Link to download my spreadsheets: tickerdata.com/ Get a $50 coupon + 7 day free trial to Seeking Alpha: seekingalpha.me/Dividendology Join my free newsletter! dividendology.substack.com/

@he8535

7 ай бұрын

40 years I'm definitely dieing before then

@andrewmorales5485

6 ай бұрын

I was wondering if it's possible to choose to invest in 48 different stocks dividend companies and invest enough money to make $5k to $10k in each of them so 48 times that amount that's $240k to $480k that's good enough.

@andrewmorales5485

6 ай бұрын

Or to make it easier invest enough to make 975 in 48 different stocks dividends companies holding

@jedimasterham2

5 ай бұрын

Ideally $1 million, but $250k covers over $1,000

@andrewmorales5485

5 ай бұрын

@@jedimasterham2 I could make $250k four times a year I be very happy

Drink every time he says dividends

@DeinoTV

Ай бұрын

Hahahha

@user-qx5ml5ik8d

Ай бұрын

I can’t keep up !!!

@xavierjones6852

Ай бұрын

I did and now I have alcohol poisoning

@davidvitali7247

Ай бұрын

Doo0nt feckin telll mi wha do do yu drunk wen he says dollars how bout dat lmao

@TheMrAssassinchillz

27 күн бұрын

It’s been 1 minute I already feel myself blacking out 😪

If I could afford a $1,000 monthly contribution to investments then I wouldn’t even need to click on a financial advice video lmao

@dr.bendover-md

24 күн бұрын

Make more money.

@bassheadunion

20 күн бұрын

its this kind of logic that will keep you poor, if you dont have the mentality to have "excess money" work for you rather than working for your money, then you will forever be a slave to the system. the rich are rich for many reasons, whether they inherited it or not, they all make their money work for them.

@thegreatyeetus4893

20 күн бұрын

​@bassheadunion and how much do you make? You sound like you were raised middle to high class.

@blaytn

20 күн бұрын

@@bassheadunion Don’t get me wrong, I’m all for saving up, being frugal, and making my excess money work for me. But anyone who can feasibly have $1000 excess or even $500 excess a month is doing well enough not to understand the struggles of the “rat race”

@bassheadunion

20 күн бұрын

@@thegreatyeetus4893 i wish this was true, my parents def do not have money, never taught me anything about life and i struggled hard, first marriage i was cash broke constantly and couldnt stay in a place even a year cuz of job loses and such. My second marriage now i have money and that is due to me investing my time and money into her since she had a better career path, we both had low credit scores 6 years ago, i was able to make our halfway decent incomes work to their maximum about 70-80k each, raised our credit while buying my first home, sold that less than 3 years later making about 300k, taking that money and using that to reinvest in crypto and etfs while also furthering her career, from a nurse to now an np, normally np makes up to 150k a year, shes specialized in wounds so i negotiated her first contract to 225k yr, we left that company less than a year and i negotiated her next company to over 300k, we left that company to a company we see growth with and are investing in so we are on track to over million in next year. All this is to say, i have always known it takes money to make money, what you do with that money makes a huge difference, having small goals with a plan and large goals with a plan is how you get there. Also i have not worked my union job in over 3 years i know just manage our money and goals. So please make a plan, if you are struggling, which i totally understand especially in bidens econmony, how can i make more money rn, is where i am working a job or a career and where will this career take me, the same goes for your spouse. If you need a career a union is always a good place to go, i never wanted to be in constuction but as a younger man that is what made financial sense and i dont regret it. If college is what you think fits as long as you have a clear line of site of the endgame then its not a waste of money. Hope this helps

In the DRIP scenario you're not allowed to withdraw money. You'd have to sacrifice some of that continuous compounding at some point if you wanted to live off dividends. After you reached that breakpoint you'd re-invest enough to keep you above. I would be interested to see that point at which you can begin to withdraw those dividends without losing purchasing power.

@Loft817

8 ай бұрын

That will be for your kids when you are dead

@pauobunyon9791

7 ай бұрын

Just take it all ....its not gonna affect your gains or losses. Then pass it on your portfolio to your kids and grandkids at an upgraded price and tell them to drip till they get old .

@mightymulatto3000

7 ай бұрын

There are capital gains to consider too. If I were to buy PMO at $8.60 per share and have about 9000 shares making $320 a month in dividend income; one has to wonder if my 9000 shares were suddenly worth $14. Do I realize a capital gains of $45,000 or not? My guess is that you absolutely have to sell some shares and simply reinvest when the security falls back to below $9 per share.

@accountbertolini7652

5 ай бұрын

You DRIP until the dividends pay enough for your retirement. After that, spendthe dividends on living expenses instead of reinvesting.

@marklefkowitz4385

4 ай бұрын

Losing, not loosing, Junior

You should never expect to live purely off of dividends. If you ever get to that point, then you are probably pretty rich either way and will live comfortably regardless. Your goal should be to invest so that your dividend income will complement any other sources of income that you are generating.

@LegDayLas

7 ай бұрын

If you are generating a source of income than you are not retired (unless ofc it is completely passive- ie you sold a book or some shit). The realistic goal is to live off dividends and asset sales combined long enough to reach death. If you live on dividend alone while that is amazing, it results in a very large account you take to your grave. Will be nice for your kids to squander it at least.

@thebes56

7 ай бұрын

Nailed it.

@sat_lok_

5 ай бұрын

@@LegDayLasExactly. Let the kids enjoy it later while we enjoy a nice retirement on passive income.

@DTM45

3 ай бұрын

Good words.

@adamsc9049

2 ай бұрын

Nailed it!

Look a thousand a month would be ideal to contribute, but most of us that are just starting are probably looking at between 100 to 500 a month to start

@everlonggaming1966

8 ай бұрын

You guys have money left after you pay your bills? Wow

@LegDayLas

7 ай бұрын

@@everlonggaming1966 You should prob try creating less bills ;D

@everlonggaming1966

7 ай бұрын

@@LegDayLas this was ment to be a joke. But ill play along, i guess i could do without food, shelter, clothing, transportation, water, and power.

@seifeldin94

7 ай бұрын

​@@everlonggaming1966Sometimes I feel as someone living in what some call a third world country with much lower income (difference currency rates compared to the dollar) that on average for life necessities we're doing better than the average american. I don't know why the average american is struggling so much and I wish things get better for you and for us as well.

@jonasstahl9826

7 ай бұрын

​@@seifeldin94Because many Americans buy big cars and big houses. A truck or SUV are cool but cost much more than, lets say an Toyota Corolla. Same with house a 6 room house for a family of 4 is enough the but you dont need to have 2000 square foot, you can have the same amount of rooms with like 1300 square foot.

My yearly goal is to work less hours than the previous year. Age 18 I was working 66hrs a week, by age 28 I was working 56hrs a week, by age 32 I was working 45hrs a week. In 2024 my goal is to just work 40hrs a week, thanks to dividends I'm able to spend less time at my job and more at home.

@sat_lok_

5 ай бұрын

40 hrs a week is perfect man. It’s a good life balance. Soon enough you’ll be working even less or something that is not really stressful.

@jdclec7877

3 ай бұрын

✊🏽I’m with you ,that’s why investing is important…On My Journey 🎉

@vDungeon

2 ай бұрын

40 hours is still huge. But i see what you mean. ❤

@fredoman2683

2 ай бұрын

Do you mind sharing how you invested?

@JoseFlores-xh5cj

2 ай бұрын

@fredoman2683 I unload on ETFs on the month of September and October, historically the stock market tends to be red during those months so you're most likely to buy the stock when it's on its lowest point. I invested 10% of what I had saved up those 9-10 months, so it's about $7k a year, with a dividend yield of 11-13%. I'd saying I add about $700-$800 on dividend income every year, do it routinely every year starting when I was 20, by age 30 you can start having around $10k of dividends which where I live covers 5-6 months of utilities and groceries.

My strategy is much more casual: I contribute as much as I can, as wisely as I can of course reinvesting for now. The day I feel like retiring or am forced to I will suit myself to the funds I have available. But no doubt dividend growth and compounding are key elements to optimal results. Thanks for the videos!!

@RobT192

7 ай бұрын

Sounds like a plan bro, let your dividends reinvest until you retire and you'll be golden. I plan to turn off DRIP two years before I retire so I have a nice cash nest built up.

@JoshOwens04

3 ай бұрын

If you don’t mind me asking. What type of account do you have these investments in and what are some good dividend stocks that’s have the qualities mentioned?

However; 1. Most people has a skewed view on how much they need each month. They think their current wage is the lowest they need to survive, and then some. But it's really way,way less. And if you start downsize your expenses you both can save up faster, and have a lower goal to reach. 2. You don't start with "high" dividend shares. The dividend isn't really that high. You start with higher growth stocks, whether they give out a dividend or not. That way your money will grow faster, and when it gets close to start cashing out you can switch to dividend stocks.

If I'm getting my dividends in USD then 700$ to 1000$ are more than enough. I guess you can retire much earlier if you decide to live elswhere, say mexico, Brazil or SEA

@veganonajourney

8 ай бұрын

Hell yeah. Right on!

@nordicexpat

8 ай бұрын

Malaysia here🇲🇾💰

@helciocampos

7 ай бұрын

If I move overseas, do I have to pay tax in the USA and other places too?

@moudhaffarsaidi9457

7 ай бұрын

@@helciocampos I'm not american so I'm not sure. I heard you pay the US taxes even if you are working and living elsewhere, it is not the same with other countries. Check with the gouvernement websites you'll find something. In anycase, the taxes at some other countries are a fraction of what you pay un the US and the sum of taxes and living expenses is less than the cost if living in the US. That's my case anyway

@shaneomack5018

7 ай бұрын

Spain 🙋‍♂️

An extra $400 or $500 a month (after taxes) to supplement income would be more than enough for me to happy right now.

Jesus 7.5k monthly cost of living... my guy needs to cut out those luxury car payments

@timothyyoung980

7 ай бұрын

😂

@aaronburdon221

7 ай бұрын

I know right. 2k a month max. I could stretch 1.2k if I had my own house.

@WhiteWolfeHU

7 ай бұрын

Given that’s 30 years In the future…. $4k a month now is nothing. $1500 living/bills $800 food $500 vehicle/insurance/gas Phone/wifi Taxes

@aaronburdon221

7 ай бұрын

@@WhiteWolfeHU 800 for food? What the hell are you eating? Are you paying for a family of 5?

@christophershoemaker7189

2 ай бұрын

It’s not a car.. it’s a 500k mortgage with probably 10k in property tax a year.

Good video but isn't 9% way too much for the dividend growth projection? Since the calculation is considering really long periods of time, 20+ years, arenìt dividend growth stocks unable to hold that high grow rate for that long? Since they are bound to slow down, and I think the core of this calculation is all relative to the compounding effect of the dividend growth, 9% feels way too high. But yeah prove me wrong or try to explain it, maybe I'm missing something!

@t0bakken1337

8 ай бұрын

So basically 9% of 100 = 9 as the compound takes place those 100 will grow to let's say 300 and by then 5% of 300 is more than 9% of 100.. The only thing is does is making the exponential curve a little less steep, but by then you would already have surpassed the Cost of Living ( hopefully )

@imbrega7831

8 ай бұрын

@@t0bakken1337 yes but the 9% is applied to each dividend payout so that's what makes it exponential, it's not applied to the start value, it's applied to the previous value. so my point is that 9% is way too high because the growth of the dividend is not gonna stay at 9% for 20 years

@FxAndrej

8 ай бұрын

You're not wrong. Everyone and their dog talks about "high yield trap" (ie buying stocks for high dividends like 8%+ only to see it cut down later), but almost NOONE talks about "high growth dividend trap". I think you're spot on - extrapolating current high div growth into the far future is also quite risky. Most companies, as they reach a certain size, stop growing so fast. Graham talks about this in his book The Intelligent Investor

@sailingbrewer

Ай бұрын

I like how you were able to provide an example of a company that pays low dividends but you don't have an example of one that grows at a ridiculous amount and they increased the amount of their dividends. Think about it. How is that company ever going to make any money if one person giving him 12 grand a year is going to cost them 50-100 grand annually. It's not going to happen. Real estate is something that can provide you that kind of monthly income after paying off the mortgage which would be close to that $300k you would have put in. But with real estate you get tax write offs left and right

You need about $800k to live off dividends comfortably. $800k invested into good monthly dividend paying ETF's will pay you upwards of $70k a year. give or take a few thousand. Before taxes. So if you don't try to live like a multi millionaire, and just wanna leave comfy, then $800k = $70k in yearly dividends is sufficient.

@Kevinw4040

23 күн бұрын

Which divi etf is gonna pay you 70k on 800,000$ invested?? I’m in schd and it’s gonna take more than that

@JL-ho1tc

23 күн бұрын

@@Kevinw4040 schd is garbage.. It doesn't pay a monthly dividend.. JEPQ, JEPI, QQQY, JEPY.. You split up $800k among those four and you can live comfortably, no problem.

@jworthy9833

21 күн бұрын

I’m interested in your theory- $70,000 is about 8.75 percent of $800,000.

@JL-ho1tc

21 күн бұрын

@@jworthy9833 i have $569k divided up between JEPI, JEPQ, and QQQY and my expected remaning dividend income for 2024 is $88k. I'm single with no kids.. I can live easily off that.. I'm reinvesting the dividends so the monthly income will continue to grow with every dividend payment.

If you're putting 100 percent of your dividends back into the investment, you'll never live off of them.

Food for thought, your cost of living will most likely increase over time not strictly by just inflation. Assuming you want to have a family i.e kids, house, etc that will dramatically increase the cost of living as you get older. Now I understand that not as easy to track then an average inflation value over time but something to be aware of.

@KO-gj9ug

8 ай бұрын

COL really should be separated into segments and added together. Housing, for instance is static relative to inflation if you have a fixed rate loan and doesn't rise with housing inflation

@LegDayLas

7 ай бұрын

Having a house dramatically decreases your cost of living in your later years. Once it is paid off you cut a massive expense from your life. It's far harder to retire with an active mortgage or when renting.

@kfox9650

7 ай бұрын

Just to add fuel for your fire here. Health insurance outpaces inflation. At least my area, its been 2-4 times inflation for 20+ years.

@biscuits-xc5ch

5 ай бұрын

Gold and silver are the hedge for inflation.

@bassheadunion

20 күн бұрын

valid point but this is for retirement, so although those costs may increase, do you plan on having those kids living with you when you retire, do you plan on not having a house paid for or nearly paid for by then? probably not the case so although inflation increases cost you should be reducing many costs by retirement, no car payment, no house payment, no high credit card balances, and so on.

It appears to me that you should simply try to earn a market return of say 10% or possibly 12% in your dividend growth example, then switch to a higher starting yield in retirement. Either way, you want a good return no matter the strategy. Therefore whatever strategy employed, you still have to follow the principles of starting early and being consistent with investing regularly. I believe there may be a slight flaw in your analysis because when I tried to replicate your model, if the price growth is higher than the dividend growth, there are some interesting results. Essentially when price growth exceeds dividend growth, it is like buying an increasingly more expensive asset that still has the same cash flows. In your example of using a starting yield of 7.5%, if you drop the price growth to zero, then you would have sufficient dividends to cover your monthly expenses before the 30 years ends. Just saying. Might want to reevaluate your analysis.

@lez075

4 ай бұрын

The problem with that strategy is the BIG tax implications that the "switch" has. If there were no taxes, then yes, build a growth portfolio in your 20s and 30s, begin switching in your 40s and switch all the way to dividend stocks in your 50s and 60s and probably to bonds in your 70s and 80s. BUT this is in a dream world, in the real world where taxes have to be paid, the best way is the start with a dividend growth portfolio, looking for 1.5-3% dividend yield and at the same time an average anual price increase of 8-10%. The idea is to never sell the stocks, therefore never paying capital gains and only paying taxes on dividends.

These videos tend to be god level optimistic. They never take into account losses

I agree with your long run model but what would you do if you have another time frame with different sized bags? For example up to 7 years and an yearly investment bag size of 100k dollar. How would you play that? Let's keep the assumption of 5k dollar expenses on a monthly basis. Also add a 3 different tax options: 10%, 20% and 30%

I followed everything except for the difference between the 2 types of shares that have either the higher starting dividend layout per share versus the higher price growth rate and dividend growth rate. How can you tell which stocks are which?

I am confused about one key detail of credit spreads that you touched on: a spread example of selling a PUT @ $50 and buying @ $45. If the strike price ends up being $49, wouldn't the 100 shares be put to you @ $50? How is it that you don't need the capital for 100 shares @ $50? And you mentioned the broker will *automatically* Sell your shares @ $49 once they're put to you...? But you buy the PUT @ $45, so why/how are they automatically sold back @ $49?? That little middle part of the credit spreads where they fall in between your spread and can ultimately be PUT to you has me stuck/confused. Thanks!!

I think it would be significant to factor in the mix between dividend income and assets sales.. 😊

@markeh1971

7 ай бұрын

Hi, seen several worked examples in the Uk where this ends up happening to keep an income going. How long do you intend living for and what are you going to be spending your money on when you are bed bound or don’t know what money is? Best to spend it in the early years of retirement while you can still enjoy it. And before you ask I don’t think I’ll make retirement but I do want to have money in place in case I do. Take care M

Owning a home, which should be done before or around retirement, would also cut that projected COL in half by the terminal date

@ZacklFair

Ай бұрын

Why would you want a house? Costs too much. You can travel for less.

@KO-gj9ug

Ай бұрын

@@ZacklFair because your cost of living is next to nothing after that. Even if you dont live in it, real estate is one of the best assets to have. Unlikely you'll be traveling on the move forever

Taxes cant be ignored. It will effect you every step of the way. Also as another comment mentioned need to take into account how not reinveting later effects things. Finally lack of growth will hurt you. A balanced profolio is usually most pl best bet.

I like the spreadsheet. Something to consider is you have a set amount of 2% inflation which is vastly understated. Generally people have assumed 3% is the typical inflation number however that would also be inaccurate. In reality, we have hit between 8-15% for the last 5 years and show no signs of slowing down. You may also want to mention in your video to utilize a Roth Ira so you do not have to pay taxes in earned dividends which would better pump your portfolio value over time.

@jonathanbauer2988

6 ай бұрын

so if the tax rate is the same, for example 10% (I wish lol but just for examples sake) investing 100$ now in a 401k (tax exempt) and then paying 10% taxes when you retire, or investing 90$ now in a ROTH and paying no taxes when you retire actually returns the EXACT same amount of money, you have to run NPV functions to understand it fully but the reason to invest in both is not because ROTH is better its because you can assume that tax rates will go up with the US leaning more and more left every year for the last 30 years. If that switches then you will have wished that you had put more money into a 401k because withdrawing from roth if the pretend tax rate went down to 5% would mean you paid higher taxes on your income than you should have lol

@jonathanbauer2988

6 ай бұрын

all im saying is that mathematically its exactly the same amount of money if your tax rate is the same. The reason is if you contribute 90$ to roth it means you would have been willing to contribute ~100$ (like 99 to be exact) to a 401k which after all the compounding amounts to the same exact income level when accounting for the same 10% tax rate. The benefit of both accounts is trying to switch which ones you are withdrawing from based on the tax rate, and also alot of employers match traditional 401k which means that one is usually more worth it.

@jonathanbauer2988

6 ай бұрын

I am trying to find the name of the video that explained this fully but it was really good because I used to be obsessed with ROTH and just didnt understand the math behind it. I still love them and have that dream of having a massive family roth account which never gets taxed lol, but if its just for retirement purposes its of the same value (if tax rate stays the same)

@Zerotragedy

4 ай бұрын

@@jonathanbauer2988 A Roth IRA you will not have to pay taxes after you retire as long as you wait until 59 1/2. This goes for contributions and earnings. So the Roth Ira would come out ahead and they are not the same. You can research this for yourself

@jonathanbauer2988

4 ай бұрын

no you just arent doing the math right.@@Zerotragedy

Hey love the channel! I recreated your spreadsheet when you showed it in a previous video and made the % reinvested variable. I like to use 80% reinvested (assuming you pay 20% taxes on the dividend income and reinvest the rest.) It is interesting to compare to 0% and 100%. Anyway, great vid as usual!

@Dividendology

8 ай бұрын

Thanks! And very cool!!

@exorgonic8780

7 ай бұрын

Could you please post a link to your revised spreadsheet please?

@andrewmorales5485

6 ай бұрын

@@Dividendology I have a question is it possible to earn weekly dividend stocks company share like $5k a week

Depends on the roi for the dividend. If the minimum cost of living is $40,000 in today’s dollars and shares pay out like $0.26 per share, you’d need 38,461-ish shares. Assuming you invest in an established stock that would most likely be able to provide consistent dividends, that would prolly be like $100 per share… you’re looking at $3,846,000 for a $40,000 year on year return… then again, this is conjecture and not accounting for the cost of living rising from inflation year on year. You’d probably want even more to be able to reinvest the amount into more dividends to keep up. Also, dividends are not guaranteed. Even if you get preferred stock, the company does not have to pay dividends.

Have you considered the possibility of cashing out some of those dividends for paying off your monthly expenses, instead of re-investing them? If so, how much are you allowed to cash out per month, in proportion to the size of your monthly dividends?

Amazing breakdown!

I have a question about your model tho. It assumes that you continue adding money and compound contribution dividend yields even after the point dividend return surpasses the living cost, but if you're going to living off the contribution will be cut off right? Are we then assuming that the 1000 contribution and the dividend contribution taken from the return yield is going to only after 2xthe monthly cost of living?

Just out of curiosity, is a 9% annual dividend growth rate over 30 years, even a realistic thing to expect? Anytime I see that exponential growth line in a portfolio, I'm always very skeptical of it and that 9% annual growth rate for 30 years seems like something that is not sustainable or feasible

For it to grow you have to let it compound and to let it compound you have to reinvest the dividends at which point you are just generating taxable events for no reason. Much better in that case to use growth funds that do not generate dividends to avoid tax drag and then just live off of withdrawls.

Because of factors mentioned here, I recommended investing as much of your paycheck as possible instead of squirreling away smaller amounts.

@bighou2359

8 ай бұрын

Enjoy pb n j for 40 years

@ndub4014

7 ай бұрын

@@bighou2359 and water. lol

@jamesleonard4713

2 ай бұрын

@@bighou2359 probably, lol. I would say, it's either that or sacrificing really hard for 5 years or so and then a steady approach afterwards. I know people who got involved with FIRE (financial independence retire early) and just really saved a lot over about 5 years, to get into the position to where they wanted to be financially. It definitely helps if you have a partner like a spouse or you can even get a bunch of buddies together to get it done. Couple I know, just decided they were going to only live off one salary. They banked the entire second salary. Both had 401ks at work, with matches. They went down to one car, cutting out payments and insurance. They then had side hustles, like they both were Uber drivers, where they took turns driving in the evenings and they banked 100% of what they made on that. At the same time, they bought and lived in houses they were fixing up to sell, 100% of the profits were banked. Now they had pretty good jobs, so they were saving a lot, between everything, they were banking well over 120K year, not counting the dividends on their investments or the profit selling a couple of houses. After about 5 years they scaled back, no more 2nd jobs or rough houses, because they had 7 figures in the bank. I'm little older, but I decided to work on it too. I was able to downsize my house and payoff of new place and then bank what I was already paying on a mortgage. Went down to 1 car, by moving closer to my work. Was able to more than double my saving rate, plus cut out a huge chunk of my expenses. Just retired a couple of months ago at 55. Wish they taught FIRE in high school, I'd have been financially independent a couple of decades ago.

So something people really don’t think about or understand is that a blend strategy is almost always the best strategy. The basis is your core is 50% and your core is usually 2-5 holdings that yield around 3-4% with the growth you note. But to top it off, you blend in 25% for high yields, and 25% for covered options. For 7 years my div growth has been 6% annually, my share appreciation has been 5% annually, and my income yield (dividends and premiums) is at 24%. This is a very moderate strategy that has layers of safety and aggressiveness to get you into retirement much earlier and keep you there!

You need 2million invested at 4% dividend payouts a year, that’s 80k a year, if you manage to spend less then that a year then your income and portfolio will consistently grow each year and you’ll be able to have more dividends each year if you reinvest whatever dividends you reinvest.

Great video! Have you considered selling options to boost your income? What are your thoughts on options? Thanks!

@billdivine9501

8 ай бұрын

Selling options is a great way to generate money.

My country doesn't have capital gains tax, how does this affect the calculations?

The problem with this is the cost of living has increased more in to past 20 years then what you would make off these

Thanks for sharing, it is so sad in real life that the tax is one thing stopping us from achieving it, and another carvet is that I doubt very much we can find something with a 9% dividend growth rate per year and the share price only growth of 7%, for those great dividend stocks their price growth rate is likely to be 15% plus. and to be diversified, we need to have at least 10 stocks and pays dividend like that. Do you see Pepsi Cococola still having a chance of growing its dividend like before, for the next 30 years? Building wealth through working on a salary job will really take a generation to complete. So that the dividend portfolio is really for the grandchildren instead of us, but again, before we pass anything on, it's going to be taxed a big chunk of it.

@lightnesskingpwnsyou

8 ай бұрын

I think coca cola and other lookalike companies will be able to grow their dividend. As inflation goes up so does their prices, revenue, profit in absolute numbers.

@majorgear1021

6 ай бұрын

Correct. Even if you find stock with a good yield, the dividend can be decreased or just stopped at any time. There are no guarantees.

@scottcartwright9008

Ай бұрын

​@lightnesskingpwnsyou Bill gates owns 37 million shares of micro soft and he gets 75 cents dividend per share

I don´t think this is a good comparation between high yield vs. high growth dvd. You used 2% price growth rate, 0 dvd growth rate and 7.5 dvd. yield, however, using ARCC as an example: 6.84% growth rate (1year) , 4.65% dvd growth (5years), and 10.09% dvd yield (fwd), there way more examples than arcc, like obcd, main, etc.

@thebes56

7 ай бұрын

Exactly. That's the kind I buy.

Kudos, great video.

Putnam Municipal Opportunities provide dividend tax free income on a portfolio of muni bonds. The question then becomes one of if you realize long term capital gains or not. For example if one lowers their income and holds many of them at $8.70/share they may be able to sell them when the price spikes to about $14/share paying no capital gains taxes. Then wait for them to drop and reinvest the capital gains into the securities. That said how long it takes the securities to depress in value means your capital is sitting on the sidelines. That said its probably best only to realize the capital gains while leaving principal invested. Reinvest the capital gains once the price goes back down.

Does the time decrease much more if you did 2K a month instead? Seems for me anyway I would rather do 3K a month so I could in 7-8 years retire :)

Which patreon gives access to that sheet?

@Dividendology

8 ай бұрын

Advanced and Golden!

Why not sell put options on those same stocks instead? You should get more from the premiums than the dividends.

Can I use multiple ETFs with this calculator. and which membership comes with the DIY 5.0 calculator

I'm presuming you're ignoring taxes along the way? In order to reinvest all the dividends you'd have to outlay additional cash to pay the annual long term capital gains each year.

Thanks for the information, the only problem with this method is that you can’t be sure a div will keep its growth rate over a span of 30-50 years

Great discussion What stocks seem to have this potential over last 20 years ???

@Dividendology did I miss something? Because I don’t understand how you can live off the dividends that need to be reinvested?

@Dividendology

21 күн бұрын

You reinvest dividends until monthly dividends passes your cost of living. At that point, you can live off dividends forever if your dividend growth rate is above the rate of inflation.

does anyone have an example of a stock or ETF that fits the final model in this video? I am trying to work out what I am looking for

@Dividendology

20 күн бұрын

No one knows the future, but historically SCHD is an ETF with amazing dividends metrics.

its all great on paper but what are the stocks that produce these kinds of returns consistently?

Which patron tier do I join to get access to dividend portfolio projection sheet? Ty

@Dividendology

8 ай бұрын

Golden tier!

Hm, in that scenario, reinvesting 100% of dividends, why not just invest into a growth etf. And switch to a dividend etf when you actually want to „harvest“ some of the money.

Here the lowest ammout you need is about 250k, this after taxes may provide you the min wage of our country

Where can a family live for $4,000 per month? That is how much rent is for a 3 bedroom apartment needed by a family in most cities plus you need food, child care, etc.

So what’s the amount?

Absolutely great video

@Dividendology

6 ай бұрын

Thank you very much!

unless you lived in a major city. the 4k a month living expense shows you have debt .GET RID OF THE DEBT 1st

300k could get me 3k in dividends per month. That's 1 percent monthly. That's what I make at my full time job monthly currently, not including my business. 300k could replace my full time job.

Good video and i use to be on the same page. It is called dividend chowder. However this is still slow. There is a way to to reach your goal with less than the $1,000 a month.

Things this lacks: - When you start to live off the dividend, you will no longer add DRIP or monthly contributions, this will result in cost of living catching up at some point, depending on the market..

@Dividendology

8 ай бұрын

Cost of living will most likely not catch up actually, IF you are invested into dividend growth stocks. Dividend growth rates have historically been far above inflation rates.

@workertotraderjourney9007

8 ай бұрын

only if the dividend growth stock continues to growth and you get your money back in 30 years' time.@@Dividendology

@FxAndrej

8 ай бұрын

@@Dividendology The risk with dividend growth stocks is that they might slow down at any time. e.g. when you start with a 2% yield, it grows nicely for 5 years, and then grinds to a halt, because the company can't grow just as quickly anymore. And of course, no one can predict far into the future with any accuracy. This is seriously worth exploring as a risk. Not every company is a superstar like Visa. Hence I advocate having 4%-7% safe yielders as part of the portfolio.

@Dividendsmattertoo

8 ай бұрын

@@FxAndrejthis is true and why I mostly invest in ETFs

@suttsd

8 ай бұрын

​@FxAndrej not all companies. Looks at LOWs that have been growing dividends for over 40 years with a dividend growth rate still in the double digits

So USA Stock taxed at 15%. So actualy everymoth you will get 15% less and will not able to reinvest that much. Atleast in My case. :)

That’s pretty motivating considering my cost of living is about $2000/month meaning the number will be even lower for me. The problem with this is that the working class does not have an additional $1000/month to invest.

@ivip40

4 ай бұрын

Try to think harder and calculate how much you should invest for $2000 monthly dividend after X years. On my first job I was paid ~$250 for 6 months and still managed to save around 10-15% a month to buy a car after paying rent and the utility bills. Not trying at all is worse than failing!

My credit union is offering 5% on CD's right now so im confused.

to be fair you need to include inflation. thats an extra 8% you have to earn on top if we go by 2022 inflation numbers. After inflation and taxes you likely need 1 million dollars or more to reasonably sustain a comfortable lifestyle off dividends. If you have a part time job at least you probably only need half that.

Easy, problem is coming up with monthly $1000 to invest and believing the government’s inflation numbers and not our wallets/pocketbooks😒

I’m glad I worked under a CBA and paid into a defined contribution pension plan. Some folks will have to work up until 30 minutes before their funeral.

Yeah well this last happy scenario means that after 23 years of 9% divident growth rate, you get a 25% divident on a stock which has grown 7% in value for the same 23 years and is almost 5x as expensive. Has there ever been such a case in reality?

The thing everyone needs to actually do things like this is a great start in life: Get a job while living with mom and dad, then invest 80% and enjoy the 20% doing with it as you please with the freedom of not worrying about bills. If you had a single mom like I did that only cared about lining her own pockets then avoid the job altogether. When my kids are old enough to work, I'll suggest it to them that I'll keep 50% of their paycheque and when they move out they can have all the money they gave to me.

Why would you settle for 6% dividends when you could just buy an S&P ETF and get double that?

Let's not forget real inflation closer to 10% even with the CPI change and allowing bullshit metrics like quality to spoof inflation data lol it's nowhere near 2%. You need a 10% yearly return to outpace inflation in my opinion. We also have to assume the stocks don't bust

With a couple of property investments and renting it out, you can easily reach way more with far less.

I feel like at the rates given its quicker, and cheaper to living off renting out properties

This is some good advice but I would like to throw in another: do a job you actually enjoy!

How long did it take to get your first 100k?

if you have time to look at the same spreadsheet 25 years, go ahead this is ridiculous to save all life to live when you have not long left to live

This is what you do: -Deposit 20K in your broker account - search for German car manufacturing companies stocks they offer 8% 9% dividen - use leverage to buy 150K in stocks and receive 12K in dividends yearly -move to any country that allows you to live with 1000 dollars a month

@EvilMmM

3 ай бұрын

WHAT! :O

@PaulS23

3 ай бұрын

Don't you have to pay interest for leverage?

@glupshitto5019

3 ай бұрын

lmao bro the interest on margin is at a minimum 13% you will lose all your money with this strategy lmao leverage isnt free money

Quit my job to, selling stuff from thrift shops, building guitars and basses to sell, going to make 60k to invest this year so I can get my time back with my partner. No debt, no house but sometime next year I’ll get her dream house built. Work is your best friend so get to it!

@Dividendology

2 ай бұрын

💪

I think i missed the general number

Can you give a list of few dividen stocks that will give this growth? I am looking to start investing mostly for my daughters education. And where I live just investind in dollars is enough to live good.

Assumptions to get to the break even aren't realistic growth/dividend ratios

No way an average investor will get those returns so your graph is pie in the sky, dividends are a poor way to grow wealth, better to just go for growth or just buy the index ( which gives dividends anyway ). If you have plenty of money dividends might be better replaced by bonds for guaranteed income, if you dont quite have enough money maybe stay in growth with a healthy emergency fund that is held in short term bonds and straight cash. The best portfolios are diversified across it all, ie stock bonds reits and cash but for that you need plenty of money to make each one able to support you wen the others are down.

Yes that how to grow your investment , in order to live of your portfolio you will have to turn off your reinvestment or sell some assets if you actually use as your living expenses . Hopefully you have housing ( ownership ) and social security ( if it still solvent ) in the equation .

What's better than spending your dividends and living off of them, Is to reinvest your dividends and continue to work. Compound interest will make you a billionaire

For my life in a nice house with three kids, 200k to spend a year is just treading water. 48k would be poverty.

Assuming no wife, no kids, no elderly parents, no extra medical expenses. If you ever get a divorce, half of your nested eggs are gone and child supports, real life is more complicated. You need to be very lucky and healthy to be able to retire much early

@aleccozi6458

8 ай бұрын

No, just need to not make stupid decisions

@josephbranham5770

7 ай бұрын

@@aleccozi6458 Meaning don't get married, don't have any kids, don't associate with your elderly parents, don't get sick and accumulate medical expenses...Like those stupid decisions???

@douglaskeen873

7 ай бұрын

@@josephbranham5770 Getting married and having kids are stupid decisions, especially when the Welfare State encourages broken families to keep the family courts and support bureaucrats in business. Young men are better off staying single and focusing on wealth building rather than getting involved with women who know the power of the State to rob men for the benefit of both the State, and the woman, is on their side.

@jeremyvettech5562

Ай бұрын

​@@aleccozi6458Shh the adults are talking

@Spp235.

25 күн бұрын

@@jeremyvettech5562😂😂😂😂😂😂

If the stock market crashes do you just seppuku?

So you're saying by year 23 you'll have a fund that both grows in price by 7% AND has a dividend yield of 5.39%. That's a bold assumption and the only way your prediction works. I think that's unrealistic

If you switch that up and do 50% in a dividend ETF like SCHD and 50% in individual stocks. You can sell covered calls on those individual stocks and will receive (on a very conservative level) .5% each month from premiums alone.

@Khobai

7 ай бұрын

SCHD has been sucking this year though. you get better returns in 5.4% CDs.

@JasRoss

7 ай бұрын

@@KhobaiSCHD (and JEPI) have the unfortunate effect of losing a lot of core share price value in market drawdowns and then, by the nature of their covered call selling strategy, have reduced upside returns. So basically, you take big drawdowns, but take longer to get back to par (assuming you are withdrawing dividends). These are great dividend vehicles in a sideways or slow moving uptrend market.

Do you have examples of stocks or ETFs that have a 7% growth rate and 9% dividend growth rate? That seems quite high over time.

I honestly don’t get the urge to retire. I love my job, one day i will be forced out due to my age, and that will make me sad.

Arround 1000000 will be arround 70k per year, if you work yours dividende pay out off campanies day x stock.

That's why many that are living off of dividends are living in cheap South American countries or in South Asian countries.

First month he dropped 97K to kick it off, most don’t have that kind of fluidity

Also a big crash is eventually coming and at that time we can buy a lot more stocks, so the price growth is not always as you considered. At this moment, after so much upside since 2009 lows, I think to consider a price growth for the next 10 years of 0% is reasonable

6:24 I'm going to assume that the growth rate you're talking about is annual. If that's the case, the 7% share price growth rate may be realistic in good market conditions, but 9% dividend growth is complete nonsense. Whole S&P500 30 years median dividend growth rate is 6.94. Good luck achieving that with your portfolio.

Our goal is to retire in Spain where the cost of living is 60% less than my home state of flori-Duh as of today.

@perrykomick9478

6 ай бұрын

Itll never happen...you are too Duh

@shaneomack5018

3 ай бұрын

@@perrykomick9478please explain to the calls how my math is off than sir?

I mean, it's gonna depend entirely on your costs, you can live on practically nothing with certain lifestyles, an American lifestyle, you have to add medical, and it'll be expensive, but if you own a modest home that's paid off you're looking at not much money. The best you can do dividend wise without losing balance (and thus income) over time is 6% but that's on derivatives, not investing directly in companies, that would be around 2.5% This guy's monthly cost of living of over 7k is 3x my salary

First!😊 Have a great weekend everyone

@Dividendology

8 ай бұрын

You too!