1 00:00:00,000 --> 00:00:03,720 All right, so we're back and ready to dive into another video. 2 00:00:03,720 --> 00:00:05,480 Always exciting to see what we're going to uncover. 3 00:00:05,480 --> 00:00:08,840 Yeah, so this time it's all about monthly dividend ETFs 4 00:00:08,840 --> 00:00:11,240 to earn some income in 2024. 5 00:00:11,240 --> 00:00:12,040 Sounds promising. 6 00:00:12,040 --> 00:00:13,800 Lots of people looking for those steady payouts. 7 00:00:13,800 --> 00:00:14,600 Exactly. 8 00:00:14,600 --> 00:00:16,920 And who doesn't love a little extra cash flow every month? 9 00:00:16,920 --> 00:00:19,840 So this video by Joshua Mayo breaks down 10 00:00:19,840 --> 00:00:22,680 his top six picks for these monthly dividend ETFs. 11 00:00:22,680 --> 00:00:24,600 He starts with his number six choice. 12 00:00:24,600 --> 00:00:25,440 OK, let's hear it. 13 00:00:25,440 --> 00:00:26,680 It's DHS. 14 00:00:26,680 --> 00:00:27,360 DHS. 15 00:00:27,360 --> 00:00:31,240 Yep, the Wisdom Tree US High Dividend Fund. 16 00:00:31,240 --> 00:00:34,480 So focusing on those big dividend payers in the US stock market. 17 00:00:34,480 --> 00:00:35,440 Right on. 18 00:00:35,440 --> 00:00:39,600 Think familiar names like Pfizer, Cisco, Verizon, AT&T, 19 00:00:39,600 --> 00:00:42,040 Coca-Cola, those solid companies. 20 00:00:42,040 --> 00:00:42,480 Makes sense. 21 00:00:42,480 --> 00:00:44,680 It's like getting a slice of those reliable dividend 22 00:00:44,680 --> 00:00:45,360 generators. 23 00:00:45,360 --> 00:00:46,120 Exactly. 24 00:00:46,120 --> 00:00:48,760 Instant diversification with some big players. 25 00:00:48,760 --> 00:00:50,520 So tell me, what kind of returns 26 00:00:50,520 --> 00:00:53,520 has this ETF delivered over the past 10 years? 27 00:00:53,520 --> 00:00:53,920 Let's see. 28 00:00:53,920 --> 00:00:58,880 Over the past decade, DHS has averaged about 11.57% annual 29 00:00:58,880 --> 00:00:59,440 return. 30 00:00:59,440 --> 00:01:00,760 Wow, that's not bad at all. 31 00:01:00,760 --> 00:01:01,640 No, it's not. 32 00:01:01,640 --> 00:01:02,200 Think about it. 33 00:01:02,200 --> 00:01:04,240 If you had invested $10,000 10 years ago, 34 00:01:04,240 --> 00:01:06,800 you'd be looking at almost $30,000 today. 35 00:01:06,800 --> 00:01:08,520 Plus all those dividends along the way. 36 00:01:08,520 --> 00:01:11,680 OK, starting to see why this one made the list. 37 00:01:11,680 --> 00:01:13,200 Now, what about the monthly payout? 38 00:01:13,200 --> 00:01:15,560 What's the current dividend yield for DHS? 39 00:01:15,560 --> 00:01:18,880 Right now, it's sitting at about 3.77%. 40 00:01:18,880 --> 00:01:21,440 OK, 3.77%, not too shabby. 41 00:01:21,440 --> 00:01:23,040 But before we get too excited, let's 42 00:01:23,040 --> 00:01:24,920 talk about those costs and risks. 43 00:01:24,920 --> 00:01:27,160 What's the expense ratio and what's the risk 44 00:01:27,160 --> 00:01:28,600 level according to the video? 45 00:01:28,600 --> 00:01:29,120 Sure. 46 00:01:29,120 --> 00:01:32,960 So DHS has an expense ratio of 0.38%. 47 00:01:32,960 --> 00:01:35,920 That means for every $10,000 you've invested, 48 00:01:35,920 --> 00:01:38,920 you'd be paying about $38 a year in fees. 49 00:01:38,920 --> 00:01:41,480 And the video creator rates the risk at 3 out of 5. 50 00:01:41,480 --> 00:01:41,880 Got it. 51 00:01:41,880 --> 00:01:43,960 So moderate risk for a decent yield. 52 00:01:43,960 --> 00:01:44,760 Makes sense. 53 00:01:44,760 --> 00:01:47,000 All right, moving on to number five on the list. 54 00:01:47,000 --> 00:01:51,160 It's SPHD, the Invesco S&P 500 High Dividend Low Volatility 55 00:01:51,160 --> 00:01:51,840 ETF. 56 00:01:51,840 --> 00:01:53,480 The name says it all, doesn't it? 57 00:01:53,480 --> 00:01:54,120 It really does. 58 00:01:54,120 --> 00:01:55,720 This one seems to be for those investors who 59 00:01:55,720 --> 00:01:57,480 want a bit more stability in their lives. 60 00:01:57,480 --> 00:01:58,000 You got it. 61 00:01:58,000 --> 00:01:59,880 SPHD is all about providing income, 62 00:01:59,880 --> 00:02:01,280 but with less volatility. 63 00:02:01,280 --> 00:02:04,560 It targets the 50 least volatile, high dividend yielding 64 00:02:04,560 --> 00:02:06,240 stocks in the S&P 500. 65 00:02:06,240 --> 00:02:08,720 So it's like a VIP club of steady performers. 66 00:02:08,720 --> 00:02:09,400 I like that. 67 00:02:09,400 --> 00:02:11,480 How has this ETF been doing since it launched? 68 00:02:11,480 --> 00:02:13,880 Well, SPHD hasn't been around for a full 10 years yet. 69 00:02:13,880 --> 00:02:15,680 It launched in 2012. 70 00:02:15,680 --> 00:02:18,240 But since then, it has produced an average annual return 71 00:02:18,240 --> 00:02:20,440 of about 11.03%. 72 00:02:20,440 --> 00:02:22,960 So if you'd invested $10,000 back then, 73 00:02:22,960 --> 00:02:25,880 you'd be sitting on a little over $23,000 today. 74 00:02:25,880 --> 00:02:26,920 Pretty impressive. 75 00:02:26,920 --> 00:02:28,080 What about the dividend yield? 76 00:02:28,080 --> 00:02:32,320 SPHD currently offers a dividend yield of 3.86%. 77 00:02:32,320 --> 00:02:33,840 Slightly higher than DHS. 78 00:02:33,840 --> 00:02:36,160 OK, what about the expense ratio and the risk level 79 00:02:36,160 --> 00:02:36,720 for this one? 80 00:02:36,720 --> 00:02:40,400 For SPHD, you're looking at a very reasonable 0.30% 81 00:02:40,400 --> 00:02:41,320 expense ratio. 82 00:02:41,320 --> 00:02:45,400 So just $30 per year in fees on a $10,000 investment. 83 00:02:45,400 --> 00:02:46,240 Not bad at all. 84 00:02:46,240 --> 00:02:46,960 And the risk? 85 00:02:46,960 --> 00:02:49,360 Similar to DHS, it's rated a 3 out of 5. 86 00:02:49,360 --> 00:02:49,860 OK. 87 00:02:49,860 --> 00:02:52,120 So SPHD is looking pretty similar to DHS 88 00:02:52,120 --> 00:02:55,760 in terms of risk and fees, but with a slightly higher yield. 89 00:02:55,760 --> 00:02:56,600 Interesting. 90 00:02:56,600 --> 00:02:58,240 All right, let's move on to number 4 on the list. 91 00:02:58,240 --> 00:03:01,240 KGX, the Invesco Preferred ETF. 92 00:03:01,240 --> 00:03:02,880 This one seems a bit more specialized. 93 00:03:02,880 --> 00:03:03,280 It is. 94 00:03:03,280 --> 00:03:05,640 PGX taps into the world of preferred shares. 95 00:03:05,640 --> 00:03:06,480 Preferred shares. 96 00:03:06,480 --> 00:03:07,760 Can you remind us about those? 97 00:03:07,760 --> 00:03:08,280 Sure. 98 00:03:08,280 --> 00:03:10,800 They're kind of like a hybrid between common stock and bonds. 99 00:03:10,800 --> 00:03:12,160 I remember now. 100 00:03:12,160 --> 00:03:14,200 So they typically offer higher dividend yields 101 00:03:14,200 --> 00:03:16,960 than common stock, but with potentially less growth. 102 00:03:16,960 --> 00:03:17,440 Exactly. 103 00:03:17,440 --> 00:03:19,000 It's all about finding that balance. 104 00:03:19,000 --> 00:03:20,040 Makes sense. 105 00:03:20,040 --> 00:03:23,960 So how does PGX tap into this preferred share market? 106 00:03:23,960 --> 00:03:25,200 What's its strategy? 107 00:03:25,200 --> 00:03:28,000 PGX tracked an index that represents the US preferred 108 00:03:28,000 --> 00:03:29,280 securities market. 109 00:03:29,280 --> 00:03:32,200 It holds over 300 different preferred share issues, 110 00:03:32,200 --> 00:03:35,600 including big names like Citigroup, JPMorgan Chase, 111 00:03:35,600 --> 00:03:36,480 and Wells Fargo. 112 00:03:36,480 --> 00:03:38,280 Wow, that's a lot of diversification. 113 00:03:38,280 --> 00:03:40,120 OK, let's talk performance. 114 00:03:40,120 --> 00:03:42,440 How has PGX been doing over the past 10 years? 115 00:03:42,440 --> 00:03:46,920 Over the past decade, PGX has returned about 6.73% annually. 116 00:03:46,920 --> 00:03:49,480 So if I had invested $10,000 back then, 117 00:03:49,480 --> 00:03:52,040 it'd be worth close to $19,000 today. 118 00:03:52,040 --> 00:03:52,520 That's right. 119 00:03:52,520 --> 00:03:56,440 And right now, its dividend yield is sitting at 4.87%. 120 00:03:56,440 --> 00:03:58,840 That's the highest yield we've seen so far. 121 00:03:58,840 --> 00:04:01,360 All right, what about the expense ratio and the risk level 122 00:04:01,360 --> 00:04:02,200 for PGX? 123 00:04:02,200 --> 00:04:03,440 Anything to worry about there? 124 00:04:03,440 --> 00:04:05,800 Well, the expense ratio is a bit higher than the previous two. 125 00:04:05,800 --> 00:04:07,080 It's at 0.52%. 126 00:04:07,080 --> 00:04:11,200 OK, so that's $52 per year on a $10,000 investment and the risk. 127 00:04:11,200 --> 00:04:13,240 It's rated at 3 out of 5, same as the others. 128 00:04:13,240 --> 00:04:16,640 So PGX offers a tempting yield, but with slightly higher fees. 129 00:04:16,640 --> 00:04:18,880 It's interesting to see how these different ETFs have 130 00:04:18,880 --> 00:04:20,440 their own strengths and weaknesses. 131 00:04:20,440 --> 00:04:21,720 OK, what's next on the list? 132 00:04:21,720 --> 00:04:22,760 What's number three? 133 00:04:22,760 --> 00:04:27,400 Number three is DIV, the Global X Superdividend US ETF. 134 00:04:27,400 --> 00:04:28,840 Superdividend, huh? 135 00:04:28,840 --> 00:04:30,600 Sounds promising. 136 00:04:30,600 --> 00:04:32,720 What's the strategy behind this one? 137 00:04:32,720 --> 00:04:35,160 This ETF specifically targets those high dividend 138 00:04:35,160 --> 00:04:36,560 paying US stocks. 139 00:04:36,560 --> 00:04:39,240 Hmm, sounds a bit like SPHD. 140 00:04:39,240 --> 00:04:40,680 How is it different? 141 00:04:40,680 --> 00:04:41,180 You're right. 142 00:04:41,180 --> 00:04:43,160 They both focus on high dividend payers. 143 00:04:43,160 --> 00:04:46,840 But while SPHD sticks to the S&P 500, DIV 144 00:04:46,840 --> 00:04:48,880 considers the entire US stock market 145 00:04:48,880 --> 00:04:51,280 to find the 50 highest yielding companies. 146 00:04:51,280 --> 00:04:53,120 Ah, so it's casting a wider net. 147 00:04:53,120 --> 00:04:55,960 Exactly, which means it might uncover opportunities 148 00:04:55,960 --> 00:04:57,360 that SPHD misses. 149 00:04:57,360 --> 00:04:58,640 OK, I can see the appeal there. 150 00:04:58,640 --> 00:05:01,120 So tell me, what kind of returns has DIV delivered 151 00:05:01,120 --> 00:05:02,240 since it launched? 152 00:05:02,240 --> 00:05:04,160 Well, DIV has been around since 2013. 153 00:05:04,160 --> 00:05:07,920 Since then, it's generated an average annual return of about 4.67%. 154 00:05:07,920 --> 00:05:10,560 Hmm, that does seem a bit lower compared to some of the others. 155 00:05:10,560 --> 00:05:13,240 But I guess we have to remember its main focus is those dividends. 156 00:05:13,240 --> 00:05:15,040 Right, the lower return could be a trade-off 157 00:05:15,040 --> 00:05:17,160 for higher dividend payouts, speaking of which, 158 00:05:17,160 --> 00:05:20,800 DIV currently boasts a 5.80% dividend yield. 159 00:05:20,800 --> 00:05:23,000 Wow, 5.80%. 160 00:05:23,000 --> 00:05:26,040 That is the highest we've seen so far. 161 00:05:26,040 --> 00:05:27,440 All right, before we get carried away, 162 00:05:27,440 --> 00:05:29,680 let's talk about those expenses and risks. 163 00:05:29,680 --> 00:05:33,320 What's the expense ratio, and what about the risk level for DIV? 164 00:05:33,320 --> 00:05:36,280 DIV's expense ratio is 0.45%. 165 00:05:36,280 --> 00:05:40,000 So $45 per year on a $10,000 investment. 166 00:05:40,000 --> 00:05:41,760 OK, and what about the risk? 167 00:05:41,760 --> 00:05:43,160 This is where it gets interesting. 168 00:05:43,160 --> 00:05:46,680 The risk level for DIV is rated a 5 out of 5. 169 00:05:46,680 --> 00:05:48,160 Whoa, a 5 out of 5. 170 00:05:48,160 --> 00:05:49,160 That's the highest we've seen. 171 00:05:49,160 --> 00:05:50,640 Why such a high risk rating? 172 00:05:50,640 --> 00:05:54,640 The video creator attributes that to DIV's concentrated portfolio. 173 00:05:54,640 --> 00:05:58,560 It only rolled 50 companies, which can make it more vulnerable to market swings. 174 00:05:58,560 --> 00:06:01,160 OK, so high yield, but with higher risk attached, 175 00:06:01,160 --> 00:06:02,680 definitely something to consider. 176 00:06:02,680 --> 00:06:05,360 All right, we're halfway through the list, ready to keep going. 177 00:06:05,360 --> 00:06:07,560 All right, number two on the list is SDIV, 178 00:06:07,560 --> 00:06:09,880 the GlobalX Superdividend ETF. 179 00:06:09,880 --> 00:06:11,400 Wait, didn't we just cover DIV? 180 00:06:11,400 --> 00:06:12,160 Is this a repeat? 181 00:06:12,160 --> 00:06:13,960 It's easy to get them confused. 182 00:06:13,960 --> 00:06:16,040 They both have Superdividend in their names. 183 00:06:16,040 --> 00:06:17,240 But SDIV is different. 184 00:06:17,240 --> 00:06:19,720 Remember how DIV focused on US companies? 185 00:06:19,720 --> 00:06:21,320 Well, SDIV goes global. 186 00:06:21,320 --> 00:06:23,080 Ah, so this one is for those investors 187 00:06:23,080 --> 00:06:24,960 who want to diversify internationally. 188 00:06:24,960 --> 00:06:25,720 Exactly. 189 00:06:25,720 --> 00:06:31,080 SDIV seeks out the 100 highest yielding stocks from all around the world. 190 00:06:31,080 --> 00:06:33,960 Wow, that's taking diversification to a whole new level. 191 00:06:33,960 --> 00:06:37,680 But I imagine that global reach also comes with some added risks, right? 192 00:06:37,680 --> 00:06:38,520 Definitely. 193 00:06:38,520 --> 00:06:40,400 Investing internationally often means 194 00:06:40,400 --> 00:06:42,480 dealing with currency fluctuations 195 00:06:42,480 --> 00:06:45,560 and potentially greater economic and political uncertainties. 196 00:06:45,560 --> 00:06:46,400 Makes sense. 197 00:06:46,400 --> 00:06:49,440 So what are some of the companies in this global mix? 198 00:06:49,440 --> 00:06:50,800 Any familiar names? 199 00:06:50,800 --> 00:06:53,840 Some of its top holdings include China Power International 200 00:06:53,840 --> 00:06:57,720 and Yanzou Coal, which US investors might not be familiar with. 201 00:06:57,720 --> 00:07:00,920 But it really highlights SDIV's global reach. 202 00:07:00,920 --> 00:07:01,840 That's fascinating. 203 00:07:01,840 --> 00:07:05,080 So tell me, how has SDIV performed over the last decade? 204 00:07:05,080 --> 00:07:09,680 SDIV has returned about 3.0% per year on average over the past 10 years. 205 00:07:09,680 --> 00:07:11,800 OK, so slower growth compared to some of the others. 206 00:07:11,800 --> 00:07:13,400 But again, it's all about that dividend yield. 207 00:07:13,400 --> 00:07:14,760 What's SDIV offering? 208 00:07:14,760 --> 00:07:18,280 SDIV boasts a 6.83% dividend yield. 209 00:07:18,280 --> 00:07:19,680 Wow, that is impressive. 210 00:07:19,680 --> 00:07:21,640 It seems like taking on that added global risk 211 00:07:21,640 --> 00:07:24,160 might be paying off in terms of yield. 212 00:07:24,160 --> 00:07:25,840 OK, let's round out the picture here. 213 00:07:25,840 --> 00:07:29,280 What about the expense ratio and the risk rating for SDIV? 214 00:07:29,280 --> 00:07:33,360 SDIV's expense ratio is on the higher end, at 0.59%. 215 00:07:33,360 --> 00:07:39,160 So $59 per year for every $10,000 invested, not cheap. 216 00:07:39,160 --> 00:07:42,000 And as you might expect, given its global focus, 217 00:07:42,000 --> 00:07:44,480 it carries a 5 out of 5 risk rating. 218 00:07:44,480 --> 00:07:47,760 All right, so high yield, high risk, and higher expenses. 219 00:07:47,760 --> 00:07:49,480 Definitely something to think about. 220 00:07:49,480 --> 00:07:50,440 OK, drumroll please. 221 00:07:50,440 --> 00:07:52,320 We finally reached the talk spot. 222 00:07:52,320 --> 00:07:55,280 What's the number one monthly dividend ETF 223 00:07:55,280 --> 00:07:56,400 according to the video? 224 00:07:56,400 --> 00:08:00,720 The winner is KBWD, the Invesco KBW High Dividend 225 00:08:00,720 --> 00:08:02,240 Yield Financial ETF. 226 00:08:02,240 --> 00:08:06,720 In Resco, KBW High Dividend Yield Financial ETF. 227 00:08:06,720 --> 00:08:07,760 That's a mouthful. 228 00:08:07,760 --> 00:08:10,600 So it's focusing specifically on financial companies. 229 00:08:10,600 --> 00:08:11,400 That's right. 230 00:08:11,400 --> 00:08:13,440 It tracks an index of US financial companies 231 00:08:13,440 --> 00:08:14,680 with high dividend yields. 232 00:08:14,680 --> 00:08:15,120 Interesting. 233 00:08:15,120 --> 00:08:16,880 What kinds of companies are we talking about here? 234 00:08:16,880 --> 00:08:19,080 These are typically companies involved in banking, 235 00:08:19,080 --> 00:08:21,840 insurance, providing financial products or services. 236 00:08:21,840 --> 00:08:23,760 OK, so a very targeted approach. 237 00:08:23,760 --> 00:08:26,560 What are some of KBWD's top holdings? 238 00:08:26,560 --> 00:08:28,360 Most of them are probably not household names 239 00:08:28,360 --> 00:08:29,320 for the average investor. 240 00:08:29,320 --> 00:08:32,400 They tend to be smaller, more specialized financial companies. 241 00:08:32,400 --> 00:08:32,900 Gotcha. 242 00:08:32,900 --> 00:08:35,880 So how has KBWD performed in terms of overall returns 243 00:08:35,880 --> 00:08:36,960 over the past decade? 244 00:08:36,960 --> 00:08:41,040 KBWD has generated an average annual return of about 8.75% 245 00:08:41,040 --> 00:08:42,320 over the past 10 years. 246 00:08:42,320 --> 00:08:43,280 OK, not bad. 247 00:08:43,280 --> 00:08:45,440 But we're all here for that dividend yield, right? 248 00:08:45,440 --> 00:08:46,680 What's the big reveal? 249 00:08:46,680 --> 00:08:48,200 Drumroll please. 250 00:08:48,200 --> 00:08:53,160 KBWD is currently boasting a 7.37% dividend yield. 251 00:08:53,160 --> 00:08:54,400 Wow. 252 00:08:54,400 --> 00:08:55,720 That's the highest we've seen yet. 253 00:08:55,720 --> 00:08:58,320 It seems like specializing in those financial companies 254 00:08:58,320 --> 00:09:00,680 is paying off in terms of yield. 255 00:09:00,680 --> 00:09:02,800 But there's always a bot, right? 256 00:09:02,800 --> 00:09:03,760 What are the downsides? 257 00:09:03,760 --> 00:09:05,280 What are the trade-offs with this one? 258 00:09:05,280 --> 00:09:07,120 Well, high yields often come with trade-offs. 259 00:09:07,120 --> 00:09:09,160 And in this case, it's the expense ratio. 260 00:09:09,160 --> 00:09:12,480 KBWD has a 1.24% expense ratio. 261 00:09:12,480 --> 00:09:13,120 Ouch. 262 00:09:13,120 --> 00:09:15,520 That's more than double the cost of some of the other ETS 263 00:09:15,520 --> 00:09:16,400 we've looked at. 264 00:09:16,400 --> 00:09:18,440 So for every $10,000 invested, you're 265 00:09:18,440 --> 00:09:21,840 looking at $124 per year, just in expenses. 266 00:09:21,840 --> 00:09:23,520 Yep, that's a significant chunk of change. 267 00:09:23,520 --> 00:09:24,020 It is. 268 00:09:24,020 --> 00:09:25,200 And what about the risk? 269 00:09:25,200 --> 00:09:26,960 I'm guessing it's also a 5 out of 5. 270 00:09:26,960 --> 00:09:27,680 You guessed right. 271 00:09:27,680 --> 00:09:30,200 KBWD does carry a 5 out of 5 risk rating. 272 00:09:30,200 --> 00:09:33,000 OK, so it's the high-risk, high-reward option on this list. 273 00:09:33,000 --> 00:09:35,720 Highest dividend yield, but also the highest expense ratio 274 00:09:35,720 --> 00:09:37,040 and the highest risk. 275 00:09:37,040 --> 00:09:38,800 It really highlights the importance 276 00:09:38,800 --> 00:09:41,000 of considering all those factors, not just chasing 277 00:09:41,000 --> 00:09:41,800 the highest yield. 278 00:09:41,800 --> 00:09:42,680 Absolutely. 279 00:09:42,680 --> 00:09:45,480 Each ETF has its own personality and risk profile. 280 00:09:45,480 --> 00:09:46,120 Great point. 281 00:09:46,120 --> 00:09:48,120 Well, we've covered all six ETFs now. 282 00:09:48,120 --> 00:09:50,200 And wow, there's a lot to think about. 283 00:09:50,200 --> 00:09:50,840 There is. 284 00:09:50,840 --> 00:09:53,040 It's fascinating to see how each one takes 285 00:09:53,040 --> 00:09:55,480 a different approach and comes with its own set 286 00:09:55,480 --> 00:09:57,560 of potential benefits and drawbacks. 287 00:09:57,560 --> 00:09:58,280 Absolutely. 288 00:09:58,280 --> 00:09:59,840 One thing I'm still trying to wrap my head around 289 00:09:59,840 --> 00:10:02,600 is how that dividend yield percentage translates 290 00:10:02,600 --> 00:10:04,720 into actual dollars in my pocket. 291 00:10:04,720 --> 00:10:06,000 Can you break that down to me? 292 00:10:06,000 --> 00:10:06,600 Sure. 293 00:10:06,600 --> 00:10:08,560 The video creator provides a simple formula 294 00:10:08,560 --> 00:10:10,280 to calculate the dividend per share. 295 00:10:10,280 --> 00:10:11,160 OK, lay it on me. 296 00:10:11,160 --> 00:10:13,120 It's dividend yield divided by 100, 297 00:10:13,120 --> 00:10:14,960 multiplied by the share price. 298 00:10:14,960 --> 00:10:16,960 OK, that seems manageable. 299 00:10:16,960 --> 00:10:19,520 Can you walk me through an example using one of the ETFs 300 00:10:19,520 --> 00:10:20,160 we discussed? 301 00:10:20,160 --> 00:10:23,680 Let's use KBWD, since it has the highest dividend yield. 302 00:10:23,680 --> 00:10:24,120 Perfect. 303 00:10:24,120 --> 00:10:28,080 So KBWD has a 7.37% dividend yield. 304 00:10:28,080 --> 00:10:30,000 And at the time of the video, its share price 305 00:10:30,000 --> 00:10:32,280 was $20.41. 306 00:10:32,280 --> 00:10:32,560 Right. 307 00:10:32,560 --> 00:10:34,840 So plugging those numbers into the formula, 308 00:10:34,840 --> 00:10:39,840 it would be 7.37 divided by 100, multiplied by $20.41. 309 00:10:39,840 --> 00:10:41,360 OK, so what does that give us? 310 00:10:41,360 --> 00:10:44,720 That comes out to about $1.50 in dividends per year, 311 00:10:44,720 --> 00:10:46,520 per share of KBWD. 312 00:10:46,520 --> 00:10:47,520 $1.50 for share. 313 00:10:47,520 --> 00:10:50,520 So how does that translate into a meaningful amount of income? 314 00:10:50,520 --> 00:10:52,440 Well, the key is to own many shares. 315 00:10:52,440 --> 00:10:55,120 Let's say you had 1,000 shares of KBWD. 316 00:10:55,120 --> 00:10:56,960 All right, so 1,000 shares multiplied 317 00:10:56,960 --> 00:11:01,720 by $1.50 per share, that's $1,500 per year in dividends. 318 00:11:01,720 --> 00:11:02,360 Not bad. 319 00:11:02,360 --> 00:11:04,360 And if we break that down monthly, 320 00:11:04,360 --> 00:11:06,320 it's about $125 per month. 321 00:11:06,320 --> 00:11:07,080 Exactly. 322 00:11:07,080 --> 00:11:09,640 It starts to add up, especially if you reinvest those dividends 323 00:11:09,640 --> 00:11:10,760 and buy even more shares. 324 00:11:10,760 --> 00:11:12,200 That's the beauty of compounding. 325 00:11:12,200 --> 00:11:16,000 Those dividends can really snowball over time. 326 00:11:16,000 --> 00:11:18,680 OK, so we're starting to get a better grasp of how 327 00:11:18,680 --> 00:11:21,280 these dividend yields translate into real money. 328 00:11:21,280 --> 00:11:22,720 Now, I'm curious, what would you say 329 00:11:22,720 --> 00:11:25,400 are the most important things to remember about these ETFs? 330 00:11:25,400 --> 00:11:27,480 Well, first of all, monthly dividend ETFs 331 00:11:27,480 --> 00:11:30,560 can be a great way to generate that consistent stream 332 00:11:30,560 --> 00:11:31,880 of passive income. 333 00:11:31,880 --> 00:11:33,760 Passive income, who doesn't love that? 334 00:11:33,760 --> 00:11:35,720 And it seems like there's a wide variety of ETFs 335 00:11:35,720 --> 00:11:38,200 to choose from, each with its own unique strategy 336 00:11:38,200 --> 00:11:39,120 and risk profile. 337 00:11:39,120 --> 00:11:41,480 Exactly, there's no one-size-fits-all approach. 338 00:11:41,480 --> 00:11:43,880 What works for one investor might not work for another. 339 00:11:43,880 --> 00:11:45,600 It's all about finding the right fit 340 00:11:45,600 --> 00:11:47,600 for your individual needs and goals. 341 00:11:47,600 --> 00:11:49,600 And of course, understanding dividend yields 342 00:11:49,600 --> 00:11:51,520 and how to calculate those potential payouts 343 00:11:51,520 --> 00:11:54,320 is crucial for making informed investment decisions. 344 00:11:54,320 --> 00:11:55,200 Absolutely. 345 00:11:55,200 --> 00:11:57,760 Knowledge is power when it comes to navigating 346 00:11:57,760 --> 00:11:58,920 the world of investing. 347 00:11:58,920 --> 00:12:00,440 Well said. 348 00:12:00,440 --> 00:12:02,960 So as we move on to the next part of this deep dive, 349 00:12:02,960 --> 00:12:05,520 I want to leave our listeners with this question. 350 00:12:05,520 --> 00:12:09,000 Given all these trade-offs, which of these ETFs or others 351 00:12:09,000 --> 00:12:12,280 you might find might be worth further research for you 352 00:12:12,280 --> 00:12:14,960 and your specific financial goals? 353 00:12:14,960 --> 00:12:18,160 Think about your own risk tolerance, your time horizon, 354 00:12:18,160 --> 00:12:20,920 and what you're hoping to achieve with your investments. 355 00:12:20,920 --> 00:12:21,760 Great question. 356 00:12:21,760 --> 00:12:24,400 And something to keep in mind as we move forward 357 00:12:24,400 --> 00:12:27,760 and continue this exploration of monthly dividend ETFs 358 00:12:27,760 --> 00:12:29,920 and the whole concept of living off dividends. 359 00:12:29,920 --> 00:12:30,520 Sounds good. 360 00:12:30,520 --> 00:12:32,400 So living off dividends, it's an idea 361 00:12:32,400 --> 00:12:34,480 that captures a lot of people's imaginations. 362 00:12:34,480 --> 00:12:34,880 It does. 363 00:12:34,880 --> 00:12:37,440 Imagine just having this stream of passive income 364 00:12:37,440 --> 00:12:38,440 coming in every month. 365 00:12:38,440 --> 00:12:39,960 That's the dream, right? 366 00:12:39,960 --> 00:12:41,440 But how does it actually work? 367 00:12:41,440 --> 00:12:43,720 What are the nuts and bolts of living off dividends? 368 00:12:43,720 --> 00:12:45,040 Yeah, that's what I'm curious about. 369 00:12:45,040 --> 00:12:46,280 Is it really possible? 370 00:12:46,280 --> 00:12:48,600 It is, but it takes planning. 371 00:12:48,600 --> 00:12:50,840 And of course, it depends on several factors. 372 00:12:50,840 --> 00:12:51,520 Like what? 373 00:12:51,520 --> 00:12:55,680 Well, the dividend yield of your investments, the share price, 374 00:12:55,680 --> 00:12:58,160 and how much money you have invested overall. 375 00:12:58,160 --> 00:12:59,760 OK, so it's kind of a numbers game. 376 00:12:59,760 --> 00:13:02,120 The more shares you own, the more dividend income 377 00:13:02,120 --> 00:13:03,320 you'll receive. 378 00:13:03,320 --> 00:13:06,360 But how do you even figure out how many shares you'd 379 00:13:06,360 --> 00:13:08,280 need to reach your income goals? 380 00:13:08,280 --> 00:13:09,560 Where do you even start? 381 00:13:09,560 --> 00:13:12,120 Well, the first step is figuring out 382 00:13:12,120 --> 00:13:13,960 your target monthly income. 383 00:13:13,960 --> 00:13:16,640 How much money do you need each month to cover your living 384 00:13:16,640 --> 00:13:17,360 expenses? 385 00:13:17,360 --> 00:13:18,440 That's your starting point. 386 00:13:18,440 --> 00:13:21,240 So knowing your monthly expenses, got it. 387 00:13:21,240 --> 00:13:22,080 Then what? 388 00:13:22,080 --> 00:13:24,280 And you need to consider the average dividend yield 389 00:13:24,280 --> 00:13:25,840 you expect to earn from your investments. 390 00:13:25,840 --> 00:13:27,680 Right, and those yields can vary quite a bit. 391 00:13:27,680 --> 00:13:29,680 Remember those 60 TFs we discussed? 392 00:13:29,680 --> 00:13:34,240 They range from 3.77% all the way up to 7.37%. 393 00:13:34,240 --> 00:13:35,040 Exactly. 394 00:13:35,040 --> 00:13:37,760 So for this example, let's assume a conservative average 395 00:13:37,760 --> 00:13:39,760 dividend yield of 4%. 396 00:13:39,760 --> 00:13:40,520 4%. 397 00:13:40,520 --> 00:13:41,080 OK. 398 00:13:41,080 --> 00:13:43,760 And let's say your target monthly income is $4,000. 399 00:13:43,760 --> 00:13:45,320 $4,000 a month. 400 00:13:45,320 --> 00:13:49,280 So to earn $4,000 per month from a 4% yield, 401 00:13:49,280 --> 00:13:54,360 you'd need to have, wait for it, $1,200,000 invested. 402 00:13:54,360 --> 00:13:56,880 Whoa, $1,200,000? 403 00:13:56,880 --> 00:13:57,760 That's a lot of money. 404 00:13:57,760 --> 00:13:59,160 Not exactly pocket change. 405 00:13:59,160 --> 00:13:59,960 It's not. 406 00:13:59,960 --> 00:14:02,080 But remember, this is just a hypothetical example. 407 00:14:02,080 --> 00:14:05,040 Your actual numbers will depend on your individual situation 408 00:14:05,040 --> 00:14:06,600 and your investment choices. 409 00:14:06,600 --> 00:14:07,640 Right, of course. 410 00:14:07,640 --> 00:14:09,520 But it definitely highlights the fact 411 00:14:09,520 --> 00:14:11,600 that living off dividends requires 412 00:14:11,600 --> 00:14:13,400 a significant amount of capital. 413 00:14:13,400 --> 00:14:16,240 It's not a quick fix or a get rich quick scheme. 414 00:14:16,240 --> 00:14:16,880 Exactly. 415 00:14:16,880 --> 00:14:18,360 It's a long-term strategy. 416 00:14:18,360 --> 00:14:21,440 It takes time, patience, and discipline. 417 00:14:21,440 --> 00:14:23,040 OK, so we've talked about the numbers. 418 00:14:23,040 --> 00:14:25,040 But what about the practical side of things? 419 00:14:25,040 --> 00:14:27,280 How do you actually build a portfolio that's 420 00:14:27,280 --> 00:14:31,120 geared towards generating enough dividend income to live on? 421 00:14:31,120 --> 00:14:33,560 What are some of the strategies people use? 422 00:14:33,560 --> 00:14:37,160 One popular approach is called dividend growth investing. 423 00:14:37,160 --> 00:14:38,320 Dividend growth investing. 424 00:14:38,320 --> 00:14:39,560 Tell me more. 425 00:14:39,560 --> 00:14:42,320 It's not just about chasing the highest dividend yields 426 00:14:42,320 --> 00:14:43,000 right now. 427 00:14:43,000 --> 00:14:44,440 It's about finding companies that 428 00:14:44,440 --> 00:14:47,040 have a track record of consistently increasing 429 00:14:47,040 --> 00:14:48,320 their dividends over time. 430 00:14:48,320 --> 00:14:50,600 Ah, so it's about sustainability and growth. 431 00:14:50,600 --> 00:14:52,800 You're looking for companies that are committed to sharing 432 00:14:52,800 --> 00:14:54,840 their profits with shareholders and are likely 433 00:14:54,840 --> 00:14:56,160 to continue doing so. 434 00:14:56,160 --> 00:14:56,960 Exactly. 435 00:14:56,960 --> 00:14:59,680 And the beauty of this approach is that even if a company's 436 00:14:59,680 --> 00:15:02,200 dividend yield starts out relatively low, 437 00:15:02,200 --> 00:15:05,600 those consistent increases can really compound your returns 438 00:15:05,600 --> 00:15:06,520 over time. 439 00:15:06,520 --> 00:15:08,040 Compounding, that's the key. 440 00:15:08,040 --> 00:15:09,920 It's like a snowball effect. 441 00:15:09,920 --> 00:15:11,960 Your earnings generate even more earnings. 442 00:15:11,960 --> 00:15:12,600 Right. 443 00:15:12,600 --> 00:15:15,680 And when it comes to dividends, those compounding returns 444 00:15:15,680 --> 00:15:17,720 can really add up, especially if you're 445 00:15:17,720 --> 00:15:21,200 reinvesting those dividends, to buy even more shares. 446 00:15:21,200 --> 00:15:24,080 OK, so dividend growth investing makes a lot of sense. 447 00:15:24,080 --> 00:15:26,600 But how do you actually find those companies that 448 00:15:26,600 --> 00:15:29,440 are consistently increasing their dividends? 449 00:15:29,440 --> 00:15:31,560 What are the signs to look for? 450 00:15:31,560 --> 00:15:34,000 Well, take some research and analysis. 451 00:15:34,000 --> 00:15:36,960 You'd want to dig into a company's financial statements, 452 00:15:36,960 --> 00:15:39,240 look at their earnings growth over time, 453 00:15:39,240 --> 00:15:41,000 assess their payout ratio. 454 00:15:41,000 --> 00:15:42,800 What's your payout ratio? 455 00:15:42,800 --> 00:15:44,840 It's the percentage of earnings that they distribute 456 00:15:44,840 --> 00:15:45,760 as dividends. 457 00:15:45,760 --> 00:15:46,440 Got it. 458 00:15:46,440 --> 00:15:49,440 So it's not just about glancing at the current dividend yield. 459 00:15:49,440 --> 00:15:51,160 It's about looking under the hood 460 00:15:51,160 --> 00:15:53,640 and evaluating the company's financial health 461 00:15:53,640 --> 00:15:55,800 and their commitment to sharing those profits. 462 00:15:55,800 --> 00:15:56,360 You got it. 463 00:15:56,360 --> 00:15:57,240 Makes sense. 464 00:15:57,240 --> 00:16:00,760 But are there any potential downsides to dividend growth 465 00:16:00,760 --> 00:16:01,760 investing? 466 00:16:01,760 --> 00:16:03,680 It can't all be sunshine and roses, right? 467 00:16:03,680 --> 00:16:08,000 Well, like with any investment strategy, there are risks. 468 00:16:08,000 --> 00:16:11,560 Even companies with a solid history of dividend growth 469 00:16:11,560 --> 00:16:13,840 can face unexpected challenges. 470 00:16:13,840 --> 00:16:14,640 Things happen. 471 00:16:14,640 --> 00:16:15,140 Right. 472 00:16:15,140 --> 00:16:16,720 The business world is unpredictable. 473 00:16:16,720 --> 00:16:18,600 So diversification is important, right? 474 00:16:18,600 --> 00:16:20,680 Spreading your risk across multiple companies. 475 00:16:20,680 --> 00:16:21,240 Absolutely. 476 00:16:21,240 --> 00:16:23,680 Don't put all your eggs in one basket. 477 00:16:23,680 --> 00:16:25,960 And when it comes to dividend growth investing, 478 00:16:25,960 --> 00:16:27,760 it's also wise to consider companies 479 00:16:27,760 --> 00:16:30,640 in different stages of their dividend growth journey. 480 00:16:30,640 --> 00:16:31,880 Different stages? 481 00:16:31,880 --> 00:16:33,120 What do you mean by that? 482 00:16:33,120 --> 00:16:35,720 Well, some companies might be relatively early 483 00:16:35,720 --> 00:16:37,720 in their dividend growth phase, offering 484 00:16:37,720 --> 00:16:39,960 a lower current yield, but with the potential 485 00:16:39,960 --> 00:16:42,840 for rapid increases down the road. 486 00:16:42,840 --> 00:16:44,860 So those are the up and coming stars, the ones 487 00:16:44,860 --> 00:16:46,280 with high growth potential. 488 00:16:46,280 --> 00:16:48,200 What about companies in the later stages? 489 00:16:48,200 --> 00:16:50,280 Those might have a higher current yield, 490 00:16:50,280 --> 00:16:53,080 but maybe a slower rate of dividend growth going forward. 491 00:16:53,080 --> 00:16:55,600 They're like the seasoned veterans, the steady earners. 492 00:16:55,600 --> 00:16:58,200 So striking a balance between those two, 493 00:16:58,200 --> 00:17:00,760 the high growth companies and the steady veterans 494 00:17:00,760 --> 00:17:03,840 could be a smart way to diversify your dividend portfolio. 495 00:17:03,840 --> 00:17:05,880 OK, that makes sense. 496 00:17:05,880 --> 00:17:08,240 We've been talking about dividend growth investing, which 497 00:17:08,240 --> 00:17:10,600 focuses on individual companies. 498 00:17:10,600 --> 00:17:14,120 But what about those dividend ETFs we discussed earlier? 499 00:17:14,120 --> 00:17:16,840 Could they also play a role in building a portfolio 500 00:17:16,840 --> 00:17:18,880 for living off dividends? 501 00:17:18,880 --> 00:17:19,880 Definitely. 502 00:17:19,880 --> 00:17:22,520 Dividend ETFs can be a fantastic choice, 503 00:17:22,520 --> 00:17:25,560 especially for those who want a more hands-off approach. 504 00:17:25,560 --> 00:17:29,800 They offer diversification and convenience all in one package. 505 00:17:29,800 --> 00:17:31,320 Right, because instead of researching 506 00:17:31,320 --> 00:17:32,760 individual companies, you're basically 507 00:17:32,760 --> 00:17:35,920 buying a basket of stocks through a single ETF. 508 00:17:35,920 --> 00:17:38,880 Exactly, and there are tons of dividend ETFs out there. 509 00:17:38,880 --> 00:17:40,640 So you can really tailor your approach 510 00:17:40,640 --> 00:17:43,080 based on your goals and your risk tolerance. 511 00:17:43,080 --> 00:17:44,560 That sounds a lot easier than trying 512 00:17:44,560 --> 00:17:46,040 to pick individual stocks. 513 00:17:46,040 --> 00:17:47,920 But with so many ETFs to choose from, 514 00:17:47,920 --> 00:17:49,960 it can also be a bit overwhelming. 515 00:17:49,960 --> 00:17:51,560 Where do you even begin? 516 00:17:51,560 --> 00:17:53,680 How do you choose the right ones for your portfolio? 517 00:17:53,680 --> 00:17:55,600 It all starts with self-awareness. 518 00:17:55,600 --> 00:17:57,520 You need to understand your investment goals, 519 00:17:57,520 --> 00:18:00,200 your risk tolerance, your time horizon, 520 00:18:00,200 --> 00:18:02,520 what are you hoping to achieve, how much risk 521 00:18:02,520 --> 00:18:04,400 are you comfortable taking, how long are you 522 00:18:04,400 --> 00:18:05,600 planning to invest? 523 00:18:05,600 --> 00:18:08,480 OK, so knowing yourself is the first step. 524 00:18:08,480 --> 00:18:10,440 And once you have that figured out, 525 00:18:10,440 --> 00:18:13,000 what are the key factors to consider when evaluating 526 00:18:13,000 --> 00:18:15,000 specific dividend ETFs? 527 00:18:15,000 --> 00:18:16,800 What should you be paying attention to? 528 00:18:16,800 --> 00:18:20,080 Well, first, take a look at the ETF's underlying index, 529 00:18:20,080 --> 00:18:22,120 or its investment strategy. 530 00:18:22,120 --> 00:18:24,400 What kinds of companies does it hold? 531 00:18:24,400 --> 00:18:27,000 What are its criteria for selecting and waiting 532 00:18:27,000 --> 00:18:27,840 those companies? 533 00:18:27,840 --> 00:18:30,960 So you need to understand the rules the ETF follows 534 00:18:30,960 --> 00:18:32,400 when choosing its investments. 535 00:18:32,400 --> 00:18:33,440 Right. 536 00:18:33,440 --> 00:18:35,720 Then look at the ETF's dividend yield 537 00:18:35,720 --> 00:18:37,880 and its history of dividend payments. 538 00:18:37,880 --> 00:18:40,800 Has it consistently paid dividends over time? 539 00:18:40,800 --> 00:18:43,720 Has it increased or decreased its distributions? 540 00:18:43,720 --> 00:18:46,640 It's like checking the ETF's dividend track record. 541 00:18:46,640 --> 00:18:47,600 Exactly. 542 00:18:47,600 --> 00:18:49,480 And don't forget about those expense ratios. 543 00:18:49,480 --> 00:18:52,000 Remember, ETFs do charge fees, and those 544 00:18:52,000 --> 00:18:53,280 can eat into your returns. 545 00:18:53,280 --> 00:18:53,560 Right. 546 00:18:53,560 --> 00:18:55,040 Always keep an eye on the costs. 547 00:18:55,040 --> 00:18:57,360 So lower expenses are generally better. 548 00:18:57,360 --> 00:18:58,600 What else is there to consider? 549 00:18:58,600 --> 00:19:01,720 You might also want to look at the ETF's trading volume 550 00:19:01,720 --> 00:19:03,480 and its liquidity. 551 00:19:03,480 --> 00:19:05,280 Higher trading volume generally means 552 00:19:05,280 --> 00:19:07,280 it's easier to buy and sell shares 553 00:19:07,280 --> 00:19:08,800 without impacting the price too much. 554 00:19:08,800 --> 00:19:10,240 OK, so liquidity is important. 555 00:19:10,240 --> 00:19:11,040 Anything else? 556 00:19:11,040 --> 00:19:15,160 And finally, consider the ETF's overall performance track 557 00:19:15,160 --> 00:19:16,360 record. 558 00:19:16,360 --> 00:19:19,160 How has it performed compared to its benchmark 559 00:19:19,160 --> 00:19:21,040 or to similar ETFs? 560 00:19:21,040 --> 00:19:23,560 So it's like looking at the ETF's past performance 561 00:19:23,560 --> 00:19:26,160 to get an idea of how it might perform in the future. 562 00:19:26,160 --> 00:19:26,840 Exactly. 563 00:19:26,840 --> 00:19:28,960 But remember, past performance is not 564 00:19:28,960 --> 00:19:30,640 a guarantee of future results. 565 00:19:30,640 --> 00:19:32,280 It's just one piece of the puzzle. 566 00:19:32,280 --> 00:19:32,720 Right. 567 00:19:32,720 --> 00:19:33,360 Of course. 568 00:19:33,360 --> 00:19:35,520 So choosing the right dividend ETFs 569 00:19:35,520 --> 00:19:38,480 involves doing your homework and carefully considering 570 00:19:38,480 --> 00:19:39,440 all these factors. 571 00:19:39,440 --> 00:19:40,600 It does. 572 00:19:40,600 --> 00:19:43,680 But the good news is there are a ton of resources available 573 00:19:43,680 --> 00:19:46,800 to help you research and compare different ETFs, websites, 574 00:19:46,800 --> 00:19:48,960 articles, financial advisors. 575 00:19:48,960 --> 00:19:50,680 They can all provide valuable guidance. 576 00:19:50,680 --> 00:19:51,760 That's a relief. 577 00:19:51,760 --> 00:19:53,840 It sounds like we've only just scratched the surface 578 00:19:53,840 --> 00:19:55,880 of this whole living off dividends thing. 579 00:19:55,880 --> 00:19:57,800 It's a lot more complex than I initially thought. 580 00:19:57,800 --> 00:19:58,480 It is. 581 00:19:58,480 --> 00:20:00,680 It's a journey not a destination. 582 00:20:00,680 --> 00:20:03,480 And it requires ongoing learning and adaptation. 583 00:20:03,480 --> 00:20:04,560 Well said. 584 00:20:04,560 --> 00:20:05,920 You know, something that often comes up 585 00:20:05,920 --> 00:20:07,680 when people talk about dividend investing 586 00:20:07,680 --> 00:20:09,360 is the psychological aspect. 587 00:20:09,360 --> 00:20:11,240 It's not just about the numbers, right? 588 00:20:11,240 --> 00:20:12,640 Absolutely. 589 00:20:12,640 --> 00:20:14,880 Investing is as much about psychology 590 00:20:14,880 --> 00:20:17,000 as it is about finance. 591 00:20:17,000 --> 00:20:20,480 And dividend investing can have some powerful psychological 592 00:20:20,480 --> 00:20:23,720 benefits that go beyond just the financial returns. 593 00:20:23,720 --> 00:20:25,320 I'm curious to hear more about that. 594 00:20:25,320 --> 00:20:27,400 What are some of those psychological benefits? 595 00:20:27,400 --> 00:20:29,840 How can receiving those regular dividend payments 596 00:20:29,840 --> 00:20:33,080 affect our mindset and our overall well-being? 597 00:20:33,080 --> 00:20:35,120 Well, for one thing, dividends provide 598 00:20:35,120 --> 00:20:37,160 a sense of tangible progress. 599 00:20:37,160 --> 00:20:39,640 It's like a concrete reward for your patients 600 00:20:39,640 --> 00:20:41,440 and your discipline as an investor. 601 00:20:41,440 --> 00:20:43,480 It's like a little pat on the back from your investments. 602 00:20:43,480 --> 00:20:44,600 Exactly. 603 00:20:44,600 --> 00:20:46,600 And those regular payments create 604 00:20:46,600 --> 00:20:49,200 a sense of financial security and stability. 605 00:20:49,200 --> 00:20:51,680 It's like having a steady stream of income coming in, 606 00:20:51,680 --> 00:20:53,960 no matter what the stock market is doing. 607 00:20:53,960 --> 00:20:55,360 Kind of like a safety net. 608 00:20:55,360 --> 00:20:56,400 You got it. 609 00:20:56,400 --> 00:20:58,400 And because dividends are often associated 610 00:20:58,400 --> 00:21:00,800 with well-established profitable companies, 611 00:21:00,800 --> 00:21:03,720 they can also boost your confidence in your investments. 612 00:21:03,720 --> 00:21:06,200 It's like you're partnering with companies that are not only 613 00:21:06,200 --> 00:21:09,000 making money, but also sharing those profits with you. 614 00:21:09,000 --> 00:21:12,200 It creates a feeling of trust and shared success. 615 00:21:12,200 --> 00:21:13,480 Precisely. 616 00:21:13,480 --> 00:21:15,640 And beyond those positive feelings, 617 00:21:15,640 --> 00:21:18,480 dividends can actually encourage long-term thinking 618 00:21:18,480 --> 00:21:20,800 and help you avoid making impulsive decisions. 619 00:21:20,800 --> 00:21:21,480 Really? 620 00:21:21,480 --> 00:21:22,680 How so? 621 00:21:22,680 --> 00:21:26,200 Well, when you're focused on receiving those regular dividend 622 00:21:26,200 --> 00:21:28,960 payments, it can shift your mindset away 623 00:21:28,960 --> 00:21:31,320 from the daily ups and downs of the market 624 00:21:31,320 --> 00:21:34,720 and towards the long-term growth potential of your investments. 625 00:21:34,720 --> 00:21:38,120 It's like taking a step back and seeing the forest for the trees. 626 00:21:38,120 --> 00:21:40,920 You're less likely to panic and sell when the market dicks 627 00:21:40,920 --> 00:21:43,040 because you know those dividends are still coming in. 628 00:21:43,040 --> 00:21:44,040 Exactly. 629 00:21:44,040 --> 00:21:46,120 And by reducing those knee-jerk reactions, 630 00:21:46,120 --> 00:21:48,600 you're more likely to stick with your investment plan 631 00:21:48,600 --> 00:21:51,320 and ride out those inevitable market fluctuations. 632 00:21:51,320 --> 00:21:53,760 So the psychological benefits of dividend investing 633 00:21:53,760 --> 00:21:56,440 are just as important as the financial benefits. 634 00:21:56,440 --> 00:21:57,800 I would say so. 635 00:21:57,800 --> 00:21:59,320 It's a good reminder that investing 636 00:21:59,320 --> 00:22:00,720 is not just about numbers. 637 00:22:00,720 --> 00:22:04,160 It's about emotions, mindset, and your overall well-being. 638 00:22:04,160 --> 00:22:05,080 Absolutely. 639 00:22:05,080 --> 00:22:06,800 Well, we've covered a lot of ground today, 640 00:22:06,800 --> 00:22:10,640 from specific ETFs to the concept of living off dividends 641 00:22:10,640 --> 00:22:12,640 and even the psychology involved. 642 00:22:12,640 --> 00:22:15,200 But I feel like there's still so much more to explore, 643 00:22:15,200 --> 00:22:16,680 so much more to uncover. 644 00:22:16,680 --> 00:22:17,760 There is. 645 00:22:17,760 --> 00:22:19,760 And one thing that often comes up when discussing 646 00:22:19,760 --> 00:22:23,280 dividend investing is the sheer volume of information 647 00:22:23,280 --> 00:22:24,280 and opinions out there. 648 00:22:24,280 --> 00:22:24,760 Oh, yeah. 649 00:22:24,760 --> 00:22:26,560 It's like a jungle of information. 650 00:22:26,560 --> 00:22:31,120 Blogs, podcasts, YouTube channels, financial advisors. 651 00:22:31,120 --> 00:22:33,120 Everyone seems to have an opinion on the best way 652 00:22:33,120 --> 00:22:35,000 to approach dividend investing. 653 00:22:35,000 --> 00:22:36,720 It can be overwhelming, especially 654 00:22:36,720 --> 00:22:37,760 if you're just starting out. 655 00:22:37,760 --> 00:22:38,760 It can. 656 00:22:38,760 --> 00:22:41,040 So how do you navigate all those different viewpoints 657 00:22:41,040 --> 00:22:43,400 and figure out what makes sense for you? 658 00:22:43,400 --> 00:22:45,360 How do you sift through all that noise? 659 00:22:45,360 --> 00:22:46,360 It's a good question. 660 00:22:46,360 --> 00:22:48,640 And it requires a bit of critical thinking. 661 00:22:48,640 --> 00:22:50,720 Not all advice is created equal. 662 00:22:50,720 --> 00:22:51,360 Right. 663 00:22:51,360 --> 00:22:53,760 You can't just believe everything you read or hear. 664 00:22:53,760 --> 00:22:56,760 Some advice might be based on solid research and analysis, 665 00:22:56,760 --> 00:22:59,320 while others might be driven by personal biases or even 666 00:22:59,320 --> 00:23:00,400 ulterior motives. 667 00:23:00,400 --> 00:23:02,520 So we need to be careful. 668 00:23:02,520 --> 00:23:05,880 What are some red flags to look out for when evaluating 669 00:23:05,880 --> 00:23:07,360 dividend investing advice? 670 00:23:07,360 --> 00:23:11,080 Well, first, be wary of anyone promising guaranteed returns 671 00:23:11,080 --> 00:23:14,240 or making claims that sound too good to be true. 672 00:23:14,240 --> 00:23:17,400 Remember, investing always involves risk. 673 00:23:17,400 --> 00:23:19,600 There's no such thing as a sure thing. 674 00:23:19,600 --> 00:23:21,160 If it sounds too good to be true, 675 00:23:21,160 --> 00:23:22,680 it probably is. 676 00:23:22,680 --> 00:23:24,400 What else should we be watching out for? 677 00:23:24,400 --> 00:23:27,880 Pay attention to the source's credentials and experience. 678 00:23:27,880 --> 00:23:30,440 Are they a qualified financial advisor? 679 00:23:30,440 --> 00:23:32,720 Do they have a proven track record of success 680 00:23:32,720 --> 00:23:34,040 in dividend investing? 681 00:23:34,040 --> 00:23:36,360 It's like checking their investment resume. 682 00:23:36,360 --> 00:23:37,240 Exactly. 683 00:23:37,240 --> 00:23:39,640 And consider their potential biases. 684 00:23:39,640 --> 00:23:42,520 Are they affiliated with a particular brokerage firm 685 00:23:42,520 --> 00:23:44,320 or a specific investment product? 686 00:23:44,320 --> 00:23:46,160 Are they trying to sell you something? 687 00:23:46,160 --> 00:23:47,960 So transparency is key. 688 00:23:47,960 --> 00:23:49,760 You want to make sure the advice you're getting 689 00:23:49,760 --> 00:23:51,600 is objective and unbiased. 690 00:23:51,600 --> 00:23:52,000 Right. 691 00:23:52,000 --> 00:23:53,320 Be a critical thinker. 692 00:23:53,320 --> 00:23:54,840 Do your own research. 693 00:23:54,840 --> 00:23:56,680 Don't just take someone's word for it, 694 00:23:56,680 --> 00:23:58,080 even if they seem like an expert. 695 00:23:58,080 --> 00:23:58,480 OK. 696 00:23:58,480 --> 00:23:59,680 Solid advice. 697 00:23:59,680 --> 00:24:01,360 So are there any resources you'd 698 00:24:01,360 --> 00:24:04,160 recommend to people who are looking to learn more 699 00:24:04,160 --> 00:24:05,680 about dividend investing? 700 00:24:05,680 --> 00:24:07,880 There are tons of great resources out there. 701 00:24:07,880 --> 00:24:10,240 For a good foundation, I'd recommend the single best 702 00:24:10,240 --> 00:24:12,560 investment by Lowell Miller and the dividend growth 703 00:24:12,560 --> 00:24:14,120 investor by Jason Fiber. 704 00:24:14,120 --> 00:24:14,400 OK. 705 00:24:14,400 --> 00:24:15,800 Those are good starting points. 706 00:24:15,800 --> 00:24:18,560 What about resources for keeping up with market trends 707 00:24:18,560 --> 00:24:21,600 and finding specific investment opportunities? 708 00:24:21,600 --> 00:24:24,560 For that, I'd suggest reputable financial websites 709 00:24:24,560 --> 00:24:27,360 and publications like Seeking Alpha, Morningstar, 710 00:24:27,360 --> 00:24:28,440 The Motley Fool. 711 00:24:28,440 --> 00:24:30,840 They offer a mix of news, analysis, 712 00:24:30,840 --> 00:24:33,320 and often have a focus on dividend paying companies. 713 00:24:33,320 --> 00:24:36,400 Those are some of my go-to resources as well. 714 00:24:36,400 --> 00:24:37,840 And of course, since we're podcasts, 715 00:24:37,840 --> 00:24:42,320 I have to ask, are there any other dividend-focused podcasts 716 00:24:42,320 --> 00:24:43,800 that you recommend? 717 00:24:43,800 --> 00:24:47,440 Well, obviously, I think the deep dive does a pretty good job. 718 00:24:47,440 --> 00:24:49,160 But there are others out there too. 719 00:24:49,160 --> 00:24:53,080 The Dividend Guy blog podcast with Mike Haroo and Dividend Talk 720 00:24:53,080 --> 00:24:56,280 with European Dividend Growth Investor are both really good. 721 00:24:56,280 --> 00:24:57,840 I've heard good things about those. 722 00:24:57,840 --> 00:24:59,120 So many choices. 723 00:24:59,120 --> 00:25:01,440 It's all about finding the ones that resonate with you. 724 00:25:01,440 --> 00:25:03,160 Well, we've covered a lot today. 725 00:25:03,160 --> 00:25:05,560 It seems like we've talked about just about everything 726 00:25:05,560 --> 00:25:08,000 you could possibly want to know about dividend investing. 727 00:25:08,000 --> 00:25:09,320 Well, almost everything. 728 00:25:09,320 --> 00:25:11,080 There's one more thing we need to talk about. 729 00:25:11,080 --> 00:25:12,640 It's something that Austin gets overlooked, 730 00:25:12,640 --> 00:25:13,800 but it's really important. 731 00:25:13,800 --> 00:25:14,300 OK. 732 00:25:14,300 --> 00:25:15,200 I'm all ears. 733 00:25:15,200 --> 00:25:15,760 What is it? 734 00:25:15,760 --> 00:25:16,560 Taxes. 735 00:25:16,560 --> 00:25:18,480 Ah, yes. 736 00:25:18,480 --> 00:25:19,400 Taxes. 737 00:25:19,400 --> 00:25:21,120 Can't forget about those. 738 00:25:21,120 --> 00:25:23,880 But how do taxes affect dividend income? 739 00:25:23,880 --> 00:25:25,440 Well, in most countries, dividends 740 00:25:25,440 --> 00:25:28,520 are considered taxable income, just like your regular salary. 741 00:25:28,520 --> 00:25:29,920 OK, that makes sense. 742 00:25:29,920 --> 00:25:32,880 But the good news is that, in many cases, 743 00:25:32,880 --> 00:25:35,480 qualified dividends are taxed at a lower rate 744 00:25:35,480 --> 00:25:36,840 than your ordinary income. 745 00:25:36,840 --> 00:25:38,400 Qualified dividends. 746 00:25:38,400 --> 00:25:40,560 What makes a dividend qualified? 747 00:25:40,560 --> 00:25:43,800 There are specific rules in holding periods. 748 00:25:43,800 --> 00:25:46,000 For example, in the US, you generally 749 00:25:46,000 --> 00:25:48,640 need to hold a stock for a certain period of time 750 00:25:48,640 --> 00:25:50,480 before the dividends you receive on it 751 00:25:50,480 --> 00:25:52,240 are considered qualified. 752 00:25:52,240 --> 00:25:53,880 OK, so it's important to know the rules 753 00:25:53,880 --> 00:25:56,040 and make sure you're holding your investments long enough 754 00:25:56,040 --> 00:25:57,840 to benefit from that lower tax rate. 755 00:25:57,840 --> 00:25:58,840 Exactly. 756 00:25:58,840 --> 00:26:01,680 And it's always a good idea to consult with a tax professional 757 00:26:01,680 --> 00:26:04,080 to make sure you're taking advantage of all the tax 758 00:26:04,080 --> 00:26:06,160 breaks and strategies that are available. 759 00:26:06,160 --> 00:26:07,320 Great advice. 760 00:26:07,320 --> 00:26:09,600 So when you're crunching those numbers 761 00:26:09,600 --> 00:26:12,920 and calculating your potential dividend payouts, 762 00:26:12,920 --> 00:26:14,960 don't forget to factor in the taxes. 763 00:26:14,960 --> 00:26:15,640 Exactly. 764 00:26:15,640 --> 00:26:18,440 It can make a big difference to your overall returns. 765 00:26:18,440 --> 00:26:20,640 Well, I think we've truly covered it all today. 766 00:26:20,640 --> 00:26:23,560 We've gone deep into the world of dividend investing. 767 00:26:23,560 --> 00:26:26,880 From specific ETFs to the mechanics of yields, 768 00:26:26,880 --> 00:26:30,280 the strategies, the psychology, even the tax implications, 769 00:26:30,280 --> 00:26:31,920 it's been an amazing journey. 770 00:26:31,920 --> 00:26:32,880 It has. 771 00:26:32,880 --> 00:26:35,320 And hopefully, our listeners are feeling more informed 772 00:26:35,320 --> 00:26:37,560 and empowered to continue their own exploration 773 00:26:37,560 --> 00:26:38,560 of dividend investing. 774 00:26:38,560 --> 00:26:40,040 I hope so too. 775 00:26:40,040 --> 00:26:41,760 And as we wrap up this episode, I 776 00:26:41,760 --> 00:26:44,440 want to leave our listeners with one final thought. 777 00:26:44,440 --> 00:26:46,920 Something to ponder as they continue on their dividend 778 00:26:46,920 --> 00:26:48,240 investing journey. 779 00:26:48,240 --> 00:26:48,840 Go ahead. 780 00:26:48,840 --> 00:26:51,680 When we talk about building wealth through dividend investing, 781 00:26:51,680 --> 00:26:54,720 we often focus so much on the financial aspect. 782 00:26:54,720 --> 00:26:56,560 But what about the emotional side? 783 00:26:56,560 --> 00:26:59,400 How can we make sure that our quest for financial independence 784 00:26:59,400 --> 00:27:02,040 doesn't come at the expense of our overall happiness 785 00:27:02,040 --> 00:27:03,040 and fulfillment? 786 00:27:03,040 --> 00:27:05,080 That's a really profound question. 787 00:27:05,080 --> 00:27:07,840 It's so easy to get caught up in the pursuit of wealth 788 00:27:07,840 --> 00:27:10,280 and lose sight of what truly matters. 789 00:27:10,280 --> 00:27:12,640 Remember, money is just a tool. 790 00:27:12,640 --> 00:27:14,600 It's not the end goal. 791 00:27:14,600 --> 00:27:15,920 It's a means to an end. 792 00:27:15,920 --> 00:27:16,720 I love that. 793 00:27:16,720 --> 00:27:18,040 Money is a tool. 794 00:27:18,040 --> 00:27:20,600 So how can we use this tool of dividend investing 795 00:27:20,600 --> 00:27:23,480 to create a life that is not only financially secure, 796 00:27:23,480 --> 00:27:25,520 but also meaningful and joyful? 797 00:27:25,520 --> 00:27:28,320 I think it starts with aligning your investment goals 798 00:27:28,320 --> 00:27:31,640 with your values and your overall life goals. 799 00:27:31,640 --> 00:27:33,760 What is it that you truly care about? 800 00:27:33,760 --> 00:27:35,840 What kind of life do you want to build for yourself, 801 00:27:35,840 --> 00:27:36,800 for those you love? 802 00:27:36,800 --> 00:27:39,440 It's about looking beyond the financial returns 803 00:27:39,440 --> 00:27:41,520 and thinking about the bigger picture. 804 00:27:41,520 --> 00:27:44,480 How can your investments support the life you want to live? 805 00:27:44,480 --> 00:27:45,600 Exactly. 806 00:27:45,600 --> 00:27:47,560 And remember, financial well-being 807 00:27:47,560 --> 00:27:49,960 is just one piece of the puzzle. 808 00:27:49,960 --> 00:27:52,240 There are so many other factors that's 809 00:27:52,240 --> 00:27:54,520 in tribute to a fulfilling life. 810 00:27:54,520 --> 00:27:58,160 Relationships, health, purpose, personal growth. 811 00:27:58,160 --> 00:27:59,360 Don't forget about those things. 812 00:27:59,360 --> 00:28:02,080 It's about balance, making sure that your financial goals 813 00:28:02,080 --> 00:28:04,320 are in harmony with your overall life goals. 814 00:28:04,320 --> 00:28:05,560 Well said. 815 00:28:05,560 --> 00:28:07,600 And remember, the journey of investing, 816 00:28:07,600 --> 00:28:10,480 just like the journey of life, is about more than just 817 00:28:10,480 --> 00:28:12,240 reaching a destination. 818 00:28:12,240 --> 00:28:15,120 It's about enjoying the ride and making choices that 819 00:28:15,120 --> 00:28:17,240 are aligned with what truly matters to you. 820 00:28:17,240 --> 00:28:18,160 That's beautiful. 821 00:28:18,160 --> 00:28:20,320 I think that's a perfect note to end on. 822 00:28:20,320 --> 00:28:22,320 We've given our listeners a lot to think about today, 823 00:28:22,320 --> 00:28:24,880 and hopefully they feel inspired to continue exploring 824 00:28:24,880 --> 00:28:27,280 the world of dividend investing and how it can help them 825 00:28:27,280 --> 00:28:28,480 create a life they love. 826 00:28:28,480 --> 00:28:29,120 I agree. 827 00:28:29,120 --> 00:28:30,360 Happy investing, everyone. 828 00:28:30,360 --> 00:28:33,120 You know, it's really impressive how much information 829 00:28:33,120 --> 00:28:34,960 is out there about dividend investing. 830 00:28:34,960 --> 00:28:37,160 It's a testament to its popularity these days. 831 00:28:37,160 --> 00:28:38,040 Yeah, for sure. 832 00:28:38,040 --> 00:28:39,440 I mean, it makes sense, right? 833 00:28:39,440 --> 00:28:41,840 It's appealing to get those regular payouts 834 00:28:41,840 --> 00:28:43,320 from your investments. 835 00:28:43,320 --> 00:28:44,880 But I guess the downside is that it 836 00:28:44,880 --> 00:28:48,040 can be hard to know where to begin with so much info out 837 00:28:48,040 --> 00:28:48,720 there. 838 00:28:48,720 --> 00:28:52,000 Yeah, you need a good foundation in the core principles. 839 00:28:52,000 --> 00:28:52,480 Right. 840 00:28:52,480 --> 00:28:53,800 Like those books you mentioned before, 841 00:28:53,800 --> 00:28:57,040 the single best investment and the dividend growth investor, 842 00:28:57,040 --> 00:28:59,680 I bet those can help people wrap their heads around the basics. 843 00:28:59,680 --> 00:29:00,160 Absolutely. 844 00:29:00,160 --> 00:29:01,560 Those are great starting points. 845 00:29:01,560 --> 00:29:04,280 But then, how do you stay up to date on all the market 846 00:29:04,280 --> 00:29:05,800 trends and new opportunities? 847 00:29:05,800 --> 00:29:07,520 Everything's always changing. 848 00:29:07,520 --> 00:29:09,480 For sure, it's a fast-moving world. 849 00:29:09,480 --> 00:29:12,000 Checking out those reputable financial websites 850 00:29:12,000 --> 00:29:13,280 and publications is key. 851 00:29:13,280 --> 00:29:13,920 Right. 852 00:29:13,920 --> 00:29:18,080 Seeking alpha, Morningstar, the Motley Fool, stuff like that. 853 00:29:18,080 --> 00:29:19,920 Yeah, those are great resources, for sure. 854 00:29:19,920 --> 00:29:23,360 And since this is a podcast, got to ask any other dividend-focused 855 00:29:23,360 --> 00:29:24,320 podcasts you like. 856 00:29:24,320 --> 00:29:26,560 Well, of course, got to give a shout out to the deep dive. 857 00:29:26,560 --> 00:29:27,720 Uh-huh, fair enough. 858 00:29:27,720 --> 00:29:29,720 But yeah, there are others too that are really good. 859 00:29:29,720 --> 00:29:32,800 The Dividend Guy blog podcast with my crew is great. 860 00:29:32,800 --> 00:29:36,080 And then there's Dividend Talk with European Dividend Growth 861 00:29:36,080 --> 00:29:36,840 Investor. 862 00:29:36,840 --> 00:29:38,160 Cool, yeah, I've heard of those. 863 00:29:38,160 --> 00:29:40,800 They each have their own spin on things, which I think is helpful. 864 00:29:40,800 --> 00:29:41,800 Definitely. 865 00:29:41,800 --> 00:29:43,520 Got to find what works for you. 866 00:29:43,520 --> 00:29:46,360 You know, as we're wrapping up this deep dive, 867 00:29:46,360 --> 00:29:49,600 I keep thinking about something, something we haven't really 868 00:29:49,600 --> 00:29:50,440 touched on. 869 00:29:50,440 --> 00:29:51,200 What that? 870 00:29:51,200 --> 00:29:54,120 It's like when we talk about building wealth through dividend 871 00:29:54,120 --> 00:29:57,760 investing, we get so focused on the money side of it. 872 00:29:57,760 --> 00:29:59,400 But what about the emotional side? 873 00:29:59,400 --> 00:30:03,120 Like, how do we make sure that chasing financial freedom doesn't 874 00:30:03,120 --> 00:30:04,680 make us unhappy? 875 00:30:04,680 --> 00:30:05,640 You know what I mean? 876 00:30:05,640 --> 00:30:06,560 Oh, I hear you. 877 00:30:06,560 --> 00:30:09,040 It's easy to get caught up in just the numbers 878 00:30:09,040 --> 00:30:10,800 and forget what's really important. 879 00:30:10,800 --> 00:30:13,280 We've got to remember, money's just a tool. 880 00:30:13,280 --> 00:30:14,160 Totally. 881 00:30:14,160 --> 00:30:15,560 It's not the be all end all. 882 00:30:15,560 --> 00:30:18,880 Right, it's a means to an end, not the end itself. 883 00:30:18,880 --> 00:30:21,680 So how do we use this tool of dividend investing 884 00:30:21,680 --> 00:30:24,360 to actually build a life that's not just financially secure, 885 00:30:24,360 --> 00:30:27,000 but also, like, fulfilling? 886 00:30:27,000 --> 00:30:28,560 I think it starts with your values. 887 00:30:28,560 --> 00:30:30,120 You know, what do you truly care about? 888 00:30:30,120 --> 00:30:32,520 What kind of life do you want to have for yourself 889 00:30:32,520 --> 00:30:34,120 and your family and everyone? 890 00:30:34,120 --> 00:30:35,840 Yeah, so it's not just about the money. 891 00:30:35,840 --> 00:30:38,880 It's about what that money lets you do and who you become. 892 00:30:38,880 --> 00:30:39,480 Exactly. 893 00:30:39,480 --> 00:30:41,200 And don't forget, financial well-being 894 00:30:41,200 --> 00:30:42,480 is just one part of the picture. 895 00:30:42,480 --> 00:30:43,960 There's so much more to life. 896 00:30:43,960 --> 00:30:46,680 Relationships, health, having a purpose. 897 00:30:46,680 --> 00:30:47,760 It's all about balance. 898 00:30:47,760 --> 00:30:48,840 For sure. 899 00:30:48,840 --> 00:30:51,200 Finding that harmony between your financial goals 900 00:30:51,200 --> 00:30:52,320 and your life goals. 901 00:30:52,320 --> 00:30:53,920 Well said. 902 00:30:53,920 --> 00:30:56,000 So to wrap up this whole deep dive, 903 00:30:56,000 --> 00:30:58,520 what's your final message to our listeners? 904 00:30:58,520 --> 00:31:00,640 Just to keep learning, keep exploring. 905 00:31:00,640 --> 00:31:03,200 And most importantly, keep investing in yourself 906 00:31:03,200 --> 00:31:04,920 and in the life you want to build. 907 00:31:04,920 --> 00:31:06,960 Couldn't have said it better myself. 908 00:31:06,960 --> 00:31:08,720 Thanks for joining me for this deep dive 909 00:31:08,720 --> 00:31:10,360 into the world of dividend investing. 910 00:31:10,360 --> 00:31:13,000 It's been a real pleasure exploring this topic with you. 911 00:31:13,000 --> 00:31:37,520 And until next time, happy investing, everyone.