I Wish you guys could talk more about ETFs in general...the ones that invest money around the globe and USA....and also the ones focused on covered calls... Whish you the very best! Respect from Brazil!🇧🇷
I prefer dividends because I might want to keep my shares forever. Getting a dividend allows me to do this without selling. I don’t want to be diluted but a mixture of both is perfect.
I like to use Simply Safe Dividends to get a better understanding of dividend stocks. A bit expensive but it's worthwhile if you want to build dividend income.
Has Intel announced it’s going to cut its dividend? I haven’t seen that. In February Intel said “committed to a healthy and growing dividend, which has been paid without interruption since 1992 and was raised 5% last month.”
That is what Paul said...double check it to be sure. Another guy said that they are not actually cutting them...we will check again for sure Leroy - 👍GC
I'm from Canada and invest into a tax free savings account (TFSA) and I do not pay taxes either from dividends or capital gains so yes I love dividends a lot!!!
I think doing an analysis on the dividend reinvestment over time of quality companies that raise their dividend would be a worthwhile and fair analysis. Dividends are always analyzed as passive income to live off in retirement. The secret to dividends is the reinvestment rather than taking as payment which creates a tangible compounding factor that is not there when a dividend is not paid and you accumulate no further shares . Without one you simply need to rely on the market recognizing value to compound your equity share of the earnings, of which that realization doesn’t always materialize.
@@EverythingMoney I agree with the analysis that throwing money at random dividend kings/aristocrats is nowhere near as good of a strategy as buying a true value stock with a nice dividend to increase your share count while it stays in the dumps. As for stocks with no dividends being more efficient, I agree in a few instances, like Facebook which I own, Amazon Google etc.. with high ROIC and continuous quality projects to reinvest in. However, companies of that quality are very hard to find , the FAANG index highlighted about all of them .
Saying "dividends mean double taxation, it is better to do stock buy backs" is of course nonsense. Stock buy backs result into a higher stock price, which has to be eventually paid for in capital gains tax. In most countries the capital gains tax is higher than the dividend tax. Therefore dividends are in almost every country more tax efficient than stock buy backs.
These guys did no due diligence on SCHD. Please understand the selection criteria and the amazing performance the last 10 years. This is the only video I have watched by them these two weeks since it sounded different compared to their usual formula with no DD, but even this one uses the same formula. Unsubscribed.
This is an awesome video. SCHD has outperformed SPY if you look at the last 5 years and it has suffered much less downside recently. Sounds like the best of both worlds PLUS its all blue-chip companies. Remember if dividend s are reinvested in a qualified account like a 401k,TSP or Roth you don't have to pay taxes on the dividends. Dividends from a Roth are not taxed.
It might be worth it to look at how you will spend money in the future when dealing with div and non div ETFs. Do you want to have to sell your stock to pay monthly expenses? What are the tax implications of each?
Please can you check out RFP, the stock went up over 15% yesterday. I believe this is down to them joining the Russell 3000, would be great to see some small cap breakdowns
What are your thoughts on ETFs that sell calls to create a dividend for companies that don’t issue them like QYLD? I assume it’s more of a late game strategy not good for early growth.
I'd LOVE to hear about some REIT's like GAIN or GLAD! They pay some pretty hefty dividends, but I'd love to know whether it's part of a smart overall investment strategy to have a few that pay big dividends alongside other value stocks. (specifically in a retirement IRA/ROTH)
But now that the Market is shifting away from Growth and towards dividends, as Value-investors, why don't we look at the growth companies now that their prices are deflating???
I’m big on RDIV. Also, I own mostly ETF’s that pay dividends which I reinvest. That’s just what I do and it works for me. Thanks Paul. Love you man. You changed my life and gave me a process. ✊🏾
we canadian have different rules when we have dividends in our TFSA. No taxes on cdn company dividends, we get taxed on the american ones but it doesnt effect our income.
My main retirement TSP/401k is in funds that are set up to pretty much mirror VTI. That's the VAST majority of my investments, about 90%. The other 10% of my money goes into my taxable brokerage account that focuses mainly on boring dividend stocks, REITs, and a few BDCs and MLPs. I'm not worried about taxes, I see it as a small money tree thats growing every year with DRIP (Its not set up for auto invest), that I'll never have to sell, unlike my main retirement account. I still have about 14 years to retire so it has time to grow.
Since you don't get taxed on dividends in a Roth IRA, what would be the reason to NOT structure your Roth for dividend paying companies, including these ETF's? This is a question I have had recently. I'm considering structuring my traditional 401K for S&P 500 index funds and the Roth for dividends. Is there anything I'm missing?
You will just have to manage that those companies pay their div , and dont sharing the % of the dividend , that will mess with your numbers , receiving less Money .AP
Dude!! I'm stoked that Intel is cutting their dividend. They are trying to raise capital to build these foundaries. I hope they don't sell of Mobileye now. I think that is a HUGGGEE mistake.
@@davidexmachina01 If you find the news release, let me know. From what I remember of their investor presentation, they were committed to growing the dividend consistently and share buybacks. They're absolutely flush with cash so I wouldn't be surprised if the dividends and buybacks are slowed but not eliminated.
Yeah, I don't get why apple even pays that small of a dividend. If I were to buy a stock with a sub 1% yield I would be expecting some crazy dividend growth and apple is not really doing that either and they should just cut it completely. However, I don't think they should be doing these huge buybacks either since the stock is not really cheap either. I would rather Apple build up that war chest so they could do insane buybacks and acquisitions in the future.
Hey guys are you thinking about valuing smaller cap stocks ? I think for a lot of viewers it's more intresting to invest in smaller value companies (buying $1 for $0.50). I'm a student with small money so i don't think it's interesting for me and others to focus on high mcap stocks/etf's/ dividend stocks. Some companies in my watchlist are $FLWS,$MOMO,$ZEPP,$CUBI,$TME, $HOFT, $LFVN ,$VRA,... (small value stocks,not all of them have a MOS of 50% but waiting for a good moment to buy them).
I won’t invest into companies with massive dilution and I prefer companies who buyback cheap shares but dividends will always be better. You only profit from selling non dividend stocks through subtracting ownership. The real name of the game in wealth is hoarding tons of shares for long periods of time and writing covered calls for income. Also you can make up to 80,000 a year tax free with dividend holdings if married in a taxable account. Partner that with 80,000+ in your IRA and you can really compound. Dividends made Warren’s wealth snowball. Dividends also do wonders for your mental health. Being down 30% on a holding is hard but if they keep paying you to wait you now have cash flow to buy more and average down. Also dividend stocks tend to have far lower betas
Big consideration for non-US investors: you’ll pay 30% withholding tax on US stocks. Not worth chasing dividends even though they are nice to see when they hit your account.
You can't have it all. My little account pays out $600 per month or $7,200 per year in dividends. If you don't make a lot of money, I'd say build a dividend money tree to help get started. That's money that I didn't have to work a second job for or have to budget for. So Uncle Sam can take their ounce of flesh.
I don't like buybacks, for a couple of resons: 1. Companies will keep buying back shares no matter the price. Otherwise they will signal that their company is overpriced at the moment. Unless your name is Elon Musk, you won't do that. Buying back shares at low valuations and paying dividend at high sounds good but no-one does that in real life. 2. Management often have stock options. They want the stock price in x years to be as high as possible. Everything else equal, they will lose out on the money payed out as dividend until they use their options. 3. Companies use buybacks to boost EPS, so investors get the impression that earnings are rising when they are really not. I think this is why buybacks was illegal like 20-30 years ago.
Good points and very true! I remember Mohnish Pabrai talked about 2 companies that didn't grow much but they kept buying back shares for 20 shares no matter if it was 'overvalued' or 'undervalued'. The stock price of these 2 companies went through the roof! Autozone was one of them i believe.
SCHD has outperformed the whole S&P this year alone and also the total stock market. I love my SCHD
That's cool! But don't hold your breath. The day will come where the S&P will crush SCHD again.
I Wish you guys could talk more about ETFs in general...the ones that invest money around the globe and USA....and also the ones focused on covered calls...
Whish you the very best! Respect from Brazil!🇧🇷
Feel free to join our community...we have a thread dedicated to ETFs - 👍GC
Can you please update the video about the ETF JETS?
I prefer dividends because I might want to keep my shares forever. Getting a dividend allows me to do this without selling. I don’t want to be diluted but a mixture of both is perfect.
I get your sentiment Jessy...thanks for the note - 👍GC
I noticed that SCHD held up pretty good in this recent correction vs VTI. Like a Bond.
Thanks for sharing Nicks - 👍GC
Yes, but I believe VYM has held up a little better than SCHD.
I hold both vym and schd 30% combined of my dividend portfolio.
I like to use Simply Safe Dividends to get a better understanding of dividend stocks. A bit expensive but it's worthwhile if you want to build dividend income.
Is there a reference for INTC dividend cut?
They are probably trying to save money .AP
Paul misspoke. The dividend has NOT been cut.
I wannna cry! Is intel really cutting dividend? I have held intel for so long! Pls someone show me a link to this information!
Paul misspoke. I have not seen anything official from INTEL.
Did I miss something? I did not see any news on Intel cutting their dividend. They actually raised the dividend amount a few months ago.
Haven’t seen anything either .AP
I just checked. Intel recently announced a dividend increase.
So do you recommend SCHD or……?
Has Intel announced it’s going to cut its dividend? I haven’t seen that. In February Intel said “committed to a healthy and growing dividend, which has been paid without interruption since 1992 and was raised 5% last month.”
That is what Paul said...double check it to be sure. Another guy said that they are not actually cutting them...we will check again for sure Leroy - 👍GC
@@EverythingMoney thank you.
Is it Good to have QYLD?
Hi can you do a video analysis on IEP stock who has %14 dividend. Its very consistent. just curious if it can sustain. Tnx
I'm from Canada and invest into a tax free savings account (TFSA) and I do not pay taxes either from dividends or capital gains so yes I love dividends a lot!!!
Nice .AP
its same in the UK, buying UK companies in a tax free savings account (ISA). Feels amazing to get every penny of divs.
I choose the vig over the vym. But sphd.. the only etf that's up yoy... salute to the team everything money gang day 1
Love back to you too .AP
Have to check Merck’s spinoff OGN first year if they are raising their dividend.
I think doing an analysis on the dividend reinvestment over time of quality companies that raise their dividend would be a worthwhile and fair analysis. Dividends are always analyzed as passive income to live off in retirement. The secret to dividends is the reinvestment rather than taking as payment which creates a tangible compounding factor that is not there when a dividend is not paid and you accumulate no further shares . Without one you simply need to rely on the market recognizing value to compound your equity share of the earnings, of which that realization doesn’t always materialize.
Thanks for the comment ! Great idea will add it to the content list .AP
@@EverythingMoney I agree with the analysis that throwing money at random dividend kings/aristocrats is nowhere near as good of a strategy as buying a true value stock with a nice dividend to increase your share count while it stays in the dumps. As for stocks with no dividends being more efficient, I agree in a few instances, like Facebook which I own, Amazon Google etc.. with high ROIC and continuous quality projects to reinvest in. However, companies of that quality are very hard to find , the FAANG index highlighted about all of them .
SCHD is the goat 🐐 🙌
Hahah to each its own .AP
Dividends are not taxed in Sweden so I prefer dividends over buy backs!
Do a vid on Amazon split, is it worth buying now ? 🙏🏾
Nothing has changed other than the price of purchase .AP
Saying "dividends mean double taxation, it is better to do stock buy backs" is of course nonsense. Stock buy backs result into a higher stock price, which has to be eventually paid for in capital gains tax. In most countries the capital gains tax is higher than the dividend tax. Therefore dividends are in almost every country more tax efficient than stock buy backs.
Thanks for sharing Zaptos...i personally prefer the company to buyback shares..but that is just me - 👍GC
@@EverythingMoney You can prefer that. i do too. But saying: "It is better for tax reasons" is just not true.
but if you hold over a year, you won't pay the higher capital gains right? idk I'm a noob.
In Croatia capital gain tax is not being paid if you sell asset at least two years after buying it
If you have your money in ISA you don’t pay any capital gains tax in the uk so I like buy backs
These guys did no due diligence on SCHD. Please understand the selection criteria and the amazing performance the last 10 years. This is the only video I have watched by them these two weeks since it sounded different compared to their usual formula with no DD, but even this one uses the same formula. Unsubscribed.
Happy EM subscriber here! These lessons from Professor Paul are super valuable. 👍
Thanks for the support .AP
Please do a video on the Amazon stock split and what this means? will it go back to $2000? thanks!
It does not change anything just the price that you see .AP
@@EverythingMoney god like response
When you gonna do Sofi and please explain you’re opinion on the Sbc
We have it on the list to give it a look .AP
In Canada we have a dividend tax credit to avoid double taxation. You could essentially pay no taxes in Canada on dividends if your income is lower.
Not bad .AP
You do know that dividends is not extra income.. it also lowers the value of the stock
This is an awesome video. SCHD has outperformed SPY if you look at the last 5 years and it has suffered much less downside recently. Sounds like the best of both worlds PLUS its all blue-chip companies. Remember if dividend s are reinvested in a qualified account like a 401k,TSP or Roth you don't have to pay taxes on the dividends. Dividends from a Roth are not taxed.
Thanks for sharing! AP
Can you guys do a video on $EAF please?
We will give it a look , thanks .AP
fairly new to the channel, love these videos of long term ETF's, keep up the good work!!
Welcome aboard!AP
Guys could you check QYLD, RYLD, JEPI, covered calls ETF?
Thanks for the comment we will give i a look .AP
It might be worth it to look at how you will spend money in the future when dealing with div and non div ETFs. Do you want to have to sell your stock to pay monthly expenses? What are the tax implications of each?
Yea thats something that we could look into to .AP
Please can you check out RFP, the stock went up over 15% yesterday. I believe this is down to them joining the Russell 3000, would be great to see some small cap breakdowns
What are your thoughts on ETFs that sell calls to create a dividend for companies that don’t issue them like QYLD? I assume it’s more of a late game strategy not good for early growth.
Feel free to join our EM sute and discuss it with our community - 👍GC
@@EverythingMoney A future video on this would be awesome especially since the prices are low now.
I'd LOVE to hear about some REIT's like GAIN or GLAD! They pay some pretty hefty dividends, but I'd love to know whether it's part of a smart overall investment strategy to have a few that pay big dividends alongside other value stocks. (specifically in a retirement IRA/ROTH)
Paul dont do Reits .AP
But now that the Market is shifting away from Growth and towards dividends, as Value-investors, why don't we look at the growth companies now that their prices are deflating???
The real question is how long can you wait for growth to reach your desired figures? You can at least earn a lot while waiting for growth and div
Intel just announced a dividend increase.
Thanks ! AP
I’m big on RDIV. Also, I own mostly ETF’s that pay dividends which I reinvest. That’s just what I do and it works for me. Thanks Paul. Love you man. You changed my life and gave me a process.
✊🏾
Good stuff mate! - 👍GC
we canadian have different rules when we have dividends in our TFSA. No taxes on cdn company dividends, we get taxed on the american ones but it doesnt effect our income.
Doesn’t sound bad .AP
My main retirement TSP/401k is in funds that are set up to pretty much mirror VTI. That's the VAST majority of my investments, about 90%.
The other 10% of my money goes into my taxable brokerage account that focuses mainly on boring dividend stocks, REITs, and a few BDCs and MLPs. I'm not worried about taxes, I see it as a small money tree thats growing every year with DRIP (Its not set up for auto invest), that I'll never have to sell, unlike my main retirement account. I still have about 14 years to retire so it has time to grow.
Not bad at all .AP
Since you don't get taxed on dividends in a Roth IRA, what would be the reason to NOT structure your Roth for dividend paying companies, including these ETF's? This is a question I have had recently. I'm considering structuring my traditional 401K for S&P 500 index funds and the Roth for dividends. Is there anything I'm missing?
You will just have to manage that those companies pay their div , and dont sharing the % of the dividend , that will mess with your numbers , receiving less Money .AP
Y’all gotta do the BYND update. 😎
Shure thing .AP
@@EverythingMoney Love you guys work! Keep it up.
I Love VYM! I'm going to keep it forever!
Good choice! 👍GC
I want to learn more about debt, like... What're they wasting their money on by getting debt and if their investment are paying off
Great idea thanks .AP
Dude!! I'm stoked that Intel is cutting their dividend. They are trying to raise capital to build these foundaries. I hope they don't sell of Mobileye now. I think that is a HUGGGEE mistake.
Good for them .AP
When did they announce that?
@@cmccarrick10 I dunno, According to Paul they are.
@@davidexmachina01 If you find the news release, let me know. From what I remember of their investor presentation, they were committed to growing the dividend consistently and share buybacks. They're absolutely flush with cash so I wouldn't be surprised if the dividends and buybacks are slowed but not eliminated.
Yeah, I don't get why apple even pays that small of a dividend. If I were to buy a stock with a sub 1% yield I would be expecting some crazy dividend growth and apple is not really doing that either and they should just cut it completely. However, I don't think they should be doing these huge buybacks either since the stock is not really cheap either. I would rather Apple build up that war chest so they could do insane buybacks and acquisitions in the future.
Very valid point Lincoln...but is APPLE... more or less the best stock in the market, hard to argue with their policy - 👍GC
thanks.
You're welcome .AP
Getting dividends in HSA or IRA aren’t taxed. ☺️
Except REIT's. Not double-taxed. And the percentage of AFFO is very large. go VICI !
Hey guys are you thinking about valuing smaller cap stocks ? I think for a lot of viewers it's more intresting to invest in smaller value companies (buying $1 for $0.50). I'm a student with small money so i don't think it's interesting for me and others to focus on high mcap stocks/etf's/ dividend stocks. Some companies in my watchlist are $FLWS,$MOMO,$ZEPP,$CUBI,$TME, $HOFT, $LFVN ,$VRA,... (small value stocks,not all of them have a MOS of 50% but waiting for a good moment to buy them).
We have done some small caps , but some times this company’s are more of a gamble when their numbers are not good .AP
I only really care about capital growth I don’t really care for a dividend too much.
Yes sr .AP
I don't like buybacks, I don´t want apple to buy back expensive shares I would rather invest it in intel
Yeap...bubacks when the stock is ovevalued is not good practice - 👍GC
We ❤️ Paul!
Thank you David - 👍GC
@@EverythingMoney NO! “Thank You!”
I won’t invest into companies with massive dilution and I prefer companies who buyback cheap shares but dividends will always be better. You only profit from selling non dividend stocks through subtracting ownership. The real name of the game in wealth is hoarding tons of shares for long periods of time and writing covered calls for income. Also you can make up to 80,000 a year tax free with dividend holdings if married in a taxable account. Partner that with 80,000+ in your IRA and you can really compound. Dividends made Warren’s wealth snowball. Dividends also do wonders for your mental health. Being down 30% on a holding is hard but if they keep paying you to wait you now have cash flow to buy more and average down. Also dividend stocks tend to have far lower betas
Totally agree .AP
Get to the 💰
Get those Benjamins's😉 - 👍GC
DCA is life 🧬
Right on brother 😉- 👍GC
Big consideration for non-US investors: you’ll pay 30% withholding tax on US stocks. Not worth chasing dividends even though they are nice to see when they hit your account.
Plus broker percentage
Not entirely true
You can't have it all. My little account pays out $600 per month or $7,200 per year in dividends. If you don't make a lot of money, I'd say build a dividend money tree to help get started. That's money that I didn't have to work a second job for or have to budget for. So Uncle Sam can take their ounce of flesh.
That’s great .AP
I don’t get double taxed in my Roth IRA!
Nice .AP
Qualified dividends beat being a wage slave.
I don't like buybacks, for a couple of resons:
1. Companies will keep buying back shares no matter the price. Otherwise they will signal that their company is overpriced at the moment. Unless your name is Elon Musk, you won't do that. Buying back shares at low valuations and paying dividend at high sounds good but no-one does that in real life.
2. Management often have stock options. They want the stock price in x years to be as high as possible. Everything else equal, they will lose out on the money payed out as dividend until they use their options.
3. Companies use buybacks to boost EPS, so investors get the impression that earnings are rising when they are really not. I think this is why buybacks was illegal like 20-30 years ago.
Thanks for sharing...feel free to join our community and see in what occasions we think buybacks are good and bad depending on the company - 👍GC
Good points and very true! I remember Mohnish Pabrai talked about 2 companies that didn't grow much but they kept buying back shares for 20 shares no matter if it was 'overvalued' or 'undervalued'. The stock price of these 2 companies went through the roof! Autozone was one of them i believe.
6 June, 1944
I think divideds suck ass rather have buybacks
I feel nice when i receive them , but yes if they do buyback when price is low shure .AP