardines for dinner." When I was growing up, it was sardines and pork & beans. We were living in the hood back in the 70s, and I remember waiting in line to get free handout of bricks of cheese from the government truck. One day my dad came home from work with a large live fish and placed it in our fish tank. I thought it was our new pet. I came home from school one day to find the tank empty. We didn't know what happened to it until my dad dropped that plate of steamed fish in front of us at dinner. I don't think that I touched it all night.

[@МЕГАПоЗиТИВ-й2е]

Where do you find the entire 100 stocks in the dividends index? I only found the top 10 by industry. I am not talking about the composition of ETFs but the actual "Dow Jones U.S. Dividend 100 Index"

[@Nanalyze]

We have our own universe of dividend champions that we've compiled, but if you want to see the composition of the Dow Jones U.S. Dividend 100 Index, you can simply view the holdings of SCHD, since that ETF tracks that index.

[@hybridkidd]

Lol @ your dig on Walgreens. I took the plunge a few months back, and my 1st dividend payout is today, so this video must be fate. I'll be enjoying my 10+ percent dividend yield over here with my lonesome self 😂

[@Nanalyze]

Glad someone caught that! We’re not saying Walgreens is a bad company, but we did have to kick them to the curb recently when they cut their dividend, per our rules. Enjoy your payout nonetheless! -Wyatt C.

[@hybridkidd]

@Nanalyze No, they're dealing with a lot of headwinds and legal issues, so they definitely come with an 'investor beware' disclaimer.

[@shannonoliver7992]

I bought your quantigence guide. Do I have to buy every update? Or do you provide updates regularly? I haven’t seen any in my inbox.

[@Nanalyze]

We'll provide 2 free updates. We update it twice per year in January and July. :) So, you should be receiving one next month.

[@МЕГАПоЗиТИВ-й2е]

Hi Joe, Great video. I have a question: How do you handle a situation where a company has been growing dividend for many years and then for whatever reasons keeps dividend THE SAME for 1 year? Example: Dollar General (DG). They went from 0.55 to 0.59 in 2023, but have kept the dividend the same throughout 2024. Would you reset the counter and somehow penalize them if it only stayed the same for 1 year, and will grow again in 2025?

[@Nanalyze]

Very good question. This comes up every so often. So, the answer is simply this. If a company stops increasing dividends for whatever reason, they are dumped. Is this a special case? No, and here is why. Dividend payments are a policy (called a dividend policy interestingly enough) that is set at the highest levels in a company. This next sentence is critically important -> All they had to do was increase that dividend by ONE PENNY (or even a fraction of a penny) to keep the track record. They chose not to. This shows disregard for the track record. If they broke it once, they'll likely do it again. For whatever reason they chose to disregard their champion status (or aristocrat status) and because of that we kick them to the curb. It shows poor judgement and reflects a management team that's not paying attention. Joe P.

[@МЕГАПоЗиТИВ-й2е]

@@Nanalyze Thanks for that insight, very much appreciated. Yeah, I am curious myself why they didn't raise by at least a penny. Dollar General is a big company (16B market cap).

[@jimnf6780]

How does SCHD stack up with your Q score?

[@Nanalyze]

Great question. Q-score takes place at a constituent level, so it could be calculated for every company contained within SCHD. We covered SCHD in this video: kzbin.info/www/bejne/sJK9iKOoac2rZtk

[@Martinit0]

Joe, do you know of any way to switch from an accumulating (dividend) ETF to a distributing one without creating a taxable event? (i.e need to sell the one ETF and re-buy the other type)

[@Nanalyze]

I'm unaware of a method that lets you do that. You could always do half one year, half the next year and spread it out a bit that way. Joe P.

[@МЕГАПоЗиТИВ-й2е]

I have a question: "5 year growth: Penalyzed below 4%": Does this mean the dividend itself needs to grow by at least 4% per year relative to the previous dividend yield? This is 4% each year, right? Not 4% total over 5 years...?

[@Nanalyze]

4% each year, yes. The average stock in our core universe grows their dividend by around 8% every year. Quite remarkable!

[@eyaljosch936]

Thanks. You've mentioned that a yield above 5% smells like trouble, unless it's a REIT. Would you consider Pfizer (6.7% yield) as company in trouble? Is it a rule of thumb that can have exceptions, or that one better strictly follow a certain methodology?

[@Nanalyze]

Pfizer is not a company we cover, so we can't speak to them specifically, but typically when a company's yield gets that high, it's for a reason. Usually there's some turmoil in the underlying business. As far as we're aware, Pfizer needs to turn the ship around as vaccine and Paxlovid sales dwindle. They also need to prove their newest big acquisition can pay dividends - literally ;)

[@Nanalyze]

Regarding your second question, we have some objective rules, but building our portfolio was somewhat subjective. We mostly rely on picking the stocks with the highest Q-Scores, but there was also a bit of subjectivity involved. It will be different for each person.

[@Nanalyze]

The number is more like 6%. And it's important to look at a chart that shows yield over time. When it spikes for a sustained time, that's usually worth taking a closer look. Joe P.

[@kaloyanstefanov2388]

What do you think of BDC companies? I am currently overweight after the sector sold off in the last few months.

[@Nanalyze]

We have this topic in our queue. Please make sure to subscribe as it will be covered some time down the road (queue is jam packed right now ;)

[@riseup3117]

principal can and often does decrease with market fluctuations. Wrong statement is saying your principal remains unchanged and you get 8% return in your example

[@Nanalyze]

Yes, stocks change based on market movements. The word "untouched" probably works better. Sounds like you get the point we're trying to make here :)

[@presswbots2689]

Hey Joe, crazy question but are you taking post college interns? The job market isn’t the best for a new grad.

[@Nanalyze]

Good question. We do currently have an intern at the moment, but send us an email and we can at least get your information down! There’s a contact form on our site :)

[@darwintoivo-kt7gt]

Sweet Spot of 20-25 stocks! Are you mad? Feverish? What about spreading oneself too thin? I have read for years the sweet spot is 4-6 stocks. Concentration, if chosen wisely is the key to wealth growth, is it not? I suppose it comes down to risk tolerance and which end of the see-saw you take.

[@Nanalyze]

Well you read wrong. We're citing academic research here. 95% of active professional money managers can't beat a benchmark. Joe Retail sitting around in his underwear "doing due diligence" for a couple hours every Saturday isn't likely to fare much better.

[@darwintoivo-kt7gt]

You added a compromise of 10 stocks, one for each industry. I can live with 10. Currently at 6 but willing to add 1 or 2 more by years end. I still like concentration as a strategy. ETFs appeal to me always and will remain majority position in my portfolio. I always like ones that allow for their winners to run with high concentration in the top 10 of their holdings. Thanks for your clear thinking and work!!

[@Nanalyze]

@@darwintoivo-kt7gt You're most welcome! We always focus on providing investors with strategies that have the highest likelihood of success. As you said, it's a risk tradeoff but most investors underestimate risk! Always use an appropriate benchmark to measure performance as you go along. Thank you for the engagement!

[@therealmcgimmick]

I like them thangs.

[@Nanalyze]

It's hard to not like DGI stocks

[@Receptor1]

"spanked like a redheaded stepchild".... what does that even mean lmao

[@Nanalyze]

Valid question. It's an idiom, but an older one. Maybe Joe is showing his age a bit ;) According to Google, a red-headed stepchild is "a person or thing that is neglected, unwanted, or mistreated" -Wyatt C.

[@kenjiyoutube9]

I was wondering if you ever made a video for teaching more beginners? I would like to learn but I am like a monkey in economy.

[@EuropaEmpire]

Use one of the 3 ETF S&P500, Nasdak, World and if you believe Asia will perform well, use a small portion of Asia ex Japan and you will be better than 80% of retail

[@Nanalyze]

Ha! Everyone has to start at the monkey stage. When you say a video for beginners, what kinds of concepts would you be interested in learning about?

[@kenjiyoutube9]

@@Nanalyze I can’t even say what I am missing. But it could be nice with videos similar to what you already make, but with some key words briefly explained. Like fx for this video, I had to ask ChatGPT what dividend stocks mean.

[@Nanalyze]

@@kenjiyoutube9We’ll take this into consideration! The channel has been seeing some growth so there are probably plenty of beginners out there in our audience :) We have a few beginner videos, but nothing from square one.

[@juaaan78]

Read "Dividends Still Don't Lie" to understand the foundation of a dividend strategy so it's easier to follow these videos.

[@Walker956]

cant buy fractional shares.

[@UghIHateTheseThings]

He already acknowledged that in the video. Please pay attention to what you’re commenting on before commenting.

[@Stives1125]

Get a better broker

[@Nanalyze]

@Walker956 We were really surprised that some brokers don't support this. Who is your broker?

[@Nanalyze]

@Stives1125 Problem is for foreign investors they often can't! It's kind of a USA thing :(

[@Stives1125]

@@Nanalyze True, not an issue for me in US but I’ve seen you mention Interactive Brokers as a good international option

[@Dvong-fg5ik]

I don’t think dividends matters as much as total returns measurement of a stock. In 30 years inflation creeps in, it will affect both dividends and values of the stock. Do you have a paper that correlates total returns vs dividend stocks in real values. For individual ,Joe blow, to build a dividend core with multiple stock is overconfidence. After even most fund mangers can’t even beat the indices, see the Warren buffet challenge.

[@Nanalyze]

We do, actually. An analyst backtested our Quantigence dividend growth investing strategy against the S&P 500 over a meaningful time frame and it handily outperformed. Of course, this doesn't mean anything for future results, but it was encouraging to see. Send us an email if you want to see the paper - we have a contact form on our site. :) Also, we agree that most investors are best off simply building a portfolio of passively managed ETFs and dollar cost averaging into it. We just happen to enjoy selecting individual dividend growth stocks based on our scoring system, and it's worked wonders for us.

[@robert_daluz]

by chance, does MicroStrategy have you speechless?

[@Nanalyze]

Last covered here: kzbin.info/www/bejne/gXzXgKGkZ6iqfdU

[@mk-ki3jc]

How do you build a dividend portfolio? Ask nanalyze, obviously....

[@Nanalyze]

If you're trying to stroke our egos... it's working.

[@mk-ki3jc]

@Nanalyze lol! Caught me.

[@dgratale]

Joe, you often discuss the diversification of your/Nanalyze's portfolio, which includes gold. What is the best way for average Joes to invest in gold beyond just buying physical teals of the stuff?

[@Nanalyze]

The GLD ETF charges 40 basis points and has over 70 billion in AUM so we find that an acceptable way to hold gold. Good question.

[@jtsdeals]

Why not IAU for 25 basis points?

[@Nanalyze]

@@jtsdeals Now there's a good question. Why not pay a lower fee for the same exposure? I took a cursory look and it appears these ETFs both offer the same exposure. Do you know of any differences between the two? If not, then you are absolutely right. Choose the lower fee option - IAU. Unless we can find an even better deal? (PS: You also want a sizable amount of AUM and no gimmicks - must hold physical gold, no synthetic stuff.)

[@jorgetasse]

Best tooth for bottle opening 😮

[@Nanalyze]

Gonna need to open a few bottles to cope with that roast