B1 Intermediate US 12 Folder Collection
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So, let's talk about dividend
investing for income.
What is dividend investment,
and does it make sense?
See, the other day, I got a comment
from one of you.
His name is Jose Silva
and he said,
"How do I find less than
ten dollars dividend paying
stocks that I can keep forever?"
So,
what does this mean when he's
talking about dividend stocks?
Let me show you what this means.
So,
first of all,
I'd did
Google the top
dividend stocks to buy.
So, when you go to Google,
best dividend stocks for 2019,
one of the articles that is coming
up is an article from
Motley Fool.
So, I saw this article,
which is exactly a day old,
and they say: Here are the top
dividend stocks to buy right
now.
And they're talking about Home Depot,
Six Flags,
and General Motors.
So, let's take a look at this.
As we're bringing them up here,
let's type in HD
for Home Depot,
and as it comes up here,
you will see that Home Depot is right
now trading at $189. And
you see that there is a forward
dividend. So, what does this mean?
It means that stocks that are
being publicly traded often pay
a dividend per one share
that you own. So,
if right now, you had one share
of Home Depot,
you would get $5.44.
Now, how often is this dividend being
paid? It is paid four times
a year. There are companies who are paying
it once a month.
Most companies are paying it quarterly,
four times a year.
So, the idea of dividend
investment...
Some people say,
you know. Just buy stocks.
They're not giving you dividends.
As you can see right now,
it's not that good.
It's 2.87%,
but it
is better than putting your money in a C.D.,
right? And this is why some people
say invest in dividend
stocks and then you're getting paid
quarterly.
In fact, I read an article that says
how to make sure that dividend stocks
are paying all your bills.
Well, first of all,
let's think about it.
If you are buying 100
shares of Home Depot,
and let's actually go back,
and take
a look at Home Depot.
And right now,
it's at $189.
And let's say...
Let's go here...
A few weeks ago....
Let's say it was trading at around $200.
So,
if you would buy a 100
of Home Depot,
you would have to tie up
$20,000,
and for this,
you're getting $544
per year.
$20,000 tied up,
you get $544 so
that's two point...
What is it? 2.8% or
something like this?
Now, here's the problem.
The problem is if the stock
goes only down by $5,
you give up
all your dividends.
And if you look at Home Depot right now,
it went from a high of $212,
all the way down to a low
of $158.
That is
25%.
So, dividend stocks
are only good if they
keep going up.
But take a look here at Home Depot.
It has not been going up.
You see that Home Depot has
been going sideways
and hovering between $180
and $190, and
this is the challenge.
So, I think that dividend
income is really,
really tricky because you're betting
on the stock going up.
When the stock goes down,
you give up all your incomes.
Now, let's take a look at the other dividend
stocks that Motley Fool mentions
in their article.
Let's take a look at Six Flags Entertainment.
Six Flags,
the symbol is SIX.
This is another one that they're recommending.
Now, here, as you can see,
the yield is a little bit higher.
6.77%, but
let's take a look at what happened here
with Six Flags.
As you can see,
even this year
has been decreasing tremendously.
I mean, Six Flags was trading at $72
at some point. And right now,
it is trading at $48.
Now let's see...
So, June last year...
So, not quite a year ago,
it was at $71
and now at $48. So,
if you had bought Six Flags
in order to get a dividend of 6%,
my gosh... You would have lost...
Let's quickly take a look
at this.
You would have lost 36%.
Now, let's just do a very last
quick comparison here because
the other stock that they're recommending is General
Motors. General Motors?
Really?
Let's see. Are they paying high interest?
And again, this article that I'm showing
you right now is a day old.
It's from yesterday.
So, Motley Fool?
I don't know guys.
Not too impressed.
So, here, the yield is 4.1%
and if you look at General Motors,
we'll probably see a very similar picture,
where we see that General Motors...
No. Yeah...
This looks pretty ugly.
So,
what does this mean for dividend
investing?
So, for me personally,
I don't think that dividend
investing is a
good approach at all.
Now is it better than putting
money in a C.D?
No! Not even that.
Because if you think about it,
if you put money into a C.D.
or in the money market,
at least you're not losing any
money. As you have seen
with these dividend stocks,
they are
whipping all over the place.
And for the past few months,
they've gone one direction,
and this is down.
Now, I really,
really believe that dividend trading
is extremely risky.
Some people say it's safe.
I don't think it is.
So, what should you do instead?
Instead learn how to
trade stocks
and take advantage of the small moves.
The cool thing is when trading,
you can participate
when the market is going up.
You can participate when the market is going
down.
And there's always these small
moves in between while the market
is in a transition.
So, right now as I'm recording this,
the markets have been sideways for
most of March.
It is now the end of March.
Today's March 27.
And yet,
as you can see, in my portfolio,
I have stocks where I'm betting
on some stocks that are going up,
some stocks that are going down,
and this is the way to go.
Because for me personally,
my goal when trading stocks
is, I want to make sure that I'm making
at least 60% per
year.
Most of the stocks that I'm trading
are at around 70%,
80% so why would you
piddle around
with dividend stocks that make you
2% or 4% if
there are ways how you can make
60%, 70%,
or 80%? And if you're interested
in learning how exactly I do this,
go to mytradingroutine.com.
There is a quick video.
35-minutes that shows you
exactly what I do
or feel free to come
to one of our boot camps that
are several hours.
They're free. They're on a Saturday
and you can find out more about
the boot camps on bootcamp.rockwelltrading.com.
bootcamp.rockwelltrading.com.
This is where you'll see the dates
and locations.
The next ones are coming up in Houston.
The last ones were in California
I believe we'll also go back to Florida.
So, we'll update the dates
and locations there all the time.
So, was this helpful?
Does this help of knowing what
dividend stocks are
and whether it's worth investing
it? If this was helpful,
make sure that you leave a comment,
say "yes".
Give me a thumbs up.
Subscribe to this channel on YouTube.
I hope that you enjoyed watching
this show as much as I enjoyed
making it for you,
and if you know anybody who might
find this video helpful,
please,
feel free to share it.
Have a fantastic rest of the day.
Thank you so much for being here.
And I will talk to you very soon.
OK. Bye bye.
Click in like, and leave a comment,
and let me know what you think.
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Dividend Investing For Income - Is it worth doing it?

12 Folder Collection
王惟惟 published on January 13, 2020
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