The POWER Of Dividend Investing! Quit Your Job & Live Off Dividends
Published: 2024-05-05
Status:
Available
|
Analyzed
Published: 2024-05-05
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
McDonald's currently has an annual dividend yield of 2.3%.
"right now McDonald's is paying a 2.3% annual dividend yield"
Pending
Edison International currently has a dividend yield of 4.2%.
"Edison International the electricity company they pay out right now at the time we recording this video a 4.2% dividend yield"
Pending
IBM currently has a dividend yield of 4.8%.
"IBM which is right now at the time I'm recording this video paying a 4.8% yield"
Pending
The SDY ETF (a high dividend ETF) currently has an annual yield of 7.25%.
"if you're looking for cash flow and you invest your money into SDI which is a high dividend ETF then this right now at the time we recording this video is a 7.25% annual yield"
Pending
The VYM ETF (Vanguard's ETF for dividend stocks) currently has a yield of 3%.
"if you invest your money into VM which is a Vanguard ETF for dividend stocks this pays right now at the time we're recording this video a 3% yield"
Pending
The Schwab REIT ETF (SCHH) currently has an annual yield of 2.8%.
"but s right now at the time we recording this video is paying 2.8% a year"
Pending
The Vanguard REIT ETF (VNQ) currently has an annual yield of approximately 4% (inferred from the cost to generate $40k/year).
"and with vnq you would have to invest right around $1 million today in order to get this $40,000 a year"
Pending
A $10,000 investment in Amazon in 2010 could have grown to $170,000 by 2020.
"if you had invested $10,000 in Amazon back in 2010 that $10,000 investment would have grown to $170,000 in 2020"
Pending
VOO and SPY are index funds that provide exposure to the top 500 companies in the stock market.
"example of index funds that give you exposure to the General stock market are vo and spy if you invest in one of these two funds you will get exposure to the top 500 companies in the stock market"
Pending
Companies that pay dividends typically distribute them quarterly, every three months.
"companies that pay dividend generally pay out this dividend quarterly meaning every three months"
Pending
McDonald's currently offers a 2.3% annual dividend yield.
"McDonald's is paying a 2.3% annual dividend yield"
Pending
Edison International currently offers a 4.2% dividend yield.
"Edison International the electricity company they pay out right now at the time we recording this video a 4.2% dividend yield"
Pending
IBM's current dividend yield is 4.8%.
"IBM which is right now at the time I'm recording this video paying a 4.8% yield"
Pending
The SDY ETF, a high dividend ETF, currently offers a 7.25% annual yield.
"SDI which is a high dividend ETF then this right now at the time we recording this video is a 7.25% annual yield"
Pending
The VYM ETF, a Vanguard ETF focused on dividend stocks, currently yields 3%.
"VM which is a Vanguard ETF for dividend stocks this pays right now at the time we're recording this video a 3% yield"
Pending
The SCHH REIT ETF is currently paying a 2.8% annual yield.
"s right now at the time we recording this video is paying 2.8% a year"
Pending
To generate $40,000 annually from the VNQ REIT ETF, an investment of approximately $1 million would be required, implying a yield of around 4%.
"and with vnq you would have to invest right around $1 million today in order to get this $40,000 a year"
Pending
An initial $10,000 investment in Amazon in 2010 could have appreciated to $170,000 by 2020.
"if you had invested $10,000 in Amazon back in 2010 that $10,000 investment would have grown to $170,000 in 2020"
Pending
VOO and SPY are index funds that offer exposure to the top 500 companies in the stock market.
"example of index funds that give you exposure to the General stock market are vo and spy if you invest in one of these two funds you will get exposure to the top 500 companies in the stock market"
Pending
Historically, the stock market has seen average annual returns between 7% and 10% over the long term.
"over the long term the stock market typically goes up by somewhere between 7 and 10% a year"
Pending
Investing $300 per month with a 7% annual return for 45 years could result in accumulating $1.1 million.
"if you invest $10 a day or $300 a month and you can get a 7% return on your money and let's say you do this for 45 years... you will retire with $1.1 million"
Pending
Starting to invest $300 per month with a 7% annual return at age 31 and continuing until age 66 could result in accumulating $535,000.
"if you start investing not at 21 but now at 31 and you continue to do this until you're 66... you're going to retire with $535,000"
Pending
Investing $600 per month ($20/day) with a 7% annual return for 45 years could result in accumulating over $2.2 million.
"let's assume now that you're investing $20 a day and you continue to get the 7% return a year if you do this for 45 years... you are going to retire with over $2.2 million"
Pending
Investing $600 per month ($20/day) with a 7% annual return starting at age 31 for 35 years could result in accumulating $1 million.
"if you start this at 31 years old and you do this for 35 years... you will only retire with $1 million"
Pending
Investing $600 per month ($20/day) with a 10% annual return for 45 years could result in accumulating $5.5 million.
"if you're investing $20 a day and now you're a little bit more aggressive so you're trying to get a 10% return if you do this for 45 years... you're going to end up with $5.5 million"
Pending
Investing $600 per month ($20/day) with a 10% annual return starting at age 31 for 35 years could result in accumulating $2.2 million.
"if you start this at 31 years old and you do this for 35 years... you're going to end up with $2.2 million"
Pending
Real Estate Investment Trusts (REITs) are legally mandated to distribute 90% of their taxable income to shareholders as dividends.
"reads are required by law to pay out 90% of their profits to their shareholders people like you through dividends"
Pending
Automatically reinvesting dividends is a strategy to grow investments.
"reinvesting your dividends automatically"
Pending
It is recommended to reinvest dividend payments back into the same stocks or ETFs to accelerate growth.
"when you get paid through your dividends you want to reinvest these dividends back into to your stock or ETFs"
Pending
Reinvesting profits from investments into more stocks and ETFs helps to build wealth.
"your money that you're making is also going back into your machines to buy you more stocks and more ETFs"
Pending
The speaker aims to generate enough cash flow from investments to cover at least basic living expenses.
"my goal is to stick with it until my cash flow can exceed at least my basic expenses"
Pending
Dividend-paying companies typically offer less aggressive growth potential compared to startup companies.
"dividend companies are not going to give you that massive growth versus a startup company could"
Pending
Startup companies have the potential for rapid stock price growth, with revenue increases of 20-100% being possible.
"a startup company could see the stock price grow very quickly I mean they could see a 20% a 50% 100% growth in revenue"
Pending
The strategy for managing a mortgage differs based on whether the interest rate is below or above 5%.
"if my mortgage is sub 5% it's going to be a different answer that my mortgage is above 5%"
Pending
With a mortgage interest rate of 2.5% to 3.5%, the speaker would prioritize investing money elsewhere rather than aggressively paying down the mortgage.
"if I have a 2 and a half or 3 and a half% mortgage I'm going to continue paying the mortgage and I'm going to be investing my money other places as fast as possible"
Pending
The speaker prefers to acquire rental properties for investment before purchasing a primary residence.
"ideally if this was an ideal world I'm going to go and buy a rental property before I go and buy my own home"
Pending
The speaker views building wealth through rental properties, stocks, and businesses as more effective than building wealth through homeownership.
"I don't look at buying a home as this ability to build huge generational wealth and build my wealth because I want to build my wealth from rental properties I want to build my wealth from my stocks"
Pending
Investment decisions should not be made solely based on dividend yield, as it can be misleading.
"you never you never want to make an investment decision solely based off of this yield right here because this yield can be deceiving"
Pending
A high dividend yield can appear artificially inflated if the stock price has fallen significantly while the dividend payout remains the same.
"if a stock is tanking then artificially a yield a dividend yield can look so much higher because the stock price is down and the dividend might not have changed yet"
Pending
The stock market has historically shown an average annual growth rate of 7% to 10% over extended periods.
"over the long term the stock market typically goes up by somewhere between 7 and 10% a year"
Pending
Inflation increases the cost of goods and services for consumers.
"inflation hurts consumers because now when you want to go out and buy something it costs you more dollars"
Pending
Inflation can benefit investors as increased business revenues lead to higher returns for business owners.
"inflation benefits the investor because more money is going to the hands of the businesses and the investors are what own the businesses"
Pending
The tax code is structured to provide advantages to individuals with financial education.
"our tax code is designed to benefit the financially educated"
Pending
Investors generally benefit from lower tax rates compared to individuals earning the same amount of income through employment.
"investors get to pay a lower tax rate on those taxes as an investor than a million dollars from a doctor"
Pending
The initial financial goal should be to save $2,000 as an emergency fund.
"work to save my first $2,000"
Pending
Prioritizing the repayment of high-interest debts, such as credit card debt, is crucial for building wealth.
"work to pay down my high interest debts like my credit card debts"
Pending
Implementing a financial system like the 75/15/10 plan (75% spending, 15% investing, 10% saving) is recommended.
"building a financial system something like my 751510 plan"
Pending
Establishing asset protection systems is important as wealth grows.
"build my Asset Protection Systems"
Pending
Planning for leaving a legacy is a component of long-term financial strategy.
"how do I leave a legacy on this world"
Pending
Historically, the stock market has averaged annual returns of 7-10% over the long term.
"over the long term the stock market typically goes up by somewhere between 7 and 10% a year"
Pending
Investing $300 monthly at a 7% annual return for 45 years could lead to a retirement portfolio of $1.1 million.
"if you invest $10 a day or $300 a month and you can get a 7% return on your money and let's say you do this for 45 years... you will retire with $1.1 million"
Pending
Starting to invest $300 monthly at a 7% annual return at age 31 and continuing for 35 years could result in $535,000 at retirement.
"if you start investing not at 21 but now at 31 and you continue to do this until you're 66... you're going to retire with $535,000"
Pending
Investing $600 monthly ($20/day) at a 10% annual return for 45 years could lead to a retirement portfolio exceeding $2.2 million.
"if you're investing $20 a day and now you're a little bit more aggressive so you're trying to get a 10% return if you do this for 45 years... you are going to retire with over $2.2 million"
Pending
Investing $600 monthly ($20/day) at a 10% annual return starting at age 31 for 35 years could result in $1 million at retirement.
"if you start this at 31 years old and you do this for 35 years... you will only retire with $1 million"
Pending
Dividend payments are typically made quarterly by companies.
"companies that pay dividend generally pay out this dividend quarterly meaning every three months"
Pending
REITs must legally distribute 90% of their profits to shareholders via dividends.
"reads are required by law to pay out 90% of their profits to their shareholders people like you through dividends"
Pending
Automatically reinvesting dividends is a method to enhance investment growth.
"reinvesting your dividends automatically"
Pending
It is recommended to reinvest dividends back into the same stocks or ETFs to accelerate wealth accumulation.
"when you get paid through your dividends you want to reinvest these dividends back into to your stock or ETFs"
Pending
Reinvesting investment earnings into additional stocks and ETFs contributes to building wealth.
"your money that you're making is also going back into your machines to buy you more stocks and more ETFs"
Pending
The speaker aims to achieve a level of investment cash flow that covers fundamental living costs.
"my goal is to stick with it until my cash flow can exceed at least my basic expenses"
Pending
Companies focused on dividends tend to exhibit slower growth compared to startups.
"dividend companies are not going to give you that massive growth versus a startup company could"
Pending
Startups have the potential for rapid stock price appreciation, with revenue growth reaching 20-100%.
"a startup company could see the stock price grow very quickly I mean they could see a 20% a 50% 100% growth in revenue"
Pending
Mortgage interest rates below 5% dictate a different financial strategy compared to rates above 5%.
"if my mortgage is sub 5% it's going to be a different answer that my mortgage is above 5%"
Pending
With a mortgage rate between 2.5% and 3.5%, the speaker would prioritize investing funds elsewhere rather than aggressively paying down the mortgage.
"if I have a 2 and a half or 3 and a half% mortgage I'm going to continue paying the mortgage and I'm going to be investing my money other places as fast as possible"
Pending
In an ideal scenario, the speaker would acquire rental properties before purchasing a personal residence.
"ideally if this was an ideal world I'm going to go and buy a rental property before I go and buy my own home"
Pending
The speaker believes wealth is best built through rental properties, stocks, and businesses, rather than primarily through homeownership.
"I don't look at buying a home as this ability to build huge generational wealth and build my wealth because I want to build my wealth from rental properties I want to build my wealth from my stocks"
Pending
Relying solely on dividend yield for investment decisions can be misleading.
"you never you never want to make an investment decision solely based off of this yield right here because this yield can be deceiving"
Pending
A falling stock price can artificially inflate the dividend yield if the dividend payout has not yet been reduced.
"if a stock is tanking then artificially a yield a dividend yield can look so much higher because the stock price is down and the dividend might not have changed yet"
Pending
The stock market has historically averaged an annual return of 7% to 10% over the long term.
"over the long term the stock market typically goes up by somewhere between 7 and 10% a year"
Pending
Consumers face higher prices for goods and services due to inflation.
"inflation hurts consumers because now when you want to go out and buy something it costs you more dollars"
Pending
Inflation can benefit investors as increased business revenue translates to higher returns for business owners.
"inflation benefits the investor because more money is going to the hands of the businesses and the investors are what own the businesses"
Pending
The tax code favors individuals with financial education.
"our tax code is designed to benefit the financially educated"
Pending
Investors typically pay lower tax rates on their earnings compared to individuals earning a similar income through employment.
"investors get to pay a lower tax rate on those taxes as an investor than a million dollars from a doctor"
Pending
The initial financial priority is to save $2,000 for an emergency fund.
"work to save my first $2,000"
Pending
Paying off high-interest debts, such as credit card debt, is a critical step in wealth building.
"work to pay down my high interest debts like my credit card debts"
Pending
Establishing a financial system, such as the 75/15/10 plan (75% spending, 15% investing, 10% saving), is recommended.
"building a financial system something like my 751510 plan"
Pending
A goal to double one's income should be pursued.
"work to double my income"
Pending
Developing asset protection systems is crucial as wealth increases.
"build my Asset Protection Systems"
Pending
Considering how to leave a legacy is an important aspect of long-term financial planning.
"how do I leave a legacy on this world"
Pending