My Current Dividend Stock Investing Strategy (Recently Updated)

I'm excited to share my revised dividend stock investing strategy (for Q4, 2024 and beyond). I'm now targeting a dividend yield of 6.16% for my net new purchases, on a blended basis. See how my dividend yield aligns with my personal journey. I'm excited to share my free framework with everyone.
#dividend #stock #strategy

Timestamps:
0:00 INTRODUCTION
0:51 PPC IAN DIVIDEND INVESTING STRATEGIC FRAMEWORK (6 Questions To Answer)
1:14 QUESTION 1: Timeline? Lots of time until retirement, or not much time until retirement.
1:40 I ranked myself a 9 on question 1, since I have little time until retirement. I'm ready to retire now (yesterday?)
2:35 NOTE: You may not be able to work as long as you think.
3:12 It's not only about number of years, but how many hard years one has worked.
4:14 QUESTION 2: Stress level? Low stress level, or high stress level?
4:41 My stress level is high, so I answered 8 for myself. (I just need the cash flow to cover the bills NOW. I need the weight off my shoulders.)
5:27 QUESTION 3: Risk tolerance? Low or high?
5:50 My risk tolerance is low. I answered with a 4. I cannot afford large volatility (and/or large losses) at this stage in the game.
6:32 Typically, those dividend stocks with lower dividend yields (2-4%) carry less risk. This is why my portfolio skews a little lower in dividend yield.
7:30 QUESTION 4: Portfolio size? Larger or smaller?
7:49 I answered 4 because my portfolio skews larger in size. This is helpful, because it affords me the ability to skew towards lower-yielding dividend stocks (which often carry less risk).
9:00 QUESTION 5: Cost of living? Low overhead or high overhead?
9:14 I'm a 9 because of my high cost of living. I have always been going for Fat F.I.RE.
9:27 KEY: Living expenses have skyrocketed. Overhead is higher for all of us.
10:18 QUESTION 6: Account structure? Taxable account structure or retirement structure (or in the middle)?
11:00 I rank as a 3 because I skew heavily towards taxable accounts. (I can tap into dividends right away right now.)
11:30 SUMMARY
12:01 I'm coming in about 3.76% portfolio-wide yield. (This is a bit lower than where my gut tells me I should be. I should have more yield, leverage on funds deployed, given where I'm at in my own journey.)
13:32 I average at 6.16% when I sum up my answers and dividend by 6.
14:00 Based on my answers to my strategic framework, I'm undershooting on yield. I should be deploying my funds in higher-yielding stocks.
14:44 When I did my portfolio update, I felt like mid 4% range makes the most sense.
15:03 DEPLOYING MY FUNDS INTO DIVIDEND STOCKS
15:33 This week, I plan on buying SCHD.
15:45 I bought Chevron (CVX) stock last week.
16:18 My trades from the last two weeks get me to a 3.94%. This dividend yield (on new funds deployed) is not high enough.
16:43 Alternate: SCHD and FOF. I get a blended 5.8%. This makes a lot more sense given my strategic score of 6.16%.
19:15 DISCLOSURE AND DISCLAIMER

DISCLOSURE: I am long Johnson & Johnson (JNJ), Altria (MO), British American (BTI), Chevron (CVX), and SCHD. I own these stocks and ETF in my personal dividend stock portfolio.

DISCLAIMER: All information and data on my YouTube Channel, blog, email newsletters, white papers, Excel files, and other materials is solely for informational purposes. I make no representations as to the accuracy, completeness, suitability or validity of any information. I will not be liable for any errors, omissions, losses, injuries or damages arising from its display or use. All information is provided AS IS with no warranties, and confers no rights. I will not be responsible for the accuracy of material that is linked on this site.

Because the information herein is based on my personal opinion and experience, it should not be considered professional financial investment advice or tax advice. The ideas and strategies that I provide should never be used without first assessing your own personal/financial situation, or without consulting a financial and/or tax professional. My thoughts and opinions may also change from time to time as I acquire more knowledge. These are, as discussed above, solely my thoughts and opinions. I reserve the right to delete any comments for any reason (abusive in nature, contain profanity, etc.). Your continued reading/use of my YouTube Channel, blog, email newsletters, whitepapers, Excel files, and other materials constitutes your agreement with and acceptance of this disclaimer.

COPYRIGHT: All PPC Ian videos, Excel files, guides, and other content are (c) Copyright IJL Productions LLC. PPC Ian is a registered trademark (tm) of IJL Productions LLC.

[ppcian]

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Thanks so much, everyone, for your support. I hope you enjoy the video today!

(Disclosure and Disclaimer: I'm long SCHD and BTI. Please see video description for all disclosures and disclaimers.)

[derSchachstratege]

A couple of Years ago You were the first one, who pointed out the Importance of Dividend Growth over the Years. That motivated me to start investing eventually, so its Time to say "THANK YOU" for your Inspiration! Regards from Germany

[moresugartradercc]

Interesting video I find people tend to ignore how long they can work layoffs injury and sickness can shorten the time they can earn money

[richardthorne]

Very cool process to determine your yield. I took early retirement and i also sell options so i would add a question around that as well as other sources of income since i have a pension. I really enjoy your videos.

[shawnbrewer]

Excellent video, Ian. I took the initiative to explore higher-yielding investments myself and have settled on HESM, CVX, UPS, and USB.

[dividendjourney]

Ian, I always appreciate all your honest hard work and effort towards inspiring and encouraging the dividend community! You were the first whom inspired me as well! Back in 2019! Wow! I learned some hard lessons since then, although I’m on a great path now! 💪Thank you! God bless you and the Family! -John

[international_dividend]

You have to give up growth for a higher yield, that's the trade off and there's no getting around it. If you really want a higher yield, you should be looking at BDCs, REITS, CEFs and covered call funds (JEPI, SPYT, etc). I do agree with your approach of mixing in dividend growth, as you're still young(ish).

[alexschiller]

That's an interesting thought experiment, thank you!

[Ben-gxeb]

Ian, this is actually a really cool exercise. Like you, my current yield is lower than the score I got so it made me rethink my strategy. Thank you sir!

[tomaslarsson]

As always really interesting thoughts. Especially if you get dividend cuts, it will help you to reallocate more easily, and maybe find a new position instead of the low yielding. Thanks for that you share your thoughts

[jonathanfoster]

I have never really been a dividend investor although I see its value. almost all my portfolio was in my 401K with limited investing options so dividend investing wasn't an option. Now I am retiring this Friday and for the last 6 months I have moved it to a fidelity IRA and am completely in income generating products like REITS, BDC's CEF's and CC ETF's and am generating just under %12 average yield. I have DRIPs turned off and the dividends are going into a SPAAX position that is currently paying %5. I will be living off of this income stream for the foreseeable future and I am excited to be beginning retirement.

[ronlasiere]

Interesting exercise!

Also, good call on Chevron. My gut tells me theyre undervalued here, and we'll be handsomely rewarded by locking in this high 4's yield

[delbomb]

I'm willing to bet if you factored it in your yield on cost is closer to your goal than you realize

[michaelswami]

Interesting video, Ian. I’m going to rewatch and calculate my own score.

[Jayvazquez]

SCHD ex date coming up and can’t wait for that dividend to drip back into SCHD😃 my top holding too!!!
Great video!!

[brucemckee]

Thanks for all that you do IAN and the great content you consistently provide.

[malcolmbirkett]

Nice video layout 😊 we all have to mix &match our portfolio's to suit our goals 😊

[CalmerThanYouAre]

Interesting approach! It would be helpful to see the breakdown of the different sources of income you expect to have in early retirement as well as a general budget.

You could use an arbitrary $100K budget to keep personal information private but keep proportions reflective of your personal situation with respect to categories and % of income/expenses totals.

Would be very helpful to see your approach to income and expense planning, especially how much of your core expenses are covered by dividend income.

[thothiel]

Very interesting. I scored 32. Am currently at a yield of 4.78%. So I'm getting close. Strangest thing is, I currently restructured towards higher yielding stocks a bit and feel more comfortable since then. However, a lot really depends on portfolio size.

[jacklyn-bu]

I enjoy investing in closed-end funds that offer monthly dividends. The key strategy is to hold these investments long-term while reinvesting the monthly dividends and purchasing additional shares whenever possible. This approach is convenient because closed-end funds are traded on the stock market like regular stocks. Following this strategy could build a portfolio that generates between $50, 000 to $70, 000 in dividend income.