Can dividend investing really beat stagflation? We’ll take a deeper dive in the video above, looking at different metrics, examples (like Phillip Morris stock), and getting down to the fundamentals.
0:00 Can dividend investing beat stagflation?
0:45 Looking at Phillip Morris stock
4:00 Analyzing the numbers
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I appreciate all the info you provided! I didn't fully understand dividends, but you explained so it was easy to understand. Plus Ive been hearing a lot of companies buying back shares and you explaining what that means was very helpful.
Love this channel. Just started watching it and it's one of my faves.
Yes!
XYLD can beat inflation
Considering dividends are taken out of stonk price near ex div date, eh, not really. However, I tend to view companies that have a long history of dividend increases as reliable. Paul is right though.
Sorry Paul that was dump just watch how this company pay they are divided last 20-30 yr thats enough if they missed or lower looking for a next one
I will keep buying ,because everything is at a discount now
I've been unsure about the market due to volatility, at the same time I still feel it's the right time to make profit cos of the price decrease, heard someone speaking of making over $500k since the lockdown and I'm driven to ask what techniques/skillset is needed to achieve this
@2:15 Would Philip morris be saying its obscene because relative to peers a 12% yield is more than average? Or Obscene for another reason, could you elaborate a little? Wouldn't the actual $ amount paid out to shareholders stay the same in both cases? Only the dividend yield % would reflect higher?
Paul, can you please help explain something for me? I have a little book watch list, and GTX was on there with a P/E under 5, and then just this past week, the PE shot up to 29.38. What happened there?
1. Buffet likes stocks that pay dividends
2. History of stock market there were periods of time where dividends were 60 percent of the gains.
3. You can’t BS hard cold cash every quarter or month.
Paul, I don't care how many times the dividend is taxed.
If it comes the time that I will need to take out my investment from a company that never paid dividends and always reinvested the FCF in the business and that company, for some reason (news, lawsuits, sentiment… whatever) is 50% down…. I would take that double taxed dividend throughout my investment journey instead of a lumpsum (due to selling) any day of the week.
One thing you never mention is that you do get double taxed as soon as you sell your stock:
1. Corporate Tax
2. If you are lucky, Tax on your profit.
If someone can explain me the point of owning a business and do not receive free cash flow that it produces (dividends… as long as they can afford it), please do. I would appreciate it.
Can dividend investing beat stagflation?
Hi My name is Paul and I'm here to NOT answer your question
What are your thoughts on reinvesting dividends? It helps with dollar cost averaging at the very least
what about a combination of all. some dividends some etf some growth!
People forget 3 things about dividend investing:
Firstly companies don't all pay out all their money in dividends.
Secondly, Is you do it in a tax free account you're not getting taxed.
Finally 99% of people forget that reinvesting those dividends has three different magnitudes of acceleration which is imperceptible at first because the acceleration is so slow but it is still there and over time the velocity of increase goes up. The acceleration of the acceleration (2nd order) also builds up over time at a slower rate. The third order is even slower and compounds over time like the first two orders. I've learned how to increase the 2nd order compounding.
So if you can figure out how to increase the 2nd order and 3rd order increase in rate you will be miles ahead, in a shorter space of time.
Can you guys make a video about ETF like JEPI?
Go for reits.
Hi Paul, I'm personally a dividend investor (aiming average 2% yields with good double digit historical growth per year) having 20 30y in front of me, for this reason i took this video very personally and did write this meanwhile you speak on video.
1) first things first, i know you guys aren't fan of dividends in this channel, but i still follow you guys cuz i like the information you provide and mindset ✅️
2) "dividends arent garanteed" TRUE, but having 20 stocks with 20years of historical growth on dividends, whats the chance that one of them stops ? Or even a whole sector? A well done portfolio will be just fine (unless we pick stupid stocks and dont do our homework)
3) you are right that we are "taking" money away of the business and is less money they have to growth, and me and the business are losing money by paying twice the taxes. The same strategy on growth stocks well done should be a better choice
4) if im a dividend investor why am i agree with you and still invest in dividends? I feel those who invest on growth stocks will suffer much more or recessions and bear markets, seeing portfolio fully red and having no positive side to put our step to hold. I do focus more on my graphs of dividend income, is always positive, always growing, easy to HOLD when everyone struggle. What I mean is : those who can handle growth stocks will outperform me. But most investors will underperform me cuz they will SELL when they shouldn't.
Thanks for the video. Hope my comment made any sense ❤️❤️❤️ giving a like as always. JM
I don't get the difference between free cash flow and net income ?