Power of Investing in Dividend Stocks: Wealthy Get Richer

Sasha, doesnt the price per share drop on divident payout day? If so, isn't divident proceeds a wash with the position value since the position value dropped aside from the divident income?

I went from pennystock daytrader to dividend investing. And on the side i want to sell put/call options on the side.

Well explained thank you

Dividend is king.

excuse the stupid question, but in min 6:00 you said a certain company paid $0.83 x share…would that be monthly? weekly? daily?

Minus taxes

Hold on sport. What about taxes, costs per trade, inflation, companies who cook the books and then get busted, and so on? What's your effective ROI, providing the company doesn't go under? You can't borrow against your shares. If there's an emergency, then you have to cash in some of your shares. There goes your income. How long would it take to recover? We don't have millions to invest. Stocks should only be a small part of one's portfolio. Too risky.

Thank you so much for this sir. Simple, succinct and hugely informative.

Not debating, I’ve heard a lot of strong cases, just asking to learn, my mortgage takes half my income, I’ve got about $24k left of a 30year note, maybe 30 working years how’s it possible. to save/invest $20k a year that’s massive in my thinking

"Do you know the only thing that gives me pleasure? It's to see my dividends coming in"- John D. Rockefeller

Jaaay, ill be a millionaire, when i die old

Compound get it !

Great video! Thanks for sharing.

Great video, I personally started with 1200 bucks a little over a year and a half ago with dividend stocks and now have18000 in the stock market all in Div paying stocks making me 1000 a year and growing (plus appreciation and div increases each year) by continuing to buy each month, nothing better then waking up to free money in my account each and every month for the rest of my life, sure It’s not a lot yet but it’s still free money that I don’t have to work for and there’s nothing better than that

What are the dividend pros and cons, take it in cash or reinvest it in more shares or buy other dividend stocks with the cash. This for an investment account. thanks

not to mention you're only taxed 15% on dividends ( 20%) if you make over $425k per year

Sasha i love you so much. This blew my mind really well

Which are better ? Investing in mutual funds ,indexes funds or etfs or shares ?

Amazing stuff!!

Judging from some of the stupid comments below I can see why wealth isn't for everyone. Smart people plan for the long haul by putting their money to work for them. Poor people can only see today, and therefore will always be poor. Using this strategy will make anyone who is disciplined enough to invest, a millionaire with the passing of time.

Very helpful. cheers.

So, I'll do pretty well if I live to 120yrs!….I think I'll just buy an apartment building and write off the depreciation.

thank you very much!

Some knowledge of economics is required to understand how and why dividends on aggregate increase over time. Are you to match this performance by buying an income fund or try to outperform the average.

Would you suggest setting up a DRIP or no

Dividend paying stocks are not great the first year – maybe a 3% annual return – 3K on 100K investment. But typically a lot of dividend paying companies increase their payments by an average of about 5-10% per year (and occasionally cut it too!). So without putting a single penny more in the investment, the following year you'll get 3.25K (7.5% growth).
Given that growth this is your returns with just dividend growth.

Years Dividend return
1 3%
9 6%
15 9%
19 12%
21 15%
24 18%

So with the same 100K investment after 24 years you are now getting a 18K return
But there's a second factor at work, which is DRIP investing. So typically when a dividend is paid, the price of the shares go down by the % paid. So not only does it reinvest the 3% to buy more shares. If you look at this table
Share price 100
Investment 100000
Initial yield 3%
Number shares bought 3000
Dividend growth 9.00%
Div/share Num shares Dividend Yield on cost
1 3 1000 3000 3.000%
2 3.27 1031 3371.37 3.371%
3 3.5643 1065.8 3798.83094 3.799%
4 3.885087 1105 4293.021135 4.293%
5 4.23474483 1149.3 4866.992233 4.867%
6 4.615871865 1199.5 5536.738302 5.537%
7 5.031300333 1256.6 6322.331998 6.322%
8 5.484117362 1321.8 7248.90633 7.249%
9 5.977687925 1396.6 8348.438956 8.348%
10 6.515679838 1482.7 9660.798496 9.661%
11 7.102091024 1582.3 11237.63863 11.238%
12 7.741279216 1698.2 13146.24036 13.146%
13 8.437994345 1833.8 15473.59403 15.474%
14 9.197413836 1993.4 18334.12474 18.334%
15 10.02518108 2182.5 21879.95771 21.880%
16 10.92744738 2408.1 26314.38603 26.314%
17 11.91091764 2679.4 31914.11273 31.914%
18 12.98290023 3008.5 39059.05535 39.059%
19 14.15136125 3411.2 48273.1235 48.273%
20 15.42498376 3908.9 60294.71904 60.295%
21 16.8132323 4530.5 76172.34895 76.172%
22 18.32642321 5315.8 97419.6005 97.420%
23 19.9758013 6320.2 126251.0594 126.251%
24 21.77362342 7621.8 165954.203 165.954%
25 23.73324952 9332.7 221495.2978 221.495%

Now that is where the real money is made. You only put in 100K and not a single penny more, but are now getting 10% return after 10 years, but that's where it starts to really grow. At 15 years you are getting 15% and 20 years 60%. For that initial 100K investment you are getting a 60K a year return. At that point you could stop reinvesting and just live off the dividends.

It's all about time and not touching the money for the first 20-25 years. Best to do this for your children, gift them 20K when they are born so when they finish college they are getting a dividend of 45K a year.