A portion of this video is sponsored by Wealthfront - Enjoy 2.55% Interest Within Their Cash Account Here: https://wealthfront.com/gpstephan - Lets talk passive income and how to earn up to $100 per day with Dividends - Add me on Instagram: GPStephan
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THE BASICS OF DIVIDENDS:
Anytime you buy a stock - that entitles you to a small portion of that companies profits…and, SOMETIMES, those profits are distributed to you on a regular basis in the form of a DIVIDEND.
THE GOOD:
ONE, you’re INSULATED from the stock market.
For the most part, you KNOW that you’ll get that VERY same dividend payment - in the exact same amount - regardless if your stock trades for $20 or $40…and, for someone who’s expecting consistent cashflow, this helps smooth out the fluctuations in the market.
Second, Dividend Payments have been LESS VOLATILE than Stock Prices.
For example, the Simply Safe Dividends blog found that - from 1900 through 2018 - dividend payments remained fairly constant, with an average variance of +/- 10% during market downturns.
Third, throughout Recessions - Dividend payments sometimes INCREASE.
As Simply Safe Dividends points out, “in three of the above recessions…dividends paid to investors actually increased, including a 46% jump during the first recession following WW Two.”
Fourth - Dividend stocks have been shown to provide a comparable return to the overall market.
Fidelity found that dividends accounted for 54% of market returns during times when inflation was above 5%.
THE BAD:
FIRST, Dividends are not guaranteed.
Even though companies generally try to avoid cutting or reducing dividend payments...this DOES happen, and because dividends are often a reflection of a company’s PROFITS - in the event of a downturn, they may chose to turn off the money-facet until conditions improve.
SECOND, Dividend payouts mean NOTHING when the company itself declines in value.
In this case…earning 5% annually might actually LOSE YOU MONEY when the STOCK ITSELF declines 30%. Now, SURE - there’s a chance the price recovers while you sit back and collect all that extra cashflow…but, there’s a chance this DOESN’T happen…and, that needs to be considered.
THIRD…Even though there CAN BE some Tax Advantages…there CAN ALSO be some disadvantages.
And FOURTH - Dividends might be flat out “irrelevant.”
Two well-known economists argued that a company’s dividend didn’t matter - AT ALL - because it has little to no effect on the price of a stock or its cost of capital.
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
Graham Stephan receives cash compensation from Wealthfront Brokerage LLC ("Wealthfront") for sponsored advertising materials. Wealthfront only sponsors content that relates directly to Wealthfront and does not sponsor the entirety of this video. Any recommendations made are Graham Stephan’s own opinion and Wealthfront does not endorse, sponsor, or promote them. The paid testimonial provided above may not be representative of the experience of other cash account clients, and there is no guarantee that all cash account clients will have similar experiences. Checking features for the Cash Account are subject to identity verification by Green Dot Bank. Cash Account is offered by Wealthfront, a member of FINRA/SIPC. Neither Wealthfront nor any of its affiliates are a bank, and Cash Account is not a checking or savings account. Investment management and advisory services are provided by Wealthfront Advisers LLC, an SEC registered investment adviser.
*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. This is not investment advice. Public Offer valid for U.S. residents 18+ and subject to account approval. There may be other fees associated with trading. See Public.com/disclosures/
GET YOUR FREE STOCK WORTH UP TO $1000 ON PUBLIC & READ MY THOUGHTS ON THE MARKET - USE CODE GRAHAM: http://www.public.com/graham
Trade Bitcoin, Doge, and other crypto with low fees on FTX. Use my referral code GRAHAM and get up to $100 FOR FREE: https://ftx.us/partners/graham
GET MY WEEKLY EMAIL MARKET RECAP NEWSLETTER: http://grahamstephan.com/newsletter
The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://the-real-estate-agent-academy.teachable.com/p/the-youtube-creator-academy/?product_id=1010756&coupon_code=100OFF - $100 OFF WITH CODE 100OFF
THE BASICS OF DIVIDENDS:
Anytime you buy a stock - that entitles you to a small portion of that companies profits…and, SOMETIMES, those profits are distributed to you on a regular basis in the form of a DIVIDEND.
THE GOOD:
ONE, you’re INSULATED from the stock market.
For the most part, you KNOW that you’ll get that VERY same dividend payment - in the exact same amount - regardless if your stock trades for $20 or $40…and, for someone who’s expecting consistent cashflow, this helps smooth out the fluctuations in the market.
Second, Dividend Payments have been LESS VOLATILE than Stock Prices.
For example, the Simply Safe Dividends blog found that - from 1900 through 2018 - dividend payments remained fairly constant, with an average variance of +/- 10% during market downturns.
Third, throughout Recessions - Dividend payments sometimes INCREASE.
As Simply Safe Dividends points out, “in three of the above recessions…dividends paid to investors actually increased, including a 46% jump during the first recession following WW Two.”
Fourth - Dividend stocks have been shown to provide a comparable return to the overall market.
Fidelity found that dividends accounted for 54% of market returns during times when inflation was above 5%.
THE BAD:
FIRST, Dividends are not guaranteed.
Even though companies generally try to avoid cutting or reducing dividend payments...this DOES happen, and because dividends are often a reflection of a company’s PROFITS - in the event of a downturn, they may chose to turn off the money-facet until conditions improve.
SECOND, Dividend payouts mean NOTHING when the company itself declines in value.
In this case…earning 5% annually might actually LOSE YOU MONEY when the STOCK ITSELF declines 30%. Now, SURE - there’s a chance the price recovers while you sit back and collect all that extra cashflow…but, there’s a chance this DOESN’T happen…and, that needs to be considered.
THIRD…Even though there CAN BE some Tax Advantages…there CAN ALSO be some disadvantages.
And FOURTH - Dividends might be flat out “irrelevant.”
Two well-known economists argued that a company’s dividend didn’t matter - AT ALL - because it has little to no effect on the price of a stock or its cost of capital.
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
Graham Stephan receives cash compensation from Wealthfront Brokerage LLC ("Wealthfront") for sponsored advertising materials. Wealthfront only sponsors content that relates directly to Wealthfront and does not sponsor the entirety of this video. Any recommendations made are Graham Stephan’s own opinion and Wealthfront does not endorse, sponsor, or promote them. The paid testimonial provided above may not be representative of the experience of other cash account clients, and there is no guarantee that all cash account clients will have similar experiences. Checking features for the Cash Account are subject to identity verification by Green Dot Bank. Cash Account is offered by Wealthfront, a member of FINRA/SIPC. Neither Wealthfront nor any of its affiliates are a bank, and Cash Account is not a checking or savings account. Investment management and advisory services are provided by Wealthfront Advisers LLC, an SEC registered investment adviser.
*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. This is not investment advice. Public Offer valid for U.S. residents 18+ and subject to account approval. There may be other fees associated with trading. See Public.com/disclosures/
Best passive income make youtube videos about financial topics and they will pay you passively even for months and years
Kevin O'leary says if you're not receiving dividends you're only speculating.
🐈
You turned down Tate due to what you were afraid brands may think? 😂
What are CBDCS? Central Bank Digital Currency? Does this mean people will lose their wealth?
you give me the 100s,
93k a year with 300k in stocks though
Grant, What stock trading app do you use?
😂
I remember i got into QYLD because of one of your vids. Slowly been buying every month. Its nice to see 20 dollars in dividends. Thanks again
lol dividends. US treasury pays more now
I’m sorry Graham, but these picks plain suck based on negative price movement. Since Jan 1st
SCHF down 26%
SCHB down 24%
WBA down 37%
VFC down 60%
Double digit percentage loses are completely unacceptable. For high yield dividend stocks without huge drop in price, check the charts for MMP, ENB, MO
Really think it would’ve been important to mention that the $100 payout per day is an average, not a reality. Most often, dividends pay quarterly.
Don't gloss over explaining DRIP. That's the accelerator that gets people excited.
lol $50 a day… I can do $50 a month
SCHD is a good dividend ETF
Know these videos don’t do great but they are what keep me going
I CAN'T IMAGINE WHAT MY LIFE WOULD BE LIKE IF I HAVEN'T KNOWN THE COOLPROFITSLTD INVESTMENT PLATFORM.
Consistently and to my dividend portfolio, just broke $750/year. $2.05/day!!
This video was reused 183057 times already
liked the video before you told me to HAH
I love these kinds of videos
I hope you do more “how to” vids I’m still struggling to understand how my investment account works 😕
I would note though if you are making money with dividends wouldn't that mean that you are paying taxes multiple times through out time and overall paying more taxes than just holding non dividend stocks?
I tried the auto reinvest for like a month. Not really my thing. I don't know if what I do really is better, but I like to see when I have dividend payouts. When I have a few dollars in my account, I go in and see what is the next months and when I have to buy those stocks to earn. From what I can tell, my stocks pay out every three months and I have companies every month paying out. Like I said, I don't know if it is really better or faster, but it is what I can do with my low income that I have not been able to spare much to put into then what I already have.
It’d only take around 400k-500k invested to hit $100/day in dividends assuming a high yield (7-10%) dividend return, which is more achievable than it sounds with good saving habits. Then you could afford to buy a near car every year with your $36,500/year if you don’t feel like reinvesting it
I’m close to $100 a month now!
Do you pay taxes on dividends, if the money is reinvested and not withdrawn?