What makes MLPs and REITs different than Dividend Stocks? | Investing for Beginners

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  • Опубліковано 11 вер 2024
  • I’m revealing the best dividend stocks for 2019 and it might surprise you that they aren’t actually dividend paying stocks. These special types of companies are the highest paying dividend stocks but cannot be valued the same way.
    Check out the Streitwise 1st Streit Office REIT - a new real estate fund of high-quality office space paying 10% annualized dividends. mystockmarketb...
    #REITs #DividendStocks #StockMarket
    It’s one of the biggest misconceptions with REITs and MLPs and I see investors try to use the price-earnings ratio all the time. You can’t use common stock valuation techniques when looking at REIT investing or MLPs.
    In this video, I’ll walk you through the basics of these two types of dividend paying stocks from how they differ with other stocks to how much you can make and the risks involved. I’ll also reveal special metrics to value these companies and the best dividend stocks to buy in each group.
    Invest on a no fee website like M1 Finance and save thousands on commissions. I use M1 for the no-cost and easy automatic investing in my portfolio. Get a special bonus offer with this link mystockmarketb...
    REITs and MLPs are some of the best dividend stocks for your portfolio because not only do they pay higher dividend yields than other stocks, they also protect your portfolio from a financial crash. These aren’t like other companies. They own real assets that hold their value and spin off an amazing amount of cash flow.
    There are some risks involved though with these types of dividend stocks and you can’t treat them like normal stock dividends. I’ll walk through all the risks and differences in the video as well as how to find the best stocks to buy.
    Step by Step Dividend Investing - Get paid to invest! How to find income investments for fast cash flow and create passive income with dividends, REITs and MLPs with this book. amzn.to/2aLpFcs
    One last note is that the tax benefits on these two types of dividend stocks are different as well. You shouldn’t hold MLPs in a tax-advantaged retirement investing account while REITs are perfect investments for a retirement account along with other high dividend paying stocks. I go into detail on this in the video so be sure to watch it all the way through.
    When you’re done, check out this video on dividend stocks for beginners that will show you how to pick dividend stocks • What are Stock Dividen...
    This next one is a can’t-miss dividend investing video where I reveal the warning signs of a dividend cut and when to sell a dividend stock • Dividend Death - Divid...
    0:55 REIT Investing vs Dividend Stocks vs MLPs
    1:40 Why You Cannot Use the PE Ratio with these Dividend Stocks
    2:15 MLP Investing
    7:57 What are REITs
    11:30 Best REIT Dividend Stocks
    SUBSCRIBE to create the financial future you deserve with videos on beating debt, making more money and making your money work for you. peerfinance101...
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    Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.

КОМЕНТАРІ • 194

  • @josephhogue
    @josephhogue  5 років тому +7

    2020 Dividend Stocks Challenge is LIVE! 💰 Which Stocks Should I Add to the Portfolio? ua-cam.com/video/kGhDOFZNrBA/v-deo.html

    • @Вова0007
      @Вова0007 5 років тому

      Thank you Joseph! You are STAR investment advisor here! ;)

  • @53philp
    @53philp 5 років тому +53

    Im in ET myself, 8.25% right now. Have enough share's that each Quarter my dividend's are reinvested and I gain another share. Kind of a moot point for me because Im 65 yrs old so its just a hobby. Going to leave it for my 10 yr old grandson when I die :)

    • @josephhogue
      @josephhogue  5 років тому +7

      Great idea leaving the MLP in your estate. All those price gains will be marked up so your grandson won't pay capital gains that you owed. He'll have a new cost-basis on the shares from when the transfer was made. Best way to hold MLPs.

    • @DONALD1951
      @DONALD1951 5 років тому +3

      Same here. ET and EPD.

    • @suhwateezea.214
      @suhwateezea.214 5 років тому +2

      That's awesome of you Phillip!

    • @ronniecole9595
      @ronniecole9595 4 роки тому +1

      You're a good man Phil. Way to go

  • @remodelassets6523
    @remodelassets6523 5 років тому +23

    This is NOT hard to understand. Why don’t High Schools teach this to our youth? Thank you for your explanation on MLPs & REITs.

    • @josephhogue
      @josephhogue  5 років тому +10

      Thanks Dewayne. I saw an article a few weeks ago that Florida is going to start requiring personal finance classes in school. Hope they go through with it.

    • @gokublack8342
      @gokublack8342 5 років тому +10

      Because independent people are harder to control

    • @owenwalker1774
      @owenwalker1774 5 років тому +5

      A cynical person may say they dont teach this to the youth because the system wants to keep most people poor.

  • @badass6656
    @badass6656 5 років тому +8

    As a lazy arse preferring others to make me money I like these kind of investments. I was not aware of MLPs or how to value REITs. Isn't depreciation a real cost since any depreciating infrastructure will need to be replaced eventually. When most assets are expensive as now I think investing for cash flow rather than capital appreciation is the way to go. This means investing with a 10 or 20 year + time horizon. Assets that are expensive can become more expensive so you may realize capital appreciation as a bonus. I remember in 1980s when a house cost 3X my earnings I thought that was expensive. That same house is now worth about 8X my current earned annual income.

    • @josephhogue
      @josephhogue  5 років тому +5

      You've hit on one of the best parts of real estate and other real asset investment. The company is able to write off (depreciate) the cost over a period of years but that doesn't mean the asset has lost value. Capital equipment wears down and needs to be repaired but that maintenance expense is less than buying new and properties can last much longer than their depreciable life.

  • @StefanieOConnell
    @StefanieOConnell 5 років тому +2

    I JUST started investing in REITs last year. Nice to be able to add that diversification without having to plop down a big chunk of my net worth for a single piece of property.

    • @josephhogue
      @josephhogue  5 років тому

      Absolutely. I love real estate but it can break you fast with all the management stress and leverage. Love REITs as a way to invest without all that.

  • @brandonsnyder6715
    @brandonsnyder6715 5 років тому +5

    Great video and explanation of tax implications of MLP's. I would LOVE a video on an internationally-diversified Dividend portfolio. With the US markets at such highs, it would be great to have a Dividend ETF or ETF/stock blend that was safe for us Americans weary of buying in on a high. Thanks again.

    • @josephhogue
      @josephhogue  5 років тому +2

      Thanks Brandon. Always glad to help. Have you check out our 2019 stock market challenge yet? The portfolio is up over 20% this year as of last Friday with one of the stocks (HanesBrands) up over 50%. It's a dividend portfolio, not necessarily just international stocks but I have a few Intl. picks in there. Here's the most recent video about the challenge ua-cam.com/video/hPFm1sR7ihY/v-deo.html

  • @jaimesmithtv
    @jaimesmithtv 5 років тому +5

    I’ve watched (and learned from) a half dozen of your videos and newly subscribed. Fellow former Marine as well. Thanks for sharing the content, Devil Dog!

    • @josephhogue
      @josephhogue  5 років тому

      ooh-rah devil dog. Good to have you in the community.

  • @TheIntrospects
    @TheIntrospects 5 років тому +4

    Joe, GREAT INFO! You’re that guy that provides information I didn’t know I needed, lol.

    • @josephhogue
      @josephhogue  5 років тому +1

      Always glad to help. Watch for Wednesday's start to the 2019 investing challenge. Should be a great series.

  • @dominikbasar1890
    @dominikbasar1890 4 роки тому +4

    Hi Joseph, what's your take on DCP recently? It keeps dropping like a rock and it's yield is almost 16% now. Is that a trap or is it still worth buying?

  • @Christian_Ibanez
    @Christian_Ibanez 5 років тому +2

    I was actually eyeballing that energy stock ET to be my next investment pick to add to my portfolio before I came across this video. Thanks for the video, this gave me more confirmation to choose it as my next investment

    • @josephhogue
      @josephhogue  5 років тому

      Always glad to help Christian. Thank you for being part of the community.

  • @rd9102
    @rd9102 4 роки тому +1

    Great video, it is a bit old but the information is timeless. I will have to watch this more then once to get everything out of it.

  • @robcross6362
    @robcross6362 5 років тому +2

    Semper Fi 0331 in the house. Love your content
    . I've learned so much!

    • @josephhogue
      @josephhogue  5 років тому

      ooh-rah Rob. Thank you for being part of the community.

  • @krakhour2
    @krakhour2 3 роки тому +1

    DCF is always what I used. EPD is my favorite

  • @ResourceTalks
    @ResourceTalks 5 років тому +2

    *Although banks are pure evil, some of them over here in Europe do pay some stable dividends.*
    *Great video idea, my sir!*

    • @josephhogue
      @josephhogue  5 років тому +1

      Some great opportunities in EU bank stocks. I own DB and am featuring the EUFN ETF of european bank stocks in Wednesday's 2019 dividend challenge video.

  • @richardbrown6591
    @richardbrown6591 5 років тому +1

    Best video I found on your channel so far im watching as much as I can sir

    • @josephhogue
      @josephhogue  5 років тому

      Always glad to help. Welcome to the community.

  • @americanmade36merica99
    @americanmade36merica99 5 років тому +1

    Lots of good information, I am also investing heavily in REITs for some passive income. I'm new to investing with a portfolio of my own that I watch weekly since October 2018, now I'm hooked on it. Like an alcoholic addicted to alcohol. I also have a financial advisor where I hold other portfolio's, not a bad way to start just to get an idea how it all works for new Investors.

    • @josephhogue
      @josephhogue  5 років тому

      Always glad to help. Thank you for being part of the community.

    • @americanmade36merica99
      @americanmade36merica99 5 років тому

      @@josephhogue anytime what's state are located in?

  • @nicolaslamer7103
    @nicolaslamer7103 5 років тому +2

    You do such a great job presenting your topics. Very impressive. Looking to start my own channel this year, any tips for a beginner?

    • @josephhogue
      @josephhogue  5 років тому +1

      Actually putting together a book for starting UA-cam and posting some of the chapters on the blog. Here's the category with the posts, myworkfromhomemoney.com/category/grow-on-youtube/

  • @Icon_josh
    @Icon_josh 5 років тому +2

    It was a great expaination and i love all your videos! I wish i knew all this before ...never too late i guess.

  • @InstructorBlack
    @InstructorBlack 5 років тому +2

    Hey Joseph! I remember watching this video a while back. Had great interest in these kinds of stocks, but never actually went about researching and buying them since I was focused more on swing and day trading. Now I've got things coming up in my life and I just won't be able to dedicate as much time to the stock market, so I figured I'd give these a better look.
    Seeing that some time has passed since you made this video, which of these do you still consider good picks?
    Also, I've been quite puzzled by DCP dropping like it did. Their financials look ok, everything is going as expected and they didn't lower their guidance. And that yield... It's almost 13% now, scary and exciting at the same time. I understand that there might be some commodity price headwinds, but does that really warrant such a drop?
    Thanks!

    • @josephhogue
      @josephhogue  5 років тому +2

      I still like MLPs and DCP is a solid company...but yeah, the whole space has been rough lately. Oil prices are getting hammered on the potential recession but this is a strong long-term theme and these companies are set up to profit. Good long-term cash payouts and a great tax break in that MLP structure.

  • @kefalos7134
    @kefalos7134 4 роки тому +1

    Any new thoughts on these two stocks or USAC, now that there is an energy price war? Would love to hear your thoughts on this.

  • @gcryptog1544
    @gcryptog1544 5 років тому +1

    Hi joseph I’m just started to buy stocks & hold This video is inspiring. Looking forward to more vedios from u

    • @josephhogue
      @josephhogue  5 років тому

      Always glad to help. Welcome to the community.

  • @Dimoneysan
    @Dimoneysan 5 років тому +3

    Great vid! Also Semper Fi, Marine!

    • @josephhogue
      @josephhogue  5 років тому

      Ooh-rah Devil Dog! Always glad to help. Welcome to the community.

  • @stacylolita7510
    @stacylolita7510 4 роки тому

    Love Your Chanel , Great 👍 Knowledge, And Sweet Clear Voice !

  • @ianyoung285
    @ianyoung285 5 років тому +1

    Love the videos Joseph! Very informative and formatted efficiently. Quick question, what are your thoughts on these MLPs - Holly Energy Partners, MMP, PSXP, and EPD. They all seem to check out, but I am still pretty new in investing in MLPs so I'd appreciate your opinion. Trying to make a diversified MLP portion of my portfolio. Thanks!

    • @josephhogue
      @josephhogue  5 років тому +1

      I like MMP and EPD but haven't looked at fundamentals in a few months. Just as with other stocks, it makes sense to diversify your MLP investments in at least 3 - 5 names so you can probably go with a few. Besides looking at the DCF coverage and Price/DCF, compare the stocks by geographic and assets. For example, if you have three companies you're considering and two of them compete in the same area of the country and on pretty much the same type of assets, pick one of those two and the other dissimilar to get that diversification. A lot of MLP performance depends on the fields in which they operate (Texas vs Bakken vs mid-Atlantic)

    • @ianyoung285
      @ianyoung285 5 років тому

      Thanks for the response and solid advice Joseph.

  • @adamwalczak2600
    @adamwalczak2600 3 роки тому

    Very informative, as usual. Thank you! Not looking forward to liquidating MLP's from IRA account. No other options?

  • @DreadMike73
    @DreadMike73 5 років тому +1

    I got VNQ on my Acorns account, it paid me a $0.16 dividend last month, I got nothing bad to say about it I had VNQ for a year, plan on keeping it. I also know that you have what is called a Hybrid REIT which is both Equity and Mortgage. I just got VNQ for now which pays me a good dividend which Acorns reinvest my dividends, I plan on getting VNQ on M1 Finance soon as I get Robinhood and Stash get to $200+.

    • @josephhogue
      @josephhogue  5 років тому +1

      I like M1 Finance for the retirement account so I don't have to pay taxes on the dividends. I've talked to the founders of Stash and seems like a good platform, haven't opened an account yet but probably will to check it out.

    • @chriswoodard8497
      @chriswoodard8497 5 років тому

      How do u get VNQ on Acorn? Didnt know you could get individual stocks.

    • @hansel1611
      @hansel1611 5 років тому

      @@chriswoodard8497 Pretty late reply, but you can't choose individual. But, Acorns already has VNQ in all their portfolios from Conservative to Aggressive

  • @DreadMike73
    @DreadMike73 4 роки тому

    Bow -Tie Don, I had AMLP ETF and had a reverse stock split, lost money, but I bought O and NRZ.

  • @brandonsmith8017
    @brandonsmith8017 5 років тому +1

    Informative. Great work. Thank you.

  • @josephparagliding
    @josephparagliding 4 роки тому

    Great video Joe! You got a new subscriber

  • @danielwoods5605
    @danielwoods5605 5 років тому +6

    Very valuable information

    • @josephhogue
      @josephhogue  5 років тому +1

      Thanks Daniel. Always glad to help. Welcome to the community.

    • @AgainstAllOddz
      @AgainstAllOddz 5 років тому

      Let's Talk Money! with Joseph Hogue, CFA love your video man

  • @neilldn74
    @neilldn74 3 роки тому

    The problem with MLPs is that they don't pay corporate taxes - you pay the taxes. That's why their dividends are so high and you can't even avoid this in an IRA.

  • @AussieMoneyMan
    @AussieMoneyMan 5 років тому +1

    Great video. I learnt some important things here.

  • @armaankhalid9324
    @armaankhalid9324 5 років тому +2

    Great vid. Loving the bowtie. 😊👍🏼

    • @josephhogue
      @josephhogue  5 років тому

      Always glad to help. Welcome to the community.

  • @bradneedleman2493
    @bradneedleman2493 5 років тому +1

    Great info. Thank you. Would love some current options picks

    • @josephhogue
      @josephhogue  5 років тому

      I used to use more options strategies but now mostly use them for hedging and risk reduction. I sell covered calls on some of my positions (Lending Club, Teva) for cash flow and to lower my cost basis.

  • @sarkiskalfaian8502
    @sarkiskalfaian8502 5 років тому +1

    Hi Joseph, is REIT investment wise during recession or slow down? Or which sector at REIT will be defensive ?

    • @josephhogue
      @josephhogue  5 років тому +1

      Love REIT investing but some of the sectors will be more prone to a slowdown. Office, Hotel and Industrial will follow the economy closer. For relative safety, look to Healthcare and Self-Storage REITs.

  • @gulfside-qn1on
    @gulfside-qn1on 4 роки тому +1

    Great video! I have started looking at MLPs recently and read somewhere that you may have to pay state income tax on your dividends in every state an MLP has assets/pipelines. Is that correct?

    • @josephhogue
      @josephhogue  4 роки тому

      I've never had a problem with it. I file in Iowa so might be different in some of the other states. Will look into it.

  • @bkittle13
    @bkittle13 5 років тому +4

    Hi Joseph, Do you have any thoughts on Exchange Traded Notes (ETN's) specifically those invested in REIT's at 2X leverage? (MORL & REML)

    • @josephhogue
      @josephhogue  5 років тому

      Would have to look into those specific ETNs but I'm generally not a fan. These types of investments are financial products set up through derivatives instead of actually owning the assets. The rebalancing the manager has to do to maintain that 2X leverage means higher costs and the fund doesn't track the assets. The can also be dangerous during high volatility because those derivatives swing fast.

    • @bkittle13
      @bkittle13 5 років тому

      @@josephhogue Thank you for your feedback, it's very much appreciated. I am long in a few of these asset classes and yes they are volatile in terms of share price, however with a very small amount of my portfolio and 20%+ yields; I should recoup any share price loss over the long term.

    • @mando8222
      @mando8222 4 роки тому

      @@bkittle13 would you still recommend them?

  • @wes9451
    @wes9451 5 років тому

    Looked up some MLP etfs because I'm not crazy about single stocks in my portfolio and not crazy about extra tax prep. They aren't doing so hot.

  • @rickmorenojr
    @rickmorenojr 5 років тому +1

    Is there a simple way to calculate DCF from the information provided on Yahoo finance? I wasn't sure which lines from your table correlated to the Yahoo finance's cash flow statement.

    • @josephhogue
      @josephhogue  5 років тому

      On Yahoo Finance, you would click on the 'Financials' tab in the menu. Most of the info will be in the Cash Flow statement though you'll need the income statement as well. I'd use the company's financial statements directly so you don't have to worry about errors on Yahoo or if it's been updated.

  • @donalddesamours464
    @donalddesamours464 5 років тому +1

    Is it best to own vanguard real estate ETF or individual REITs inside my rothira? What are the pros and cons of owning both.

    • @josephhogue
      @josephhogue  5 років тому +1

      I'd recommend both. Use the Vanguard fund for maybe 70% of what you're planning on investing in REITs and then pick a few individual names you really like for the rest. Gives you stress-free, market gains but also the chance to do a little better on the individual picks. Love the idea of holding it in a Roth to get that tax-free growth.

  • @andyyu1642
    @andyyu1642 5 років тому +3

    Great video! Joseph
    I have a question:
    ET has payout ratio over 100%, does that mean ET is borrowing money to pay dividend?

    • @josephhogue
      @josephhogue  5 років тому +2

      Thanks Andy. Always glad to help and welcome to the community. There are a few sources a company can draw from to pay dividends over it's cash flow but of course it can't sustain it for long. They might draw from balance sheet cash or asset sales or raising debt.

  • @terry_moorer
    @terry_moorer 5 років тому +1

    Just subscribed. Love your content!!

    • @josephhogue
      @josephhogue  5 років тому

      Thanks Terry. Always glad to help. Welcome to the community.

  • @BenWatkinsGtr
    @BenWatkinsGtr 5 років тому +1

    One comment and one question: I believe the term 'dividend' doesn't apply despite it being a common misnomer. MLP's and REIT's offer 'distributions', hence the differing treatment at tax time since they are actual income versus capital gains.
    Also, has anyone else heard that pipeline MLP distributions are subject to state-level taxation in every state through which the pipeline passes? That's a significant amount of extra expense at filing time and an added risk of liability should the filing be audited.

    • @josephhogue
      @josephhogue  5 років тому

      Yeah, not technically dividends but I didn't want to confuse people changing out vocabulary. Tried to get the point across by saying 'not really dividend companies' but the difference between dividends and distributions really isn't necessary unless you're talking about taxes.

    • @BenWatkinsGtr
      @BenWatkinsGtr 5 років тому

      Thanks for the reply, I'm enjoying your channel :)

  • @sharonshibu3239
    @sharonshibu3239 5 років тому +1

    Hi Joseph, Do you have any videos specific to retirement account? If yes please do share? I am specifically looking at what different portfolios to hold as such. Not sure if a combo of mutual funds, REITS , Stocks with high dividend would be a good bet?

    • @josephhogue
      @josephhogue  5 років тому +2

      Great idea Sharon. I'll put something together. I always recommend holding cash-paying investments like dividend stocks and REITs in retirement accounts because it saves you from having to pay taxes on the payments each year. Other stocks and funds that don't pay dividends can go in a regular taxable account.

    • @sharonshibu3239
      @sharonshibu3239 5 років тому

      @@josephhogue Thanks Joseph, also to clarify does it make sense to hold more than one REIT in your portfolio, when in general it's all real estate properties?if yes, then if the real estate crashes, wouldn't that impact all REIT's as such?

  • @AndroidAmI
    @AndroidAmI 5 років тому +1

    Do u buy PUTs to protect your dividend stocks? If you do not, please advise the reason.

    • @josephhogue
      @josephhogue  5 років тому

      Depends on my outlook on the stock and the market. I'll usually sell calls instead to collect the money rather than pay for puts.

  • @eyegardentx
    @eyegardentx 5 років тому +4

    Love the channel

    • @josephhogue
      @josephhogue  5 років тому

      Always glad to help. Watch for Wednesday's start to the 2019 investing challenge. Should be a great series.

  • @Asphyx123
    @Asphyx123 5 років тому +1

    Hi Joseph, I was wondering about the most recent drop in DCP Midstream. I could not find any reason for it in the reports. Do you have some insight here? Or would you rather see this as a very good investment opportunity right now.

    • @josephhogue
      @josephhogue  5 років тому +2

      DCP has been struggling for a while now and I'm not sure it's going to get better before worse. Long-term, it's a solid company with good assets but right now internal and external factors are weighing it down. China is stockpiling Iranian crude oil offshore and will likely limit US crude imports soon so that's going to throw the energy market a little and could mean more bad news for MLPs short-term.

  • @hydrodepartment919
    @hydrodepartment919 5 років тому +2

    So you should not invest in REIT's in a normal stock account? Only in a Roth IRA?

    • @josephhogue
      @josephhogue  5 років тому

      You could but you'll lose some if the return to taxes every year. Put your highest yielding stocks in your retirement accounts (IRA and Roth) then any left over in a regular account.

  • @davidzihlman2396
    @davidzihlman2396 5 років тому +1

    Just curious do you own all these stocks in your personal portfolio? Thanks Joseph and awesome channel by the way! :-)

    • @josephhogue
      @josephhogue  5 років тому

      I have a couple of these (the REITs) in an IRA portfolio and the MLPs in my regular investing account. I'm also adding some to the 2019 Investing Challenge #GrowYourDough that we just started today.

  • @jamesgeorge4867
    @jamesgeorge4867 5 років тому +3

    This is great info! I have heard a lot about of good things about REITS. Can I get your opinion on value investing, buying companies trading below or near book value. Companies I was looking at were Ford, Citi, Honda, bank of America, and At&t. Also I am a senior accounting and Finance student.

    • @josephhogue
      @josephhogue  5 років тому

      Love value investing. It's tough sometimes because you can get caught trying to catch a stock on the way down. You need to have disciplined buy targets and a limit to how much you invest in a single stock so you don't have too much exposure to any one company. Look to the net current asset value technique described by Graham in The Intelligent Investor as a good rule-of-thumb.

  • @sydneygriffin7495
    @sydneygriffin7495 4 роки тому

    Cant find your 7 property strategy's video link bellow??????

  • @RowenCarterRE
    @RowenCarterRE 5 років тому +4

    With a REIT I would have to open a separate account for retirement?

    • @josephhogue
      @josephhogue  5 років тому +1

      Nope. REITs trade just like stocks and can be held in any account.

    • @KenRobinsonchannel
      @KenRobinsonchannel 5 років тому

      Welcome to the wonderful world of REIT investing.. couldn’t be any easier. In fact, I just uploaded a video on REITs. I invite you to take a look!

  • @Cashcarlos911
    @Cashcarlos911 5 років тому +1

    Whicj retirement fund you have a Roth or traditional IRA account?? And which one is better mr Joseph to have

    • @josephhogue
      @josephhogue  5 років тому

      I have both (actually a couple of both on different platforms). As my income increases, the immediate benefit from IRA contributions is better so I put more there but the Roth is something everyone needs for that tax-free income in retirement. Balance with a little in both.

    • @Cashcarlos911
      @Cashcarlos911 5 років тому

      @@josephhogue Mr Joseph you think is possible for me to have 3 accounts with M1 finance a regular broker account. And a Roth IRA and a traditional IRA. I already have a regular account, my question is for that 2 account on the retirement? And I would like to put the 5 vanguard index you recommend plus 10 to 15 solids stock for a satellite core investment. Specially real estate and BDC for the exclusive retirement account. Please Mr Joseph your best advice thank you carlos Rosas

  • @Gioxtream
    @Gioxtream 5 років тому +3

    SO...
    IF I HAVE ANY Reits into my Roth Ira account....I will have to pay taxes on it???

    • @josephhogue
      @josephhogue  5 років тому +3

      No, you won't pay taxes ever on a Roth account. Tax-free withdrawals in retirement and great way to invest.

    • @Gioxtream
      @Gioxtream 5 років тому

      @@josephhogue Wow! THATS a deal!

    • @eleonorahackman6779
      @eleonorahackman6779 3 роки тому

      @@josephhogue Thank you for that reply, it was what I needed to know.

  • @wealthhacker
    @wealthhacker 5 років тому

    Love me some 6% dividends!

  • @Bob-fu1hn
    @Bob-fu1hn 5 років тому +2

    Should I hold DCP & ET in a regular investment account and the REIT stocks in a ROTH account? Thanks

    • @josephhogue
      @josephhogue  5 років тому +2

      Yep. MLPs should be in regular (taxable) account, all other cash flow investments in a retirement account.

  • @shaikhraihan28
    @shaikhraihan28 5 років тому +2

    Great video sir ..what u think about M1 finance app

    • @josephhogue
      @josephhogue  5 років тому

      Thanks Raihan. I'm using M1 for our 2019 dividend portfolio challenge. Check it out ua-cam.com/video/n1gVWwPG2cA/v-deo.html

  • @oleg45678
    @oleg45678 4 роки тому

    What is the taxes on MLPs for non-US/foreign investors? How does it work with K-1 tax declaration? Thanks!

  • @TradingQuotes
    @TradingQuotes 5 років тому +1

    Nice & informative video.

    • @josephhogue
      @josephhogue  5 років тому

      Glad I could help. Welcome to the community.

  • @Mr.tdiv14
    @Mr.tdiv14 5 років тому

    Which one is #1 ?

  • @makduo8671
    @makduo8671 5 років тому +1

    The dividends for the ELPs are awesome, is the high payout ratio a concern?

    • @josephhogue
      @josephhogue  5 років тому

      You need to follow the DCF coverage ratio on MLPs. Anything above around 1.35 would be a concern if it stayed there for a while.

  • @TacoEqualsFtw
    @TacoEqualsFtw 4 роки тому

    There's no reason not to have MLPs in a tax advantaged account. Most MLPs do not product UBTI and even if they did, you would need to have an absurdly large portfolio to create enough UBTI that would create any issues.

  • @DaniyelBingham
    @DaniyelBingham 4 роки тому +2

    Semper Fi, Devil!

  • @thomaslynch9858
    @thomaslynch9858 5 років тому +2

    I hate how long it takes for the K1's to arrive in the mail for tax time, wish they were faster 😔

    • @josephhogue
      @josephhogue  5 років тому +1

      Yeah, a pet peeve of mine (forgot to mention it in the video). Or the fact that often, they revise the form and send out a new one.

  • @Mbenouzekri
    @Mbenouzekri 4 роки тому

    What do you think Duff & Phelps Select MLP and Midstream Energy Fund Inc?

  • @arno4187
    @arno4187 5 років тому +1

    Hello Joseph, I'm just wondering why you're showing a video that was certainly recorded in November 2018 (given the date of yahoo's screenshots and the price of the shares) just out of curiosity. thanks for sharing.

    • @josephhogue
      @josephhogue  5 років тому +1

      I have all my videos scheduled out about two months in advance. Helps to make sure the videos go out on schedule no matter what. I try to make sure the information is still up-to-date and change it when it's not but yeah the price sometimes moves. I checked these stocks today before publishing and the theme is still sound in each company.

    • @arno4187
      @arno4187 5 років тому

      @@josephhogue Thanks for your answer, I understand better now

  • @KevinPerez-fd9xq
    @KevinPerez-fd9xq 3 роки тому

    Are MLP’s good in a traditional IRA

  • @rofin3631
    @rofin3631 4 роки тому

    What’s your take on (AMZA) Intracap ETF?

  • @brettjames7996
    @brettjames7996 5 років тому +1

    So just wondering should I invest in this also etfs? I’m 28 and wanna have decent money by retirement age

    • @josephhogue
      @josephhogue  5 років тому +1

      Great question Brett. Best you can do is put together a diversified portfolio of dividend funds, REITs, MLPs and bond funds. I'd go for 70% in ETFs covering those four groups and then the rest in individual stocks, no more than 10 stocks that really look good. Will give you solid long-term returns and cash flow with the upside potential from the individual stocks.

    • @brettjames7996
      @brettjames7996 5 років тому

      I have voo etf, ADM, NOBL which are decent by the looks

  • @Mr.tdiv14
    @Mr.tdiv14 5 років тому +1

    What are the top 5 stocks? I watched videos but I got ticker Exr,vtr and vnq. Can you tell me other are?

    • @josephhogue
      @josephhogue  5 років тому

      Look to my 10-stock dividend portfolio for the other ideas. The portfolio is already almost double the market return this year ua-cam.com/video/n1gVWwPG2cA/v-deo.html

    • @TheAbrahamHD
      @TheAbrahamHD 5 років тому

      @@josephhogue You should put your portfolio on an M1 account so we can copy and and modify it to our liking. :p

  • @lifejourney8704
    @lifejourney8704 5 років тому +1

    what do you think about MORL?

    • @josephhogue
      @josephhogue  5 років тому

      It's an interesting investment. Leveraged ETFs aren't usually a good choice for long-term investing. The way they're set up to get that leverage (with derivatives) means more volatility and trading by the manager and much higher costs. Usually underperform the index over long-term though it can be a good short-term investment if you time it right.

  • @lslurpeek
    @lslurpeek 5 років тому +1

    Is it useful to go vnqi as well as vnq for international diversification?

    • @josephhogue
      @josephhogue  5 років тому

      I like the VNQI but it just doesn't seem to do much. The diversification is important though I'd only have it as a very small part of the portfolio, maybe 5%

  • @kevinandrade3513
    @kevinandrade3513 5 років тому +1

    What kind of an account where an mlp or dcf be addded to? I have a sep and a Roth. Thanks

    • @josephhogue
      @josephhogue  5 років тому

      Good question Kevin. MLPs should be in a regular taxable account to take advantage of the benefits. Most of your dividends are a return of capital which means they don't get taxed until you sell.

  • @nikobaez9506
    @nikobaez9506 5 років тому +2

    How do I invest through an IRA?

    • @josephhogue
      @josephhogue  5 років тому +1

      You can open an IRA with just about any online investing site, just like opening a regular account. I use M1 Finance and ETrade for IRA accounts.

    • @gulstan6007
      @gulstan6007 5 років тому

      @@josephhogue
      Is etrade free account like m1 and robinhood,
      I have been using robinhood for all my riets and everything, can you help?

  • @Icon_josh
    @Icon_josh 5 років тому +1

    Is SCHH ok or VNQ is better i hold SCHH istead of VNQ

    • @josephhogue
      @josephhogue  5 років тому

      I like the Vanguard funds for their lower cost. They tend to do better over the long-run on the costs but most of the funds are fairly similar.

  • @FlorinVZaharia
    @FlorinVZaharia 5 років тому +1

    where can you buy these REIT's? I have a plus500 account and could not find them

    • @josephhogue
      @josephhogue  5 років тому

      They're available in most U.S. brokerage platforms. They trade on the U.S. and Canadian exchanges.

    • @FlorinVZaharia
      @FlorinVZaharia 5 років тому

      thanks for the answer

    • @rickmorenojr
      @rickmorenojr 5 років тому

      You could open an account with Robinhood or M1Finance (I like this one better). They don't charge a transaction fee. Be sure to use limits when purchasing.

  • @ermahampton3920
    @ermahampton3920 5 років тому +1

    What time are the sessions on Mon,Wed,Friend

    • @josephhogue
      @josephhogue  5 років тому

      Hi Erma. I publish at 10am on those days. Welcome to the community.

  • @raven80nl13
    @raven80nl13 5 років тому +2

    Funny, second channel that talks about ET. Must be a great company with all this exposure.
    I will just warn a bit here, do your research in MLP, it might be fine for Americans, but my net yield is 4.5% not 8%. Might get money back from taxes, but it's unknown for now.
    Also ET has had a lot of issues. Just look up articles on Seeking Alpha and check the comments, you'll get the idea.

    • @josephhogue
      @josephhogue  5 років тому +1

      Good point. Not sure how MLP investing works for non-American investors and how the tax consequences come out.
      I'm generally skeptical of comments on Seeking Alpha as they're even less regulated than the content (which can be fairly loose sometimes). Is a good way to get ideas for further research and heads-up on ideas though.

  • @LuciferMenace
    @LuciferMenace 5 років тому +1

    in reits, what taxes are paid if you just reinvest 100% earnings every quarter? Can I do that?

    • @josephhogue
      @josephhogue  5 років тому

      Reinvesting the dividends is a smart move but you'll still owe taxes each year. Best way to avoid this is have all your dividend stocks and REITs in a retirement account, IRA or Roth.

    • @LuciferMenace
      @LuciferMenace 5 років тому +1

      @@josephhogue but how will I compound interest over the years? Isn't that the golden part of investing in Stocks with great Yield Rates?

    • @josephhogue
      @josephhogue  5 років тому

      If the money is in a retirement account, you keep it all and can reinvest whenever it's paid. If it's in a regular taxable account, you have to pay taxes each year which will cut into how much you can invest.

    • @LuciferMenace
      @LuciferMenace 5 років тому

      @@josephhogue but how does that transaction occur. once you take it out to reinvest isn't it immediately subject to being taxed before reinvesting? Or is there a way to streamline this process to where it never becomes taxable cash flow. From my understand, IRAs have their own rules and tax regulations as well. Especially when monies withdrawn for reinvestment purposes. Thank you for the information.

    • @patpaof
      @patpaof 5 років тому +1

      Lucifer Menace I think you’re talking about a dividend reinvestment plan. Not exactly sure how it works but I’ve had some reinvested already but not taxed. I think it’s only taxed as cgt when sold

  • @fitnesstoffer2703
    @fitnesstoffer2703 5 років тому

    Its funny that the ETF has a ETF as greatest position in it. Doubles the cost in stealth.

    • @josephhogue
      @josephhogue  5 років тому

      No, the ETF still only charges the listed management expense

  • @soapmctavish4848
    @soapmctavish4848 5 років тому +1

    As much as I would like to place some purely in retirement, I’m hoping to build some passive income to use in certain situations when needed, so I can’t place them solely in retirement should I need it. That being said, I don’t totally mind as it’ll come in handy when I need it. Anything I don’t I’ll just reinvest back into the portfolio.

    • @josephhogue
      @josephhogue  5 років тому

      Smart strategy, balancing between retirement and general investing.

  • @graham9334
    @graham9334 5 років тому

    So about keyera did u ever look into if divy is safe

    • @josephhogue
      @josephhogue  5 років тому

      I don't understand your question. What are you asking?

  • @Shawn-ri5xc
    @Shawn-ri5xc 5 років тому +1

    Can these MLP’s be purchased using M1 Finance? If not which recommended broker?

    • @josephhogue
      @josephhogue  5 років тому

      As far as I know. I'll have to check my M1 account but I have a couple of REITs and the AMLP fund in there.

  • @kylegrey5314
    @kylegrey5314 4 роки тому +1

    What are your favorite monthly dividend stocks?

    • @josephhogue
      @josephhogue  4 роки тому +2

      I'd say the three in this video rank up there (though I prefer to buy any dividend stock and then just buy enough others that I get dividends each month) ua-cam.com/video/EjAMDhEeSz0/v-deo.html

  • @peso3231
    @peso3231 5 років тому +1

    What do you need to invest just a bank account or some sort of LIC .

    • @josephhogue
      @josephhogue  5 років тому +1

      Most online platforms will require an SSN and bank account, that's it.

  • @KingDaddyRico
    @KingDaddyRico 5 років тому +1

    Joseph, I want to invest in Electric Vehicle companies. Atlis is still in the startup stage and Rivian is not yet public. Can you please tell me if it would be smart to invest in either of these companies?

    • @josephhogue
      @josephhogue  5 років тому +1

      I haven't seen anything on these two as far as financial statements since they're not public. Love startup investing and worked for venture capital for years. It's definitely an investment where you need to take a hard look at the financials though. Are they fundraising through crowdfunding or something?

    • @KingDaddyRico
      @KingDaddyRico 5 років тому +1

      Atlis is using a fundraiser for their prototype vehicle, Rivian has already displayed two vehicles at an auto show. If either of these go public, would you buy shares?

    • @josephhogue
      @josephhogue  5 років тому +1

      @@KingDaddyRico I generally don't buy shares of an IPO. By that point, the value has been sucked out by the venture capital and investment banking partners. If you can get in pre-IPO through the fundraising then might be a thought but would wait to see how shares do after an IPO.

    • @KingDaddyRico
      @KingDaddyRico 5 років тому

      Awesome, thank you Joseph, love your content btw

  • @TheAbrahamHD
    @TheAbrahamHD 5 років тому

    Great video! I don't want to sound rude, but is your intro a joke or a meme? No hating here, just wondering lol

  • @somchai9033
    @somchai9033 5 років тому +1

    More money has been lost reaching for yield than at the point of a gun

  • @eddiemontgomery7088
    @eddiemontgomery7088 5 років тому +1

    Ok yes we can make this part of our trust

  • @TheÒvÓwl
    @TheÒvÓwl 5 років тому +1

    K1 tax info?

    • @josephhogue
      @josephhogue  5 років тому

      Not sure what your question is here.

    • @TheÒvÓwl
      @TheÒvÓwl 5 років тому +1

      @@josephhogue sorry, you mentioned something about extra tax forms for MLP's

    • @josephhogue
      @josephhogue  5 років тому

      @@TheÒvÓwl Yep. If you invest directly in an MLP (as opposed to the MLP fund 'AMLP') you'll get a special tax form each year called a K1. This will separate out all the company's profits to each shareholder including the portion of dividends that are return of capital and the taxable portion. Most DIY tax software like taxact makes it pretty easy to just take it right from the form.

  • @DONALD1951
    @DONALD1951 5 років тому +1

    MLP--PAA.... APLE reit

    • @josephhogue
      @josephhogue  5 років тому

      I like PAA. APLE hasn't done much for last five years. What do you like about it?

  • @RealRosieRuiz
    @RealRosieRuiz 5 років тому +2

    Pro tip: just relax and speak normally. Lower your voice to normal conversational pitch and speed. Great information you're giving but you're almost unlistenable because you sound like a used car commercial. Breathe and imagine you're taking to a friend in your living room. Your energy comes across as fake and annoying. Just chill.

    • @josephhogue
      @josephhogue  5 років тому +3

      Really? Pro tip from someone that has no videos on her channel and a name based on a fraud marathon runner? Tell me about 'fake and annoying'...