High Dividend Income Investing
Вставка
- Опубліковано 20 тра 2024
- Buying high dividend stocks has provided a safe haven for stock investors since the selloff in 2022. So in this video, I examine this recent performance and the long-term performance of high income funds. Then I show you some examples of the highest dividend income funds right now both in the UK and the US and consider some of the risks that come with that yield.
If you want to learn more about investing and gain access to the high income heatmaps you saw me use in this video, then why not become a pensioncraft.com member? To find what we offer and how you can join our friendly community click here www.pensioncraft.com/investor...
Timestamps
00:00 Introduction
00:38 Is High Income A Good Long-Term Strategy?
02:37 Income
04:13 Risks
06:52 UK ETFs
10:55 UK Funds (OEICs)
12:12 US ETFs
14:13 Conclusion
What Else PensionCraft Offers:
💡 Book a coaching session with Ramin so he can answer your questions in a one-to-one video call via Zoom: pensioncraft.com/power-hour/
📰 Sign up for our free weekly market roundup to get news and views about what's going on in the stock market and wider economy pensioncraft.com/market-roundup/
📖 Understand investment in more depth with my online courses pensioncraft.com/courses-we-o...
❓ Join PensionCraft on UA-cam and you’ll be supporting me to make more content and I will answer your questions and respond to your comments on UA-cam as a priority ua-cam.com/users/pensioncraft...
Where Else You Can Find Me
🎧You can check out my weekly podcast all about investing here many-happy-returns.captivate....
🌐 Website - pensioncraft.com/
📱 Twitter - / pensioncraft
👨 Facebook - / pensioncraft
🔗 Linkedin - / pensioncraft
Tools I Use To Create My Videos
✔️ My primary data source is SharePad and an affiliate link for this is here sharescope.co.uk/pensioncraftsp (This link provides new users with a special offer and gives me a small commission)
The rest of the tools I use are free open source software:
✔️ ggplot2 package in R for my plots
✔️ RStudio to edit and run R code
✔️ OBS to record my videos and live streams
✔️ Kdenlive to edit my videos
Take A Look At Some Of My Other Videos & Playlists
📹 Investment Strategies playlist • Investment Strategies
📹 Economy & Investing playlist • Economy And Investing
📹 Behavioural Investing playlist • Behavioural Investment
📹 Investing Strategies From Beginners To Advanced video • Investing Strategies F...
DISCLAIMER
All information is given for educational purposes and is not financial advice. Ramin does not provide recommendations and is not responsible for investment actions taken by viewers. Figures that are quoted refer to the past and past performance is not a reliable indicator of future results.
I would suggest that part of high income's outperformance is due to other factors other than simply the dividend. Perhaps more solid, older type establishment businesses tend to pay higher dividends?
All your videos are incredibly useful and rewarding Ramin - but some much more than others. This is very much one of those. Many thanks.
Glad it was helpful @JohninRosc
Ramin, would love to hear your thoughts on covered call etf's like JEPI.
Another great video, thanks Ramin!
Thanks again @David Meadowcroft
Hi! I have a question, maybe abit dumb but...if one buys, for example, VUTY, does it automatically sell after the duration or one has to "time" the sell?
In that case, why would a Yield to worst or YTM matter?
I have quite basic knowledge about bonds - could anyone explain to me how it goes with bond based etfs?
Thanks in advance 😀
Thank you. Very interesting information.
Glad it was helpful @Mike Moreno
Exactly the time to buy those growth funds/stocks that have heavily sold off (unless the bottom is not yet in lol).
Super video. Very informative. Thanks!
My pleasure @NFT UNITED
Damien Talks Money has some further good points to this method of investing
Typically companies that pay dividends are ones that are well established, have good cash flow and making a profit. Therefore your odds of catching high quality buinsesses are higher in a high dividend yeild fund. But of course, don't just blindly see a yeild and assume its safe.
Could I encourage you to look at BDC’s. Ares Capital, Main, etc… Held for years and living off the dividends!
Thanks for the great video, you mentioned ishares ISF, what are you thoughts on Ishares IUKD?
Doesn't that have a cost of 0.40 percent? Seems unreasonably high.
@@ba8898 not all platforms charge this, trading 212 doesn't for example. Compared to Semb this felt a better choice but I'm no expert.
@@dipenkanani7988 I just double checked. The total expense ratio is 0.40%. This is what you'll pay for the ETF regardless of where you buy it from. It does currently have a 12 month trailing yield of 6.01% though, which seems pretty good.
IUKD consistently lags ISF, though the divi is a bit higher
True but what about when you include the higher Div of IUKD wouldn’t that make the total returns higher?
More than chasing for high dividends the bottom line is that we should have a tilt towards value/quality and those generate more dividends than growth stocks. However there are other Covered call ETFs that outperformed the market taking advantage of the volatility. I don't believe these are good options in the long run although they could create a good diversification for a high interest rate environment where both bonds and stocks go down in sync as in 2022.
It's now really hard to buy MLP's in the UK, H&L won't deal in these any more as their trading partner has decided the extra reporting involved due to US tax changes makes it too diffficult for them to continue this business. Also note this change involves an additional 10% withholding tax on MLP's ( already 37% - not sure how that works in UK if you have a W8 BEN form active).
BIP
The next or 2023 phase of the markets will be shaped by declining margins. What makes you think that in such an environment dividends will be stable? I'd be careful about what you assume.
Although the majority of my investing is in funds and etfs, I do take great interest and enjoyment building a dividend growth portfolio which I hope will snowball into a great income generator for me in years to come.
What's the point of dividends if the instrument you're investing in is falling in price? It is like they give you your money back and whatever you receive is taxable
what is the most you can lose if you hold a bond until expiration? I was thinking as long as when you buy it and it promises to pay you a certain % of return and the issuer doesnt go bankrupt you should get that same % return, or not?
Woot
Hi Ramin, thanks for your videos. Could you also cover more of Europe especially Germany. Thanks
The best thing is to continue working. If retirement comes with all this complexity and loss risk 😅
Out of interest do you now know qyld or qylp (sterling listing) is now on London exchange and can be bought I’ve mentioned this a few times but don’t know if you have seen it.. you kept saying you wanted to buy it well now you can.. first dividend is paid tomorrow
Not listed by H&L yet.....
US Withholding tax eats away at the yield on these US funds. Is this lower on the U.K. listing ?
000
00
000
please don`t exclude the rest of EU investors , we need insight also :)
This seems like the worst period.
Even the market are now very unpredictable. Started investing recently when the market prices were a bit high,today I am more than 60% down!
You should have used a Robo-investing platform or traded with Trev tait mozingo or any other regulated expert. As a complete beginner myself,I have made over $30k in less than 5 months with him
Most of the pros on YT and IG copy trade him that's how they make enormous profits from seemingly unknown market.
Lol. I'm one of them. Not a pro though,started last year in all honesty wish I had known about him earlier.
Sadly,if you are down that much you didn't do research Being down a few percent right now is fine due to the market,60% is crazy !
Watch different vids before investing in any other thing,go for low risk index funds or better still,try out Trev tait mozingo he is good. I can people have suggested already
It's the market, if you can't be on it on the bad days,you shouldn't be in it at all.
Looks like you have an impersonator in the replies.
The 1976 - 2020 period is such a bad one to analyze, stock long term great bull market, bond bull market, gold bull market.
You can’t just write off history because it doesn’t fit your narrative though.
It's true that the last 40 years have been exceptional for both bond and stock investors. The good news is that the results in this video hold over far long periods : value stocks (which are basically the same as "high income" stocks) have outperformed growth stocks over the very long term (100+ years of history). It's probably because investors chase exciting growth stocks because they all want to get rich quick. Meanwhile, the smart money invests in boring value stocks that (historically) have tended to give higher returns, "tortoise versus hare" style
So you just ignore recent history? The world was a lot different when you go back so far.
@@VegasMilgauss What narrative is that, pray tell? Also you can't just pick a period when everything was historically rising and imply that it's a good argument for investment decisions NOW when the demographics, the geopolitics, and plenty of other things are wildly different. past performance does not guarantee future results.
cherry picking date