M1 Finance (broker used in video): m1finance.8bxp97.net/Wr2M3 Headline Investing: 0:56 Dividend Income Graph Update: 7:02 Responding to questions: 10:10
Joseph Carlson Hey I have only been investing for 3 or 4 years and have an IRS and savings in Every TRADE because I initially liked some of the tools and company bio etc. am I wasting my time with them, or would it not really make a difference and be more if just a preference? Great videos.
@@kylelarson7386 Investing is rarely a waste of time! I haven't used E*Trade so I can't do an exact comparison. You can look at my videos and see how M1 functions and see if that's something you're interested in. A lot of people also deposit some money and try it out before deciding to put more into it. Either way it does largely come down to preference. I like being able to deposit money any time and avoid trading fee's. But I also bet there's a lot of good features on E*Trade that M1 probably hasn't developed yet. So I wouldn't stress about the decision. The important thing is you're investing and building up assets.
It is helpful that you clarified one of the beautiful things about dividend investing.. That the dividend(s) you get paid doesn't fluctuate up & down day-to-day as the stock price changes day-to-day. Hopefully this will inspire more people to invest in dgi once they understand this foundational concept.
Hello again Joseph, I'd like to ask you something. For those of us just starting out in dividend investing, who may not have a large some of cash to go into it with, what approach would you take? To be more specific, how many holdings would you recommend we start with for someone with maybe a few hundred to a couple thousand dollars? And to be even more specific, which ones would you choose? I haven't made it through all of your videos yet, but if you haven't already maybe you can do a top 5/10 (whatever number you'd suggest starting with) dividend stocks for people with smaller amounts of cash to start with... Thanks in advance, your videos are the best
wouldnt be a good idea to have on your graph the amount of money you are putting into your portafolio, so you can see the difference? something like, this is your "Portfolio value", this is your "contribution" and the difference would be how much of the Portfolio value is d/t investing.
your snow ball effect is already showing effing in just 2 years.. congrats man, my snowball have not really shown any effect yet on my robinhood account
This just in! A new Joseph Carlson Show episode for my lunch break. I haven’t watched yet, but I’ve recently become aware that I have holdings that stemmed from seeking alpha headlines. The recent downturn got me thinking about my confidence in my holdings. I’ve sold out of some positions to consolidate funds into my core 4.
Hi Joseph, Thank for videos, it brought completly new perceptions of investing to me. I would have sugestion to your excel graphs, it could be interesting to ad there graph which would visualise your real money you are putting in, and the value of portfolio. It could be nice to see that after longer time period the money you putting in are increasing lineary, but the dividend income, portfolio value and reinvesting I suggest should increase exponentialy during the time. keep up the good work Tomas
Great info, I found this video to be the most informative (for my knowledge level) so far, especially explaining money vs simple returns and also explaining that dividends are a set dollar amount, not a percentage of share price. Keep up the great work
One upside to Robinhood and Webull that i have noticed is that you can buy your shares at a low price point in the day. M1 is really good at buying my shares at the most expensive price possible that day.
Great video!! For me, there is one important metric to measure returns and thats the IRR. Simply put, the current net asset value of the portfolio compared to the amount of money you paid in including the timing of these fundings.
Good 19:30 Good Explanation of Money/Personal Return, as invested capital is added it dilutes (overall return) so I actually prefer money/personal return. Buy Stock A $100, It goes to $150 (50%) Gain, Add another $100 $250 total, with $50 gain drops to a now 22-25% gain.
Hi Joseph, I just started watching your journey and I have a few questions. Can you do a video showing us how to setup the gmail dividend keyword thing, can you explain how to setup your percentages, and how to setup where your new deposits go? I have limited funds to invest and am going to start with maybe 5 stocks in different industries and build slowly from there. Basically I'm looking for how to setup M1 from the get go, thanks
I sold EVERYTHING this week ;) (not really) But I rebalanced away from bad investments in no-growth dividend companies. Another great and insightful video, Joe!
Some people say to ignore your portfolio. Very few people can do that after they retire and depend on the portfolio for survival. I say pay attention to the portfolio from the beginning and learn how it (and the market) works. Don't act. Just watch. Your portfolio moves a few dollars a day when it is small and the market moves 1 or 2%. As it gets larger it moves a few 10s of dollars a day for a 1-2% move, then a few hundreds of dollars a day, and hopefully your portfolio gets large enough it moves many 10's of thousands or even 100's of thousands of dollars a day for a 2% move.
Hello Joseph! I have a question regarding your income graph, specially on the columns [Average Monthly Income and Actual Monthly Income] I've noticed that for the first couple of months up until Jun 2018, your Actual Monthly income is the same as your Dividend Income but for months beyond Jun up until May of 2019, the value on the Actual Monthly Income deviates by a little bit from a couple cents to $1. I wanted to know whether or not there is a significance in these difference in value as i noticed that the rest of the columns have formulas reflected on the monthly dividends provided while only this column doesn't. Thanks in advance!
*GREAT VIDEO* Ultimately, when it comes down to it, if you are investing long-term in dividend stocks that have stable payout ratios and strong dividend growth, who cares if the market is up or down?? In fact, if the market is down, as long the dividends keep gettin paid, I’m kind of happy because I can reinvest my dividends at lower stock prices. What are your thoughts? 💭 GREAT VIDEO! 😎👍🏻
Very true, but surely if a company’s stock is slashed and prices keep going down, it is likely that the value of their dividend payments will also be reduced over time.
Mark RC hi 👋 so that’s definitely a consideration, BUT if you are investing in companies with a long history of paying dividends consistently and with a history of raising the dividend every year AND the companies also have a stable payout ratio, the odds of the company reducing their dividend or stopping it all together are LOW, but it could happen. I’d recommend reviewing your investment metrics at least quarterly to look for signs of weakness in the dividend payments. 😎👍🏻
Average Joe on Money Absolutely. And that’s where doing your research is important. I agree that chances of reduced dividend payments are low if the track-record is as you describe. But it is possible. There are no guarantees in this game! (Just solid, well-thought out, educated assumptions)
No! The dividends are flat amount which are not directly related to stock value. However, dividends have a way of commanding the stock price. 4-6% stock prices are pretty good. If a company's stock value drops such that it goes over that percentage (and the company isn't considered a dying one), then demand for it will rise in tandem, stabilizing the price.
Technically that's what should happen, but there are plenty of examples where it doesn't. For example investors may fear that a company is going downhill when it's actually solid. Those make for great opportunities for rational investors though.
Hi Joseph, maybe for the chart you could add the capital invested, I feel that it would be nice to see what you're getting from your investment. Good video btw!
One word of caution for new investors reading these comments, (this is in no way a criticism of your portfolio), as dividend investors we need to be VERY careful we still look for value as a equal weighting to dividend in our stock picking. This concern comes from a couple investing groups I’m part of. I watch people chase dividends above value. It’s a very dangerous trap to get stuck in. The market will always have bad days, even bad weeks, and occasionally bad years. These are the times to buy good dividend paying stocks, not at the peak of the bull market. With free self directed platforms there really is no excuse to be buying at a weekly high. Dollar cost averaging is amazing, but you can really kick it into high gear if you avoid the peaks and capitalize the valleys. Anyway, keep up the great content!
Nick Oloteo yes, but also simply investing solely for the dividend with no regard for the actual value of the company. One important part is picking companies that will be around for decades to come..... but those companies CAN to over priced. The stock market as a whole prices stocks based on SUPPLY of buyers only. Nothing else. It’s up to us buyers to calculate if the company is worth what “the market” is asking.
A goal of 3k/month would be great, that would be enough. Eventually my mortgage will be paid off and having zero debt + 3k/month income makes for pretty easy living. My first goal is just to get above $500/month income. Working my way there!
The hardest thing for a good investor is discipline. It's a Zen thing or Yoda. Paraphrasing Buffett: Be fearful when the sheep are greedy and greedy when the sheep are fearful.
I could do a video talking about my background more, just seems so self-centered to do that. I did an accelerated program in High School to get an associates in Science when I graduated high school. This made it so I didn't have to take any generals when pursuing a bachelors. But I also didn't know what I wanted to do, so I jumped from subject to subject, from finance, to healthcare, to law, and finally got into some technical classes (studying programming and information systems) and that's what I landed on. This has been a good field, but I also think any of the other fields would have had its own unique benefits and challenges. My biggest interest outside of what I do currently obviously is probably finance.
I am fortunate enough to use a broker that doesn't charge to buy or sell shares, no trading fee's. So i'm able to purchase individual dividend paying companies that I like and not pay any commissions to do so.
Hi I enjoy your videos. Question, I have around 50 individual stocks in M1. I finally figured out how to make a pie and place it in my portfolio. So now I have a bunch of individual stocks and a sector of about 10 Reits. I want to place my individual stocks into sectors within my portfolio. Is there any way to do this, or do I have to sell everything and start all over. For example take my energy stocks and put them in their own sector.
I’m stuck with Vanguard at the moment as sadly there are very few options in the U.K. I can’t wait for an M1/Robinhood style automated investing platform to arrive here, but sadly nothing to date.
Joseph what do u think of using ur portfolio and removing bonds completly and redistribute that 20%across the other pies im 21 yrs old and i dont think i need bonds but bcus its part of ur portfolio im not sure weather to take it our or not and also becouse their kinda good in dividends but then again i think less stocks were ur money is distributed reduces risk and all but im.alredy invested in vti so i think im good as for diversification what are your thoughts
I was a bit surprised by that first set of questions. Even if you replace "dividend" with "yield" in those questions, they still aren't right, since yield goes UP when the stock price falls. It might be worth going over Yield On Cost in a future episode, since that would be a way to fix the yield to a point in time and ignore the up and down of the stock price after you buy. Though reinvesting complicates things for YoC. ;)
Thanks for sharing the tracker. I'm going to give it a try tonight for the remaining of the year. I want to be very intentional about my investing for the next several months left in the year. Therefore my dividends payments will be ready to sbowball in 2020
I've had people *insist* that dividends were declared on the percentage instead of a dollar amount. Even when I've showed them dividend announcements from multiple companies they refuse to believe dividends are a dollar amount and not a percentage of share price. Sure glad I know better!
It depends. The worst case scenerio is a company that is going downhill and continually having lowered earnings and contracting business. Even if they keep their dividend now they will eventually cut it, i would sell these companies. If a company is only able to keep its dividend, but it shows no signs of cutting the dividend in the future I would probably hang onto it to have the cash flow and have it reinvested into other companies. Obviously the best scenerio is companies that both continue to go up in value while paying a higher dividend amount.
Just started watching your videos and have been loving m1 so I recently opened an account. I have a roth IRA through vanguard and i've been thinking of moving it to m1. I'm a little hesitant to move such an important account over to a new platform though.. Are you confident that m1 will be around in 2055? I hope it is and I know the money is all insured anyway.. I guess my question is do you think these newer platforms will be around to stay and challenge the more traditional ones or are they a passing phase? Thanks!
That is a great question. I can’t say if M1 will be around forever. There’s no way of knowing that. What I can say is the money is insured and just like other brokers that have gone out of business they simply transfer your funds to a broker of your choosing. The broker does not legally own your holdings, they just broker transactions. I think that there is a need for these newer platforms as the older ones still operate on a legacy business model of charging high fees and having terrible interfaces. M1 has been growing like crazy and I think it will continue to grow.
Can you please talk about how you are investing in your Roth. Did you deposit all 6000 and invest at once or are you investing a little each week. Also not sure if you answered this but how much are you ring to avg in your taxable account deposits each week and are you. Just letting it auto invest
With M1 you cannot use limit orders which is important even for non daily buying and selling. I have accounts with m1 and Robin Hood. M1 is cool and unique but Robin Hood is still the best way to go. If I have $1k built up to invest maybe $50 would go to M1 and the rest on Robin Hood. Their are many more drawbacks to m1 not discussed in this video that newbs need to understand. I think Robin Hood still best for newbs because you have to learn how to set buy and sell orders which is super easy but really a must know when investing serious money. If I want 10 shares of FIX at $38 each I can do that on Robin Hood but not m1.
Dividend is amount the company shares out to stockholders from its profits. Say British Aerospace makes a profit of £1.4 billion , it decides to share out £710 million across its 3.20 billion shares. Each SHARE (not shareholder!) would get allocated 22.2 pence (£0.222). Since their stock price is £5.56 per share, the dividend is 4% of the stock price - at that point in time. The percentage varies because the stock price varies - the £710 million allocated has stayed the same, so has the £0.222 allocation per share. The lower the stock price falls, the more flattering the dividend looks. So an 11% dividend looks great in theory, but falls flat when you see the stock has fallen (after the announcement of the dividend) to create the false value, that MAY mean that next years profits may fall too and the dividend is then cut in value (£400 million - 12.5 pence per share?) Great series Joseph, and so looking forward to getting M1 Finance in the UK.
I wonder if a CAGR return calculation might be more useful to people? You'd have to pretend that you put all of your deposits into the portfolio on day 1 and base the CAGR on that starting value. What that would give people is an analogy to a bank savings account: what interest would you have to earn on the total amount of your deposits, in order for you to arrive at the current value of your portfolio?
I am really struggling to put together a good dividend pie. Would it be too much to ask to duplicate yours? I can fund a pie I am just struggling to get a good pie put together. I am 21 and would like to get started as soon as possible!
You can duplicate mine anytime. Go to the description of this video, click on "my m1 portfolio", it will open up my portfolio then you just click "invest in this portfolio". Then it will add it to your portfolio. You can then edit and adjust holdings to remove the ones you don't want.
Hi Joseph, Could you provide your opinion on cannabis stocks that have recently been added to the market? With a high degree of uncertainty and potential profits, I imagine some investors are torn if they should invest or not.
Hey Joseph, PPCIAN is another popular youtube dividend investor and he recently made a video about 5 common mistakes dividend investors make. His fifth mistake was essentially using a free platform such as robinhood or m1 finance as a investing platform instead of an established firm like Vanguard or TD Ameritrade. To be fair he was targeting people signing up only due to promotions but he did also have concern about the platforms themselves. His reasoning is these "start up" companies have not proven they can be trusted to handle larger portfolios (which are needed for financial independence living off of dividend stocks). So my question is what is your take on having a million dollar portfolio in one of these newer platforms and would you recommend switching to a more established broker when portfolio value starts getting close to 1/2 million (maximum insured amount)?
I did see that comment. He points to having larger dollar amounts as a reason to keep money in traditional brokers. I don't agree with this assessment. Let me be clear about something. If I thought there was a smidgen of a chance my money was more safe in traditional brokers than it was in M1 I would have my money in traditional brokers. I have about 50k in M1. I would be absolutely as safe with this 50k as I would be with 500k. The suggestion that I would be more careless with 50k than I would a higher dollar amount is simply not true. This 50k represents years worth of my time and hard work and it's not something I take lightly. So I don't agree with the idea that you should be more cautious once you get to higher dollar amounts. If there was a tiny fraction of a chance I felt safer with a traditional broker that's what I would be doing. Saying it's "free" as a label isn't really correct. This is similar to saying banks are "free" and shouldn't be trusted because they offer free checking accounts. M1 doesn't charge for trades because like most things in life as technology advances and automates things they become cheaper and more cost effective.Traditional brokers do not need to charge you trading fee's to make a profit. They do so purely because they can, and it gives people a sense of security. Like a bank, M1 makes money from cash on account, M1 Borrow (margin lending), selling order flows, and they are releasing M1 spend and M1 plus as well as a checking account. There are numerous ways they can monetize their business without charging fee's for every trade. (just like a bank does for you with checking accounts) Even before M1 decided to no longer charge trading fee's or AUM fee's, they said publicly that about 30% of their companies income was made from charging those fee's. Meaning, they make 70% of their income through other ways, and by not charging fee's they are able to get more customers and grow their business much faster. This was a business decision in order to make them more money overall. A few other things you can consider. M1 is SIPC insured, I have checked the actual government SIPC website and they are registered with it. So your money is insured up to $250k cash and $500k in securities. They are governed by all the same regulatory bodies that all the big companies are and have to comply with the same level of scrutiny. They are based out of the US, located in Chicago, and are a very transparent company. They also use Apex Clearing Corp as their custodian which houses trillions of dollars worth of assets and is the custodian for virtually every other Robo advisor (betterment, acorns, wealthfront, previously robinhood). So M1 doesn't actually hold your money, they simply broker transactions. I feel 100% safe with my money in M1. I actually show how much I have invested and the broker I use, so you know i'm confident and I don't recommend something I wouldn't use myself. I wouldn't have a nickel in the company let alone 50k if I thought there was a chance I could have my money be safer in a traditional broker. I do agree, after 500k, I would consider opening up an additional account at a different broker so that I am still covered under SIPC insurance. But that is a good problem to have and a bridge I will cross when I get there.
Also for those traditional broker we need to keep a eye on them because more and more people investing on those free new platform, that mean in long run, they might have less and less customer. That mean less profit (income) that is bad...
@@hychyc I think its good, it gives the bigger companies more competition, hopefully encouraging them to lower their fees like they've been doing these recent years.
@@investmentguru9920 The big brokers are definitely going to have to change there business model to combat these new ones from stealing there customers.
@@JosephCarlsonShow no theres not, its just 30%, plus the wire transfer fees and trading fees lol. i got an nra withhold with the first dividend i received...
@@goldenboy8819 If you don't mind me asking, what country are you investing from? What rate are capital gains taxed at? I feel like that tax treatment doesn't leave you with a lot of options.
Browsing UA-cam this morning and saw your new video pop up, got excited right away because you touched on something that I've been wondering about with these bad headlines going around. Thanks for giving us your thoughts and helping to preserve my sanity. Just crossed the $11,000 mark in my portfolio yesterday and hoping to double that soon. :)
so on 47k how much do you make a month on dividends....would it not be better to pick like abbv and mmm and t and hd and get 200 a month in dividends .......im confused why you do it this way please help me understand......thanks
I have a TD Ameritrade account, and I called and asked them if I could build a portfolio with ten stocks that I choose my self, and only get charged one $7.00 buy fee a month for a $400.00 split evenly over the 10 stocks. Their answer was no. I would have to pay the &7.00 buy fee times 10 (&70.00) each month. They did offer a portfolio that was managed by them that would not charge me as high as fees, but then I don't get to choose the stocks. So how do you guys get around those high fees? If I contribute $400.00 a month to my portfolio, I don't want that to cost me $70.00 to do so. What are my options here? Thank you in advance Edit: I called Vanguard, and they said their trades would be something similar to TD Ameritrade commission fees at$7.00 per buy on each individual stock online ($25.00 per trade over the phone..Yikes!!); however, if you already at least $500,000.00 in your account, it would only be $2.00 per trade online. Unfortunately I don't have $500,000.00 yet. He did say though that ETF's could be purchased monthly commission free. So is OP investing monthly in these 10 stocks and paying monthly commission fees? or was it a lump sum investment?
I have to disagree with you Joseph Carlson on the brokerage isn't going to make or break you. I do believe that the brokerage can if you are using the wrong one for the wrong type of investing. I started my dividend portfolio on Robinhood and worked it all the way up to around $2,100 in a few months. I was getting very frustrated with the limitation of needing to buy a full share, definitely when it came to higher dollar amount stocks like Unitedhealth and Lockheed Martin, ect. I decided to move my robinhood account to M1 finance and it is doing way better. I am already invested in about 54 companies and my portfolio doesn't move nearly as much in one day as it used to. I was able to balance out my current Yield to around 4.67%. I was having a tough time balancing on robinhood because I'd buy a share of BTI because i had enough for that and didnt get a share of KO.
Robinhood and Acorns are those sorts of brokers that let you passively invest without even thinking about it (with the round up features, and what not)...But they charge a fee to invest. Not a huge one, but it's a larger percentage the smaller your investment. And if you're using these because you can't buckle down and invest, then you probably have the smaller of investment sizes. M1 Finance has no fees on its trading, and it has partial shares. Both of these make it exceptionally good for smaller size investments. It's one "downside" is that you can't respond mid-day to price changes...also known as day trading...also known as one of the least profitable and most stressful ways to invest. So, basically M1 Finance is the best to actually get invested and start making money, but requires you to manually make the move to add money to the investment account. Acorns at least lets you get invested, and not give one the agony of consciously adding money, if you are prone to such things.
Would actually be cool if M1 could add a round up functionality similar to Acorns. I.e. linking a checking account or credit card where it will automatically round up charges to a full dollar amount and then auto-invest that into your M1 pie.
Hi Joseph, I've been following you for 5 months, you have really great channel and I am pretty sure that very soon number of subscribers will outgrow your portfolio (I dont mean that there will be recession and your portfolio will drop 50 % lol). What do you think about D. Trump, as president and as businessman? Thx.
I'm currently a little upset I don't have money to put in while things aren't cheaper 🤣 When I have money next week... Everything will be regular or higher 😭😭😭
I trimmed my position by 30% because I started investing late in this economic cycle (S&P is near all time high). I'm waiting for a correction to redeploy my money at a better entry point. My English is so so am a not English speaker.
I just started with $1000, what's your recommendation on starters? should i shave off the lower stocks value or should I change my percentage? I copied what you have.
M1 Finance (broker used in video): m1finance.8bxp97.net/Wr2M3
Headline Investing: 0:56
Dividend Income Graph Update: 7:02
Responding to questions: 10:10
Joseph Carlson
Hey I have only been investing for 3 or 4 years and have an IRS and savings in Every TRADE because I initially liked some of the tools and company bio etc. am I wasting my time with them, or would it not really make a difference and be more if just a preference?
Great videos.
@@kylelarson7386 Investing is rarely a waste of time! I haven't used E*Trade so I can't do an exact comparison. You can look at my videos and see how M1 functions and see if that's something you're interested in. A lot of people also deposit some money and try it out before deciding to put more into it. Either way it does largely come down to preference. I like being able to deposit money any time and avoid trading fee's. But I also bet there's a lot of good features on E*Trade that M1 probably hasn't developed yet. So I wouldn't stress about the decision. The important thing is you're investing and building up assets.
Joseph, could you make a video to explain your Dividend income graph better? So we can customize it to fit us?
It is helpful that you clarified one of the beautiful things about dividend investing.. That the dividend(s) you get paid doesn't fluctuate up & down day-to-day as the stock price changes day-to-day. Hopefully this will inspire more people to invest in dgi once they understand this foundational concept.
Great explanation around the 20 minute mark. Your videos have so much value and information. Thank you.
Hello again Joseph, I'd like to ask you something. For those of us just starting out in dividend investing, who may not have a large some of cash to go into it with, what approach would you take? To be more specific, how many holdings would you recommend we start with for someone with maybe a few hundred to a couple thousand dollars? And to be even more specific, which ones would you choose? I haven't made it through all of your videos yet, but if you haven't already maybe you can do a top 5/10 (whatever number you'd suggest starting with) dividend stocks for people with smaller amounts of cash to start with... Thanks in advance, your videos are the best
wouldnt be a good idea to have on your graph the amount of money you are putting into your portafolio, so you can see the difference? something like, this is your "Portfolio value", this is your "contribution" and the difference would be how much of the Portfolio value is d/t investing.
your snow ball effect is already showing effing in just 2 years.. congrats man, my snowball have not really shown any effect yet on my robinhood account
This just in! A new Joseph Carlson Show episode for my lunch break.
I haven’t watched yet, but I’ve recently become aware that I have holdings that stemmed from seeking alpha headlines. The recent downturn got me thinking about my confidence in my holdings. I’ve sold out of some positions to consolidate funds into my core 4.
Thank you Joseph for another excellent video. This has further strengthened my belief in dividends investing.
Very informative and thanks again for sharing your updated spreadsheets and charts with everyone
Hi Joseph,
Thank for videos, it brought completly new perceptions of investing to me. I would have sugestion to your excel graphs, it could be interesting to ad there graph which would visualise your real money you are putting in, and the value of portfolio. It could be nice to see that after longer time period the money you putting in are increasing lineary, but the dividend income, portfolio value and reinvesting I suggest should increase exponentialy during the time.
keep up the good work
Tomas
Great info, I found this video to be the most informative (for my knowledge level) so far, especially explaining money vs simple returns and also explaining that dividends are a set dollar amount, not a percentage of share price. Keep up the great work
"I think it is crystal clear" Haha, I laughed out loud at that one : )
Love the videos! I just started my journey on M1 Finance. Thanks for being so transparent!
I just downloaded M1 Finance, and I'm up, running and funded. Its better than my TD Ameritrade account in term of ease. Thanks
One upside to Robinhood and Webull that i have noticed is that you can buy your shares at a low price point in the day. M1 is really good at buying my shares at the most expensive price possible that day.
Very true I thought I was the only one that noticed
Buying at not the highest possible price is not day trading. I assume m1 is selling the spread like robinhood does.
Great video!! For me, there is one important metric to measure returns and thats the IRR. Simply put, the current net asset value of the portfolio compared to the amount of money you paid in including the timing of these fundings.
Good 19:30 Good Explanation of Money/Personal Return, as invested capital is added it dilutes (overall return) so I actually prefer money/personal return. Buy Stock A $100, It goes to $150 (50%) Gain, Add another $100 $250 total, with $50 gain drops to a now 22-25% gain.
Nice clarification on dividend yields & great video as always!
Thanks for the dividend tracker graph, looks great!
yup ill be adding this to my tracker asap
If I invest in your shared pie above in M1, and you make changes to your pie will it automatically update for me in M1?
loving the new spreadsheet
Hi Joseph, I just started watching your journey and I have a few questions. Can you do a video showing us how to setup the gmail dividend keyword thing, can you explain how to setup your percentages, and how to setup where your new deposits go? I have limited funds to invest and am going to start with maybe 5 stocks in different industries and build slowly from there. Basically I'm looking for how to setup M1 from the get go, thanks
I sold EVERYTHING this week ;) (not really) But I rebalanced away from bad investments in no-growth dividend companies. Another great and insightful video, Joe!
I do the same.
@@gabriellechaparro762 Had to drop 3 investments (latest video on my channel) to focus on more effective strategy (and stop taking "investment tips")
Joseph, really enjoy watching your videos. The way you explain things in a simple way is really helpful. Also the current news is great. Keep it up!
Great video as always, and thanks for the new update on the document.
Good video. Also, good explanation of dividend yield and it's dividend. I already knew that, but I know that many don't.
Thank You Joseph
11:44 Joseph i think it's also better to show them the data of dividends paid that is gradually increasing from seeking alpha to help them understand.
How do you decide how much portfolio weight each sector/company should have in your portfolio?
I mean, with what thought process?
^^^ he keeps changing his portfolio weights and I have to keep adjusting! I really don’t know what I’m doing so I’m just copying right now
Some people say to ignore your portfolio. Very few people can do that after they retire and depend on the portfolio for survival.
I say pay attention to the portfolio from the beginning and learn how it (and the market) works. Don't act. Just watch.
Your portfolio moves a few dollars a day when it is small and the market moves 1 or 2%.
As it gets larger it moves a few 10s of dollars a day for a 1-2% move, then a few hundreds of dollars a day, and hopefully your portfolio gets large enough it moves many 10's of thousands or even 100's of thousands of dollars a day for a 2% move.
You compared the Money Weighted Return to Simple Return, but you should also explain the Money Weighted Return vs Time Weighted return.
Good information today!👍
Pretty cool to see that dividend growth, good video!
Bring on the recess-ion world. We got this.
Thanks for the copy of your google sheet!
I can proudly say that i never once thought that dividends are paid as % of stock price
Hello Joseph! I have a question regarding your income graph, specially on the columns [Average Monthly Income and Actual Monthly Income]
I've noticed that for the first couple of months up until Jun 2018, your Actual Monthly income is the same as your Dividend Income but for months beyond Jun up until May of 2019, the value on the Actual Monthly Income deviates by a little bit from a couple cents to $1.
I wanted to know whether or not there is a significance in these difference in value as i noticed that the rest of the columns have formulas reflected on the monthly dividends provided while only this column doesn't.
Thanks in advance!
what do you think about etrade
Hey joseph great Video as always. Thank you for the work you are putting in.
What do you do as a full time job? Is it finance related? Great video btw.
*GREAT VIDEO* Ultimately, when it comes down to it, if you are investing long-term in dividend stocks that have stable payout ratios and strong dividend growth, who cares if the market is up or down?? In fact, if the market is down, as long the dividends keep gettin paid, I’m kind of happy because I can reinvest my dividends at lower stock prices. What are your thoughts? 💭 GREAT VIDEO! 😎👍🏻
Average Joe on Money I’ve never thought about it that way...interesting! 👍🏻
Very true, but surely if a company’s stock is slashed and prices keep going down, it is likely that the value of their dividend payments will also be reduced over time.
Mark RC hi 👋 so that’s definitely a consideration, BUT if you are investing in companies with a long history of paying dividends consistently and with a history of raising the dividend every year AND the companies also have a stable payout ratio, the odds of the company reducing their dividend or stopping it all together are LOW, but it could happen. I’d recommend reviewing your investment metrics at least quarterly to look for signs of weakness in the dividend payments. 😎👍🏻
Average Joe on Money Absolutely. And that’s where doing your research is important. I agree that chances of reduced dividend payments are low if the track-record is as you describe. But it is possible. There are no guarantees in this game! (Just solid, well-thought out, educated assumptions)
Jorel Boston Great buy! 😎
Do you pay taxes as soon as the dividends are paid?
No! The dividends are flat amount which are not directly related to stock value.
However, dividends have a way of commanding the stock price. 4-6% stock prices are pretty good. If a company's stock value drops such that it goes over that percentage (and the company isn't considered a dying one), then demand for it will rise in tandem, stabilizing the price.
Technically that's what should happen, but there are plenty of examples where it doesn't. For example investors may fear that a company is going downhill when it's actually solid. Those make for great opportunities for rational investors though.
How much do you deposit each month into your dividend pie?
Hi Joseph, maybe for the chart you could add the capital invested, I feel that it would be nice to see what you're getting from your investment. Good video btw!
One word of caution for new investors reading these comments, (this is in no way a criticism of your portfolio), as dividend investors we need to be VERY careful we still look for value as a equal weighting to dividend in our stock picking.
This concern comes from a couple investing groups I’m part of. I watch people chase dividends above value.
It’s a very dangerous trap to get stuck in.
The market will always have bad days, even bad weeks, and occasionally bad years. These are the times to buy good dividend paying stocks, not at the peak of the bull market.
With free self directed platforms there really is no excuse to be buying at a weekly high.
Dollar cost averaging is amazing, but you can really kick it into high gear if you avoid the peaks and capitalize the valleys.
Anyway, keep up the great content!
I assume you mean people chasing high yields?
I haven't invested yet but I'm looking at companies I believe will be around in 30 years or more.
Nick Oloteo yes, but also simply investing solely for the dividend with no regard for the actual value of the company. One important part is picking companies that will be around for decades to come..... but those companies CAN to over priced. The stock market as a whole prices stocks based on SUPPLY of buyers only. Nothing else. It’s up to us buyers to calculate if the company is worth what “the market” is asking.
Another great video, love to see the development
could you restate your end goal in dividends? like is it 3k a month?
A goal of 3k/month would be great, that would be enough. Eventually my mortgage will be paid off and having zero debt + 3k/month income makes for pretty easy living. My first goal is just to get above $500/month income. Working my way there!
The hardest thing for a good investor is discipline. It's a Zen thing or Yoda. Paraphrasing Buffett: Be fearful when the sheep are greedy and greedy when the sheep are fearful.
when do you get dividends on M1 Finance when you buy fractional stocks? Do you have to wait until you have bought the whole stock?
You get dividends on fractional shares as well.
THANKS!!!! @@rubenve79
@@workn2it You're welcome :)
Almost 50K !
Great video as usual
what degree did you get joseph carlson? finance?
I could do a video talking about my background more, just seems so self-centered to do that. I did an accelerated program in High School to get an associates in Science when I graduated high school. This made it so I didn't have to take any generals when pursuing a bachelors. But I also didn't know what I wanted to do, so I jumped from subject to subject, from finance, to healthcare, to law, and finally got into some technical classes (studying programming and information systems) and that's what I landed on. This has been a good field, but I also think any of the other fields would have had its own unique benefits and challenges. My biggest interest outside of what I do currently obviously is probably finance.
Market is all over the place lately but at least I know dividends will be pretty steady or increasing
i am really jealous you have m1 and robinhood and we poor EU citizens have shiit
we have freetrade app
Lynx is pretty amazing and cheap enough.
Try folionet, see what happens
@@Krogzaxants Degiro is even cheaper.
@@OKMX5 I don't like De giro myself.
Hell yeah Joseph! Listening while on my way to work and just put $20 more dollars into my portfolio today 🙏🤙
UA-cam and postcasts are the best thing to happen to commutes.
@@JosephCarlsonShow totally agree on my 100 mile daily commute Joseph! Thanks for the hard work on quality content and 0 BS.
Hey I dont understand why you buy individual stocks and pay a commission vs just buying a dividend etf such as VIG. Can you explain?
I am fortunate enough to use a broker that doesn't charge to buy or sell shares, no trading fee's. So i'm able to purchase individual dividend paying companies that I like and not pay any commissions to do so.
Great video, you deserve every sub!
Hi I enjoy your videos. Question, I have around 50 individual stocks in M1. I finally figured out how to make a pie and place it in my portfolio. So now I have a bunch of individual stocks and a sector of about 10 Reits. I want to place my individual stocks into sectors within my portfolio. Is there any way to do this, or do I have to sell everything and start all over. For example take my energy stocks and put them in their own sector.
I’m stuck with Vanguard at the moment as sadly there are very few options in the U.K. I can’t wait for an M1/Robinhood style automated investing platform to arrive here, but sadly nothing to date.
Joseph what do u think of using ur portfolio and removing bonds completly and redistribute that 20%across the other pies im 21 yrs old and i dont think i need bonds but bcus its part of ur portfolio im not sure weather to take it our or not and also becouse their kinda good in dividends but then again i think less stocks were ur money is distributed reduces risk and all but im.alredy invested in vti so i think im good as for diversification what are your thoughts
I was a bit surprised by that first set of questions. Even if you replace "dividend" with "yield" in those questions, they still aren't right, since yield goes UP when the stock price falls. It might be worth going over Yield On Cost in a future episode, since that would be a way to fix the yield to a point in time and ignore the up and down of the stock price after you buy. Though reinvesting complicates things for YoC. ;)
Thanks Joseph
Thanks for sharing the tracker. I'm going to give it a try tonight for the remaining of the year. I want to be very intentional about my investing for the next several months left in the year. Therefore my dividends payments will be ready to sbowball in 2020
What do you guys think about Japan tobacco and ExxonMobil?
I've had people *insist* that dividends were declared on the percentage instead of a dollar amount. Even when I've showed them dividend announcements from multiple companies they refuse to believe dividends are a dollar amount and not a percentage of share price. Sure glad I know better!
Thanks for the Dividend info! So what if a company in your portfolio is just keeping the dividends the same would you sell it eventually?
It depends. The worst case scenerio is a company that is going downhill and continually having lowered earnings and contracting business. Even if they keep their dividend now they will eventually cut it, i would sell these companies. If a company is only able to keep its dividend, but it shows no signs of cutting the dividend in the future I would probably hang onto it to have the cash flow and have it reinvested into other companies. Obviously the best scenerio is companies that both continue to go up in value while paying a higher dividend amount.
Joseph, couldn't one buy all Dividend Kings and Aristocrats and grow portfolio that way?
Just started watching your videos and have been loving m1 so I recently opened an account. I have a roth IRA through vanguard and i've been thinking of moving it to m1. I'm a little hesitant to move such an important account over to a new platform though.. Are you confident that m1 will be around in 2055? I hope it is and I know the money is all insured anyway.. I guess my question is do you think these newer platforms will be around to stay and challenge the more traditional ones or are they a passing phase? Thanks!
That is a great question. I can’t say if M1 will be around forever. There’s no way of knowing that. What I can say is the money is insured and just like other brokers that have gone out of business they simply transfer your funds to a broker of your choosing. The broker does not legally own your holdings, they just broker transactions.
I think that there is a need for these newer platforms as the older ones still operate on a legacy business model of charging high fees and having terrible interfaces. M1 has been growing like crazy and I think it will continue to grow.
@@JosephCarlsonShow Thanks, good to know they just transfer the funds should something happen. High hopes for M1
Good Stuff!
To be a good long-term investor, don't bias your investing decisions on headlines and try to time the market.
How much money you
Make on dividends yearly
I find it funny the way people react to headline news but if it brings about some value in the market !"m not complaining.
Nice!
Can you please talk about how you are investing in your Roth. Did you deposit all 6000 and invest at once or are you investing a little each week. Also not sure if you answered this but how much are you ring to avg in your taxable account deposits each week and are you. Just letting it auto invest
I love your thumbnails very clickbaity and not in a bad way. I just think their simplistic and artistic, and it makes me want to click on your videos.
I love it when the market takes crazy dip just because of a few bad news days .... Give me a chance to buy some of my favourite stocks
dividend % are paid on Book Value not at market value.
With M1 you cannot use limit orders which is important even for non daily buying and selling. I have accounts with m1 and Robin Hood. M1 is cool and unique but Robin Hood is still the best way to go. If I have $1k built up to invest maybe $50 would go to M1 and the rest on Robin Hood. Their are many more drawbacks to m1 not discussed in this video that newbs need to understand. I think Robin Hood still best for newbs because you have to learn how to set buy and sell orders which is super easy but really a must know when investing serious money. If I want 10 shares of FIX at $38 each I can do that on Robin Hood but not m1.
Was compelled to try and get my point across. lol ua-cam.com/video/u5FLLHdS6Gc/v-deo.html
THE STONKS ARE DOWN!! PANIC!!
I saw you hit 357k views in the past 30 days. Congrats!
Dividend is amount the company shares out to stockholders from its profits. Say British Aerospace makes a profit of £1.4 billion , it decides to share out £710 million across its 3.20 billion shares. Each SHARE (not shareholder!) would get allocated 22.2 pence (£0.222). Since their stock price is £5.56 per share, the dividend is 4% of the stock price - at that point in time.
The percentage varies because the stock price varies - the £710 million allocated has stayed the same, so has the £0.222 allocation per share. The lower the stock price falls, the more flattering the dividend looks. So an 11% dividend looks great in theory, but falls flat when you see the stock has fallen (after the announcement of the dividend) to create the false value, that MAY mean that next years profits may fall too and the dividend is then cut in value (£400 million - 12.5 pence per share?)
Great series Joseph, and so looking forward to getting M1 Finance in the UK.
When you showed the formula I laughed so hard.
I wonder if a CAGR return calculation might be more useful to people? You'd have to pretend that you put all of your deposits into the portfolio on day 1 and base the CAGR on that starting value. What that would give people is an analogy to a bank savings account: what interest would you have to earn on the total amount of your deposits, in order for you to arrive at the current value of your portfolio?
19:10 lol that was hilarious, thanks for another great vid
I call this 'knee-jerk' investing >__
I am really struggling to put together a good dividend pie. Would it be too much to ask to duplicate yours? I can fund a pie I am just struggling to get a good pie put together. I am 21 and would like to get started as soon as possible!
You can duplicate mine anytime. Go to the description of this video, click on "my m1 portfolio", it will open up my portfolio then you just click "invest in this portfolio". Then it will add it to your portfolio. You can then edit and adjust holdings to remove the ones you don't want.
@@JosephCarlsonShow Thanks so much! I really appreciate it!
Hi Joseph,
Could you provide your opinion on cannabis stocks that have recently been added to the market? With a high degree of uncertainty and potential profits, I imagine some investors are torn if they should invest or not.
When I see red.. all I want to do is buy!!! At a huge discount
Hey Joseph,
PPCIAN is another popular youtube dividend investor and he recently made a video about 5 common mistakes dividend investors make. His fifth mistake was essentially using a free platform such as robinhood or m1 finance as a investing platform instead of an established firm like Vanguard or TD Ameritrade. To be fair he was targeting people signing up only due to promotions but he did also have concern about the platforms themselves. His reasoning is these "start up" companies have not proven they can be trusted to handle larger portfolios (which are needed for financial independence living off of dividend stocks). So my question is what is your take on having a million dollar portfolio in one of these newer platforms and would you recommend switching to a more established broker when portfolio value starts getting close to 1/2 million (maximum insured amount)?
I did see that comment. He points to having larger dollar amounts as a reason to keep money in traditional brokers. I don't agree with this assessment.
Let me be clear about something. If I thought there was a smidgen of a chance my money was more safe in traditional brokers than it was in M1 I would have my money in traditional brokers. I have about 50k in M1. I would be absolutely as safe with this 50k as I would be with 500k. The suggestion that I would be more careless with 50k than I would a higher dollar amount is simply not true. This 50k represents years worth of my time and hard work and it's not something I take lightly. So I don't agree with the idea that you should be more cautious once you get to higher dollar amounts. If there was a tiny fraction of a chance I felt safer with a traditional broker that's what I would be doing.
Saying it's "free" as a label isn't really correct. This is similar to saying banks are "free" and shouldn't be trusted because they offer free checking accounts. M1 doesn't charge for trades because like most things in life as technology advances and automates things they become cheaper and more cost effective.Traditional brokers do not need to charge you trading fee's to make a profit. They do so purely because they can, and it gives people a sense of security. Like a bank, M1 makes money from cash on account, M1 Borrow (margin lending), selling order flows, and they are releasing M1 spend and M1 plus as well as a checking account. There are numerous ways they can monetize their business without charging fee's for every trade. (just like a bank does for you with checking accounts)
Even before M1 decided to no longer charge trading fee's or AUM fee's, they said publicly that about 30% of their companies income was made from charging those fee's. Meaning, they make 70% of their income through other ways, and by not charging fee's they are able to get more customers and grow their business much faster. This was a business decision in order to make them more money overall.
A few other things you can consider. M1 is SIPC insured, I have checked the actual government SIPC website and they are registered with it. So your money is insured up to $250k cash and $500k in securities. They are governed by all the same regulatory bodies that all the big companies are and have to comply with the same level of scrutiny. They are based out of the US, located in Chicago, and are a very transparent company. They also use Apex Clearing Corp as their custodian which houses trillions of dollars worth of assets and is the custodian for virtually every other Robo advisor (betterment, acorns, wealthfront, previously robinhood). So M1 doesn't actually hold your money, they simply broker transactions.
I feel 100% safe with my money in M1. I actually show how much I have invested and the broker I use, so you know i'm confident and I don't recommend something I wouldn't use myself. I wouldn't have a nickel in the company let alone 50k if I thought there was a chance I could have my money be safer in a traditional broker. I do agree, after 500k, I would consider opening up an additional account at a different broker so that I am still covered under SIPC insurance. But that is a good problem to have and a bridge I will cross when I get there.
Also for those traditional broker we need to keep a eye on them because more and more people investing on those free new platform, that mean in long run, they might have less and less customer. That mean less profit (income) that is bad...
@@hychyc I think its good, it gives the bigger companies more competition, hopefully encouraging them to lower their fees like they've been doing these recent years.
@@investmentguru9920 The big brokers are definitely going to have to change there business model to combat these new ones from stealing there customers.
with a 30% tax on dividends for a foreign investor, is it worh it to invest?
That is a really tough call. Is there any tax advantage accounts in your country? 30% is double the tax rate in the US.
@@JosephCarlsonShow no theres not, its just 30%, plus the wire transfer fees and trading fees lol. i got an nra withhold with the first dividend i received...
@@goldenboy8819 If you don't mind me asking, what country are you investing from? What rate are capital gains taxed at? I feel like that tax treatment doesn't leave you with a lot of options.
@@JosephCarlsonShow Kuwait... i dunno much about capital gains, didnt sell anything yet.
Browsing UA-cam this morning and saw your new video pop up, got excited right away because you touched on something that I've been wondering about with these bad headlines going around. Thanks for giving us your thoughts and helping to preserve my sanity. Just crossed the $11,000 mark in my portfolio yesterday and hoping to double that soon. :)
@@deanberger9597 Thanks, I appreciate that. Hoping to get it to nearly $30k by the end of the year.
so on 47k how much do you make a month on dividends....would it not be better to pick like abbv and mmm and t and hd and get 200 a month in dividends .......im confused why you do it this way please help me understand......thanks
13:44
I have a TD Ameritrade account, and I called and asked them if I could build a portfolio with ten stocks that I choose my self, and only get charged one $7.00 buy fee a month for a $400.00 split evenly over the 10 stocks. Their answer was no. I would have to pay the &7.00 buy fee times 10 (&70.00) each month. They did offer a portfolio that was managed by them that would not charge me as high as fees, but then I don't get to choose the stocks. So how do you guys get around those high fees? If I contribute $400.00 a month to my portfolio, I don't want that to cost me $70.00 to do so.
What are my options here?
Thank you in advance
Edit: I called Vanguard, and they said their trades would be something similar to TD Ameritrade commission fees at$7.00 per buy on each individual stock online ($25.00 per trade over the phone..Yikes!!); however, if you already at least $500,000.00 in your account, it would only be $2.00 per trade online. Unfortunately I don't have $500,000.00 yet. He did say though that ETF's could be purchased monthly commission free.
So is OP investing monthly in these 10 stocks and paying monthly commission fees? or was it a lump sum investment?
I have to disagree with you Joseph Carlson on the brokerage isn't going to make or break you. I do believe that the brokerage can if you are using the wrong one for the wrong type of investing. I started my dividend portfolio on Robinhood and worked it all the way up to around $2,100 in a few months. I was getting very frustrated with the limitation of needing to buy a full share, definitely when it came to higher dollar amount stocks like Unitedhealth and Lockheed Martin, ect. I decided to move my robinhood account to M1 finance and it is doing way better. I am already invested in about 54 companies and my portfolio doesn't move nearly as much in one day as it used to. I was able to balance out my current Yield to around 4.67%. I was having a tough time balancing on robinhood because I'd buy a share of BTI because i had enough for that and didnt get a share of KO.
Robinhood and Acorns are those sorts of brokers that let you passively invest without even thinking about it (with the round up features, and what not)...But they charge a fee to invest. Not a huge one, but it's a larger percentage the smaller your investment. And if you're using these because you can't buckle down and invest, then you probably have the smaller of investment sizes.
M1 Finance has no fees on its trading, and it has partial shares. Both of these make it exceptionally good for smaller size investments. It's one "downside" is that you can't respond mid-day to price changes...also known as day trading...also known as one of the least profitable and most stressful ways to invest.
So, basically M1 Finance is the best to actually get invested and start making money, but requires you to manually make the move to add money to the investment account.
Acorns at least lets you get invested, and not give one the agony of consciously adding money, if you are prone to such things.
Would actually be cool if M1 could add a round up functionality similar to Acorns. I.e. linking a checking account or credit card where it will automatically round up charges to a full dollar amount and then auto-invest that into your M1 pie.
@@rubenve79 Honestly, I'd agree with that assessment.
Hi Joseph, I've been following you for 5 months, you have really great channel and I am pretty sure that very soon number of subscribers will outgrow your portfolio (I dont mean that there will be recession and your portfolio will drop 50 % lol). What do you think about D. Trump, as president and as businessman? Thx.
I'm currently a little upset I don't have money to put in while things aren't cheaper 🤣
When I have money next week... Everything will be regular or higher 😭😭😭
Lol yea i got paid put everything then next day they go downhill...
@@x-31mej0r-5 lucky you
Messed up thing is...
If I held onto my money and wait for it to go down... it won't
I trimmed my position by 30% because I started investing late in this economic cycle (S&P is near all time high). I'm waiting for a correction to redeploy my money at a better entry point. My English is so so am a not English speaker.
I just started with $1000, what's your recommendation on starters? should i shave off the lower stocks value or should I change my percentage? I copied what you have.
you can lie to yourself if you want, if we lose 50% on stocks you wont be happy holding stocks.