Why Dividend Investors (Mostly) Ignore Stock Prices

[@johnbob2871]

I agree with this. I have only investing in dividends for a year now. My goal is to increase my dividend income to $10,000 in the next 6years or less.

[@TraceyEdwards]

That's an awesome goal. :)

[@TheDividendExperiment]

Good goal, ambitious

[@rionkoral8273]

$ 10000 per month ?

[@johnbob2871]

@@rionkoral8273 $10,000 per year

[@ninobk196]

@@TraceyEdwards Hi Tracey, thanks for your educational videos. Do you always take out your dividends, or do you have a specific amount that you use for income and reinvest the rest?

[@IPONerd]

You don’t lose until you sell. Very true :)

[@nzshareman]

Tell your brain that as your watching go down, I'm sure she just means fluctuations every company needs to be constantly monitored regardless, the markets are different today alot of profit takers, Funds running up a stock then selling it off for no reason but to do that.

[@johnpalmer4128]

I'm glad you said "mostly" ignore stock prices. I'm pretty sure people who bought Tesltra at $6.40ish at the start of 2015 because it was supposedly a "blue chip" and had been slowly increasing dividends would not have been too happy at the start of 2019 by which time it's price was below $3 and the dividend had been halved. I think even dividend investors need to do their homework on the revenue, debt and earnings profiles of the companies that they invest into and also assess whether their future prospect look as bright as they have been in the past. But overall I agree totally that if the fundamentals of a company are sound and its future looks secure, the daily gyrations of the market are irrelevant.

[@TraceyEdwards]

I've never liked or owned Telstra, even when I was a growth investor. The fundamentals were always off for me. I've known plenty of people that have it because its 'blue chip' and I've relooked at it plenty of times over the years, but still wasn't tempted to jump in at any time. That's not to say I haven't made mistakes over the years, but yeah, Telstra wasn't one of them. :)

[@1964mjc]

Or buy and ETF with a decent (reasonable) dividend John

[@johnpalmer4128]

Can't argue with that approach which means you'll do better than most that give their money to "experts" to manage for them.

[@11Alisher]

I love to check my portfolio each week so see how much I received in dividends! But the capital gain is nice but doesn't bother if I am up or down to much

[@robroddy4071]

Hey Tracey, I’m Rob, 24 years old, love love dividends, I was a hardcore value investor but I found my self digging and digging / looking for value position but was just wasting my time when I could of been looking into good companies once a year and then averaging into then and receiving cash every 1/4. And just keeping an eye on the news / stocks I own once a week and then review them again the next year to see how there doing. This is much better for £/time gain for my self because I’m not spending hours trying to look for cheap good companies which won’t come until the next market crash haha. Any way I’m a fan of your KZbin channel and was wondering if you would show how you do your analysis when choosing dividend companies

[@TraceyEdwards]

Thanks so much! I used to be a value/growth investor too - soooo much more work :). I definately need to do an updated vid on how I choose companies :)

[@brendankacev8349]

I started investing a few months ago and an issue I faced was accepting the lack of control I had on the portfolio and it’s value. I found myself cheering the daily gains and getting upset at losses. I now look at any invested amounts as a sort of sunk cost which I’ll (hopefully) likely recover when I cash out in a few decades and til then, grow through DRIPs and share price growth. And since I’m only just starting, I now prefer prices to fall so I can take advantage of the sales as you call them, stock up (excuse the pun) so that eventually I can accelerate future growth to the point where dividends are enough to support me financially.

[@TraceyEdwards]

The stock market always goes up over the long term. :)

[@11Alisher]

"In the world of money and investing, you must learn to control your emotions" Robert Kiyosaki

[@bradleygray2103]

As long as the movements are relative to the size of the portfolio. It's not unreasonable to expect a $50k portfolio to drop $3k over a few days but it should regain the $3k (and a bit more) over the next week or two. When your portfolio reaches $500k this means a $30k drop. It's something you have to get used to. Look at the Boral share price. It recently dropped from $5.20 to $3.98 in September. A lot of people dumped the stock but for a value investor (or dividend) investor that's done some homework that was a great buying opportunity. They've since recovered to ~$4.70. That's 17% capital gain in 4 weeks plus a dividend. Setup a google spreadsheet with this query (this is for IVV an ETF that tracks the S&P500 with the first date being 02May2019) =GOOGLEFINANCE("ASX:IVV","price",DATE(2019,5,2),TODAY(),"Weekly") Graph the daily share price movement and then add a trend line. Hopefully over several months it should be up on the RHS.

[@KittKattBarr222]

First 45 seconds= awesome! Thank you for the laugh

[@vtv8man]

X3 intro Tracey’s - heheh ! My investing is the total opposite of yours. I was intrigued to learn about your approach. Have you thought about creating an online training / education course for beginners on your strategy ? Love your videos - thank you.

[@anthonyjinks89]

"The market is down!!"... "Buy!!"

[@TraceyEdwards]

Correct! :)

[@RCVideo-dh8cs]

You are absolutely correct with your thinking. Well some may worry when the stock market goes down. Those same people will buy a brand new car and lose 20 to 30% once they drive it off the dealers lot. This doesn’t seem to bother them.

[@elchapi366]

This is sooo true. When I became I investor I lost money a couple times because I freaked out and jumped out, only to see the stock go even higher a week later. The stock market will torment me no more , if it crashes i just pick up moreee.. be greedy when everyone is fearful said someone..

[@jguzman713]

buy gold is good way to invest ? Thanks

[@nzshareman]

Exactly makes me sick how they dont follow up on where the market was or is now compared. Here in NZ they also say the opposite they say "lead by" as if the market is always going up it is so narrowly covered. U da best.

[@pottingersandra]

Really love this video. And I now understand dividend and stock price fluctuations

[@TraceyEdwards]

cool! thanks for watching :)

[@tomrusack3266]

A suggestion, buying stocks in a company is not investing in a company. You invest in a company when it does its initial IPO. Once the shares hit the secondary market you’re speculating. So you buy dividends either at the initial IPO or on the secondary market. How much you pay for those dividends depends on the stocks price in the market. Whether the stock price goes up or down does not effect the company, it operates regardless of the market. Whether the company is doing well or not moves the stock price up or down. So remember the company moves the share price, the share price does not move the company.

[@vidsrkewl]

do you invest in lics ? if so which ones?

[@xiv-827]

Hi Tracey. Do you buy stocks every month like Cost Average, or do you wait for when the prices are low then you buy?

[@TraceyEdwards]

Once I've saved up $10K I wait for a dip in the market.

[@PassiveIncomeTom]

This is so true! I don't pay attention to the price of my stocks except for Tesla, but I do love the dividends that come in.👍

[@TraceyEdwards]

I love those deposits so much :)

[@11Alisher]

Over the moon at the price of tesla now, it's not letting me down 1 bit!

[@waharley]

Hi Tracey, one thing I can't figure out. So if dividends are paid on quantity of units owned and price isn't critical. Then wouldn't it be best always to aim to buy a stock with a lower price point compared to one with a higher price point to get more shares? or does it not work like that. Maybe higher cost stocks pay higher dividends? Thank you

[@TraceyEdwards]

Different companies pay different amounts, so it's more important to see how much they are paying per unit, rather than the stock price. (Of course, if that company pays a good return per share, then of course buying at a lower price of THAT company will increase your return).

[@waharley]

@@TraceyEdwards okay understood. Thank you

[@espanol291]

Hi Tracey, thanks for your videos. You are really a very communicative person. I like the dividends strategy. What do you think about the spdr global dividend aristocrats etf? I'm not sure sometimes I think that the spdr US aristocrats etf contains better companies among other things I think they are important, like paying dividends increasily for 25 years. But on the other hand I think why just the US? I've already seen a video from you about etfs but you didn't name it. It would be nice to hear your opinion.

[@at9546]

But does your dividend payment go down when the price per share goes up?

[@JohnnyTubeNYC]

"Stocks go up. Stocks go down." -John Templeton

[@LizA-mh6bc]

Good video! Thank you Tracey! :) If you like high dividend yielding stocks, why don´t you invest in VHY Vanguard ETF instead of in individual holdings? I would love to hear your thoughts on this. Cheers

[@TraceyEdwards]

Hi, I do have VHY. I have both ETFs and single stocks. 😊

[@LizA-mh6bc]

@@TraceyEdwards thanks! Do you know why hasn´t VHY ever gone under $40? I would like to understand more how the valuation system works. Cheers

[@darylhunt9070]

you still need to monitor your stocks or the company. Less dividends generally push price down . So by time you see no dividends it is sometimes too late. I would be interested to see how /if you monitor downside risk

[@sabriath]

It's one thing I cannot stand is people who have no monetary investment of their own in the markets, knowing I do, come up to me and say "yo man, how are you doing? Markets are tanking like crazy, are you going to be alright?" I'm over here like "wtf you on about? How is being able to get the same stocks at a cheaper rate make you think I'm going to jump out of a window or eat a gun? I just bought more, why don't you get in while it's low?" "What? Me? Nah man, it's a scary gamble, I mean take today for example....if I invest now, I could lose it." *facepalm In my mind, all I can think is "ok, I guess I'll see you next week for us to go through all of this, yet again."

[@TraceyEdwards]

This made me laugh because my friends are exactly the same. :)

[@JacobNozicka]

Do you buy dividends stocks on a stock exchange like robinhood, TDAmeritrade for example.

[@QuesttoFIRE]

Excellent, concise explanation!👏🏻🔥🔥

[@JMacInvesting]

Excellent video and points made, all the best!

[@TraceyEdwards]

Thanks :)

[@billyjohnson9166]

You were talking to me. Great video. I just found you.

[@hassaninvesting]

Love the intro lmaoo. Keep up the great videos. Keep in touch.

[@UltraScheiben]

Thanks for your great content. Ever thought of going live for a q&a? Anyway just generally do you think more positions is better than larger positions? Also how many positions do you work with on average?

[@TheDividendExperiment]

I like to check up on it every now and again but it doesn't overly bother me either!

[@TraceyEdwards]

I think it's a sign that you've been investing a while when the small fluctations no longer bother you. :)

[@harunma]

Yeah....very true

[@isabacashclub9990]

What do you think about US REITs (Real Estate Investment Trusts)? A lot of them pay out monthly.

[@TraceyEdwards]

REITs can be great. I have a few in my portfolio :)

[@zhangguo6752]

I always tell myself that day to day stock price doesn't matter and that I'm in it for the long haul but when your portfolio is almost $400k, some day the lose is easily over $10k, it does put a dampen on your mood lol. The best strategy is to not check your portfolio too often, all my investment is automatically done for me and just enjoy your day to day living.

[@TraceyEdwards]

Exactly. Looking too often can mess with your mind :)

[@vsecured]

Which platform do you use to automatically invest for you?

[@harrisonedwards4340]

How does the dividend payout work? You buy into the company with a stock broker on the stock market and then that company can just pay you the dividend straight into your bank account ?

[@TraceyEdwards]

Yes. Although you can also choose to re-invest the dividends if you like. I prefer to take the payout :)

[@randyrodiek3307]

Thanks. I like your triplet idea. Your sisters look just like you 😎.

[@alog2]

dividend.com's webpage is not working properly today... do you think I should pull-out my account now?

[@kaas6498]

If dividend stocks fall 50% in a crash. It's a growth stock and a dividend stock combined. Its cheap, will probably go back up and pays the dividend

[@philpogson9883]

Check out RARI via Russell. They fit your dividend criteria perfectly

[@TraceyEdwards]

Awesome, thanks for the tip!