It gets interesting at Altria when not only the dividends are paid and added up, as in your example, but new shares are bought with the dividends each time. Then the number of shares would have increased many times over in the years that pay dividends in the following years and so on.
Im no Chuck, but it keeps me interested when I ”need” to find a stock and it also eliminates the need to sell and especially the anxiety with it. E: Actually had time to watch the vid and said pretty much what Chuck said about growth stocks 😂 Dividends are also more stable and you dont lose stocks if you want to use them to pay bills or rent or whatever. That said index investing is a lot more efficient and probably will make you more money, but who knows. I just like the high dividends rolling in and growing constantly.
And I do have to add that *high* yield might not be as high as it used to be during covid, but with reinvesting it will keep growing. And I have around 10% in index funds.
In theory, there is no difference. You can pay yourself a dividend every year by selling a few shares of the company. People who think that I don't have to sell my stocks to get a yearly payout are living under an illusion. Ultimately, perennial dividend payments come from retained earnings of a company and its much like capital investment that one has to keep on making and growing. If a company can retain all their earnings and grow it better than you can, they should NOT pay a dividend.
@@bigmoose143 I respectfully disagree. When you receive a dividend number of shares you own stays constant and as the dividend is increased if you own the right dividend stocks, your income increases. If you are harvesting stocks or partial positions to generate income then you are eroding the number of shares you have. And that especially hurts you in a bad market if you shares or undervalued and you're forced to sell in order to generate income. With dividend paying stocks even when the prices are down and has no effect on the number of shares you own and your income can actually be increasing even though the share price is not. Regards, Chuck
I think you need all types of stocks in a diversified portfolio: high-yielder for cashflow now, moderate-yield-high-dividend-growth for performance and growth only stocks for maximal compounding. The blend depends on you goals and preference.
My first watch of any of your videos, and wow, just wow. So clearly explained. Thank you so much for passing on your wisdom. Subscribed and looking forward to looking through your older videos
This is a really great video. Thank you for making it. It’s great being able to use the tool to see the “if one had” done scenarios. It helps me keep my mind on the goals when stocks start dropping. I can look back to another time that happened to a company and see “what would have happened if…?”
Chuck, great video as always! Now with the new earnings released, could you please give us an update on $WBA? Is it a buy or hold? Your thesis that it is primarily income stock changes?
@@missouri6014 I believe the only truly practical way to analyze ETf's is to look at each individual stock in the portfolio. Consequently, that would be almost impossible to do a video on. Regards, Chuck
Returns are far more impressive if you are putting a more serious effort into dividend growth investing, like if you use the Lowell Miller method. And that's not even counting the compounding. Imagine if you had bought Canadian Natural Resources during the double black swan for oil a few years back. The starting yield was over 17% on a safe oil company with a 20-year dividend growth rate of over 20%. Most people, however, are aiming for very low starting yields in a high inflation environment. Often, they chicken out altogether and switch to ETFs with miserable dividends and dividend growth. All you need is courage and good research.
In my country (Czechia) for example when selling a stock which was held for more than 3 years results in gains being tax-free. In contrast, dividends are always taxed.
Without fail, every time I watch one of Mr. Valuation videos I always learn something new. Keep up the great work, UA-cam's best kept secret!
Mr. Valuation has hit another grand slam !! Thank you Chuck 🙏🙌🏾❤️🇺🇸💪🏾👏🏿👊🏽👍💰
It gets interesting at Altria when not only the dividends are paid and added up, as in your example, but new shares are bought with the dividends each time. Then the number of shares would have increased many times over in the years that pay dividends in the following years and so on.
Thank you Chuck. I would be curious to hear your take on dividend stock investing versus simple index investing.
Im no Chuck, but it keeps me interested when I ”need” to find a stock and it also eliminates the need to sell and especially the anxiety with it.
E: Actually had time to watch the vid and said pretty much what Chuck said about growth stocks 😂
Dividends are also more stable and you dont lose stocks if you want to use them to pay bills or rent or whatever.
That said index investing is a lot more efficient and probably will make you more money, but who knows. I just like the high dividends rolling in and growing constantly.
And I do have to add that *high* yield might not be as high as it used to be during covid, but with reinvesting it will keep growing.
And I have around 10% in index funds.
In theory, there is no difference. You can pay yourself a dividend every year by selling a few shares of the company. People who think that I don't have to sell my stocks to get a yearly payout are living under an illusion. Ultimately, perennial dividend payments come from retained earnings of a company and its much like capital investment that one has to keep on making and growing. If a company can retain all their earnings and grow it better than you can, they should NOT pay a dividend.
@@bigmoose143 I respectfully disagree. When you receive a dividend number of shares you own stays constant and as the dividend is increased if you own the right dividend stocks, your income increases. If you are harvesting stocks or partial positions to generate income then you are eroding the number of shares you have. And that especially hurts you in a bad market if you shares or undervalued and you're forced to sell in order to generate income. With dividend paying stocks even when the prices are down and has no effect on the number of shares you own and your income can actually be increasing even though the share price is not. Regards, Chuck
As someone approaching retirement, Fast Graphs is so helpful! Thanks Chuck!
I think you need all types of stocks in a diversified portfolio: high-yielder for cashflow now, moderate-yield-high-dividend-growth for performance and growth only stocks for maximal compounding. The blend depends on you goals and preference.
Buy an index or etf..
My first watch of any of your videos, and wow, just wow. So clearly explained. Thank you so much for passing on your wisdom. Subscribed and looking forward to looking through your older videos
Welcome!
My logic is that if I am spending my earned capital on an asset then it should return something to me which is why I am a dividend growth investor.
My logic is that water should be wet so I drink wet water 😉
@@katielowen your logic sounds like youre all wet
How much money to get that water you drink?
@@katielowen My logic is that air should be airy so I only breath airy air.
@@christopherfranz6782 my bath water is very expensive but you’ll love it 😏💦😛
Mr Valuation is the GOAT
I've been receiving money from MO for almost 3 years now. Just purchased 20 more shares 2 days ago. Thanks!
excellent and informative, thanks for Fastgraphs, an essential tool
My only question is does valuation matter and if so, does it matter a lot?
Well explained with the heart of a teacher ❤
Always love the content! Hope all is well for you and Polly.
This is a really great video. Thank you for making it. It’s great being able to use the tool to see the “if one had” done scenarios. It helps me keep my mind on the goals when stocks start dropping. I can look back to another time that happened to a company and see “what would have happened if…?”
Always enjoy your comparison videos. Thanks!
Simply the best! ❤
Chuck is back!!
Thanks for the video, greetings from 🇫🇷
Super cool video Chuck! Thanks a bunch
Thanks Chuck awesome video, appreciate your videos... Good video I like to hold both types..
Great thank you again Chuck
Chuck! Financial/insurance stocks are hard to value.
What do FASTgraphs say about Arch Capital Group?
Thank you.Great analysis.
Superb video👌
Hi Chuck. Apologies for going off-topic, but are you still taking subscriber requests? I'd love to see your assessment of PayPal. Love your work!
My AT&T is WAY down, though. 😮 I don't think the dividend will cover the lost capital.
Great information Thanks 😊
Try TMUS for growth and then dividends to follow soon.
Chuck, great video as always! Now with the new earnings released, could you please give us an update on $WBA? Is it a buy or hold? Your thesis that it is primarily income stock changes?
+ CVS ;)
thank you so much.
great video
Paypal took a huge hit today aswell. -12%. Could you do a video on it?
As I said in the introduction will this video is not about the companies but about the investing principles that I was sharing.
Wish you could do that same type of thing with BTS that would be very useful and helpful to Mavis
ETFs
@@missouri6014 I believe the only truly practical way to analyze ETf's is to look at each individual stock in the portfolio. Consequently, that would be almost impossible to do a video on. Regards, Chuck
Both. It also depends on your age.
Ich bin der erste 🎉
Neil, Leiden nicht, nur zweite 😂😂
Returns are far more impressive if you are putting a more serious effort into dividend growth investing, like if you use the Lowell Miller method. And that's not even counting the compounding. Imagine if you had bought Canadian Natural Resources during the double black swan for oil a few years back. The starting yield was over 17% on a safe oil company with a 20-year dividend growth rate of over 20%.
Most people, however, are aiming for very low starting yields in a high inflation environment. Often, they chicken out altogether and switch to ETFs with miserable dividends and dividend growth. All you need is courage and good research.
Thanks for sharing your opinion, but that is not what this video is about. Regards, Chuck
First non-comment comment…
Paypal now $10 less after earnings ~$64
As I said in the introduction this video is not about the companies but about the investing principles that I was sharing.
If you have to pay taxes for dividend everything chances.
Why?
In my country (Czechia) for example when selling a stock which was held for more than 3 years results in gains being tax-free. In contrast, dividends are always taxed.
@@kex1xikconsider yourself very lucky. Great to see that the ex-soviet eastern economies have become some of the more free economies in the world.
changes or chances?
Shanks
MO has too much debt. BTI looks better