IMPORTANT ANNOUNCEMENTS: Thanks for watching! Please don't forget to "like" and "subscribe". Please let me know in the comments below what you think about my simplified dividend stock buying strategy! HELPFUL RESOURCES: I now own the popular dividend ETF, SCHD. Learn about my experience in the following videos: Video 1 (Should I put it all in SCHD?): ua-cam.com/video/dqQsf8Dg7a0/v-deo.html Video 2 (briefly cover SCHD in this one too): ua-cam.com/video/6PGFow-qTTE/v-deo.html PPC IAN INSTAGRAM: I'm sharing some great content over on Instagram. Check out my Instagram stories and reels. I'm @ianlopuch: instagram.com/ianlopuch/ CHECK OUT MY PATREON (Portfolio Updates Are On Corner Patreon Tier): I'm sharing exclusive bonus content over on Patreon! I offer two tiers: Backyard Patreon and Corner Patreon. My Backyard Patrons see my stock trades, each accompanied by a blog post write-up. They also have access to 50 historical Patreon-exclusive videos. In addition to all Backyard Patron perks, my Corner Patrons also have access to my complete dividend stock portfolio (% allocation to each position) AND my complete bond portfolio (% allocation to each position). They additionally enjoy exclusive portfolio update videos, Corner Patreon virtual meet-ups, an exclusive Discord server, and more. Head on over to Patreon to join today: www.patreon.com/ppcian PPC IAN EMAIL LIST: Join my email list today for helpful updates, and a look at some of my historical dividend stock portfolios: www.ppcian.com/my-complete-dividend-stock-portfolio/ PPC IAN TWITTER: I'm always sharing fun updates on Twitter. Here's my dividend investing Twitter (I'm @ianlopuch): twitter.com/ianlopuch COOL DIVIDEND INVESTING MERCH: I offer some really amazing dividend investing merch: teeshirts, hoodies, mugs, and more! The designs are super stylish and on-point for the dividend stock investing community. Each purchase supports my UA-cam channel: teespring.com/stores/ppcian Thanks so much, everyone, for your support. I hope you enjoy the video today! (Disclosure and Disclaimer: Please see video description for all disclosures and disclaimers.)
@@guitarnine The problem with Yan is that he doesn't stay with his original system. For 2 years it has changed constantly. Before he had started investing in dividend stocks and this for years, then he started to be interested in cryptos, then in government bonds, then in ETFs and now in his latest video again in the dividend stocks. In his private life he changes jobs, homes and states. There is a problem in his life that he does not explain to us. Changing your mind all the time is a recipe for sure disaster. It’s conservatism that wins when we invest. His solution would be to reduce each position to 5% max, sell monthly calls at 30 deltas against his positions and buy a long leap put for his positions in danger and internationalize his positions (a mix of US and Europeans to buy on their respective stock exchanges through Inter Active Brokers which is very practical for buying European shares) and to sell a part when a position is at the highest and reinvest the amount of the sale in the position which is at the lowest . But hey, for as long as I've been saying it...
Goes to show that there are ZERO equities without risk. Some are lower on the “Risk-o-meter” spectrum, but any business in any sector can collapse overnight for thousands of reasons. Exactly why diversification is important and ETFs can provide a safer level of risk. Always appreciate the thoughts and videos, Ian.🙌
With how fast the world is changing I'm considering selling all of my individual stocks and putting the money in index funds. That's where most of my money is anyways.
Honestly, when I saw HE tank, I considered buying a few shares. I bought some Target when that tanked. I think as long as you are a long term investor not a trader you'll be alright.
That's my take, more long term investor here also. I heard dont let a good disaster go to waste as bad as that sounds. It's essentially buying when something tanks then taking the risk they will climb out of it and get back on their feet.
Hey Ian, thanks for the video! I've been rolling over 4 week T-Bills, returns are over 5%. I'll keep doing that for the time being. God bless, my friend! Prayers out the those affected by the fires.
I am slowly selling off riskier NASDAQ positions to invest in SCHD. Losing a 5% chunk is definitely a big deal when you're closing in on retirement! (Which is where I am at now). So sorry to hear of your Hawaiian utility stocks!
When I heard about Hawaiian Electric being involved, my first thought was actually "oh no that was one of Ian's" >.< Sadly it feels like utilities are a lot riskier than we all thought. Concentration risk does scare me a bit, since I own a lot of S&P 500, which is pretty heavily weighted at the top. It's almost more like the S&P 20.
Thanks for sharing. I agree with you that even the S&P 500 involves a concentration of risk! That is a great point. So much to think through these days. (Disc: I'm long HE)
This is the risk of market cap weighted indexes. The trick is to look at the top 10 or 20 of each index you invest and see if you are double dipping in a particular group of companies
The litigation risk is usually extremely overstated and I believe for Hawaiian Electric the assumption is that they were negligent in mitigating fire risk by removing dry grass (fuel for the fire). Then the other risk is if their distribution system ignited the fire. This is why electric utilities need to bury their wires to avoid this risk.
Hey. Always look forward to your videos. You do a great job of explaining things for rookies, but still teaching folks that are solid in portfolio structure. What I would do if I were you, with what I think your portfolio sizes, I would take all of the stocks that I have 100 shares on and sell cover calls against them. One of the risks of selling covered calls is you can lose your shares if the stocks rise above the price, you agree to sell them at, However, I don’t think this will be a problem for you. You have been in your portfolio for a very long time, you seem to know how your stocks behave regardless of market. I think you might be leaving money on the table by not using the strategy. With a stock like Starbucks, you could sell I’ll call maybe 10% higher than it’s worth for a months out and collect $.80 per share.
Sorry to hear about the loss, but I know you will recover and build back up! I also had a big loss this week, but my own fault for not following my game plan and getting too greedy!
I also did a lot of risk reduction. Cut down MMM due to the litigation risk and increased bond allocation massively and made equity portion much more conservative.
Whilst individual stocks can be extremely rewarding when they are on an upward run but disastrous on a downward trend due to the various reasons you discussed. Sage advise has often been given to never have more than 4% in any one stock and no more than 20% in any one sector. I think you mentioned some while back that you have holiday home in Maui, so hope all is ok and everyone safe. All the best Ian. Have a great weekend. T.❤
Great video breakdown and detail. And as always, I appreciate the transparency as many only post videos of their wins but not their losses. The insight and detail in risk is something I’ll use and consider in my own portfolio as well
NEE is the only Utility for me . I think its the best run one and the one that in a decade from now will be worth alot more . Sorry for your investment Ian and for the people of Hawaii . PGE was another that had a issue . IAN I liked your video its important for position sizing in a portfolio very important in order to avoid headaches and being too concentrated in certain positions . PEP and KO are 2 of my favorite companies combined both are 5-6% Max of my portfolio.
I fairly certain Maui will be declared a Federal disaster area. (HE) will get a piece of that Federal Rebuild money to get those power lines back up. Maybe a new power plant. That will help their finances. Especially when the customers get hooked back up. It's a utility. It has lots of state local and Federal governments propping it up. I gambled and doubled my shares. I don't have much in it. Maybe 2 percent and that was before the price collapse. I think they will grow their way out. I'm sure the governments will insist on new management though. I'm ok with that. I'll wait. I'll watch.
First off thank you for sharing, well i sold out of all my positions over the last 3 weeks and decided to get the temporary 5.26% yield in the money market and just watch what interest rates continue to do. I strongly feel that they will remain high for some time. With that said at some point if things change I will DCA back into dividend stocks but not keep any holding with over 3% of overall portfolio. I see risk factors with the overall national debt, conflicts with China and with the war in Ukraine, the inflation rate is still high and wages seem to not keep up , the amount of consumer credit card debt hitting 1T with school loans having to start to be paid soon. There is news that more people are borrowing on their 401K's to make ends meet. So there are many risks in my opinion. Also the market has been in a strong bull run this year and what goes up has to come down at some point.
I try to keep all individual stock below 5% of the total portfolio. Still hurts when one takes a dive though. I got killed on AAP earlier in the year and it still stings. It was a dumb investment anyway as I broke the rule of investing in a company you don't care for.
Ian, with the stock cut in half from around where you bought, have you considered averaging down? I know there is big risk in doing this but if they don't go bankrupt it may prove to be a smart move over the long term....I have a similar investment strategy as yourself (invest for dividends) I currently have 206 holdings, no one position is over 4% of my total portfolio with the exception of apple @ 9%. People say I am crazy for holding 206 positions and i often think I am sometimes lol but with all the risk associated with big businesses today I honestly feel like it protects me more then it hurts me. Lions share of the portfolio are large cap big well know businesses. What are your thoughts on having such a large portfolio of holdings?
As you know similar events happened here in Northern CA with PG&E, the company suspended the dividend and it has not reinstated it as of today. Sadly, I see the same for HE, there are just too many lawyers out there. I know this is not just about the money, you and your family have a deep connection with Maui. 🙏
I had the same thought on oil and moved to VDE and AMLP to own all of them, instead of one of them. I'm thinking the same thing with utility stocks. I'm moving some utilities to VPU.
One risk I think is always present is government regulation (interference), specifically medical insurance, also the drug industry. And tobacco of course.
Amazing Video. Taking your highest conviction stocks and look at the downsides is a sign wisdom. Like Chalie Munger used to say: invert, always invert!
Thank you very much Ian...I appreciate your videos very much. I think however that you are paying too much attention to the media. Wildfire somewhere in the world in summer are nothing new. I think we live in a very peaceful and safe world (at least compared to history). After seeing your video on Friday I had a look at HE and immediately sold 10 put options at a strike of 10 for 3.2 $. At the moment I like both possible results at expiration in January : receive 1000 shares of HE at a total cost of 6800 $ or keep 3200$.
A stock can be cut in half for a number of reasons, but I view excessive valuation as a greater risk than litigation. A diverse portfolio of value oriented dividend companies has done well enough over the last decade to absorb one position plummeting. Losing 1.3% of portfolio value will be nearly replenished in a quarter of dividends. TBills are enticing at the moment, and may have their place, but they will not grow wealth in the long term. This reminds me of PCG, in that forest fires are a complex situation, and the utility company was made the scapegoat in the media for political and financial reasons. Ultimately people need power and the stock value of PCG has been recovering although the dividends have to be reinstated, but that will change eventually.
Do you believe there is an opportunity here with HE? From what I understand, they supply power to the whole state, they will need power. Is this one of those 'blood in the streets' moments?
Could they be filing for bankruptcy? And now they don't pay dividends anymore? How exactly does this work? Do you get this as extra shares then? And for how much time?
Hi Ian, Great content. Risk is always top of mind and I’m happy to hear you agree. I’ve owned SCHD for awhile and I am happy with it. Any thoughts of UMC ?
I used to hold individual stocks. I sold them all and put them in SCHD and VIG. The risk of owning 1 equity and it being a good sized percentage of your portfolio is just too risky. From a cash flow perspective, you might not be able to know what an ETFs div will be from one quarter to the next, but if a stock takes a substantial loss, you might not be able to recover it.
Hey Ian! I watch every video and love your content. I know you’re a dividend investor but have dipped a toe in growth stocks, (I still own Dutch bros). Just curious, what’s your humble opinion on something like PayPal right now? Especially under $60, is it a set and forget for the next 18-24 months then sell to buy more SCHD or a value trap? All the best!
Hi, hey can you comment or provide any thoughts on PFLT? They are a bdc making loans to growing companies. Would this be a good time to invest in them for their dividend or should they be avoided? Thanks in advance.
We were in Lahaina on vacation that same week. Fortunately, we got out of Lahaina on Wednesday, 8/9th through the back mountain route & made it to our scheduled flights that night. It happened during our last couple days of the trip, so we were really lucky! Our hearts go out to those being impacted by the devastating fires. We love Maui & have returned back every summer for the last few years. We will continue to support Maui through donations & will come back to visit. Sorry to hear HE stock is down so drastically! If you are still holding the position, it’s just unrealized loss so hopefully, it’ll move back up or neutralized once everything is settled. 🤞Good luck! I’ve been building my position in SCHD & still holding onto 3M. Been buying stocks every week, especially during the down market. Thanks for sharing this video!
Thank goodness you got out ok! Like you, we try to visit each year. We plan to continue to support via donations/visits. Wishing you all the greatest!!! (Disc: I'm long HE and SCHD)
if you over diversify this happens you don t reduce risk you increase it , having your stocks paid for by youtube income means you had zero risk but what about your subscribers does it matter if they lose money cos they believed " i have 508 stocks" was a great idea for them , not just a great youtube earner?
I was wondering when you would do a video on Hawaiian Electric. I recently sold Duke Energy, there is too much risk in Utility stocks for me. I really like SCHD and VOO.
I too have HE...I suspect they will file bankruptcy down the road. I am thinking of selling one of my stocks with a large capital gain and the sell HE for a loss to wipe my gains to avoid paying taxes to on my capital gains.
I am afraid, in the near term, 1-2 yrs, equities in general will be at risk. Regardless of your asset type, SCHD, or a bundle of individual stocks, the risk remains, for all the reasons you listed, plus the Fed is still fighting inflation adding more downward pressure. You either completely sell out and wait to re-enter once the storm has passed, or you evaluate your positions for their ability to survive and pay dividends and accept that the stock value may be reduced but your dividend income remains stable. And isn’t that why we bought what we did…for the income stream not capital growth?
Fabulous points! I agree that the next 1-2 years could be quite crazy. And, yes, totally a great point that dividend investors buy for yield (not equity appreciation, although that's a nice bonus). Always good to keep that mindset in context. Unfortunately, with HE, I do believe that the dividend could be at risk here. That said, it's too early to tell what will happen. Wishing you all the greatest. Thanks for your thoughtful comment! (Disc: I'm long HE)
Sounds like you are catching religion! :) Kevin O'Leary says, "no single position more than 5%, no sector more than 20%." If you are investing for the primary objective of cap gains, this (and especially my) plan will often be considered as too much diversification. My objective is dividend income, and for that having smaller paychecks from more companies is a distinct and definite reduction in risk. My largest position is 2.9% of my portfolio. My second largest is SCHD at 2.5%. SCHD is increasing. The others are more in maintenance to keep them all in balance mostly thru adding but sometimes by selling. I've capped the individual stock positions at no more than 5% and most are around 1%. Yes, this means a lot of positions. Of course, adding SCHD added exposure to 100 companies. Good thing I don't own VTI now!
Great insights! Not changing religion completely, but certainly making a big shift (over time). Thank you for your thoughtful comment and longtime support. Wishing you all the greatest! (Disc: I'm long SCHD)
Well. You can’t do much about hawaii. That is simply bad luck. I don’t agree with your logic of transforming that misfortune onto starbuck, mcd, pep… etc. But yes, long term holding is supposed to be good over the long run… but it is very true and sad that I bought stocks back in 2021 and then still down 10-20% on 2023. Some I make $100-200 after 2 years of holding through the pain. But I traded short term on Carnival in June for just 1-2 weeks and yet I made a whooping 20% gain of over $1000 profit. Feel like it is just better be trade swing short term nowadays…
don't own this stock but I am sorry for your loss but more importantly sorry for those affected by this tragedy as for SB I won't worry too much about this stock yes if China keeps slowing down it will have a effect on it's stock price but this is not a permanent condition and maybe the losses occurred there can be offset with gains else where this is a international stock after all I have been investing into ETFS over the last 3 years this has gives me confidence that I won't lose everything I invested but also gives me the courage to invest more into risky investments when I see them on sale
tbh your point about pepsico is utterly moronic and nobody should take you seriously. some theoretical lawsuit that hasn't been filled isn't a legitimate risk
Great point! I do know they settled, I just assumed that more lawsuits could come their way (such as ones internationally). I am not sure if the settlements put an end to all possible PFAS-related litigation, or just the lawsuits at hand. I tried to search on-topic, but could not find a definitive answer yet. Wishing you all the best!
I got in very low many years ago in the $20s. (Now it has tanked below that level.) My yield-on-cost was nice due to low purchase price, and I used it to reliably pay bills. Now, of course, the dividend could be in question. (Disc: I'm long HE)
IMPORTANT ANNOUNCEMENTS:
Thanks for watching! Please don't forget to "like" and "subscribe". Please let me know in the comments below what you think about my simplified dividend stock buying strategy!
HELPFUL RESOURCES:
I now own the popular dividend ETF, SCHD. Learn about my experience in the following videos:
Video 1 (Should I put it all in SCHD?): ua-cam.com/video/dqQsf8Dg7a0/v-deo.html
Video 2 (briefly cover SCHD in this one too): ua-cam.com/video/6PGFow-qTTE/v-deo.html
PPC IAN INSTAGRAM:
I'm sharing some great content over on Instagram. Check out my Instagram stories and reels. I'm @ianlopuch: instagram.com/ianlopuch/
CHECK OUT MY PATREON (Portfolio Updates Are On Corner Patreon Tier):
I'm sharing exclusive bonus content over on Patreon! I offer two tiers: Backyard Patreon and Corner Patreon.
My Backyard Patrons see my stock trades, each accompanied by a blog post write-up. They also have access to 50 historical Patreon-exclusive videos.
In addition to all Backyard Patron perks, my Corner Patrons also have access to my complete dividend stock portfolio (% allocation to each position) AND my complete bond portfolio (% allocation to each position). They additionally enjoy exclusive portfolio update videos, Corner Patreon virtual meet-ups, an exclusive Discord server, and more.
Head on over to Patreon to join today: www.patreon.com/ppcian
PPC IAN EMAIL LIST:
Join my email list today for helpful updates, and a look at some of my historical dividend stock portfolios: www.ppcian.com/my-complete-dividend-stock-portfolio/
PPC IAN TWITTER:
I'm always sharing fun updates on Twitter.
Here's my dividend investing Twitter (I'm @ianlopuch): twitter.com/ianlopuch
COOL DIVIDEND INVESTING MERCH:
I offer some really amazing dividend investing merch: teeshirts, hoodies, mugs, and more! The designs are super stylish and on-point for the dividend stock investing community. Each purchase supports my UA-cam channel: teespring.com/stores/ppcian
Thanks so much, everyone, for your support. I hope you enjoy the video today!
(Disclosure and Disclaimer: Please see video description for all disclosures and disclaimers.)
Ian! I’m starting to get worried about stocks! What should we do?! 😮
@@kevinmendoza4402 Read my comment.....
@@guitarnine The problem with Yan is that he doesn't stay with his original system. For 2 years it has changed constantly. Before he had started investing in dividend stocks and this for years, then he started to be interested in cryptos, then in government bonds, then in ETFs and now in his latest video again in the dividend stocks. In his private life he changes jobs, homes and states. There is a problem in his life that he does not explain to us.
Changing your mind all the time is a recipe for sure disaster. It’s conservatism that wins when we invest. His solution would be to reduce each position to 5% max, sell monthly calls at 30 deltas against his positions and buy a long leap put for his positions in danger and internationalize his positions (a mix of US and Europeans to buy on their respective stock exchanges through Inter Active Brokers which is very practical for buying European shares) and to sell a part when a position is at the highest and reinvest the amount of the sale in the position which is at the lowest . But hey, for as long as I've been saying it...
Goes to show that there are ZERO equities without risk. Some are lower on the “Risk-o-meter” spectrum, but any business in any sector can collapse overnight for thousands of reasons.
Exactly why diversification is important and ETFs can provide a safer level of risk.
Always appreciate the thoughts and videos, Ian.🙌
With how fast the world is changing I'm considering selling all of my individual stocks and putting the money in index funds. That's where most of my money is anyways.
Honestly, when I saw HE tank, I considered buying a few shares. I bought some Target when that tanked. I think as long as you are a long term investor not a trader you'll be alright.
That's my take, more long term investor here also. I heard dont let a good disaster go to waste as bad as that sounds. It's essentially buying when something tanks then taking the risk they will climb out of it and get back on their feet.
Hey Ian, thanks for the video! I've been rolling over 4 week T-Bills, returns are over 5%. I'll keep doing that for the time being. God bless, my friend! Prayers out the those affected by the fires.
Appreciate your honesty and transparency Ian. All the best in your investing journey!
I am slowly selling off riskier NASDAQ positions to invest in SCHD. Losing a 5% chunk is definitely a big deal when you're closing in on retirement! (Which is where I am at now). So sorry to hear of your Hawaiian utility stocks!
Thank you for posting this video. My thoughts go out to everyone that was affected by that fire. I hope everything returns back to normal soon.
I have about 70% of my dividend portfolio invested in SCHD and VOO combined with 25 dividend stocks making up the last 30%. Thanks for the video Ian
Schd is rubbish and will Always be
When I heard about Hawaiian Electric being involved, my first thought was actually "oh no that was one of Ian's" >.< Sadly it feels like utilities are a lot riskier than we all thought. Concentration risk does scare me a bit, since I own a lot of S&P 500, which is pretty heavily weighted at the top. It's almost more like the S&P 20.
Thanks for sharing. I agree with you that even the S&P 500 involves a concentration of risk! That is a great point. So much to think through these days. (Disc: I'm long HE)
Thats why i am investing in RSP equal weighted S&P 500 but still have some SPY so i can sell covered calls.
This is the risk of market cap weighted indexes. The trick is to look at the top 10 or 20 of each index you invest and see if you are double dipping in a particular group of companies
The litigation risk is usually extremely overstated and I believe for Hawaiian Electric the assumption is that they were negligent in mitigating fire risk by removing dry grass (fuel for the fire). Then the other risk is if their distribution system ignited the fire. This is why electric utilities need to bury their wires to avoid this risk.
Pray for all the Hawaiians affected 🙏💔🇺🇦🇺🇸
Great video. Between Montana Power, Scana, PG&E and now HE utilities have proven to be riskier than many believe.
Hey. Always look forward to your videos. You do a great job of explaining things for rookies, but still teaching folks that are solid in portfolio structure. What I would do if I were you, with what I think your portfolio sizes, I would take all of the stocks that I have 100 shares on and sell cover calls against them. One of the risks of selling covered calls is you can lose your shares if the stocks rise above the price, you agree to sell them at, However, I don’t think this will be a problem for you. You have been in your portfolio for a very long time, you seem to know how your stocks behave regardless of market. I think you might be leaving money on the table by not using the strategy. With a stock like Starbucks, you could sell I’ll call maybe 10% higher than it’s worth for a months out and collect $.80 per share.
Sorry to hear about the loss, but I know you will recover and build back up! I also had a big loss this week, but my own fault for not following my game plan and getting too greedy!
I also did a lot of risk reduction. Cut down MMM due to the litigation risk and increased bond allocation massively and made equity portion much more conservative.
Hasn’t HE traded sideways for the last 5-10 years? Why even buy?
Whilst individual stocks can be extremely rewarding when they are on an upward run but disastrous on a downward trend due to the various reasons you discussed. Sage advise has often been given to never have more than 4% in any one stock and no more than 20% in any one sector. I think you mentioned some while back that you have holiday home in Maui, so hope all is ok and everyone safe. All the best Ian. Have a great weekend. T.❤
Great video breakdown and detail. And as always, I appreciate the transparency as many only post videos of their wins but not their losses. The insight and detail in risk is something I’ll use and consider in my own portfolio as well
NEE is the only Utility for me . I think its the best run one and the one that in a decade from now will be worth alot more .
Sorry for your investment Ian and for the people of Hawaii . PGE was another that had a issue .
IAN I liked your video its important for position sizing in a portfolio very important in order to avoid headaches and being too concentrated in certain positions . PEP and KO are 2 of my favorite companies combined both are 5-6% Max of my portfolio.
NEE has done quite well, but similar risks discussed in the video risks exist. NEE owns nuclear power plants after all.
I fairly certain Maui will be declared a Federal disaster area. (HE) will get a piece of that Federal Rebuild money to get those power lines back up. Maybe a new power plant. That will help their finances. Especially when the customers get hooked back up. It's a utility. It has lots of state local and Federal governments propping it up. I gambled and doubled my shares. I don't have much in it. Maybe 2 percent and that was before the price collapse. I think they will grow their way out. I'm sure the governments will insist on new management though. I'm ok with that. I'll wait. I'll watch.
Ian, I really appreciate your setup and detailed description with chapters and timeframes. Keep up the good work!
First off thank you for sharing, well i sold out of all my positions over the last 3 weeks and decided to get the temporary 5.26% yield in the money market and just watch what interest rates continue to do. I strongly feel that they will remain high for some time. With that said at some point if things change I will DCA back into dividend stocks but not keep any holding with over 3% of overall portfolio. I see risk factors with the overall national debt, conflicts with China and with the war in Ukraine, the inflation rate is still high and wages seem to not keep up , the amount of consumer credit card debt hitting 1T with school loans having to start to be paid soon. There is news that more people are borrowing on their 401K's to make ends meet. So there are many risks in my opinion. Also the market has been in a strong bull run this year and what goes up has to come down at some point.
I try to keep all individual stock below 5% of the total portfolio. Still hurts when one takes a dive though. I got killed on AAP earlier in the year and it still stings. It was a dumb investment anyway as I broke the rule of investing in a company you don't care for.
There is always risks involved in buying stocks. I too have lost money on stocks . As you say the risks are managed by diversification 😊. 😊
Hey how do you feel about O? It’s been down and a consistent monthly dividend stock
Great video, catching up on my UA-cam videos .
Thanks so much for watching!
Ian, with the stock cut in half from around where you bought, have you considered averaging down? I know there is big risk in doing this but if they don't go bankrupt it may prove to be a smart move over the long term....I have a similar investment strategy as yourself (invest for dividends) I currently have 206 holdings, no one position is over 4% of my total portfolio with the exception of apple @ 9%. People say I am crazy for holding 206 positions and i often think I am sometimes lol but with all the risk associated with big businesses today I honestly feel like it protects me more then it hurts me. Lions share of the portfolio are large cap big well know businesses. What are your thoughts on having such a large portfolio of holdings?
Great video Ian. I care more about my number of shares, not the price it is selling at currently.
As you know similar events happened here in Northern CA with PG&E, the company suspended the dividend and it has not reinstated it as of today. Sadly, I see the same for HE, there are just too many lawyers out there. I know this is not just about the money, you and your family have a deep connection with Maui. 🙏
My taxable portfolio is Dgro and Schd 50/50. My 401k and Roth IRA is fxaix. I keep it super simple
This company not going anywhere bro.
So many insights baked in here, thank you Ian... Sending another email your way now for the Masters of the Market gig...
Can sbux start investing in India or is instead of china? I think i would be more interesting for me
I had the same thought on oil and moved to VDE and AMLP to own all of them, instead of one of them. I'm thinking the same thing with utility stocks. I'm moving some utilities to VPU.
One risk I think is always present is government regulation (interference), specifically medical insurance, also the drug industry. And tobacco of course.
Let's be honest. If Altria hits a 10% yield- how can you pass that up?
Bti you mean? 😉
Amazing Video. Taking your highest conviction stocks and look at the downsides is a sign wisdom. Like Chalie Munger used to say: invert, always invert!
You only lose money if you sell, and then I’d call it “cutting your losses”
That is true. Wishing you a great one!
@@ppcianbuy more
Thank you very much Ian...I appreciate your videos very much. I think however that you are paying too much attention to the media. Wildfire somewhere in the world in summer are nothing new. I think we live in a very peaceful and safe world (at least compared to history). After seeing your video on Friday I had a look at HE and immediately sold 10 put options at a strike of 10 for 3.2 $. At the moment I like both possible results at expiration in January : receive 1000 shares of HE at a total cost of 6800 $ or keep 3200$.
Ian what you think about T-Bill etfs like Bil and Sgov
Hello from Sweden! Of course there are risks with stocks, but if you don't take risks in life, you won't get anywhere!
Why anyone would want to invest in HE? A loosing stock, including the dividend for the past 10 yrs.
SPY is the best dividend ETF of all time.
I’m starting to get worried about stocks! What should we do? 😮
@@kevinmendoza4402 DCA into SPY every month.
@kevinmendoza4402 just keep dollar cost average into them and just put most your money into etfs
VTI has better dividend growth.
A stock can be cut in half for a number of reasons, but I view excessive valuation as a greater risk than litigation. A diverse portfolio of value oriented dividend companies has done well enough over the last decade to absorb one position plummeting. Losing 1.3% of portfolio value will be nearly replenished in a quarter of dividends. TBills are enticing at the moment, and may have their place, but they will not grow wealth in the long term. This reminds me of PCG, in that forest fires are a complex situation, and the utility company was made the scapegoat in the media for political and financial reasons. Ultimately people need power and the stock value of PCG has been recovering although the dividends have to be reinstated, but that will change eventually.
Do you believe there is an opportunity here with HE? From what I understand, they supply power to the whole state, they will need power. Is this one of those 'blood in the streets' moments?
could this be a buying opportunity, Ian? as they say, do the opposite of the masses...
Could they be filing for bankruptcy? And now they don't pay dividends anymore? How exactly does this work? Do you get this as extra shares then? And for how much time?
Treasuries vs brokerage cd's
You buying more HE stock?
Hi Ian,
Great content. Risk is always top of mind and I’m happy to hear you agree.
I’ve owned SCHD for awhile and I am happy with it.
Any thoughts of UMC ?
I used to hold individual stocks. I sold them all and put them in SCHD and VIG. The risk of owning 1 equity and it being a good sized percentage of your portfolio is just too risky. From a cash flow perspective, you might not be able to know what an ETFs div will be from one quarter to the next, but if a stock takes a substantial loss, you might not be able to recover it.
Imho you carry too many stocks, I’ve decreased my exposure to weak companies, like MMM and MO and such. Good luck.
Ian,will you update your view of HE?
Hey Ian!
I watch every video and love your content.
I know you’re a dividend investor but have dipped a toe in growth stocks, (I still own Dutch bros).
Just curious, what’s your humble opinion on something like PayPal right now?
Especially under $60, is it a set and forget for the next 18-24 months then sell to buy more SCHD or a value trap?
All the best!
Hi, hey can you comment or provide any thoughts on PFLT? They are a bdc making loans to growing companies. Would this be a good time to invest in them for their dividend or should they be avoided? Thanks in advance.
We were in Lahaina on vacation that same week. Fortunately, we got out of Lahaina on Wednesday, 8/9th through the back mountain route & made it to our scheduled flights that night. It happened during our last couple days of the trip, so we were really lucky! Our hearts go out to those being impacted by the devastating fires. We love Maui & have returned back every summer for the last few years. We will continue to support Maui through donations & will come back to visit.
Sorry to hear HE stock is down so drastically! If you are still holding the position, it’s just unrealized loss so hopefully, it’ll move back up or neutralized once everything is settled. 🤞Good luck!
I’ve been building my position in SCHD & still holding onto 3M. Been buying stocks every week, especially during the down market. Thanks for sharing this video!
Thank goodness you got out ok! Like you, we try to visit each year. We plan to continue to support via donations/visits. Wishing you all the greatest!!! (Disc: I'm long HE and SCHD)
Yep… the irony is that with all this risk, MO will probably be the least affected over the long run !
That is the irony, for sure. Thank you for sharing! (Disc: I'm long MO)
if you over diversify this happens you don t reduce risk you increase it , having your stocks paid for by youtube income means you had zero risk but what about your subscribers does it matter if they lose money cos they believed " i have 508 stocks" was a great idea for them , not just a great youtube earner?
Thank you for this very honest presentation about holding individual stocks. 👍🏼
Thank you for your kind words!
That sucks, but that's also the risk of owning your own business, no risk no reward.
Buying opportunity?
You haven’t lost until you sold. You were there through the good time to add more at the bottom for your dividend interest
Hey Ian! Keep up the good stuff. Would be cool to have a live video some day. Thoughts on Happag-Loyd and Campbell soup?
Jeez. Are you still long HE? Things are getting really bad now with no more dividends.
I was wondering when you would do a video on Hawaiian Electric. I recently sold Duke Energy, there is too much risk in Utility stocks for me. I really like SCHD and VOO.
Thank you for sharing! (Disc: I'm long HE, DUK, and SCHD)
Can you do a video on hawaiian electric. I think over time they will be fine.
Thank you sm for your videos Ian
I too have HE...I suspect they will file bankruptcy down the road. I am thinking of selling one of my stocks with a large capital gain and the sell HE for a loss to wipe my gains to avoid paying taxes to on my capital gains.
I want to invest in SCHD, but it's expensive right now. I am waiting for a broad, sizeable pullback.
I am afraid, in the near term, 1-2 yrs, equities in general will be at risk. Regardless of your asset type, SCHD, or a bundle of individual stocks, the risk remains, for all the reasons you listed, plus the Fed is still fighting inflation adding more downward pressure. You either completely sell out and wait to re-enter once the storm has passed, or you evaluate your positions for their ability to survive and pay dividends and accept that the stock value may be reduced but your dividend income remains stable. And isn’t that why we bought what we did…for the income stream not capital growth?
Fabulous points! I agree that the next 1-2 years could be quite crazy. And, yes, totally a great point that dividend investors buy for yield (not equity appreciation, although that's a nice bonus). Always good to keep that mindset in context. Unfortunately, with HE, I do believe that the dividend could be at risk here. That said, it's too early to tell what will happen. Wishing you all the greatest. Thanks for your thoughtful comment! (Disc: I'm long HE)
Will you buy shares of HE, if the price drops to $9?
Just stop …the lesson is never buy individual stocks …just get schd …do not try to be greedy
I’m adding HE - 10% of my portfolio.
What money is being invested if you are using your dividends?
Waited on this video!!!!! Thanks for posting.
The biggest risk to yielding equities is the rising bond yields.
Sounds like you are catching religion! :) Kevin O'Leary says, "no single position more than 5%, no sector more than 20%." If you are investing for the primary objective of cap gains, this (and especially my) plan will often be considered as too much diversification. My objective is dividend income, and for that having smaller paychecks from more companies is a distinct and definite reduction in risk.
My largest position is 2.9% of my portfolio. My second largest is SCHD at 2.5%. SCHD is increasing. The others are more in maintenance to keep them all in balance mostly thru adding but sometimes by selling. I've capped the individual stock positions at no more than 5% and most are around 1%. Yes, this means a lot of positions. Of course, adding SCHD added exposure to 100 companies. Good thing I don't own VTI now!
Great insights! Not changing religion completely, but certainly making a big shift (over time). Thank you for your thoughtful comment and longtime support. Wishing you all the greatest! (Disc: I'm long SCHD)
Agree on the need to be diversified. I am copying Ronald Read who had his $6.8 million nest egg split across 96 dividend paying stocks.
I have bought some cumulative preferred stocks last year
Well. You can’t do much about hawaii. That is simply bad luck. I don’t agree with your logic of transforming that misfortune onto starbuck, mcd, pep… etc.
But yes, long term holding is supposed to be good over the long run… but it is very true and sad that I bought stocks back in 2021 and then still down 10-20% on 2023. Some I make $100-200 after 2 years of holding through the pain. But I traded short term on Carnival in June for just 1-2 weeks and yet I made a whooping 20% gain of over $1000 profit. Feel like it is just better be trade swing short term nowadays…
Glad you're doing well. When I saw Maui burning I immediately thought of you and the fam. 👍
Thanks for your kind words and longtime support! Wishing you and yours all the greatest, Chris! Praying for Maui!
Was waiting for this video
don't own this stock but I am sorry for your loss but more importantly sorry for those affected by this tragedy as for SB I won't worry too much about this stock yes if China keeps slowing down it will have a effect on it's stock price but this is not a permanent condition and maybe the losses occurred there can be offset with gains else where this is a international stock after all I have been investing into ETFS over the last 3 years this has gives me confidence that I won't lose everything I invested but also gives me the courage to invest more into risky investments when I see them on sale
Always appreciate your thoughtful comments! Thank you! (Disc: I'm long SBUX)
I always like your content Ian ....... Keep it up
Thank you for your kind words!
HE might offer some value at these levels, though the risk is also quite high with their legal troubles
I agree on both points. It's very difficult to pinpoint the risk. (Disc: I'm long HE)
Hello, have a great day everyone
tbh your point about pepsico is utterly moronic and nobody should take you seriously. some theoretical lawsuit that hasn't been filled isn't a legitimate risk
I appreciate your honesty
Thanks for your kind words, and thanks for being first comment.
Ian! I’m starting to get worried about stocks! 😮 What should we do?!
There's definitely a lot of risk out there, these days. Many risks to consider in one's investing strategy. Wishing you all the best!
Good luck
Stay strong Ian!
Ian - Do you have plans of selling $HE stock at this time?
I do not. As of this time, I'm firmly holding. Of course, just sharing my personal situation, and not investment advice. (Disc: I'm long HE)
SCHD is rebalanced quarterly so AMGN will be less than 4% soon as no single stock can represent more than 4% of the fund. Thanks Ian!
I did not realize that, Tim. Thank you for sharing that insight! That is really good, indeed. (Disc: I'm long SCHD)
Thank you for your humanity, Sir.
Always appreciate your comments! Wishing you all the greatest!
great advice, as always
The struggle is real, keep your head up.
Thank you for your kind words.
Nice video 😊
Main is a great stock imo
I thought 3M already settled the forever chemicals suit? Just the earplug suit pending? Can't remember.....thanks
Great point! I do know they settled, I just assumed that more lawsuits could come their way (such as ones internationally). I am not sure if the settlements put an end to all possible PFAS-related litigation, or just the lawsuits at hand. I tried to search on-topic, but could not find a definitive answer yet. Wishing you all the best!
Oh true…thanks
So you stopped putting out videos on the reg huh?
Buy more HE is not going anywhere.
Not sure why you held on to HE for so long. Can't be for the dividend compounding! It's increased a few pennies.... Very obscure holding.
I got in very low many years ago in the $20s. (Now it has tanked below that level.) My yield-on-cost was nice due to low purchase price, and I used it to reliably pay bills. Now, of course, the dividend could be in question. (Disc: I'm long HE)
Hahaha
No comment….Joe