A lot of people think they should always be buying and selling something. That's a mistake. 99% of successful investing is waiting, learning, awareness/experience and getting extremely lucky with the market.
I totally agree, although coming into the market i missed the experience part, but my current trader helped me. She turned my 40k loss, made me 70k in a month, if not for her, i can't even begin to imagine....., she actually does most of my trading, to be honest.
@@greenquake11931Exactly, i will never go into this market without guidance, please who is this coach that helped you, can you possibly do a referral?.
P/E ratio is one of the most important stats IMO. A company may look excellent qualitatively and quantitively as you discussed these things, but if it's overpriced it MAY be worth holding off on purchasing it.
Agreed. The PE metric is very important to look at prior to building a position. I do think it’s just a small % of a bull thesis to go along with many other metrics.
@Albert Edwards depends...low P/E basically means for every share you buy at the time you buy..their earnings pre share(EPS) is high...so you buy at JPM at $137 there EPS is $10.7 your P/E is 137/10.7=12.8..you have to look at the sec median and if it’s a good/great company and it’s lower then the Median investor see it as buying it on a discount...other see a high P/E as ppl are willing to pay up for the stock like Amazon at a P/E of 90
@@fasteddy-fd3kr that depends on the revenue growth of the company. If a company is growing revenue by 50% every year then even a P/E of 100 is actually cheap.
Albert Edwards That’s a great question Albert. There is never a BEST PE to look for since calculating growth can be a very difficult thing to predict. It’s amazing how analysts miss their growth projections on a quarterly basis let alone a yearly basis. I learned that you don’t have to be scared of a very high PE (think Amazon over the years) or a very low PE in the single digits especially if a CEO has been replaced or the business model has changed with new growth in revenue streams. I do like comparing PE ratios within the sector and industry to see where my individual stock (company) falls in line to know if the PE is high or low on a relative basis! Enjoy your journey to Infinity my friend 📈🚀 It sure is a fun ride!
I have a bit of a limited income and expertise in the stock market (18yr old) so I mostly invested in ETF's to start with. While learning more about how to individually choose stocks. Now after watching your videos since June last year and doing research outside of UA-cam. I have moved more towards picking individual stocks that I really understand and have control over. Which shows in the difference in the returns I've made between the two :). Also, I want to thank you for encouraging etf's as a viable option. If not, I don't think I would be in the market since 8 months back. Back then I was too unsure to pick stocks myself and most investing content besides you seemed to disencourage ETFs. But I made the decision to invest in ETFs while learning about the stock market. Until I grasped more of it. Because of your content, which ultimately made me more money.
Just be cautious with individual stocks, while you had success over the last 8 months we were in a bull run and was really hard to not make money in general. Hell even the s&p was up like 28%, just not the norm year for anyone. Good luck and congrats on starting so young
Charles Duckworth III Great advice Charles! The stock market does go down short-term. That’s just a buying opportunity for the companies you researched fully and have a strong bull thesis in!
@@MRZEROTOINFINITY that's basically where I am right now. Dollar cost averaging in ETFs until I find opportunities for individual stocks I've researched. I try be honest with myself on what I understand and do not. :)
I am a technical analysis junkie, and i use it to find the best entry points. Having said that, i binge watch fundamental analysis guys like you and ppcian, and i greatly appreciate your work, as i dont know how to analyze financial statements. Thank you for your great work.
i sold all my Tesla stock with a +220% profit, i sold at (802$) and started my dividend portafolio. Thanks for your videos Joseph they help and inspire a lot!
When you look at seeking alpha's key data tab, you should look at the balance sheet to determine the safety of the dividend. It will show the current assets (which are used as collateral on any debt). You will also see any debt and shorter term liabilities. You can determine the total debt as a percentage of the equity. Those are metrics important to dividend sustainability. Next you need NEED to look at the cash flow statement. This is more important than the income statement. It starts with the net income line, and breaks down where the cash flow goes and comes from there. You can see how much debt is being added (or paid off). You see how much is paid in dividends (including the preferred stock). You see how much is paid for stock buybacks (or raised from stock issuance - like Realty Income does regularly). This can show you the total "shareholder yield" that includes the buyback and debt side of things. Here you also can see all of the company investments like capital expenditures, marketable securities (normally treasuries), Research and Development, etc. This is where you determine the amount of money that the owner earns year after year (dividends plus growth capex). I also recommend FAST Graphs as a tool to help you find the value and prices that you should look to buy at. Realty Income may be a great business, but you should note that its valuation is at all time highs or close to it. This is good for growth as they can sell shares at high valuations and make acquisitions. For the longer run though, they tend to trade about 20% lower than today's price. If the stock corrects, you will lose at least 20% as it resets. I would definitely wait for a higher yield from O. Stick with around 5% yield.
@@josephbonin2920 got unemployed due to covid. Used extra $600 to max Roth IRA for 2019 & 2020. Roth up 17% YTD and just crossed $30k, Taxable account up 9% YTD hovering around $8k. doing ok. You?
Hello Joseph, Can you also make detailed video about how dividend investments are taxed? Do you have to declare every dividend you received one by one? What are the tax rates? I am sure those are will really helpful to everyone has interest in dividend investment strategy. Cheers from Japan!
Do you not look at free cash flow or current ratio when looking for companies to invest in? For me, the amount of free cash and how much debt the company has is a big factor I consider for risk management to get my portfolio through the next long bear market.
Oh that’s quite easy. Payden has helped me build my portfolio over the years, and make profitable investments. Reach him on ... *Xanderpayden (a) g ma il. Com...* for further inquiries.
Well, Joseph Carlson decided to show up in my feed and I need to ponder on if I watch or wait? What am I talking about, of course I'm watching! Congrats on 81.6k subs now. This train ain't ever stoppin', just like those dividends!
Jo! I opened am m1 account thanks to you! Thanks for helping me realize I can get started on a very sobering task. Your an excellent educator. Tytytytytyty.
I have a lot of the same companies as you. One company that I have that I am surprised you don’t is Leggett and Platt. Strong dividend history, show and steady growth, and they own the patent on the bed spring. Curious if you have ever looked at it or considered it?
Hey Joseph, I have a question I’m hoping you can answer in your next video. You have inspired many people to get started investing, and starting a youtube channel, including myself. What or who inspired you to get started with dividend investing?
It's always good to remember what actually makes the stock market go up and down is other investors. The statistics themselves don't mater as much as what other people think of these statistics. This is why I like to take a psychological approach to try and determine if people will want to invest into a company in the future.
So I used to be an investment advisor and I used both to the highest degree technical analysis is great when pin pointing buy in's for more seasonal stocks like utilities and fundamental analysis is better all round for long term investments and essentially market shift. I'll give an example. One of my largest shares are Embridge a natural gas company in alberta canada as I normally deal with tsx, they do have a trend where in summers their stock normally goes down about 2-5% and in the winter it goes back up respectively. That is the technical analysis so best time to buy is summer theoretically. What cements the technical theroy is know that natural gas is normally used for heating homes in canada, and even more so government buildings, so when there is larger consumption for heating the company makes more profit meaning it makes most of it's revenue in the winter, and if there is a late winter like the current year the price will drop even lower than in summer in respect to less usage. That is how you are ment to blend the 2 analytics.
I look at the P/E ratio (or the net income and the price), and the book value (to manage risk). You really shouldn't ignore any of the two, both are essential.
I agree I think Tesla is a great investment and that fear of missing out is not a great idea to jump in. I know the fear of missing out is real! Notification Squad!
Hello Joseph, Can you explain why you invest highly on your taxable account rather than the ROTH. I'm sure you mentioned this in one of your videos. But if one were to save up and invest for a big purchase in the future. Which vessel is ideal to invest into? Thank you for the great info!
Quality (Btw you can get some of these in the form of numbers insider ownership/Insiders buying/Puts/calls/Short interest) + Quantity + Technical Analysis :) to max returns
With your investing style there’s only so much analysis that is actually valuable before you just have to focus on the long term and use your common sense. People like you and I sleep much better at night.
Amateur here. Appreciate very much what you and another UA-camr "Investing with Rose" have done recently on how to research companies. The only stock I have in Tesla right now is in a growth ETF. I am no Tesla hater either. In fact, Tesla right now would be the only car manufacturing company I would invest in if I were to invest in individual stocks (and asked which car company I would choose, if any).
Do you think we should always look at both the qualitative and quantitative aspects of the company before making a buying decision or do you think that if the numbers aren’t good then we should automatically not buy the company?
I really enjoy your video's. I completely disagree with you about technical analysis. Case in point the email about losing 22k in and oil stock. You can look at any company on a chart and see so much. Do a 5 year chart, daily candle, with 3 simple moving averages, and you can see so much. The best things you can see are if a company is overextended (being the price is far from the moving averages). Whether the company is on an uptrend, a downtrend, or in a consolidation. I don't disagree with your method, but using your method with technical analysis is a better analysis.
looking at how many people bought Tesla for the first time these past days is a technical indicator just like looking at volume. Saying afterwards Technical analysis is not helpful is an oxymoron. There are a ton of technical things people need to consider when making investing decisions such as price and shares outstanding they all tell a story in their own way.
Technical most of the time tells a very short time story....(Even 1 Year movement is short time span for a person who is buying stake at a particular company theoretically for a life time.) At best, it can help you with the entry time within a month or so to come.
I own 43 stocks in 22 different industries. The majority of my stocks are household names except for maybe PNC Bank, my reits, and my bonds. Most of my stocks are market leaders, large multinationals, have been giving dividends for decades, buy and sell from my other stocks, or otherwise are in strong industries. I don’t really put that much thought into my picks because I’ve grown up knowing most of these companies and/or used them/studied them in college.
Great breakdown of your key analysis points, Joseph. Your content is continuing to offer practical ways for new investors to begin their investment journey. Thank you, and keep up the wonderful work. -John from Taiwan
You should do a review of Phil Town's book, "Invested." Teaches you 3 different valuation methods and is an easy read. It's good to know what your stock idea is actually worth, not just that the yield is high today.
Hello Carlson, i follow you channel and it is pretty good. But one question, if you are focused on dividend companies, why you dedicated so much time today to Netflix which does not pay dividend? Thanks, Rogelio.
I strongly disagree.. I love technical analysis to see where to buy, instead of blindly add.. It could safe you so much money.. perhaps years worth of dividends. Keep adding on dips get to your goal much faster then just adding blindly each month, but thats my opinion. But i also really like to use fundamental research and common sense.
True but in the long run, it’s not as big of a deal to worry about every little thing. But mainly people don’t have time since it’s not their full time job to watch the stock market.
@@Krogzaxants you can use technical anaylis to buy and sell but it doesnt give the trader an advantage because on a uptrend signal the sucker . Thats me , will buy and the stock will go down with in minutes or hours . It might take a couple of days but to go below 8% and more till i sell to stop my loss . My opponent just got in one case, 12% of my capital . When i sell immediately, almost immediately the price reverses to continue with the uptrend. I happens every time . When you say " you got to time the market, i know you have never bought or sold a stock much less actually tested technical analysis. Should i give you the benefit of the doubt . Nope . Everybody is promoting trading and over and over again an actual executed order reverses the trend big or small order.
Hey Joseph, I really loved your analysis on picking up a stock or company to invest in for a good period! Just keep on doing these kind of analysis and help me and others grow their investment! Really loved it♥️♥️♥️
Yup. That’s what happens when the stock market keeps going up 📈 Nothing beats seeing your money grow by 29% like the year we just had! Bull market just continues on. Will be interesting to see when things turn like Q4 of 2018.
Ryan I have my eye 👀 on the 50-day. In this case, around $500 per share based on the technicals. That’s an important support line in my opinion. Tesla may be a fantastic buying opportunity if it falls that low! Especially if you believe in the company long-term👍📈
Schmeckel Knight depending on how much of your portfolio that is. I would add it in over time. But maybe not a year. Maybe 3-6 months? I’m in the same boat with the 10k and I am averaging it in over 3-6 months while continuing my normal deposits.
Wow! Amazing content. Thank you for being so transparent and explaining things so simply. Also, great dialogue and talking. You are very easy to listen to. Again, just awesome. I subscribed. Thank you
I totally agree on most of it but technical is still good for finding a good buy point to maximise returns and if the trends down you might want to be patient and capitalize on it for max returns fundamentals are more important but technical is still handy
I knew when i woke up this morning at 5am i would find a jewel. This video is great,its common sense yes but it gave me more ideas and another way to research when i do or don’t have time. I applaud you.
It's interesting to hear that you believe in diversification. I'm personally on the fence about it. The great investors like buffet and munger don't diversify as much as you do. And those guys are billionaires. They believe in picking a few great companies, that you are as certain as you can be about them, and holding onto them for as long as it's reasonable to do so. But at the same time, to me, it makes sense to diversify because if one industry or company that you are invested in does bad, at least you have the others to fall back on. But then again if you had only picked a few great companies and were optimistic about their future performance over the next 10 years or however long you plan to hold, why would you diversify? I've been looking and I haven't found anything that convinces me one way or the other. What're your thoughts on this?
Joseph I was wondering, with your strategy being dividend income and less on asset appreciation, how do you deal with the thought that if you'd instead invested a certain amount of money into non-div paying companies like Netflix and Amazon, the appreciation itself would have been more than had the same money been put into a div-paying stock during the same amount of time? Say, buying NFLX instead of O in 2016 would yield a 232% gain vs. a 52% gain, respectively. I guess I'm asking less how you feel about it and more on does that ever factor into your strategy at all? I know you dislike FOMO, but does that give you FOMO, honestly?
he doesnt care about the growth or appreciation so much because he is not gonna sell it or buy it again. that would be a different game. he is aiming for dividends because it will become a passive income to him when he gets older and does not even wanna look at it anymore. he will just be receiving salary like a boss than holding a stock and looking at the appreciation and thinking if you should sell it or not to take the cash.
Thanks for your breakdown of how you research companies, I've been waiting for that! One question though... How do you find a company to research in the first place? I have been looking at companies yourself and others have invested in, but I don't really know how to find a company by myself. Thanks for the great content! Law
I’m a fan of social awareness online and offline to get a research thesis started. That’s just me though. Everyone has their method to find stocks that will build your money 💰
Hi Joseph, I have been watching your channel for the past year and have really learned a lot from you. I find your insights and commentary to be very thoughtful, interesting, and helpful. You make a lot more sense compared to some of the other stock market influencers on UA-cam. You explain things in a way I can easily understand. Since I started watching you I’ve rebalanced my stock portfolio to mostly dividend paying stocks (80%). I have a question regarding REIT stocks. I know you like REITs because you talk about them a lot. I want to invest in REITS because their dividends are higher than the average stock on the S&P. But I discover that they are taxed differently from the other stocks. REIT stock dividends are taxed as ordinary income instead of the 20% capital gains you would have to pay in taxes from regular stock dividends. Currently, my ordinary income tax (IRS) level is at 37%. So this means that the taxes I would be paying on a REIT stock dividend will be 37% and with a regular stock dividend, my taxes would be 20%. Am I correct? Based on what I just said it makes no sense to me to invest in a REIT stock and I should just invest in a stock that pays a dividend similar to the level of a REIT stock. I would save 17% in taxes. Am I right? What are your thoughts? I appreciate your insights and keep up the great work you’re doing! Chow299
Tesla has a forward PE of around 100, with expected growth of 50% per year... That’s without the autonomous robo taxi thing being accounted for at all. That’s why people are scrambling to buy it.
Seems to me fundamental is the smarter way to invest being more concrete while technical is more speculative and guesswork. Like another viewer said earlier, P/E ratio is a good indicator among many. This is exactly the type of channel I was looking for to learn more information about investing before I actually start. Thanks for your insight
Hi, Joseph love the show. Quick check: Realty Income at a 60+ PE is really a buy? Don't remember excactly on which video but I remember you considering it overpriced some time ago. (correct me if I'm wrong) thanks for your time.
@@lularocha understood no worries, REITs have their own set of metrics that are useful in evaluation because their corporate structure is so different than how a common corporation is structured.
@@JMacInvesting recently started to study REITs (already have a little bit of LTC, EPR, SPG and STOR) and if may ask, what website would you recommend for evaluating and comparing data such as P/FFO, thanks for your help
@@lularocha seeking alpha dot com in the past 6 months added ffo and p/ffo for REITs so its my go to place for REITs for sure the NAREIT website is also a great place to learn all things REITs as they are a REIT index provider
I'm curious why you aren't putting more energy stocks or energy mlps? If you are looking for dividends in your portfolio, I would have expected to see some of these ideas here.
I just started my long term div growth acct so only 1 here and there but diversified as I build it up. Since most have div and aristocrats blue chip companies I plan to hold unless they get rid of div. I'm in for the the long haul and think over 20+ yrs they will rise. I weekly add 250 to stocks down at the moment and plan to continue this path. Again I'm new less 6mo and diversified 1st to pick what I want to grow. Some say start with only couple and build up but I think this way I can have more options or sectors to add at any timing. Thank you for your experience and opinions.
Hi Joseph, Thank you very much for presenting this show. I really enjoy watching every single episode because I am gaining very valuable information about Dividends investing through your show and lots of reading on my end. Finance is a dry topic! but you make it easy to digest with the way you present the contents. I am following your strategy with my portfolio and I hope one day on the long run I look back and realize that this is the best financial decision I've ever made . Keep the great work!
I have to disagree with you about investing in oil companies. Short term they’re going to be struggling with lower oil prices, but in 3-5 years that’s not likely to be as much of an issue as developing countries continue to put people on the road and ramp up energy usage. Also all the major energy companies are dumping a lot of money into green energy products, and are beginning to adapt to changing consumer demands. I think holding onto individual companies such as BP or Shell over the next 5+ years would be smarter than dumping money into an energy ETF.
Great channel. However, I think it's time to go deeper. The news we can get from other sources, and macro-economy usually is just noise. The majority of work that an investor does, is in the company and sector analysis. I guess this is a choise you have to make as you might lose some casual viewers. You however have enogh knowledge to make great, in depth videos. Im sure others would be interested in such videos.
Technical analysis is the markets fundamental analysis of a company you want to buy. It should therefore be of paramount importance for every serious investor.
Even professional licensed traders value technical analysis somewhat. Saying you have no interest in it makes you sound a little narrow minded. At the very least a very basic understanding of it can help you enter a position at a better value than just jumping in after your fundamental analysis.
@@bloodphantom81 Totally agree, but young Joseph has been in a 10 year bull market. I agree with what he is doing as a 30 year old long term investor and I think he is very aware that this will not last forever. There will be another 1987, 2000, and 2008, at some point, probably worse than those years. It is really easy to say it will be a buying opportunity at prices much lower, but emotionally when your account is down 60%, sometimes logic goes out the window. I use Technicals, but I do not ignore fundamentals in making decisions. And yes, it was very narrow minded to say TA is nonsense when it is used in varying degrees by institutions, well known billionaires, and a heck of a lot of investors/traders. You don't have to use it or like it, but don't blatantly insult those that do, IMO...
Maybe it's me , I think technically analysis is mostly b.s. Maybe there's some merit to it, but how much that is chance. Also I taken a few courses for it and they just pick and choose what looks good and suits the courses needs.
I must say, your answer to KC does sort of surprise me.. I fully agree with your idea of diversification, and I also nodded along with your idea of 'resetting' and not thinking about past events. However, if KC decides to sell his position today in order to diversify, he is taking a 22k loss. This may take years and years to earn back. Also, what happened to 'buy and hold', 'in it for the long run'? To me - this sounds more like 'buy high, sell low', and the 'you might see this stock go down and down' mentality can be applied to any position that is in the red. Before making any decision to sell, I would dig into this company as deep as possibly to guage their future potential. I have made fantastic gains in the oil industry over the last years, and I don't see any reason why you should not invest in oil&gas in the future as well, given the energy mix of the earth as a whole.
I think the point is he opened too big of a position in a poorly performing sector. It could take him years to recover his losses. Why not allocate what you have left into better performing instruments?
My strategy is; buy quality companies, expect to hold no matter what, pay up but don’t over pay, keep track, sell rarely, be ready to course correct.
A lot of people think they should always be buying and selling something. That's a mistake. 99% of successful investing is waiting, learning, awareness/experience and getting extremely lucky with the market.
I totally agree, although coming into the market i missed the experience part, but my current trader helped me. She turned my 40k loss, made me 70k in a month, if not for her, i can't even begin to imagine....., she actually does most of my trading, to be honest.
@@greenquake11931Exactly, i will never go into this market without guidance, please who is this coach that helped you, can you possibly do a referral?.
@@raymondbarnes5264 She is my personal coach, trader or broker, whatever you prefer.
@@raymondbarnes5264Run a search with her name on the web, to get to her webpage.
Dang! Joseph is throwing down the gauntlet on the technical analysis folks.
no worries, we always ready to counter
To my humble opinion you are wrong. Technical analysis is an extremely useful tool to help a dividend investor diversify in time.
@@wibuythehubforself-suffici6774 I can assure you genetic editing is the future of medicine
Technical analysis is just Voodoo - but it can explain some investor behavior
Technical anaylysis is a self fulfiling prophecy. Based on that alone I see it as a very useful tool.
P/E ratio is one of the most important stats IMO. A company may look excellent qualitatively and quantitively as you discussed these things, but if it's overpriced it MAY be worth holding off on purchasing it.
Agreed. The PE metric is very important to look at prior to building a position. I do think it’s just a small % of a bull thesis to go along with many other metrics.
Agreed. What is the ideal p/e ratio?. Thanks.
@Albert Edwards depends...low P/E basically means for every share you buy at the time you buy..their earnings pre share(EPS) is high...so you buy at JPM at $137 there EPS is $10.7 your P/E is 137/10.7=12.8..you have to look at the sec median and if it’s a good/great company and it’s lower then the Median investor see it as buying it on a discount...other see a high P/E as ppl are willing to pay up for the stock like Amazon at a P/E of 90
@@fasteddy-fd3kr that depends on the revenue growth of the company. If a company is growing revenue by 50% every year then even a P/E of 100 is actually cheap.
Albert Edwards That’s a great question Albert. There is never a BEST PE to look for since calculating growth can be a very difficult thing to predict. It’s amazing how analysts miss their growth projections on a quarterly basis let alone a yearly basis. I learned that you don’t have to be scared of a very high PE (think Amazon over the years) or a very low PE in the single digits especially if a CEO has been replaced or the business model has changed with new growth in revenue streams. I do like comparing PE ratios within the sector and industry to see where my individual stock (company) falls in line to know if the PE is high or low on a relative basis! Enjoy your journey to Infinity my friend 📈🚀 It sure is a fun ride!
I confess- I’m guilty of FOMO. I saw this video had over 3000 views in the first hour and didn’t want to miss out!
I have a bit of a limited income and expertise in the stock market (18yr old) so I mostly invested in ETF's to start with. While learning more about how to individually choose stocks.
Now after watching your videos since June last year and doing research outside of UA-cam. I have moved more towards picking individual stocks that I really understand and have control over. Which shows in the difference in the returns I've made between the two :).
Also, I want to thank you for encouraging etf's as a viable option. If not, I don't think I would be in the market since 8 months back. Back then I was too unsure to pick stocks myself and most investing content besides you seemed to disencourage ETFs.
But I made the decision to invest in ETFs while learning about the stock market. Until I grasped more of it. Because of your content, which ultimately made me more money.
Awesome mindset switch to individual stocks. They are my bread and butter. Just a lot of research involved. Not always for everybody.
Just be cautious with individual stocks, while you had success over the last 8 months we were in a bull run and was really hard to not make money in general. Hell even the s&p was up like 28%, just not the norm year for anyone. Good luck and congrats on starting so young
Charles Duckworth III Great advice Charles! The stock market does go down short-term. That’s just a buying opportunity for the companies you researched fully and have a strong bull thesis in!
@@MRZEROTOINFINITY that's basically where I am right now. Dollar cost averaging in ETFs until I find opportunities for individual stocks I've researched. I try be honest with myself on what I understand and do not. :)
@@Nega_Duck I agree, that is also one reason to why I want more handpicked stocks that I think will resist a bear market better than a full etf.
I am a technical analysis junkie, and i use it to find the best entry points. Having said that, i binge watch fundamental analysis guys like you and ppcian, and i greatly appreciate your work, as i dont know how to analyze financial statements. Thank you for your great work.
buy a book on it or watch like 3 different videos on the three statements and that will give you a very decent understanding on them
i sold all my Tesla stock with a +220% profit, i sold at (802$) and started my dividend portafolio.
Thanks for your videos Joseph they help and inspire a lot!
Congrats! Great start for a dividend portfolio😎😁
When you look at seeking alpha's key data tab, you should look at the balance sheet to determine the safety of the dividend. It will show the current assets (which are used as collateral on any debt). You will also see any debt and shorter term liabilities. You can determine the total debt as a percentage of the equity. Those are metrics important to dividend sustainability.
Next you need NEED to look at the cash flow statement. This is more important than the income statement. It starts with the net income line, and breaks down where the cash flow goes and comes from there. You can see how much debt is being added (or paid off). You see how much is paid in dividends (including the preferred stock). You see how much is paid for stock buybacks (or raised from stock issuance - like Realty Income does regularly). This can show you the total "shareholder yield" that includes the buyback and debt side of things. Here you also can see all of the company investments like capital expenditures, marketable securities (normally treasuries), Research and Development, etc. This is where you determine the amount of money that the owner earns year after year (dividends plus growth capex).
I also recommend FAST Graphs as a tool to help you find the value and prices that you should look to buy at. Realty Income may be a great business, but you should note that its valuation is at all time highs or close to it. This is good for growth as they can sell shares at high valuations and make acquisitions. For the longer run though, they tend to trade about 20% lower than today's price. If the stock corrects, you will lose at least 20% as it resets. I would definitely wait for a higher yield from O. Stick with around 5% yield.
I'm like 3 episodes behind! these make me so excited and antsy for payday so I can invest more.
That’s what it’s about. Keep growing that wealth to Infinity 📈🚀
One year later... how have your investments been?
@@josephbonin2920 got unemployed due to covid. Used extra $600 to max Roth IRA for 2019 & 2020. Roth up 17% YTD and just crossed $30k, Taxable account up 9% YTD hovering around $8k. doing ok. You?
These are the types of videos i keep hoping for from people like you. Thanks for making it. Took notes and I'm sure I'll be back.
Hello Joseph,
Can you also make detailed video about how dividend investments are taxed? Do you have to declare every dividend you received one by one? What are the tax rates? I am sure those are will really helpful to everyone has interest in dividend investment strategy.
Cheers from Japan!
I wish I could like this video twice, there was so much good advice that I'd look to like the video only to see I had liked it already!
Do you not look at free cash flow or current ratio when looking for companies to invest in? For me, the amount of free cash and how much debt the company has is a big factor I consider for risk management to get my portfolio through the next long bear market.
I like your approach. I review the 5 year FCF,AFFO(REIT), D/E,ROA, & ROE.
And LFCF
@@Rhino11111111 clutch. I’m loving these resources. Thank you
"Because Fundamentally, i don't like the idea of technical analysis" Savage
Professional guidance brings about remunerative results. Great job Payden, you exceeded my expectations. Thank you.
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Does Mr Payden really help people trade?
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Well, Joseph Carlson decided to show up in my feed and I need to ponder on if I watch or wait? What am I talking about, of course I'm watching! Congrats on 81.6k subs now. This train ain't ever stoppin', just like those dividends!
Lets get this bread.
Jay Hutsle let’s get it 💵💵💵
I have the toaster ready to go 👍
From rags to riches and bags and bitches
@@MoneyMyChains lmfao... smh...
His return total is like 15% lol
Jo! I opened am m1 account thanks to you! Thanks for helping me realize I can get started on a very sobering task. Your an excellent educator. Tytytytytyty.
Good job going with M1 man. Its beast. Good luck
I have a lot of the same companies as you. One company that I have that I am surprised you don’t is Leggett and Platt. Strong dividend history, show and steady growth, and they own the patent on the bed spring. Curious if you have ever looked at it or considered it?
Hey Joseph, I have a question I’m hoping you can answer in your next video. You have inspired many people to get started investing, and starting a youtube channel, including myself. What or who inspired you to get started with dividend investing?
It's always good to remember what actually makes the stock market go up and down is other investors. The statistics themselves don't mater as much as what other people think of these statistics. This is why I like to take a psychological approach to try and determine if people will want to invest into a company in the future.
So I used to be an investment advisor and I used both to the highest degree technical analysis is great when pin pointing buy in's for more seasonal stocks like utilities and fundamental analysis is better all round for long term investments and essentially market shift.
I'll give an example. One of my largest shares are Embridge a natural gas company in alberta canada as I normally deal with tsx, they do have a trend where in summers their stock normally goes down about 2-5% and in the winter it goes back up respectively. That is the technical analysis so best time to buy is summer theoretically. What cements the technical theroy is know that natural gas is normally used for heating homes in canada, and even more so government buildings, so when there is larger consumption for heating the company makes more profit meaning it makes most of it's revenue in the winter, and if there is a late winter like the current year the price will drop even lower than in summer in respect to less usage. That is how you are ment to blend the 2 analytics.
I've done a few things correctly, some incorrectly but your uploads are so informative and helpful. Thank you!
Always insightful and entertaining Joseph.
I look at the P/E ratio (or the net income and the price), and the book value (to manage risk). You really shouldn't ignore any of the two, both are essential.
I agree I think Tesla is a great investment and that fear of missing out is not a great idea to jump in. I know the fear of missing out is real!
Notification Squad!
Hello Joseph,
Can you explain why you invest highly on your taxable account rather than the ROTH. I'm sure you mentioned this in one of your videos. But if one were to save up and invest for a big purchase in the future. Which vessel is ideal to invest into? Thank you for the great info!
Quality (Btw you can get some of these in the form of numbers insider ownership/Insiders buying/Puts/calls/Short interest) + Quantity + Technical Analysis :) to max returns
I’m totally with you on not caring about technical analysis. I think it’s a waste of time and focusing on the fundamentals is much more important.
Fist video that I found that actually explains what Im looking for, you just got a new subscriber!
One of the best financial pages on UA-cam 👍
I recently transfer 10k to m1 finance thanks for the advice bro!
With your investing style there’s only so much analysis that is actually valuable before you just have to focus on the long term and use your common sense. People like you and I sleep much better at night.
Ha, I see you everywhere bro. Keep up the hustle!
Amateur here. Appreciate very much what you and another UA-camr "Investing with Rose" have done recently on how to research companies. The only stock I have in Tesla right now is in a growth ETF. I am no Tesla hater either. In fact, Tesla right now would be the only car manufacturing company I would invest in if I were to invest in individual stocks (and asked which car company I would choose, if any).
Do you think we should always look at both the qualitative and quantitative aspects of the company before making a buying decision or do you think that if the numbers aren’t good then we should automatically not buy the company?
Great journey after 4 years. Congrants and thanks
Well put, rooting for fundamental guys.
Just wanted to thank you for the content. Really helps a lot. Appreciate what you're doing, keep up the good work!
I suck at doing research. ETF research is relatively straightfoward, though. Thanks for the vid; I'm saving it.
ETF is statistically also VASTLY more likely to provide greater returns over the long run than picking individual stocks.
Great job thinking for yourself and having confidence in your approach, not what's trendy. 👍
I really enjoy your video's. I completely disagree with you about technical analysis. Case in point the email about losing 22k in and oil stock. You can look at any company on a chart and see so much. Do a 5 year chart, daily candle, with 3 simple moving averages, and you can see so much. The best things you can see are if a company is overextended (being the price is far from the moving averages). Whether the company is on an uptrend, a downtrend, or in a consolidation. I don't disagree with your method, but using your method with technical analysis is a better analysis.
G.E. Stroud Totally agree on that point when it comes to entering a position! Technical analysis is very important!
looking at how many people bought Tesla for the first time these past days is a technical indicator just like looking at volume.
Saying afterwards Technical analysis is not helpful is an oxymoron.
There are a ton of technical things people need to consider when making investing decisions such as price and shares outstanding they all tell a story in their own way.
Technical most of the time tells a very short time story....(Even 1 Year movement is short time span for a person who is buying stake at a particular company theoretically for a life time.)
At best, it can help you with the entry time within a month or so to come.
You've come such a long way
I own 43 stocks in 22 different industries. The majority of my stocks are household names except for maybe PNC Bank, my reits, and my bonds.
Most of my stocks are market leaders, large multinationals, have been giving dividends for decades, buy and sell from my other stocks, or otherwise are in strong industries.
I don’t really put that much thought into my picks because I’ve grown up knowing most of these companies and/or used them/studied them in college.
Nick Oloteo - Investing
If you’re going to do that you might as well do index funds dont you think?
Great breakdown of your key analysis points, Joseph. Your content is continuing to offer practical ways for new investors to begin their investment journey. Thank you, and keep up the wonderful work. -John from Taiwan
I just found your channel and I find a TON OF VALUE in what you do. THANKS!
If you don't like oil companies, why are holding onto shell stocks?
Keep going bro. Also, is it healthy to have 60 holds. I know someone who owns 60 plus companies.
You should do a review of Phil Town's book, "Invested." Teaches you 3 different valuation methods and is an easy read. It's good to know what your stock idea is actually worth, not just that the yield is high today.
You make amazing content in general, but this video in particular was truly interesting and enlightening, keep it up!!
Hello Carlson, i follow you channel and it is pretty good. But one question, if you are focused on dividend companies, why you dedicated so much time today to Netflix which does not pay dividend? Thanks, Rogelio.
Thanks for the lesson in research. Truly want to learn to be a good investor and have a good mindset for success
I strongly disagree.. I love technical analysis to see where to buy, instead of blindly add.. It could safe you so much money.. perhaps years worth of dividends. Keep adding on dips get to your goal much faster then just adding blindly each month, but thats my opinion. But i also really like to use fundamental research and common sense.
True but in the long run, it’s not as big of a deal to worry about every little thing. But mainly people don’t have time since it’s not their full time job to watch the stock market.
@@crazybay8mile You can watch your whole list in +-10 minutes.
When you recommend buying dips I know you are a fraud
@@robertbrawley5048 lol what ?
@@Krogzaxants you can use technical anaylis to buy and sell but it doesnt give the trader an advantage because on a uptrend signal the sucker . Thats me , will buy and the stock will go down with in minutes or hours . It might take a couple of days but to go below 8% and more till i sell to stop my loss . My opponent just got in one case, 12% of my capital . When i sell immediately, almost immediately the price reverses to continue with the uptrend. I happens every time . When you say " you got to time the market, i know you have never bought or sold a stock much less actually tested technical analysis. Should i give you the benefit of the doubt . Nope . Everybody is promoting trading and over and over again an actual executed order reverses the trend big or small order.
Hey Joseph, I really loved your analysis on picking up a stock or company to invest in for a good period! Just keep on doing these kind of analysis and help me and others grow their investment! Really loved it♥️♥️♥️
Most important advice to KC is to know what you are buying and whether the price you pay constitutes a margin of safety.
When’s I heard about the price going up I had the fear of missing out and lots of people at work had fomo.
Yup. That’s what happens when the stock market keeps going up 📈 Nothing beats seeing your money grow by 29% like the year we just had! Bull market just continues on. Will be interesting to see when things turn like Q4 of 2018.
Looks like it could eventually drop to $600 or even 380ish if there some bad news.
Ryan I have my eye 👀 on the 50-day. In this case, around $500 per share based on the technicals. That’s an important support line in my opinion. Tesla may be a fantastic buying opportunity if it falls that low! Especially if you believe in the company long-term👍📈
@@MRZEROTOINFINITY thats when put options comes in game :P lets have fun even with the turning point
DIVERSIFIED Never used options myself. Very speculative for my liking. I prefer the long-term game to growing wealth 👍📈
I just got my income tax and I’m adding 10k , to my portfolio think I should do it all at once or space it out through the year.
Schmeckel Knight depending on how much of your portfolio that is. I would add it in over time. But maybe not a year. Maybe 3-6 months? I’m in the same boat with the 10k and I am averaging it in over 3-6 months while continuing my normal deposits.
Stats say 10 months of dca
Wow! Amazing content. Thank you for being so transparent and explaining things so simply. Also, great dialogue and talking. You are very easy to listen to.
Again, just awesome. I subscribed.
Thank you
I totally agree on most of it but technical is still good for finding a good buy point to maximise returns and if the trends down you might want to be patient and capitalize on it for max returns fundamentals are more important but technical is still handy
Hi Joseph I appreciate you
Excellent video and the most useful and comprehensive content I've found. Sincere thank you!
I knew when i woke up this morning at 5am i would find a jewel. This video is great,its common sense yes but it gave me more ideas and another way to research when i do or don’t have time. I applaud you.
It's interesting to hear that you believe in diversification. I'm personally on the fence about it. The great investors like buffet and munger don't diversify as much as you do. And those guys are billionaires. They believe in picking a few great companies, that you are as certain as you can be about them, and holding onto them for as long as it's reasonable to do so. But at the same time, to me, it makes sense to diversify because if one industry or company that you are invested in does bad, at least you have the others to fall back on. But then again if you had only picked a few great companies and were optimistic about their future performance over the next 10 years or however long you plan to hold, why would you diversify? I've been looking and I haven't found anything that convinces me one way or the other. What're your thoughts on this?
Joseph I was wondering, with your strategy being dividend income and less on asset appreciation, how do you deal with the thought that if you'd instead invested a certain amount of money into non-div paying companies like Netflix and Amazon, the appreciation itself would have been more than had the same money been put into a div-paying stock during the same amount of time? Say, buying NFLX instead of O in 2016 would yield a 232% gain vs. a 52% gain, respectively.
I guess I'm asking less how you feel about it and more on does that ever factor into your strategy at all? I know you dislike FOMO, but does that give you FOMO, honestly?
he doesnt care about the growth or appreciation so much because he is not gonna sell it or buy it again. that would be a different game. he is aiming for dividends because it will become a passive income to him when he gets older and does not even wanna look at it anymore. he will just be receiving salary like a boss than holding a stock and looking at the appreciation and thinking if you should sell it or not to take the cash.
Great video! I need to show my friends this. Excellent introduction to individual stock investing. You will be at 100k in no time!
Thanks for your breakdown of how you research companies, I've been waiting for that!
One question though... How do you find a company to research in the first place?
I have been looking at companies yourself and others have invested in, but I don't really know how to find a company by myself.
Thanks for the great content!
Law
I’m a fan of social awareness online and offline to get a research thesis started. That’s just me though. Everyone has their method to find stocks that will build your money 💰
Hi Joseph,
I have been watching your channel for the past year and have really learned a lot from you. I find your insights and commentary to be very thoughtful, interesting, and helpful. You make a lot more sense compared to some of the other stock market influencers on UA-cam. You explain things in a way I can easily understand. Since I started watching you I’ve rebalanced my stock portfolio to mostly dividend paying stocks (80%).
I have a question regarding REIT stocks. I know you like REITs because you talk about them a lot. I want to invest in REITS because their dividends are higher than the average stock on the S&P. But I discover that they are taxed differently from the other stocks. REIT stock dividends are taxed as ordinary income instead of the 20% capital gains you would have to pay in taxes from regular stock dividends. Currently, my ordinary income tax (IRS) level is at 37%.
So this means that the taxes I would be paying on a REIT stock dividend will be 37% and with a regular stock dividend, my taxes would be 20%. Am I correct? Based on what I just said it makes no sense to me to invest in a REIT stock and I should just invest in a stock that pays a dividend similar to the level of a REIT stock. I would save 17% in taxes. Am I right? What are your thoughts? I appreciate your insights and keep up the great work you’re doing!
Chow299
Very informative. Thanks man
Thank you for your channel. I find it informative. If you got some books to suggest people (myself included) would appreciate it. Thanks Joseph
Great video, very informative and well researched. Awesome watching u as usual. Keep producing great videos!
I like your balanced approach, Joseph unlike some youtubers eho promise huge returns in hype stock
this is one of the most informative videos I''ve seen so far, thanks man
I use fundamental analysis to find the stock to buy and technical analysis to determine when to buy it.
No you don't
I love all of your videos, keep going bro !
I like fundamental but also like technical example is new product every 4 to 5 years like games and phones
Isn't ur total average return really like 15%?
Very logical approach
Thanks
Tesla has a forward PE of around 100, with expected growth of 50% per year...
That’s without the autonomous robo taxi thing being accounted for at all.
That’s why people are scrambling to buy it.
Great video Joseph! Definitely one of my favorite channels.
Joseph how do you keep track of so many different companies instead of just buying index funds. For the fun of it?
Seems to me fundamental is the smarter way to invest being more concrete while technical is more speculative and guesswork. Like another viewer said earlier, P/E ratio is a good indicator among many. This is exactly the type of channel I was looking for to learn more information about investing before I actually start. Thanks for your insight
Hi, Joseph love the show. Quick check: Realty Income at a 60+ PE is really a buy? Don't remember excactly on which video but I remember you considering it overpriced some time ago. (correct me if I'm wrong) thanks for your time.
PE is not a useful metric for REIT's, has no value. P/FFO and FFO is what is used for REITs
@@JMacInvesting many thanks, will check, new investor here :)
@@lularocha understood no worries, REITs have their own set of metrics that are useful in evaluation because their corporate structure is so different than how a common corporation is structured.
@@JMacInvesting recently started to study REITs (already have a little bit of LTC, EPR, SPG and STOR) and if may ask, what website would you recommend for evaluating and comparing data such as P/FFO, thanks for your help
@@lularocha seeking alpha dot com in the past 6 months added ffo and p/ffo for REITs so its my go to place for REITs for sure the NAREIT website is also a great place to learn all things REITs as they are a REIT index provider
I'm curious why you aren't putting more energy stocks or energy mlps? If you are looking for dividends in your portfolio, I would have expected to see some of these ideas here.
I just started my long term div growth acct so only 1 here and there but diversified as I build it up. Since most have div and aristocrats blue chip companies I plan to hold unless they get rid of div. I'm in for the the long haul and think over 20+ yrs they will rise. I weekly add 250 to stocks down at the moment and plan to continue this path. Again I'm new less 6mo and diversified 1st to pick what I want to grow. Some say start with only couple and build up but I think this way I can have more options or sectors to add at any timing. Thank you for your experience and opinions.
Hi Joseph, Thank you very much for presenting this show. I really enjoy watching every single episode because I am gaining very valuable information about Dividends investing through your show and lots of reading on my end. Finance is a dry topic! but you make it easy to digest with the way you present the contents. I am following your strategy with my portfolio and I hope one day on the long run I look back and realize that this is the best financial decision I've ever made . Keep the great work!
Exactly the types of explanations I’ve been looking for, thanks!
I have to disagree with you about investing in oil companies. Short term they’re going to be struggling with lower oil prices, but in 3-5 years that’s not likely to be as much of an issue as developing countries continue to put people on the road and ramp up energy usage. Also all the major energy companies are dumping a lot of money into green energy products, and are beginning to adapt to changing consumer demands. I think holding onto individual companies such as BP or Shell over the next 5+ years would be smarter than dumping money into an energy ETF.
Especially as Shell class B are trading under the book value at the moment. its a no brainer
Starting off my Monday right!
Great channel. However, I think it's time to go deeper. The news we can get from other sources, and macro-economy usually is just noise. The majority of work that an investor does, is in the company and sector analysis. I guess this is a choise you have to make as you might lose some casual viewers. You however have enogh knowledge to make great, in depth videos. Im sure others would be interested in such videos.
Agreed!
Technical analysis is the markets fundamental analysis of a company you want to buy. It should therefore be of paramount importance for every serious investor.
Even professional licensed traders value technical analysis somewhat. Saying you have no interest in it makes you sound a little narrow minded. At the very least a very basic understanding of it can help you enter a position at a better value than just jumping in after your fundamental analysis.
Agreed, he's so confident in his opinion and it's kind of annoying
@@bloodphantom81 Totally agree, but young Joseph has been in a 10 year bull market. I agree with what he is doing as a 30 year old long term investor and I think he is very aware that this will not last forever. There will be another 1987, 2000, and 2008, at some point, probably worse than those years. It is really easy to say it will be a buying opportunity at prices much lower, but emotionally when your account is down 60%, sometimes logic goes out the window. I use Technicals, but I do not ignore fundamentals in making decisions. And yes, it was very narrow minded to say TA is nonsense when it is used in varying degrees by institutions, well known billionaires, and a heck of a lot of investors/traders. You don't have to use it or like it, but don't blatantly insult those that do, IMO...
Please never stop making these videos!
Joseph Carlson is my Netflix!
Thanks Joseph. Loved the research tactics and your advice!
You should read common stocks and uncommon profit ,you cover some of its points
Maybe it's me , I think technically analysis is mostly b.s. Maybe there's some merit to it, but how much that is chance.
Also I taken a few courses for it and they just pick and choose what looks good and suits the courses needs.
I feel the same way about technical analysis. Maybe it's something algorithms could do for me, but not investing
I really enjoy this show.
I really appreciate your videos. Really in depth, meaningful content. Keep it up
I must say, your answer to KC does sort of surprise me.. I fully agree with your idea of diversification, and I also nodded along with your idea of 'resetting' and not thinking about past events. However, if KC decides to sell his position today in order to diversify, he is taking a 22k loss. This may take years and years to earn back. Also, what happened to 'buy and hold', 'in it for the long run'? To me - this sounds more like 'buy high, sell low', and the 'you might see this stock go down and down' mentality can be applied to any position that is in the red.
Before making any decision to sell, I would dig into this company as deep as possibly to guage their future potential. I have made fantastic gains in the oil industry over the last years, and I don't see any reason why you should not invest in oil&gas in the future as well, given the energy mix of the earth as a whole.
I think the point is he opened too big of a position in a poorly performing sector. It could take him years to recover his losses. Why not allocate what you have left into better performing instruments?
@@JohnsFishTales On that part, we fully agree. Any leftovers and future cash of course needs to be more reasonably invested.