How to Start Dividend Investing for Beginners!

In this video, we discuss some of the key concepts you have to know in order to get started dividend investing. Let me know your thoughts in the comments below!

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[RowanSmith-yx]

Good vid thanks, I buy US, UK and Euro stocks to diversify further, fingers crossed it is working for me currently

[dietrichhenne]

I like your spreadsheets and there is a lot to track and learn from the data and the 10-year developments. However, I struggle a little with your comparison of high-yielding dividend stocks vs. low-yielding. While it is true that a low-yielding dividend stock with a high dividend growth rate will overtake a high-yielding with low growth, one can look at the time horizon AND if the then originally low-dividend would still have a realistic dividend yield. 

Example, a 1, 000USD with a 6% yield and 0% dividend growth will turn into roughly 3, 207USD after 20 years. For a low starting yield of 2% and 7% yield growth, you will have 2, 228USD after 20 years. After 30 years, you will see them with roughly same dividend returns, where the initial 2% would have grown to a 15.22% dividend yield, which I believe is not sustainable for years...or by then a high-dividend yield investor would have also noticed and switched 🙂 

Therefore, I believe it would make more sense to re-weight a portfolio every few years to better optimize a total dividend return and not rely on dividend growth stocks to provide 15%+ yields consistently after 30 years. 

I understand your goal is not necessary best total yield return, but living of dividends after x years. But with the re-weighting, you could reach this goal a lot earlier and maybe worth a spin-off channel for more complex analysis. 

I also get a point, where one could argue that low-dividend stock prices are more likely to rise with impact on combined stock prices and yields, but this effect will probably also slow down after the initial low dividend companies have reached their 6-7% and is also not part of your spreadsheets and videos, or?

[Lawyerup]

When I explain how I’m investing to my kids in a few years I’ll be showing them this incredible teaching tool / video. Excellent!

[TheYaq]

I saw a video about Visa, and they said like, they have the best business model, they earn money when someone spends money, and i kinda agree pretty smart

[PlaybookEmpire]

Real estate never was passive income, Dividends will always be the true passive income

[TheMr.M.]

Another great video, very clearly highlighted the important metrics! Thanks for that.
Could you also make a video explaining the difference between profit and cashflow (since it is such an important metric)?

[kdavids]

It’s important to note that growth and investing are different. If you’re for growth you’d look more to PLTR and chip stocks in my opinion.

[chucklast]

I can’t tell whether or not this is an insanely concise and clear video or if dividend concepts are a bit more simple than other financial phenomena. Regardless thank you

[devinstucky]

Great video. 1 question though, wouldn't your dividend growth stocks have to keep up their growth cagr rate forever to outpace income stocks over time? Or am I understanding that wrong?

[Lagerquist]

I’m just starting out as a dividend investor. My short term plan is to target high yielding dividend stocks to reinvest those dividends into higher growth dividend stocks eventually. I only have about $8, 000 which I have purchased mostly high yield stocks some growth ones also. I plan on putting a lot of disposable income into more growth stocks going forward.

[Jesse]

Another thing (I think) to think about, re: down markets, is that the overall market metric is derived as an average of the performance of 500 stocks in, OTTOMH, 20-odd broad sectors. But even in down markets, there are individual stocks and sectors that perform better than an index as a whole. It just takes a little work to find them!

[Clasam]

Thx for the quickstart guide!

If you had far less to invest, and far less to contribute monthly/yearly, what is the top criteria you would use to pick stocks? Higher FCF ratio? Yield? CAGR? Thanks again!

[greysongriffiths]

🔥 video. My parents have never been into investing because they owned their own buisness. But I'm trying to get them into it now that they are out of the entrepreneurial world.

[car]

Thank you for the great content! How do you reinvest the dividents back in your portfolio? Thanks in advance.

[captnawty]

Great breakdown of your data spreadsheets is telling us. Now, its 2024 so how do we update the data fields? Will you build an updated set of spreadsheets with 2024 and beyond in the data fields?

[zepranx]

im new to investing in general, really new, but my mindset regarding investing for me is more as if i was putting money in the banck with higher interest rates but with higher risk

[deucebartholomew]

I can never understand the difference between payout ratio and FCF payout ratio. Can you break it down barney style? Also do you invest taxable or in a retirement?

[MinorityPatriot]

If you are looking to retire in 6 years @ 65 yrs old. I would think the strategy is to go for higher dividend yield now versus dividend growth over 15, 20 or 25 yrs. Thoughts?

[Vergence]

A cool way to show the advantage of dividend growth stocks could be to show what a year might look like in the future using both the dividends and 4% rule, given your portfolio should easily be outpacing that mark.

[youngjesus]

This video actually helped me understand how to invest into dividends. Ima save this. I’ve been focused on investing into my retirement portfolio that now I wanna invest in my own brokerage account outside of retirement just to have money growing that I can access sometime in the future. But I am looking at a long term horizon. I got $40k invested at 22 for my retirement. Might slow it down once I reach $50k in a couple months and prbbly start investing into dividend stocks in a separate brokerage account. Not 100% sure yet but with time I learn on what to do