The BIGGEST MISTAKE Dividend Investors Make

[@Nanalyze]

Subscribe for more videos on dividend growth investing: kzbin.info 🙏

[@quackwilliams5933]

It's a crime you only have 15k subscribers. This is a treasure trove of information, thank you so much for publishing this!

[@Nanalyze]

Thank you for the kind words! We're working on that as we speak. Growing a YT channel is extremely tough because there are no barriers to entry and we compete against a bunch of people making funny faces. ;) We know our content is high quality, we just need to get more people to see it. So please share these videos in forums, across social media, with friends, families, enemies, classmates, cellmates, everyone. We'll keep 'em coming while also working hard on accelerating channel growth ;) Joe P.

[@kibirkshtis]

Growth will be exponential :) anyway i think quality is better than quantity.

[@Gh6219-x5f]

Just got 1 more sub here!

[@jwilder2251]

Breath of fresh air to hear a professional give analysis instead of a kid trying to sell a get rich quick scheme

[@Nanalyze]

Thank you for the kind words Mr. Wilder. There's a dearth of competent financial analysis on KZbin and we're looking to fill that gap. We don't run ads because we're not here for the quick buck. Ads often peddle junk which goes against our goal of making people better investors. If we're successful in doing that, they'll eventually open their wallets and support us financially. Joe P.

[@bishopscore]

This gentleman is one of the best out there. I listen to him before making any decision. Thank you Sir! You are the best!

[@Nanalyze]

Thank you for the kind words. The idea is that our content helps you become better at making your own decisions with conviction. ;)

[@carlosr9173]

Just found this video by chance. And immediately subbed. Your explanation and delivery is great. Keep it up!

[@Nanalyze]

Thank you very much for the sub and feedback!

[@joseguerrero2221]

I like your video before it even starts. I know ahead of time that I'm going to get quality.

[@Nanalyze]

Thank you very much for those kind words! It's very important that we maintain that as we grow. Joe P.

[@prasvasu4217]

Hi Joe, the spreadsheet is really handy; except I feel that dividend growth of 8% is not realistic today. Especially with dividend aristocrats/champions we don't see that anymore. And although 1600 per month is very do-able; just on a dividend portfolio, that could be a lot for some. All I've seen these past few years are minor increases barring a few exceptions.

[@Nanalyze]

Our strategy has offered us over 8% (8.8% last year) annual growth for over a decade now. There are plenty of up and coming aristocrats as well that will be entering our universe as time goes on. You are right, $1,600 is a lot for some, so save half that and you'll have a $250,000 portfolio in 15 years. :) Our universe of stocks contains names that do an excellent job of increasing dividends. Even the ETFs in this piece are able to beat inflation over the past decade on increases. It's possible! 👍👍👍

[@michaeloneill4437]

Love the videos. Would you consider doing a video comparing the tax efficiency of the various funds and how that impacts returns over time for funds held in a taxable account? For example my VYM dividends come in as qualified dividends but my SCHD dividends come in as ordinary dividends which causes me to favor VYM in my taxable account. Apologies if you’ve already covered this.

[@Nanalyze]

That's an interesting point you raise about taxes and we'd need to research it a while to have anything intelligent to say about it. We've always shied away from discussing taxes because the U.S. tax code is so extraordinarily complex and half our audience (across all our channels) live outside the USA and are all subject to a variety of different taxation rules.

[@dominichoward4833]

I'm in the same boat Michael... you only using VYM in your taxable or did you find others you like? I ended up putting like 10% vym in taxable and 10% schd in my 401k because when drawn it will be same as earned income any way. Didn't see the value of schd in my Roth since it 100% tax free. This all to say any analysis or ideas I would definitely enjoy to review as I see zero content on this.

[@cluedin]

You could still assume a certain tax rate.. I love this idea please consider

[@Nanalyze]

@@cluedin Our paying subscribers drive a large chunk of our topics so we'll ask them if it's something they want to see. Clearly there's a lot of demand from YT viewers.

[@Nanalyze]

@@dominichoward4833 You asked, we listened. Our piece on dividend taxation here: kzbin.info/www/bejne/bYSod5x3q8l-o6M

[@RiccardoBernardis]

Great content, have you also made or would you be able to make a video in which you analyse ETFs for European investors?

[@Nanalyze]

Great to hear! Half our audience is ex-USA which is why we do some foreign focused content like this piece on European Dividend Champions (kzbin.info/www/bejne/ipeboqGMo9aIibs) and this piece on UK dividend champions (kzbin.info/www/bejne/oX2ldZasp7aFd5Y). Specific requests for coverage of stocks or ETFs has the best chance of succeeding on our Discord server :)

[@HughButler-lb6zs]

I had a Schwab advisor, with a goal to maximize current income. He never mentioned SCHD. Why?

[@Nanalyze]

Advisors have different playbooks to follow. Many will follow the old tenet, "you should hold the percentage of stocks in your portfolio that is equal to 100 minus your age" with the rest in fixed income. You can see the shift towards "fixed income" as you age. And that's the problem we had with traditional investment advice. We don't want FIXED income, so we created our own strategy which GROWS income instead. Some financial advisors don't believe in the power of dividend growth - "mailbox money" they'll say - and that's because advisors often follow different strategies. As long as someone shows the work with their strategy, then that allows investors to make their own decisions based on their needs.

[@diegocontreras3173]

That’s a good question. I spoke w a J.P. Morgan advisor and he definitely put jepi and jepq on my watch list. But yea I’m pretty sure they each have their own strategies

[@Nanalyze]

@@diegocontreras3173 We're going to cover JEPI in a future piece. There's no such thing as a free lunch and a quick look at the distributions shows why it has an 8.6% yield.

[@charlesbyrneShowComments4all]

@@Nanalyze thanks. I'll be keeping a lookout for the JEPI video. I have some in my Roth. It is a small amount that I was using the monthly dividends to purchase Growth funds or other positions which were down. I had already maxed out my contributions earlier in the year.

[@brainbrain542]

I help manage our family’s money with JPM and Fidelity. My brother keeps telling that the financial advisors want you in a managed fund because that’s where they make their $. A friend I know buys different stocks like Chevron or EPD which pay good dividends.

[@protector7886]

14:45 I think you misspelled SCHD on the chart

[@Nanalyze]

Thank you for pointing that out. We had fixed that in the Excel tables but somehow the updated slide didn't make it in.

[@alextanyuk8064]

What is your take on VT ETF? Thank you.

[@Nanalyze]

Not classified as a dividend ETF due to the index is uses. Passes the low-fee test (7 basis points) and provides exposure to global all caps. Perhaps we will look at it in a future piece.

[@alecfehr471]

Would you recommend strive 500 ETF as a dividend stock?

[@Nanalyze]

We wrote about Strive here (www.nanalyze.com/2022/11/strive-anti-esg-etfs/) and absolutely love what they are doing.

[@brucesmith9144]

What about international dividend ETFs? Can they be considered in this discussion on another video?

[@Nanalyze]

That's a great idea. Noted.

[@FrankBurgos]

great video. New subscriber. Thank you

[@Nanalyze]

Welcome on board Frank! Thank you for the feedback and subscription.

[@dominichoward4833]

Can you talk about qualified dividends? Schd appears to have years of non qualified which is the major reason i don't have it in my brokerage account. If i keep my total dividends/ capital gains/ earned income below a certain amount, i pay considerably less taxes. Not sure if it exceeds the difference on growth but would be substantial.

[@Nanalyze]

Other have asked this so we'll add that topic to the next video on SCHD

[@dominichoward4833]

​@Nanalyze thanks. Awesome analysis and I appreciate your response.

[@StockSpotlightPodcast]

SCHD has impressive factor loadings

[@Nanalyze]

The methodology seems to work well for growing the income stream

[@karsinds]

I prefer VYM and its equivalente european etf, VHYL.

[@Nanalyze]

Horses for courses. VHYL is a bit steep at 29 basis points vs 6 for VYM. Maybe UCITS ETFs have to be because of all those EU rules? FYI: We'll be putting out an international dividend champion (of sorts) report in early 2024. It's the biggest request we've received over the years.

[@MarsRacingNetwork]

Happy new year, joe! The new merch looks great, got myself a shirt for Christmas.

[@Nanalyze]

Happy New Year's man! Glad you picked up some merch ;) I really appreciate the support. Joe P.

[@TheKillerzone24]

I can’t decide between vym and Schd but I feel like if I’m young now being 27 I feel like it make sense to buy Schd but at the same time vym is also good for diversification

[@Nanalyze]

You can always buy both. You have lots of time. Investing every month in ETFs over a few decades and you'll be very happy with the outcome.

[@mircea_h]

Any reason why investing in growth ETF in the accumulating stage and then moving to dividend ETF when retiring would not be advisable? Schd total return is behind sp500, which is behind nasdaq 100 index For me it's qqq for the accumulation and dividends in retirement because I need the income stability

[@Nanalyze]

@@mircea_h You could certainly do that, just try to describe the strategy with an objective rule such as the old "100 minus your age" rule

[@Hyestar]

Do you meet with clients at all?

[@Nanalyze]

We talk with our Premium subscribers constantly and yes, even meet with them in person. :)

[@Soriyou3]

How about RDVY?

[@Nanalyze]

We typically spend an entire day analyzing product(s) so we can say something insightful about them.

[@HughButler-lb6zs]

Getting dividends for 25 or 30 years is useless if they are less than the inflation rate.

[@Nanalyze]

Exactly.

[@DARTHDANSAN]

Yup this is why you invest in yield max and dividend growth stock s

[@HughButler-lb6zs]

@@DARTHDANSAN all yield max are very risky investments. I'll pass.

[@Nanalyze]

@HughButler-lb6zs is right. Any ETF that claims to use options to show a better return is A) going to charge high fees, and we know that it's not going to outperform based on that, and B) is going to be extremely risky because of the nature of options. It's why this video cautions that chasing high yield is one of the biggest mistakes dividend investors make. There's no such thing as a free lunch.

[@WarrenBuffettDividend]

Great information..

[@Nanalyze]

Glad you found this useful!

[@azulsimmons1040]

It's a small thing. I'm glad this channel doesn't use images of your face. The more I watch KZbin, the weirder it looks when people keep creating title caps of them making different weird expressions. It looks incredibly unprofessional and strange. I wonder if this is what KZbin creator classes teach or something. I imagine them sitting around making a weird expression until they get one that fits.

[@Nanalyze]

You are correct, and we joke about that from time to time. There's some often-stated "rule" that gets passed around which says that making strange faces increases engagement. The person who started that suggestion must be having a right old laugh.

[@diegocontreras3173]

I literally heard that having your mouth open in the thumbnail gets better engagement

[@Nanalyze]

@@diegocontreras3173 Same. There's a delicate balance to be had between the desire to maintain one's integrity and self respect vs the desire to chase that clout.

[@MDC885]

So is the takeaway here that SCHD is still the best one to buy and forget about for a while?

[@Nanalyze]

That's the conclusion thus far, but we still have a video or two more in this series ;)

[@neuroperformance8803]

Main Street Capital Corporation (MAIN) vs

[@Nanalyze]

Please keep comments on topic otherwise our moderator goes AWOL and starts abusing substances more than he usually does.

[@LadyGaonouu]

Great video!!

[@Nanalyze]

Glad you enjoyed it

[@LadyGaonouu]

Thanks!

[@Nanalyze]

Thank you so much for your kindness! That will go directly towards producing more videos like this one :)