36 Dividend Stocks That Pay Me $762+ Per Month

Summary

In this informative video, the host reveals their dividend stock portfolio, which generates a passive income of $760 per month. They discuss the importance of dividends as a profit distribution to shareholders and share insights into their income calendar, dividend growth projections, and the pros and cons of individual dividend stocks. The video also addresses common arguments against dividend investing, emphasizing the balance between growth and income in a well-rounded portfolio.

Takeaways

• 📈 The video discusses a portfolio of dividend-paying stocks generating a passive income of $760 per month.
• 💡 Dividends are profits distributed to investors by companies, which can be reinvested or paid out as income.
• 📊 The portfolio's annual income is $9,124, with a dividend yield of 2.04% and a beta of just under one, indicating market correlation.
• 🗓 The presenter uses a service called 'Simply Safe Dividends' to track dividend payouts and income calendar.
• 🏆 The largest position in the portfolio is VTI, a total stock market fund, which is not strictly a dividend stock but contributes significantly to the income.
• 🌐 The portfolio includes a mix of domestic and international stocks, with a focus on dividend-focused ETFs and individual stocks.
• 📈 The dividend growth per year is projected at 6.6%, with reinvestment contributing to a compounding effect over time.
• 💰 The video projects that with continued contributions and reinvestment, the portfolio could generate significant income in the future, potentially reaching $53,900 per year after 20 years at an 8% growth rate.
• ⚠️ The presenter warns against chasing high dividend yields without considering the overall health and growth potential of the company.
• 🤔 The video presents arguments against dividend investing, noting that dividends can create taxable events and potentially limit growth by reducing share prices post-dividend.
• 💡 The case for dividend investing is presented as a psychological benefit, offering peace of mind with a guaranteed income stream, even if no further investments are made.

Q & A

What is the main topic of the video?

The main topic of the video is about the presenter's personal portfolio of dividend-paying stocks and the passive income stream generated from it.

What is a dividend and why do companies pay them?

A dividend is a distribution of profits paid out to investors. Companies pay dividends when they choose not to reinvest all their excess profits into the company, such as through research and development or acquisitions, and instead distribute a portion of it to their shareholders as a 'thank you' for investing.

What is the current monthly dividend income from the presenter's portfolio?

The current monthly dividend income from the presenter's portfolio is approximately $760.

What is the dividend yield of the presenter's portfolio and what does it indicate?

The dividend yield of the presenter's portfolio is 2.04%, which indicates the annual dividend income as a percentage of the total portfolio value.

What is the significance of the beta value mentioned in the video?

The beta value, which is just under one for the presenter's portfolio, indicates the correlation of the portfolio's performance with the overall stock market. A beta of one would mean exact correlation, while a value under one suggests less correlation.

What service does the presenter use to track dividend payouts and why do they recommend it?

The presenter uses a service called 'Simply Safe Dividends' to track dividend payouts. They recommend it because they have been using it for years and find it helpful, although they are not an affiliate.

What is the difference between qualified and non-qualified dividends in terms of taxation?

Qualified dividends are taxed at a lower rate of either 0%, 15%, or 20% depending on the investor's income, while non-qualified dividends are taxed at the investor's ordinary income tax rate, which can be as high as 37%.

Why might someone choose to reinvest their dividends instead of receiving them as income?

Reinvesting dividends, also known as a dividend reinvestment plan (DRIP), allows investors to buy more shares of their holdings without additional investment, potentially increasing the overall value of their portfolio and the dividend income over time.

What is the presenter's view on the growth versus dividend debate in investing?

The presenter suggests that younger investors should focus on growth stocks, while older investors might want to shift towards dividend stocks for a steady income stream.

What is the presenter's strategy for managing dividend stocks in a Roth IRA?

The presenter's strategy involves building a dividend portfolio within a Roth IRA to take advantage of tax-free growth and income, allowing them to live off the dividends without creating taxable events or selling the underlying assets.

What is the potential downside of receiving dividends according to the video?

One potential downside is that receiving dividends can create unwanted taxable events and reduce the share price of the stock, effectively destroying part of the growth potential of the investment.

What is the presenter's biggest holding in their taxable account and why is it significant?

The presenter's biggest holding in their taxable account is VTI, a total stock market fund that represents a significant portion of their portfolio and reflects their belief in investing in US domestic stocks with some international exposure.

What is the importance of maintaining purchasing power when investing in dividend stocks?

Maintaining purchasing power is crucial because it ensures that the investment is growing at a rate that at least matches inflation, ensuring that the investor's wealth is not eroded over time.

What is the role of Policy Genius in the video?

Policy Genius is the sponsor of the video, offering life insurance solutions to provide financial safety for families. The presenter discusses their personal experience with Policy Genius to highlight the importance of life insurance.