Stop Buying These Popular Dividend Stocks
Vložit
- čas přidán 1. 06. 2024
- Despite my efforts to warn investors, I keep seeing comments and getting messages from people who are still buying stocks. I’ve been warning people not to buy for years. I’ve noticed that for a lot of people who are just starting out as dividend or income investors, they tend to gravitate toward these popular dividend holdings. But all of them either have terrible track records or a negative outlook, so in today’s video, I thought it would be a good idea to look at some of these popular high-yield stocks that I would never recommend anyone hold in their portfolios. If you happen to be an investor in any of these stocks, the best advice I could give you would be to get out before you likely lose more money on them.
/ dividendbull
#dividendinvesting #dividends #dividendstocks
My advice for dividend investors is to save for a bigger investment if you really want to retire off dividends. My major picks are SCHD, TSLA, NVDA and a few more that i can't mention. My investment manager John Desmond Heppolette, is really strict on discretion, anyway i digress. You can't expect to make a million from a thousand dollar investment that's where most people get it wrong, It's not a lottery!! Make realistic investments!! People say it's good to be greedy while investing. Yes, i agree but there's a difference between being greedy and being delusional haha. For example last year I invested about $80k in dividends growth stocks and made about $246k, but guess what? I put it all back and traded with him again and now I'm rounding up to millions.
My portfolio is made up of Dividend ETF's, dividend stocks, and growth stocks. I like a mixture as it allows a bit more freedom in specific areas.
Great information i must say, I will get in touch with him definitely, I prefer to invest in large cap companies which have economic moats, large cash flows and strong balance sheets. Some of which are AAPL, MSCI, IUKD, VHYL, SCHD, NVDA etc..
I have a three fund portfolio consisting of 33% S&P, 33% Total stock, and 33% international. I feel a need to focus on complete growth so I went 100% stocks, but does the SP500 and TSM overlap too much to make sense holding both? However I’ve been in the red for a month now. I work hard for my money, so investing is making me a nervous sad wreck. I don’t know if I should sell everything, sit and just wait but watching my portfolio dwindle away is such an eye -sore.
Significant stock movement is not the only need for achieving significant returns. Instead, it emphasises on managing risk in relation to reward well. You can gradually work towards accomplishing your financial goals by sizing your positions wisely and constantly taking advantage of your advantage. Whether it is long-term investing or day trading, this idea is applicable to all types of investment strategies.
I'm sure the idea of an investment-Adviser might sound controversial to a few, but a new study by Motley-fool found out that demand for Financial-Advisers sky-rocketed by over 42% since the pandemic and based on firsthand encounter I can say for certain their skillsets are topnotch. I've accrued north of over 880k within 16-months from an initially stagnant Portfolio.
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
Finding financial advisors like Colleen Janie Towe who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Thank you for this tip , I must say Colleen, appears to be quite knowledgeable. After coming across her webpage, I thoroughly went through her resume, and I must say, it was quite impressive. I reached out to her, and I have booked a session with her.
Every crash/collapse/inflation/recession provides an equal market opportunity if you are properly prepared and knowledgeable. I've seen people amass up to $800,000 during crises and even with ease in a bad economy. Someone has undoubtedly become extremely wealthy as a result of the crash.
I agree that there are strategies that could be put in place for solid gains regardless of economy or market condition, but such executions are usually carried out by investment experts or advisors with experience
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
There are a lot of independent advisors you might look into. But i work with Carol Pasol Lewis and I have been working together for nearly four years, and she is excellent. You could proceed with her if she satisfies your discretion. I endorse her
I wish I had found this video before i ever started investing! I bought a few (not even $100 worth) of each of these on other peoples bad advice just to see what would happen. Dividends (not reinvested but put other places) included they're all in the red.
Best no BS, no frills content on dividend stocks. You're amazing homie.
-one loyal subscriber
I feel like a series that was themed like this would be super popular because there’s so many trap stocks that people can unknowingly get sucked into
The most popular investment portfolio strategies include diversification, where you spread investments across different asset classes to manage risk. Another is the growth strategy, focused on capital appreciation through high-risk, high-reward assets. Income-oriented strategies target regular income from dividend stocks or bonds. Finally, there's the value strategy, seeking undervalued assets for potential long-term gains.
According to Warren Buffett, dividends are less valuable for growing businesses and more suitable for established ones. Investing in companies that offer dividends might be seen as parking capital for steady returns, especially for those relying on portfolio income. This approach resembles bond investing, serving as a means of generating consistent earnings.
Thanks for all of your videos, DB! I have been dividend investing for a little over 1 year. I bought ARR early and after gaining more knowledge, I realized it was a bad investment. When they did their reverse stock split recently, the price briefly spiked and I was able to break even by selling my shares. Since then, the value of the stock has kept dropping and I think it’s almost certain they’ll have another dividend cut soon. Glad I’m out and I got to learn a lesson without losing money.
I'm new at this and I like all your information. It's nice to see I'm not holding these three stocks. Keep up all you good information.
Thanks for the heads up! I had completely forgotten I had a small position in two of the stocks you mentioned. Not a complete loss but you def saved from any more. Thanks again!
Thank you so much. Love the concrete data you provide to back your conclusion.
Thanks for another video, I have a few shares of these from back when I first started and too chased yields…live and learn!
Not falling for yield traps is important, knowing the finances of what you invest in so you know they're set for the long term and are able to pay and grow those dividends over time. Great stuff sir.
As an investing enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?
Yes, a good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in depth market knowledge
Very true. Despite having no prior investing knowledge, I started investing before the pandemic and pulled in a profit of approximately $950k that same year. In reality, all I was doing was getting professional advice.
How can I participate in this? I sincerely aspire to establish a secure financlal future and am eager to participate. Who is the driving force behind your success?
Viviana Marisa Coelho is my Advis0r. She has since provided entry and exit points on the securities I concentrate on. If you want to check her out, you may do so online.
Right now with interest rates as high as they are, for me personally, not financial advice, I'd but them in a cd. Lots of backs in my area are offering 5% or higher interest rates for cds that run 7 to 13 months. It's shy of the 8% average of the market but it's also almost garunteed money too.
Thank a lot for your work and dedication divindend bull, i got burned really bad with IEP with a share price of 50 bucks and 300 shares.
Great video, as always.
Can you do a video on how to read company fundamentals.
Knowing how to decipher fundamentals would help when picking a companies stock.
Thanks, I need the added push to close my positions. I own both ORC and PSEC. I bought them when I started investing years ago and I kept hoping that they would turn around. Luckily I haven't added since my principal investment and I stopped DRIP almost 2 years ago. ORC also had a 5:1 reverse split. Ouch! Since both were less than 1% of my portfolio, I used that as justification to keep them.
I saw in a video that though dividend-paying stocks don’t offer dramatic price appreciation, they can provide a consistent income stream, I want to spread across $400k into profit yielding dividend equities but unsure of which to get into.
Well the bigger the risk, the bigger the reward and such impeccable decisions are better guided by professionals.
Very true. Despite having no prior investing knowledge, I started investing before the pandemic and pulled in a profit of approximately $950k that same year. In reality, all I was doing was getting professional advice.
Pls who is this coach that guides you? I’m in dire need of one
My consultant is *Alicia Estela Cabouli* She has since provide entry and exit points on the securities I focus on. You can look her up online if you care for supervision.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
Hey DB, thanks for these videos which make our lives easier...one question, I believe PSEC was included in your video where monthly dividend yielding stocks have been categorized week wise...but this video indicates that PSEC is not a good investment...am I right?
The lone bright spot in this market mess is not seeing 200 new daily CZcams videos on SCHD any longer…🤪 times like this require a little morbid humor…
Just wait. The victory lap videos are coming as soon as the market rebounds and SCHD survives yet another correction with consistent dividend growth.
Savvy buy and hold investors will realize this dip actually enabled them to buy at a higher starting yield and eventually retire months or years sooner than anticipated.
I'm thrilled I can pick up SCHD at a discount for a while.
@@lonewanderer3603 same here! 🍻
I'm 3 for 3 bay-be!
That said, the amount I've bought is less than a month's pay for me, I'm comfortable riding the red.
Very interesting. ORC looks like a great candidate for a short position. In your opinion is MPW a value trap or an amazing turnaround opportunity as their latest earnings call would hint at?
Thank you for all of your hard work
I always look forward to your new videos. As far as dividend stocks I think you're the best on youtube. Just wondering if you ever buy m l p's? Such as ET or MPLX for examples. You forgot to mention AGNC.
AGNC has been doing horribly, negative EPS and bad balance sheet. MLPs you have to fill out that k1. It can delay filing taxes.
@@wewhoareabouttodiesaluteyo9303 That's why they should have been included in this video. Mlp's have a great return. My accountant does not charge me for the extra paperwork.
AGNC just got wrecked! NAV now in the 6.50-7 range that’s why it’s dropped. It’s earnings on Monday are gonna be interesting
@@steffmay7969 That's why I thought it should have been on the video today about stocks for losers
@@wewhoareabouttodiesaluteyo9303 there is a couple ETFs that focus on MLPs. So no k1 hassle at tax time.
I owned AMZA for awhile and it paid 0.22 per share monthly. Unfortunately it was called away because of a covered call I sold. I am waiting for it to dip back into the mid 20s and I will reenter my position.
These extremely high dividend yielding stocks are almost always a death trap. If it's too good to be true, it usually isn't.
By the way, at 1:43, you're showing a screenshot of the Book Value/Share, could you tell us what website that is from? I've been seeing these examples a lot lately, but haven't been able to find out what website it's from :)
I am new to the stock market. Every stock that I bought so far, I was out of luck because I bought them when they were expensive. I feel I missed out on all the stock opportunities so far for the tech stocks.I believe having 150K yearly income would be a good investment so I want to plug all my savings into the stock market. I know this sounds a bit dull but I would like to know if I should learn investing or let somebody else (more capable like a FA) do it for me? Please share your thoughts. I am kind of tired of searching for a good stock to buy and losing all the good opportunities
Even with the right technique and assets some investors would still make more than others, as an investor, you should’ve known that by now, nothing beats experience and that’s final, personally I had to reach out to a professional trader for guidance which is how I was able to grow my account close to a million, withdraw my profit right before the correction and now I’m buying again.
The broker I'm in touch with is * THOMAS RODRIGUEZ. I came across him in a Bloomberg interview and got in touch with him. You can use something else. For me, his strategy works hence my result. he provides entry and exit point for the securities I focus on..
He is active on télégram's with...
@Consultantrodriguez 💯
Thanks for sharing, I just found him up now and I would say he really does have an impressive background on investing and Trading
My yield traps that I keep as "life lesson" are AGNC, SSS( which completely cut their dividend and tanked) and MPW
What do you think of the Cornerstones CRF and CLM?
Thanks for another awesome video!
I think you’re so so much for the navigation! It’s absolutely a great video and absolutely great information! It would be so kind of you if you do the same type of videos to help investor, avoid financial traps, absolutely essential to have videos! Thank you so much!
Thanks for this review. Early on, I had ORC and PSEC, got rid of both pretty fast after gaining more knowledge, perhaps with a very slight gain. Perhaps I avoided others you mentioned because of cautions on this channel, though I've made plenty of others chasing yield for a while. Still chase yield, but not in the same way and significantly more selective. ABR, CSWS, ARCC, MAIN, O we hold in common. Also ACRE, not sure if you have that.
ABR has a bad balance sheet, ARCC pays above its EPS, O pays above its EPS, and ACRE pays above its EPS and has a bad balance sheet.
I’m kind of stuck with PSEC. If it ever turns around I hope I can sell and break even😢
@@scottwagner3694 I lucked out on PSEC. The day I had seen the dividend payout going over the EPS, I sold what I had and made a profit.
@@scottwagner3694 I've ditched a couple of losers recently - it was hard to take the loss, but once it was gone and the remaining cash deployed more effectively elsewhere, it didn't bother me as much as looking at it drop. QYLD & RYLD really hurt, but had to stop the bleed.
It was a very good lesson in FOMO AND not always following, even if I generally respect and agree with an analyst. Everyone makes mistakes.
great Video as usual!
Dam, that dividend bar graph on ARR was an absolute gutterball 😳
Mortgage REITs are a horror story these days. Between the pandemic and the FED jacking up rates, it’s a total train wreck. There may be a time to hop in to some of these when we know that rates have peaked. But they really should only be used to juice the returns of more restrained ho hum dividend stocks. If you are 90% invested in solid boring income investments yielding 5-6% and you are 10% invested in some higher yielding “exciting” plays like some closed end funds and REITs yielding 10-12% they can really raise your income level to a 8% yield without adding huge amounts of risk. Many of these closed end funds and REITs are down heavily because the market is grinding them down. But something yielding 20% is a huge red flag! Something that was yielding 7% when times were good and is now yielding 11% because the market is getting hammered might have huge value!
Thanks for the excellent video. Can you do one on HIGH simplify enhanced income etf?
Good video, people can't say they haven't been warned.
Those are some real doozies! I've been looking at CLM, GAB and USA getting whacked pretty good.
What would be some that you would recommend that would be replacements for what people were trying to do with these? also what is your opinion of PYE?
Just get schd …never sell …it is that simple.
Now we need a video with 3 good dividend stocks to buy 😊
Great video !!!
Thank you Dividend Bull!
Fully agree regarding OXLC.
I say buy QLD with Jepq would be a good combo for growth and dividens.
I'm up 40% on PSEC total returns but I can definitely see the case for selling. Groups without any dividend growth are probably a no go for me going forward.
Why is it garbage?
With OXLC does that graph take into account the 5% drip discount?
Great information
So are they if their are better ones out there?
its true armour reit mangled my portfolio especially after the reverse split they did
I got so lucky with ORC. Got out with a bit of profit. LUMN wrekt me though. OXLC is my best stock though, also if you DRIP you get a better price. And dividend is on the rise as well.
got out of orc just within 2 weeks ago once the div was cut
I’m in OXLC waiting on a dividend to hit my account to see if it’s worth the heat of the draw down or I should just move on
@@steffmay7969 i have gotten 1.5k profit from my 3k in 4 years. I did not know about DRIP but I also got in at like $2.5 when covid hit. Avg is $5.2.
my first 3 investing years i got talked into some of the Pimco funds. Closed end funds, that even re-investing dividends i never caught up to my cost basis. I sold out several funds at a small loss and moved on. I will watch the fees in the future.
How do you feel about $MFA?
I would add MPW and IEP to this list.
Ouch. I am down like 50k on MPW. Being that I almost never sell, I will be holding my thousands of shares for some time..
I've been selling options on MPW. Including that premium and dividends, it's actually profitable for me despite getting crushed.
MWP currently performs terrible. However - it owns its actives. Is one of the world's biggest hospital landlords and has seen some headwind.
I am buying since 4.51. We will see
Listened to the Mpw earnings call sounds like they got their act together took tough medicine cutting the dividend . Painful if you bought before but sounds like it’s worth some capital at this price
You killed Armour Residential. They only had 2 pages on thier presentation when companies have about 20 pages. Wooow. Thank you for this post. I need to be very careful of high dividend stocks
That GOF discount looks tempting
Has there ever been a review on SJT San Juan basin?
This was my first dividend which gave a reasonable payout but had significant a dividend cut. It is slowly reconsolidating itself but I'm still trying to determine where it stands in the energy sector compared to other energy dividend stocks. I have diversified since then.
Really not much of a company, but a Royalty trust. They charge for oil and natural gas to pass through their territory in New Mexico. Don’t pay dividends in the conventional sense, but instead Royalty distributions. These are variable payments directly dependent on oil and gas prices. The higher the price the bigger the distribution. I like to think of it as a “toll booth,” as long as traffic is moving through it - your good! No debt, and very few employees. Stock moves up and down from supply and demand and openings available.
Please review GGN and similar investments that own gold, oil, etc
Good advice
Also watch the tax rate (withholding tax in my case) on dividends. I held a starting position in ET for a while, only to learn the rather nice dividend had withholding taxes totalling 47 % . 🤦♂️
PEY is my main ETF. I may change my perspective though if it doesn't start growing again. It had pretty good growth plus dividend for years until after the bounce back from Covid.
Its mostly sideways right now which I'm ok with since the dividend is decent but I see too many of this type of ETF decline at or beyond any revenue from the dividends.
Used to own ARR i sold at a huge loss, lucky it was an small position. It is a yield trap.
Love it!
Dividend bull i have a question....
Android or IOS and WHY? Just curious.
Thankfully I don't have any of the highlighted stocks. I added 300 additional shares of MAIN a few minutes ago.
The same could be said about any mREIT. Even the strongest in the sector (NLY, AGNC, etc.) have capital destruction.
The best way to make money on these is to buy them after they crash and sell as soon as they rebound.
Funny enough I just sold my ARR stocks on Oct 25, because of said reasons. 😂
This is correct, Mary's strategy has normalized winning trades for me also and it’s a huge milestone for me looking back to how it all started..
SCAM ALERT
@@leonclarke1104 does "Mary" spit or does she swallow?
@@leonclarke1104 there is no truth to the rumor that "Mary" was a student of Bernie Madoff 😋
Only a very naive person would believe the apparently fake testimonial and conversation on this thread. Like they say "a fool and their money are soon parted".
Scammers usually make the same set of fatal flaws with their attempts. But they are not intelligent enough to realize it.
This thread just screams *scammer alert*
BTW...if I can spot the potential scammers this easily then why can't CZcams? Does Google really have such an inferior AI model? Or are they in cahoots?
ARR did a reverse stock split so when they cut the dividend the percent cut will not be as much! Going from .08/share to 0.7/share is much worse than dropping from 0.40/ share to o.38/share! Just my opinion! That is my guess as to what will happen! Dividend cut could be much larger however!
I’ve got oxlc, but dollar cost average. Like all of my stocks.
OXLC pays within its EPS and has a good balance sheet.
Here are two Cornerstone close-end funds that I like, CLM & CRF.
The second one has been around since 1973.!!!!!!!
Can you please do another video on PDI? Maybe touch on or dig into something revealing/insightful buried in the Section 19(A) notices ..idk
Bro PDI is drooping faster than a striper on a pole, I bought 3000 shares @ 20 bucks so I'm down almost 15,000, I have to say that had kept their .2205 divedend.
@@simonyoel Which is odd because it pays within its EPS and has a good balance sheet.
"The Fund may enter into opposite sides of interest rate swap and other derivatives transactions ("paired swap transactions") for the principal purpose of generating distributable gains on the one side (characterized as ordinary income for tax purposes) that are not part of the Fund's duration or yield curve management strategies, with a substantial possibility that the Fund will later realize a corresponding capital loss and potential decline in net asset value with respect to the opposite side transaction "@@wewhoareabouttodiesaluteyo9303
OXLC just announced div till march'24
Please do the same thing for ETFs!
What are some of the good buying opportunities at this time?
if your looking at a high yield investment please
understand the free cash flow ratios
and how they earn the money
What are your thoughts on SPOK?
As first officer on the Enterprise or as science officer? 😉
I came across some statements from big investors expressing concerns that the stock market rally could be short-lived. My concern is my $600K stock portfolio is still recovering from a dip of almost 40%, how do I navigate these complex situations?
Diversification and a thorough understanding of the market dynamics are crucial, especially during periods of uncertainty. Keeping an eye on both the positive and cautionary signals can help investors
Diversifying your port-folio is crucial. While having high-quality stocks forms a stable base, it's important to explore additional assets to distribute risk. I can personally vouch for the effectiveness of this strategy, especially when guided by professionals. With their assistance, my port-folio, initially valued at $330k, has experienced a remarkable growth of 45% in just this year
I need a guide so i can salvage my port-folio due to the massive dips and come up with better strategies. How can one reach this advisr?
Christine Ann Podgorny deserves credit as one of the finest port-folio managers in the industry. Her reputation precedes her, and I highly recommend looking her up to locate her online if you are internet-savvy
I looked up her full name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip.
I was looking around the room pointing fingers and laughing until he made that quip about Prospect Capital :/
I just sold the last of my ORC position about a month ago. Lost a lot of money with that one. I had a small position in NLY, and yes that one sucked too. I haven't sold out of PSEC yet, but I probably should. I closed out of SEVN when I got back to break even. The only REIT I own that I have any confidence in whats so ever is ABR, but they have been getting beat up lately and are making me nervous. I am staying away from REITs.
There very few reasons to say "that being said". 90% of the time you can skip it.
I got bit by the ORC. That was something I picked on my own. Since then, I look for investments with many endorsements.
I would also add ANNALY MANAGEMENT as another one to avoid
At some point a bull market ends for a bear to begin, it goes on and on... I intend spreading 50k - 150k across plummeting stocks to fuel my millionaire goal, but my concern is knowing when a market bottom has been reached. I'd appreciate valid tips please
I looked into ORC and ARR after your video, yes they look like real turds. But I am surprised to see that one of their largest holders is Russel 2000 ETF aka IWM (and various other ETF like S&P smallcap). Seems they are pretty of Russel 2000 index? This makes me wonder about the wisdom of passive ETFs since they include such obvious turds.
You may want to make a video about MAIN. They maybe on the way to get a Dividend Cut. However, you maybe the expert on this.
They pay within their EPS and have a good balance sheet.
@@wewhoareabouttodiesaluteyo9303 Considering MAIN is my largest stake, I appreciate your assurance. There were people concerned about a cut, so I wasn't sure what I was missing.
I was just cleaning up the trash today and considering selling some of that that one...hmmm
(QYLD Gang entered the chat)
QYLD is banging. As long as you know what it is for
There are always Dividend Traps that look good but your sacrificing growth!
Well, name some great ones to buy. What should I replace my ORC with ?
A couple to research are JEPI and ACP if you don’t own them already. They have held up relatively well through the current downturn and pay steady monthly dividends. Depending on your risk tolerance, some of the covered call instruments like TSLY may be something to consider, especially if you believe the underlying (in this case Tesla {TSLA}) has been beaten down enough or you believe in its long term prospects.
Any chance these will get bought out or absorbed into a larger company?
In a bankruptcy proceeding maybe
The word " Mortgage " is already a Big Red flag for me.
I think the lesson here is just be cautious of over leveraged reits with risky business models. Residential, office and medical reits seem to be the worst of the lot where as commercial, grocery, apt reits seem to be far more stable and are generally proven to be reliable. I had a small position in armour which I sold off when the consolidated thier stock and slashed thier dividend. Im not saying you should never own high yield reits. Strategically you could use them to generate income in the short term but they are not set it and forget it stocks. With a bit of research you will find offerings that are superior to these high risk reits and won't net you pennies on the dollar like pepsi, McDonald's Voo and whatever other crap people waste thier money on.
So what do you suggest? Thanks!
I recently bought into VZ with a dividend of 8%. Though VZ is highly leveraged, I believe the interest rate increases will sonn come to an end and VZ provides an essential service so I believe demand is relativelt inelastic. It's growth is limited so I view this as a temporary investment during this period.
@@alankcpa Thanks buddy ☺️
Drop AGNC . I have lost bunches on it
Yeah I'm sitting on $1,000 investment in agnc as well that I am really regretting.
I lost bunches when I could not sell. They cut the dividend yet again
I thought you were going to say AT&T
the only hight dividen stock I invest is realty income
Almost every high monthly dividend company drops in value over time. STAG is about the only one that goes up.
armor is only down 48% the last year 😅 (big nope)
It is customary to sum up the results at the end of the year. What are your top 5 investments for 2023? Merry Christmas to everyone.
Arr is alot further away from bankruptcy than orc
Yeah! I don’t own any of them!
Worst stocks are
ORC
ARR
OXLC
I suggest buying these 3 at their foreseeable bottom at 0 $ 😅🤑
These channel could be called Reits and BDCs because it doesnt talk about any other type of investment that isnt a reit or bdc