Good information - as always. As a newly retired 62 year-old I am shifting more of my growth stocks to dividend stocks for a passive income stream. I have O but will research the others you mentioned and potentially add to my portfolio. In addition to these I would consider PSA (Public Storage). Current yield 3.48% but comes with good growth potential.
Great video, Matt. I own several, EPR, SPG, and O. I noticed all pay ordinary, also known as non-qualified, dividends, which are usually taxed higher than qualified dividends. Do you own your high dividend stocks in a ROTH IRA or in a taxable account? Personally, I have both - taxable and ROTH IRA - and I try to keep all the high dividend stocks in the ROTH, and stocks with qualified dividends, like banks, utilities, tech, in the taxable account. And again, thank you for the great videos.
Everyone is different and have different perspectives on which stocks are the “best”. I watched other UA-cam videos about dividend investing and there are so many viewers advocating buying the higher yielding dividend stocks. IMHO, it is better to have long term mindset when investing in stocks, and that total return (capital appreciation plus dividends) is most important. Many people have short term thinking and, thus, are attracted to high yield and monthly paying dividend stocks. This is especially true for younger investors who have a long time before retirement. I guess short term thinking is ok, depending on your goal. However, to build long term wealth AND income, it is better to build a portfolio of stocks that have both high CAGR capital appreciation and are paying annually (high CAGR) increasing dividend income, which can be reinvested (or spent depending on your needs). Here is an example. There is much hype around Realty Income. It's dividend yield is high (about 5.1% as of today) and it pays dividends monthly. Compare this to a more mundane Texas Instruments, whose dividend yield is about 2.6%. Realty Income is a dividend aristocrat (25+ years of annually increasing dividends). Texas Instruments is no slouch at 19 years of annually increasing dividends. Both companies are nice stable, long existing companies. Realty Income pays a much higher yield dividend. However, Texas Instruments has a much higher CAGR capital appreciation and much higher CAGR in dividend payouts. In other words, Texas Instrument's stock price has grown much faster/higher and grows its dividend much faster/higher than Realty Income (over the years). If $10,000 of each stock was purchased at the EOY 2023, which stock would have been the better stock to own? From a capital appreciation stand point (stock price alone) from EOY 2023 to today, Realty Income $18,274, Texas Instruments $48,636. You might think, well Realty Income has paid a much higher dividend. That is true in the first 5 years (til 2018). However, Texas Instruments from 2019 to 2024 has paid a higher dividend amount in dollars than Realty Income. Of course, past performance does not guaranty future results. There is nothing really that bad about Realty Income. It is a decent stock. However, for long term investors, there are others out there that will build more wealth over time. What most people do not take into account is the importance of dividend growth. You also must remember that a stock with a small dividend may still be paying a small dividend percentage-wise as time goes by as long as the stock is appreciating at a high rate. So, even if a stock has a small dividend percentage-wise, but is growing both the dividend and capital appreciation, over time, the dividend paid will be higher and the capital appreciation will be greater than a stock that has a higher initial dividend with a slower dividend growth rate and slower capital appreciation over time. This has a similar impact as compounding interest. It is compounding dividend growth. One other item is income taxes. In a taxable account, Realty Income dividends are taxed as non-qualified dividends, which is taxed as ordinary income. Texas Instruments dividends are qualified dividends, which is taxed at a lower rate. I would rather pay less income taxes.
Thanks, Matt, for your presentation on these five REITs. I own EPR, O and VICI. OUT is interesting but it has not grown its dividend for three years. Maybe that will change soon. Good stuff.
I own shares off O and VICI, and EPR is on my watchlist. I was curious about your thoughts on BDC stocks, such as MAIN or ARCC. Would really like to see a video on some of these if you have any thoughts on the matter…
I don’t understand why people invest in stocks with a share price that over the life has gone down could you maybe answer that or do a video on is there something there as to why to invest in those type of stocks *like OUT for example*
Nice picks with consistent dividends but there are other that pay well Name: black rock enhance div trust Ticker:BDJ ($8.70) per share Dividends: 8.38% Div per share: 0.06 Payment: monthly Own: 328 Reinvest: yes Cash per month $ 19.68 Money increase due to reinvesting Name: Oxford square capital Ticker: oxsq (price 2.91) Dividend: 14.43% Monthly dividend 0.04 per share Own: 749 shares Payment: $29 Reinvest: yes Money increase due to reinvesting Buy before they go up in price
Good information - as always. As a newly retired 62 year-old I am shifting more of my growth stocks to dividend stocks for a passive income stream. I have O but will research the others you mentioned and potentially add to my portfolio. In addition to these I would consider PSA (Public Storage). Current yield 3.48% but comes with good growth potential.
Great video, Matt. I own several, EPR, SPG, and O. I noticed all pay ordinary, also known as non-qualified, dividends, which are usually taxed higher than qualified dividends. Do you own your high dividend stocks in a ROTH IRA or in a taxable account? Personally, I have both - taxable and ROTH IRA - and I try to keep all the high dividend stocks in the ROTH, and stocks with qualified dividends, like banks, utilities, tech, in the taxable account. And again, thank you for the great videos.
Everyone is different and have different perspectives on which stocks are the “best”. I watched other UA-cam videos about dividend investing and there are so many viewers advocating buying the higher yielding dividend stocks. IMHO, it is better to have long term mindset when investing in stocks, and that total return (capital appreciation plus dividends) is most important. Many people have short term thinking and, thus, are attracted to high yield and monthly paying dividend stocks. This is especially true for younger investors who have a long time before retirement. I guess short term thinking is ok, depending on your goal. However, to build long term wealth AND income, it is better to build a portfolio of stocks that have both high CAGR capital appreciation and are paying annually (high CAGR) increasing dividend income, which can be reinvested (or spent depending on your needs).
Here is an example. There is much hype around Realty Income. It's dividend yield is high (about 5.1% as of today) and it pays dividends monthly. Compare this to a more mundane Texas Instruments, whose dividend yield is about 2.6%. Realty Income is a dividend aristocrat (25+ years of annually increasing dividends). Texas Instruments is no slouch at 19 years of annually increasing dividends. Both companies are nice stable, long existing companies. Realty Income pays a much higher yield dividend. However, Texas Instruments has a much higher CAGR capital appreciation and much higher CAGR in dividend payouts. In other words, Texas Instrument's stock price has grown much faster/higher and grows its dividend much faster/higher than Realty Income (over the years). If $10,000 of each stock was purchased at the EOY 2023, which stock would have been the better stock to own? From a capital appreciation stand point (stock price alone) from EOY 2023 to today, Realty Income $18,274, Texas Instruments $48,636. You might think, well Realty Income has paid a much higher dividend. That is true in the first 5 years (til 2018). However, Texas Instruments from 2019 to 2024 has paid a higher dividend amount in dollars than Realty Income. Of course, past performance does not guaranty future results. There is nothing really that bad about Realty Income. It is a decent stock. However, for long term investors, there are others out there that will build more wealth over time.
What most people do not take into account is the importance of dividend growth. You also must remember that a stock with a small dividend may still be paying a small dividend percentage-wise as time goes by as long as the stock is appreciating at a high rate. So, even if a stock has a small dividend percentage-wise, but is growing both the dividend and capital appreciation, over time, the dividend paid will be higher and the capital appreciation will be greater than a stock that has a higher initial dividend with a slower dividend growth rate and slower capital appreciation over time. This has a similar impact as compounding interest. It is compounding dividend growth.
One other item is income taxes. In a taxable account, Realty Income dividends are taxed as non-qualified dividends, which is taxed as ordinary income. Texas Instruments dividends are qualified dividends, which is taxed at a lower rate. I would rather pay less income taxes.
Thanks, Matt, for your presentation on these five REITs. I own EPR, O and VICI. OUT is interesting but it has not grown its dividend for three years. Maybe that will change soon. Good stuff.
I own shares off O and VICI, and EPR is on my watchlist. I was curious about your thoughts on BDC stocks, such as MAIN or ARCC. Would really like to see a video on some of these if you have any thoughts on the matter…
What about mortgage dividends stocks?
I don’t understand why people invest in stocks with a share price that over the life has gone down could you maybe answer that or do a video on is there something there as to why to invest in those type of stocks *like OUT for example*
you are 42 my gold advice to you is
Nice picks with consistent dividends but there are other that pay well
Name: black rock enhance div trust
Ticker:BDJ ($8.70) per share
Dividends: 8.38%
Div per share: 0.06
Payment: monthly
Own: 328
Reinvest: yes
Cash per month $ 19.68
Money increase due to reinvesting
Name: Oxford square capital
Ticker: oxsq (price 2.91)
Dividend: 14.43%
Monthly dividend 0.04 per share
Own: 749 shares
Payment: $29
Reinvest: yes
Money increase due to reinvesting
Buy before they go up in price