Supercharge Your Dividend Income [Simple Trick]
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- čas přidán 16. 06. 2024
- Want to retire in 20 years? Here's how. It doesn't require very much thought, all it takes is time. It starts with investing early and often. What do you invest in? You have some options. You can pick an index fund ETF like SPY, which tracks the S&P 500. You could invest in a portfolio of dividend growth stocks, such as our Quantigence strategy. Or, you could use John Bogle's "three-fund portfolio" approach. What you invest in doesn't matter as much as being consistent. If you can manage to sock away $1,000 per month for 20 years, you'll likely become a millionaire without even thinking about it.
RESEARCH PIECES USED IN THIS VIDEO:
1. The Nanalyze Disruptive Tech Investing Methodology
www.nanalyze.com/nanalyze-pre...
2. Investing in 2023: It’s All About Managing Risk
www.nanalyze.com/2022/12/inve...
3. Quantigence - A Dividend Growth Investing Strategy
www.nanalyze.com/dividend-gro...
CHAPTERS:
00:00 Intro
00:32 Your investing journey
03:22 The snowball effect
05:19 Example 1
06:22 Example 2
06:50 Example 3
07:34 Example 4
08:37 Stock picking
10:59 ITW example
12:31 10-stock portfolio example
15:01 Conclusion
ABOUT US:
This video is brought to you by Nanalyze, a media and research firm founded by finance professionals with decades of experience. We share insights about #DisruptiveTechnology #stocks in a language that is future-proof and easy to understand.
Read all the Nanalyze Premium articles you'd like for free! Sign up for a 30-day trial of our monthly subscription with no strings attached: www.nanalyze.com/subscription...
DISCLAIMER: Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, along with independently researching and verifying, any information contained within our CZcams videos or on our website, whether for the purpose of making an investment or otherwise.
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Every middle and high school across America should require their students to watch this video as part of their education. I have a friend whose daughter is graduating from high school this year. I want to share this information with her, so that she can start building her wealth early since time is one of her greatest assets. I can only imagine how many lives could be saved from financial ruin had they learned valuable information such as this. You are doing a great service here, Joe! Keep up the good work.
Thank you for the kind comment George. I could not agree more. Today's young investors are largely a complete mess. Crapto ruined them, though many find their way to us after they've lost all the money they made or lost what they couldn't afford to lose. Creating wealth is easy if you are willing to be consistent and patient. Please share far and wide to the young people out there! Investing early and often in quality assets is the most predictable way to wealth there is. Joe P.
I applaud that sentiment 👏👏
@@Nanalyze Everyone wants to go to heaven, but no one wants to die first. It's the same with investing. People want to become rich, but many are not willing to make the sacrifices now to get there.
Crypto and meme coins have distorted some people's perspective on what is a reasonable return. I had a recent conversation with a friend who at one point held $2.5M worth of coins. By not cashing out at the right time, it has lost about 95% of its value. I tried to convince him to rebuild his wealth by investing in stocks of high quality companies and to set up automatic contribution to this retirement account. The stumbling block is that in his eyes, an investment is not worth his consideration unless he can get a potential return of 20x, 30x or higher. Because his investment horizon is relatively short in about 10 years, he feels the desperate need to swing for the fences.
With only a few thousand dollars in savings and no emergency fund to speak of, he's betting his retirement future on his coins bouncing back and a pension that will be half of his current income. I am worried for him, because he's a non-admitting conspiracy theorists who believes there will be a great "reset" in the future where people's debts will be forgiven and the government will provide them a basic income for survival. To me, this is just not a healthy outlook to plan for the future.
The education system is to fill the needs of employers and they need endless supply of obedient and compliant skilled workers in heavy debt who have to work to live and pay taxes until old age.....
Your wise recommendation won't go anywhere fast until the worker (that is you and I) become learned and competent with money, finance, economics and tax matters through other resources such as this channel
@@soundslight7754 Well said!
I ❤️ The Snowball effect! 🚀💎👐
Works like a champ
Great work, I really appreciate it!
You're very welcome. Glad you enjoyed!
Very valuable lesson and illustration, thanks for sharing Joe👍
Glad you enjoyed this as much as I did! Joe P.
Amazing work as always - thank you!
You're most welcome!
I love that quote as well.
Bogle brought us low fee ETFs. He got it.
Hey Nanalyze, great channel and great video as always. Question: in many or most of your examples you assume a monthly contribution. Is reinvesting dividends considered a monthly contribution?
Thank you for the kind words Scott! Reinvesting dividends will almost always be quarterly. (There are 80 or so companies out there that pay monthly.)
I’m from Canada where our equity markets are historically dividend rich. The big 5 banks here having been collectively paying dividends since before Robert Ford killed Jesse James. It’s a good reminder during times of hyper growth that dividends still make up a large part of the markets long term returns. Hell even tech giants like Meta & Alphabet have realized they’ve got to blue chip it and start giving some of those astronomical cash flows back to shareholders the old school way.
We're just wrapping up our International Dividend Champions report and found that Canada's representation has very high yields for whatever reason. Hopefully not yield traps. Good point regarding tech giants (even NVIDIA is in on the action) which seem to be setting themselves up to be champions later on.
Telcos & pipelines I’d call yield traps but we have a few oil & gas giants (Canadian Natural Resources & Imperial Oil) which hemorrhage out free cash flow and dividends. Banks are resilient but there’s a massive COVID housing and real estate debt bubble here that’s about to roll over on renewals (we don’t have 30 year mortgages like the US). I work in banking imagine 600,000 plus mortgages having to renew from 1 to 5% on homes that aren’t worth close to what they were bought for and homeowners who were already over leveraged when they purchased them.
Sounds like a disaster waiting to happen. Thank you for the info!
Now... where can I find 20 years laying around.
True enough. If you're closer to retirement then perhaps the 4% rule is the best way forward.
Portfolio Visualizer is much harder to use than it used to be before it was sold to SRL
It must have been pretty good then! In its current form it's usable enough, certainly not the best UI. I don't like that you have to reinvest dividends when you choose to have contributions. But it saved me a whole lot of Excel time! :) Joe P.
Great work!! Someday, can you cover metal ETFs like silver and copper?
Really glad to hear the positive feedback, thank you! Others have asked about metals. Gold has started upwards and we hold a small bit of it, so there's reason to cover that. Silver is fairly correlated but also enjoys more utility use cases. Copper is being talked about because of the need for more electricity. Will mull this over. Joe P.
Day traders hate this guy for one reason. (Click to find out more)
Classic clickbait title!
Great video, BUT, can you explain the tax implications of dividends in a taxable account. I'm assuming this example is in a taxable account. Thank you.
Thank you! We covered dividend taxation here (czcams.com/video/7SEFiAvdKmA/video.html). Short answer is that a) it's not as bad as you might think and b) when it does become a problem, it's a good problem to have.
Dont forget etf fees eating at your income. But we must admit etf’s are the safest play for noobs.
Good point on fees. These days you can find very low cost ETFs and enjoy a strategy that outperforms 95% of people who try and beat the market.
Do you think DGI is better then a pension?
"Pension" is a very broad term. Run the numbers in a spreadsheet and see what you find. :)
The SRL research tools used in this video are from *Statistical Research Laboratory.* Looks pretty sweet!
Thank you very much for pointing that out! Looks like they are the same firm we screenshotted in the video.
I'm equally weighed in JEPI, JEPQ, and SPYI. I'm considering moving one up above them all, and I'm torn between SPYI and JEPI. I also own Apple and Microsoft, though my Microsoft is bigger than all 3 ETFs combined. I'm quite torn.
Here's a piece we did on JEPI: czcams.com/video/nd9AmdTd0g0/video.html
I've noticed in my own portfolio that I end up with plenty of dividend growth stocks, even though I don't view myself as specifically a "dividend investor".
It's just that established high quality compounding companies with consistently growing revenues and cash flows that also have low debt, tend to pay dividends (and in many cases buy back shares). So I sort of ended up with a dividend growth portfolio, even though that wasn't my main goal.
There you go! Letting time do its magic.
I don’t want you to think I’m attacking the messenger but most of the people I know absolutely cannot afford $1000 a month. With this inflation no one has that kind of disposable income. Can you make a video with more realistic numbers maybe start with $5k and add $250-400 a month. TIA
Very good point. Probably more fair to stick with the $100 a month and then people can multiply by whatever. The video gives plenty of examples at $100 a month with some pretty spectacular outcomes. Multiple accordingly. So for all the examples where it uses $1,000 a month, just divide by ten. :)
So I live till my seventies I might be a millionaire 😂
You most likely will! USA life expectancy for males (95% of our audience are male for whatever reason) is 77. Or you can move to HK and it jumps to 83 ;)
Click bait? Dam
It's anything but. Try giving it a watch!
Existence of dividend aristocrats is not guaranteed. Look back for 100 years and check if Today the list of aristocrats is the same. Check taxes you've payed for all those dividends too...
Yes, sometimes aristocrats lose their status. Dividend taxes (a good problem to have) are covered here: czcams.com/video/7SEFiAvdKmA/video.html