Investing is awesome, and it works best when you invest for the long term (because you know compound interest). But, at some point if your investment doesn’t pay you any dividends (aka share of the profits), you’ll have to sell some shares, which kinda suck.
So, When I was looking to invest into my boring portfolio, having dividends was very important. It started with a few pennies, dollars and now it’s a few hundred dollars. In this video I’ll tell you what I invest into, the scams to look out for with dividends and I’ll answer this question (should you be reinvesting dividends or not)
😎Call Me😎: https://bit.ly/30IBr0i
😎Second Channel😎: https://bit.ly/3c4sVPS
👨🏽💻Financial Freedom Course👨🏽💻$100 OFF CODE: LONGTERM
Link: https://longtermteam.teachable.com/p/financial-freedom-steps-from-nothing-to-freedom
💰MY M1 FINANCE PORTFOLIO💰 PLUS $10
Link: https://m1.finance/37SHd4241z-N
CHAPTERS:
0:00 INTRO
0:55 WHY DIVIDENDS ARE IMPORTANT
2:43 MY INVESTMENT PORTFOLIO
5:03 HOW MUCH MONEY DOES IT MAKE?
10:06 MY DIVIDEND PAYMENTS (STARTED FROM THE BOTTOM)
11:29 FINAL QUESTIONS
15:11 OUTRO
This video is to help the average person get to know dividends and how they work and how to potentially live off dividends
1.What I invest into, How much Money it Pays me and Why I picked these
It’s the reason you came to watch this video, so les answer these questions
Firstly I’m a big visual learning so I can show you better than I can tell you
I also believe in transparency, because growing up know the little details would have really helped me ( plus I’m lowkey nosey )
Answers:
I invest into Index Funds and Etfs that mirror the Exact same Index funds ( it’s a total of 5 investments and that’s it )
They Pay combined average of 1.967% and it cost me .05% as an expenses ratio ( fee )
I have a total invested amount of $268k in one account and another 50k in another for a total of 318k ( before you start going crazy over these numbers, I started investing with literally $7 that’s it and you can do it with $10)
The math:
I make $521.25 per month in dividends
It cost me $159 as a fee annually
And this a lot better than a fancy portfolio manager which cost 2% which would literally take my dividends
More Stuff:
Show them How the dividends started
What do you do with the dividends
And How Often I get paid
Total Gains
2. Why Dividends are So Important and How not to get Scammed
There are two key Factors in Dividends
Consistent Dividend Payments: Some companies pay a high dividends but are inconsistent, so you might get paid, or you might not
Solid Investments: No matter how great the dividend is, if the company is trash eventually you’ll lose more money
Obviously Reinvesting Dividends and The importance of Dividends:
No not everyone should be reinvesting their dividends
Yes Dividend is the equivalent of Rent Payments on real estate but instead in stocks ( its cash flow, to keep you from messing things up while the value goes up )
3. What My dividend Goal is
My goal is to get to $2000 a Month and to do that I need to invest 1.2M ( because I only 2% )
But I rather make 2% than 5% with a company that I don’t know if its going to be here in the next 50 years
And yes I do reinvest my dividends, because I’m not investing into induvial stocks
* PRO TIP*
INFORMATION IS EVERYTHING
💲1 on 1 Talk + My Budget + Stock Investments💲
https://www.patreon.com/tommybryson
👕Merch👕
https://teespring.com/stores/tommybryson
✅2 FREE AUDIOBOOKS✅
https://amzn.to/2Enayo8¬¬¬
💰M1 FINANCE $10💰
https://m1.finance/37SHd4241z-N
🎁ACORN FREE $5🎁
Link: https://acorns.com/invite/38EYSU
⚡FREE KINDLE UNLIMITED⚡ (traditional reading)
Link: https://amzn.to/2VGbxt9
👨🏽💻DISCORD PRIVATE GROUP👨🏽💻
https://discord.gg/EcZEHpA
My Camera Gear: https://www.amazon.com/shop/tommybryson
✔ Help Us Reach 500,000 Subscribers: https://goo.gl/0wvm6w
😎All My Social Media😎
Link: https://linktr.ee/tommybryson —
Disclosure & Educational Disclaimer:
Some links in this video may be affiliate links, and I may earn a commission. Content is educational and accurate as of posting; offers may change. I’m an accountant but not your accountant; always consult your own accountant/CPA or financial advisor. No income or results are guaranteed.
source
