Dividend investing is apparently an amazing way to make passive income.
Best dividend stocks will give you free money every month and you will become insanely rich from dividends in no time whatsoever.
Or maybe not.
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Best dividend stocks will give you free money every month and you will become insanely rich from dividends in no time whatsoever.
Or maybe not.
📊 CHECK OUT WALGREENS ON SIMPLY WALL STREET
(And get 14 days free use of the Unlimited account + a discount!)
https://simplywall.st/stocks/us/consumer-retailing/nasdaq-wba/walgreens-boots-alliance?via=sasha
☕️ JOIN MY PATREON - DISCORD, BONUS VIDEOS, TARGET PRICES, MODELS & MORE
https://www.patreon.com/sashayanshin
💵 GREAT INVESTING APPS I USE
GET A $10 BONUS WITH LIGHTYEAR - (UK & Europe)
https://lightyear.app.link/SashaYanshin
You need to use promo code "Sasha" and the bonus is awarded after your first trade.
INTERACTIVE BROKERS (Global - Main investing app I use)
https://bit.ly/interactive-brokers-sasha
SIGN UP FOR ETORO (Global Investing Platform)
https://med.etoro.com/B15358_A95689_TClick_SSasha.aspx
GET A FREE SHARE WORTH UP TO $150 WITH STAKE (UK, Australia, NZ)
https://hellostake.pxf.io/qnA3xq
You will get a free share if you sign up using this link and deposit a minimum of £50.
DISCLAIMER: Your capital is at risk.
DISCLAIMER: Some of these links may be affiliate links. If you purchase a product or service using one of these links, I will receive a small commission from the seller. There will be no additional charge for you.
DISCLAIMER: (For Lightyear affiliate link) The provider of investment services is Lightyear Financial Ltd for the UK and Lightyear Europe AS for the EU. Terms apply: golightyear.com/terms. Seek qualified advice if necessary. Capital at risk.
DISCLAIMER: eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFD assets. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
DISCLAIMER: I am not a financial advisor and this is not a financial advice channel. All information is provided strictly for educational purposes. It does not take into account anybody's specific circumstances or situation. If you are making investment or other financial management decisions and require advice, please consult a suitably qualified licensed professional.
Investors eventually want their capital returned. While it’s true the company can just buy back shares and you can sell them this does add other factors to the equation.
1. Your trusting the company to invest capital at good stock prices. Historically companies do less shares buy backs in bad markets and buy more in good markets, so your adding volatility.
2. During bearish markets investors needing to sell shares to get their capital return are increasing the selling pressure driving the stock price lower.
Dividends are like a slow way to take profits.
Also just because a company pays out dividends doesn’t mean the companies dead. Railroad companies like UNP have outperformed the market and just have a limited growth opportunity but are extremely profitable. So they send that money back to shareholders though a 50/50 of buybacks and dividends which is a nice mix imo.
Most people are too obsessed with dividends for the wrong reasons though.
1. Not all companies are growth companies!
2. A non-growth company is not rubbish by definition.
3. One might choose to invest in such companies or not based on their personal circumstances and their strategy.
4. Diversification is really important and investing in both dividend and growth companies could be part of a diversified portfolio.
5. One doesn't have to re-invest in the same stock the dividends they get, they can re-invest in a growth stock instead.
6. I don't understand why you are so negative about dividend stocks… I don't like options at all but I will never be negative about them because there are certainly winning option strategies…
7. I follow you for a long time and like your videos but I don't think that this one provides any real information or help other than hate.
8. Please consider that the majority of people don't have critical thinking to get only the positives for themselves. Such kind of videos can have a negative influence on people and we all need to be really careful…
Thanks, cheers!
This dude also thinks Tesla is a good stock to buy lol. Dividends are great don't listen to this clown. I'm up 24% YTD on LMT and 167% on XOM. XOM giving me a 10.4% dividend yield and LMT 3.2% tell me again how bad dividends are.
Currently retired and receiving about $30k in dividends, I can say you just need to find a system that works well for you and makes the most sense. Of course you can also wait to invest if you want to time the market but that carries additional risk that you won't time it accurately.
Love to see your eye rolls when someone asks when Tesla is gonna pay a dividend……Every single quarter.
Dude.. cmon.
Yes, these companies that religiously pay dividends to stay in good graces with a certain investor segment, even to the point of taking on debt… This is terrible business management.
But this ‘only dumb companies give away their capital to their shareholders instead of reinvesting‘ argument is incredibly myopic. There are many different types of companies (at different stages of their evolution), in different industries and sometimes with different tax treatments… It’s not a black and white decision. Not every company should just take all their profit and “innovate.”
You fail to appreciate that certain investors (not the “bros” you love to call out) depend heavily on dividend income (with lower tax impact then LTC gains); selling shares at some distant future date in order to actually turn a nest egg back into spendable cash is not an option for older investors.
Compounding is the eighth wonder. Give SCHD 20 years with DRIP and save yourself the headache of growth stocks.
Buying Palantir at highs and selling them at lows is the better strategy
Loving these no mainstream new source of knowledge that you are providing
But but but MuH pAsSiVe InCoMe BRO
Dividends are free cash flow, they use dividends to pay their shareholders as a thank you for investing into them, they use a percentage of their free cash flow to pay them out, not all the cash flow goes to us
Omg what am I doing with my dividend portfolio after seeing this? 🤔
Thanks. Aren’t you conflating different objectives here. If you want to generate cash flow now that’s different that longe term capital growth. Much of what you said seems like you looking at dividends through a growth mindset
So Walmart, Apple and Microsoft are all bad investments because they pay dividends? Who knew?
Best video on dividend investing ever!
Sascha, how do you invest?
Agreed. Most people look easy and now, not what is right or better long term. Great explanation Sasha!
Love my divies
Very informative as usual!
WBA is great example of your point, owes billions but gives away billions they don't really have..
I think dividend investing makes sense if you're buying a ETF, since you're basically factor investing at that point.
Almost by definition, a company that pays high dividends has a high profitability and invests conservatively, so by the five-factor fama french model you'll expect higher returns in the long run.
The issue is why you expect higher returns.
-It could be because of irrational markets, but if that's the case you might expect people to twig this over time and it'll get arbitraged out. How do you know this hasn't already happened?
-It could be because of higher risk, which will be magnified by individual stock investing. For that reason, I don't like the individual stock focus of dividend youtubers. If you're dividend investing, just buy an index with a dividend tilt.
-It could be because of other investers avoiding them due to tax, in which case it's only worth it if you don't have to pay those taxes.
On the note of taxes, it's worth mentioning that only UK-based stocks have no dividend tax inside an ISA. If you're buying a US stock like AT&T inside an ISA, you'll still have to pay a 15% tax on dividends.
Another thing on tax though: you could argue dividends tax is also built into a stock's price appreciation. Non-dividend paying stocks are expected to pay a dividend at some point in the distant future, as that's the only way for investors to get money out of the company without liquidating it. It can get aquired of course, but that only passes the issue onto the next company.
I agree with Sasha. Only LOSERS invest in companies that have postive earnings and profits and uses excess income to either buy back shares or pay in dividends to shareholders. WINNERS invest in companies that lose money hand over fist and put what income they do have into growing the business and growing market share, while printing additional shares like they are JPow, diluting shares like a seedy bar waters down liquor..
Sasha is right. WINNERS invest in non-revenue positive growth companies like Palantir and Snowflake. Boring profitable compies are for LOSERS.
Okayyy… PLTR, FVRR, PINS and More! Sasha Yanshin theory investor, full time youtuber
And GM just decided they’ll reinstate their dividend…. A dying company, with 100’s of billions in debt, showing how to lead…. into oblivion!
and how are your returns Mr. arrogant?
Did dividends cheat on you or something? You sound like a spurned girlfriend.
Thank you for the content!! Can you please make a video on how tax works with stocks? I want get into the stockmarket and buy s&p500 index fund but I don’t know what the tax will be whenever I want to buy or sell or whatever it’s just very confusing… can you just please make an explainer video on how we get taxed (in Europe and US) on our stocks whenever we buy/sell etc? Maybe I should just talk to an accountant but I would really appreciate it if you made a video🙏🏼❤️
VERY TRUE
Dividends in themselves are fine. Chasing high dividends is often a surefire way to fail in investing. Dividend growth is a much better metric to focus on. Of course that needs to come with increasing fcf. If dividends go up with an continuously increasing payout ratio that's probably not a great sign either.
So just to confirm, you are not a big fan of dividends? 🤣
Not to forget you must also pay a fee for reinvesting the dividend in to new stocks or shares. so it is tax and purchasing fees.
Oh, and thanks for the tip about simply wall street. This looks useful.