0:00 hey everyone it's Steve again and in
0:02 today's video I'm going to do a
0:04 stepbystep tutorial on how to build a
0:07 $40,000 dividend paying portfolio by the
0:10 time you retire now I want to preface by
0:13 saying that this $440,000 worth of
0:15 dividends it's going to be relative
0:18 right it's going to depend on how much
0:20 money you invest or contribute on a
0:22 monthly basis and what kind of dividend
0:24 paying assets you buy every month I also
0:27 want to say that this is going to be a
0:29 complete beginners tutorial it's going
0:32 to cover the three steps of what when
0:36 and where so what we're going to buy
0:39 when we buy these shares and where we're
0:41 going to place these dividends back into
0:43 maybe our portfolio or maybe we can take
0:45 it out as income I'm also going to talk
0:48 about the number one mistake that I
0:50 believe that most beginners make when
0:53 they start building their dividend
0:54 paying portfolio and something that I
0:56 did too so this way you guys don't have
0:58 to make the same mistake all right so
1:01 without further Ado let's get started I
1:03 also want to say thank you for everyone
1:04 who voted on me making this video on
1:08 Instagram I actually put this poll up
1:10 today asking you guys what kind of video
1:12 you wanted me to make so I guess all of
1:14 you voted for a and this is why I'm
1:16 making this video okay so just real
1:18 quick for those of you who may not want
1:21 to watch this video until the very end
1:23 I'll just kind of tell you what the
1:25 three steps are to build this dividend
1:27 paying portfolio and it's basically what
1:29 you you see on the screen number one
1:31 you're going to buy dividend paying
1:33 assets I'm going to talk about the
1:34 different assets like ETFs versus
1:37 companies and what I usually like to do
1:39 I like to do a combination of both
1:41 number two it's to use the DCA method or
1:44 the dollar cost averaging method again I
1:47 like to keep things as simple as
1:49 possible I I don't like to time the
1:51 markets or anything I like to just kind
1:53 of slowly scale my positions slowly
1:55 build my portfolio over time and step
1:58 number three we're going to talk about
1:59 about where to put this money and
2:01 there's really three different options
2:03 drip versus self reinvestments versus us
2:06 taking out the money as our income and
2:09 of course lastly I'm going to talk about
2:11 that number one beginner's mistake that
2:13 pretty much everyone really makes okay
2:15 including myself I made this mistake too
2:17 all right so let's just talk about the
2:19 basics here um what are dividends and
2:22 why does it really matter so for those
2:24 of you who just got started in the
2:28 investing world you just started
2:29 investing in you open up your Roth IRA
2:31 basically when you invest in companies
2:34 or some companies that pay some sort of
2:37 dividend essentially when you have these
2:39 shares in your portfolio every quarter
2:42 or so these companies will give you a
2:44 couple of cents or a couple of dollars
2:46 uh depending on how many shares you hold
2:49 so I know there are some companies out
2:51 there that will pay you maybe 50 cents
2:52 per share that you own or maybe a dollar
2:55 per share or $2 per share and then this
2:58 is a really cool Strate strategy that a
3:00 lot of investors like to do where they
3:02 build this dividend paying portfolio and
3:05 income just comes in every quarter or
3:07 every month depending on what it is that
3:08 you buy and this is very analogous to us
3:12 owning property like a house because if
3:14 you take a look on the left hand side
3:16 you can say that you buy a house for
3:20 $500,000 and you collect rental income
3:24 for
3:24 $11,500 a month same thing with dividend
3:28 paying stocks when you buy shares that
3:30 pay some sort of dividend you can say
3:33 buy $500,000 worth of shares and every
3:37 month or so or every quarter right you
3:39 get paid $1,500 a month so it's very
3:42 very similar right now let's talk about
3:45 the steps of buying dividend paying
3:48 assets so there are two different assets
3:51 that you can really buy and the ones
3:53 that I usually like to buy are ETFs and
3:56 individual companies and again you want
3:58 to see which one fits your portfolio and
4:01 whatever you're comfortable with doing
4:04 okay so number one you can buy ETFs or
4:07 exchange traded funds on this channel I
4:09 talked about ETFs or I talk about ETFs
4:12 all the time so basically it's like a
4:15 basket of stocks whenever you buy one
4:17 share of an ETF you're buying a whole
4:20 bunch of companies all at once so you
4:22 buy one share of an ETF you might own a
4:25 little bit of Walmart Costco Visa Apple
4:29 go Google right so these are what ETFs
4:32 are so if you want to buy ETFs there are
4:36 some pros and cons right it is going to
4:38 be more on the stable side because
4:40 you're basically buying an amalgam an
4:43 average of all of these companies and
4:45 you collect the dividends or the average
4:48 of all of these dividend payouts and
4:50 you're able to diversify yourself but
4:53 with ETFs it's more on the boring side
4:57 because of the averages that you are
5:00 kind of buying into there's not going to
5:02 be that much growth right if one company
5:04 really explodes up within the basket of
5:07 stocks it's not like your entire
5:09 portfolio is going to go up right
5:10 because you're buying the entire average
5:12 only one part of the entire basket is
5:15 really going up hopefully that makes
5:17 sense now if you want to say buy
5:20 individual companies you're very bullish
5:22 on one particular company like maybe
5:24 Costco or Walmart or Visa or McDonald's
5:27 or Coca-Cola then yeah you can buy these
5:29 individual companies it is going to be
5:31 more on the volatile side so you want to
5:33 see what your risk tolerance is but
5:35 there is higher potential growth here
5:37 and also if you do these research you do
5:40 research on these companies on a
5:42 quarterly basis you take a look at the
5:44 earnings call you look at the earnings
5:45 report and you go oh I really like this
5:48 one specific company because not only
5:51 are they growing in value they're also
5:53 increasing their dividend payout too so
5:56 I'm going to talk a little bit more
5:57 about this in a little bit so let's take
5:59 a look at one of my favorite ETFs
6:02 dividend paying ETFs SD so this is from
6:06 Charles Schwab and this is the ticker
6:08 symbol S CHD and currently one share of
6:11 this ETF is around $79 80 and my whole
6:16 goal for this video and really this
6:18 whole channel is to promote autonomy I
6:21 want you guys to learn how to invest
6:23 yourself so that one day you don't need
6:25 me anymore you don't need a financial
6:27 adviser you can kind of do this by
6:28 yourself and your own research so right
6:32 now I'm on Yahoo finance which you can
6:34 totally go onto yourself right you can
6:36 type in the ticker symbol of whatever
6:38 company that you want to research and
6:40 you can take a look at the summary and
6:41 you can see kind of like the chart on
6:44 how well the ETF or stock has done over
6:47 the past several years if you take a
6:49 look at the leftand side here you can
6:51 see what this particular ETF holds right
6:55 like the companies that are within this
6:57 ETF so if you click on Holdings you can
6:59 see the top 10 companies that make up
7:03 this ETF so you can see that there's
7:05 Texas instrument Chevron Lo Martin Pepsi
7:09 Coca-Cola Verizon right fizer Cisco and
7:13 again when you buy these ETFs you want
7:16 to see hey are you comfortable with
7:18 these companies do you believe in these
7:20 companies and if the answer is yes then
7:22 this ETF is most likely going to be for
7:24 you right now if you go down a little
7:28 bit more to the performance section you
7:31 can see some of the data some of the
7:35 returns that the ETF has made over the
7:37 past several years so if I zoom in you
7:40 can see that over the last month or so
7:43 the ETF didn't do so well because we did
7:45 have a little bit of a pullback it was
7:46 NE
7:47 4.64% but remember folks when we are
7:50 investing we're not going to focus on
7:52 the short term we're looking at that
7:54 long-term view right 5 10 20 30 years or
7:57 so we take a look at a 3 months 1.68 but
8:00 if you look all the way down to the
8:02 10year average you can see that SCD gave
8:06 around a
8:07 10.9% average annual return which is
8:10 slightly less than the S&P 500 which is
8:13 currently around 12% right now and on
8:16 the right hand side you can see how well
8:18 it's done on a year-to-year basis now
8:20 whenever I talk about average annual
8:23 returns and I say okay it's around 10%
8:25 people will assume that every year the
8:28 stock or the ETF will grow 10% this is
8:32 not true okay everyone so it's an
8:35 average of all the last 10 20 30 years
8:39 right so you're adding all of the
8:40 increases right and dividing it by
8:43 however many years there are we're
8:44 finding the average so you can see that
8:46 in
8:47 2023 we had a growth of
8:50 4.57% 2022 we had a bare Market we went
8:54 down
8:55 3.23% and just to kind of plug this in
8:59 here
9:00 with dividend paying companies they are
9:02 typically not always a little bit more
9:05 on the safer side compared to other
9:08 companies that don't pay a dividend
9:10 usually when there is uncertainty in the
9:13 markets maybe there's some sort of
9:15 geopolitical Events maybe there's an
9:17 election coming up just any uncertainty
9:19 at all the stock market will sometimes
9:22 get a little bit shaky and a lot of
9:24 these institutions Wall Street investors
9:26 they will sell their shares to kind of
9:28 protect themselves and their clients and
9:31 guess what the stocks that they usually
9:33 sell the fastest or the most are the
9:36 companies that don't pay a dividend
9:38 usually not always okay and the
9:40 companies that they still keep within
9:42 their portfolio are the ones that pay a
9:45 dividend why is this it's because even
9:48 if there is a selloff the stock market
9:50 goes down they still get paid dividends
9:53 from these companies that pay a dividend
9:55 these other companies that don't pay a
9:57 dividend well a lot of these
9:58 institutions don't have a high incentive
10:01 of holding on to them in their
10:02 portfolios right so this is why back in
10:07 20122 when we had our bare Market it
10:10 only dropped around
10:12 3.23% compared to the S&P 500 which it
10:15 dropped way way more right and if you
10:18 compare it to technology companies it
10:20 dropped even further so I like to keep a
10:23 balance of S&P 500 funds a little bit of
10:27 technology companies and these dividend
10:29 paying companies in particular from the
10:31 Dow 30 right in my portfolio to keep a
10:34 well balanced portfolio in 2021 we had a
10:38 29 30% return and you can see the rest
10:41 here all the way to 2016 all right so
10:44 let's go back to the summary on Yahoo
10:47 finance when you click on that you're
10:49 going to see this thing called the yield
10:51 or the dividend yield and this is going
10:53 to tell us how much money we get per
10:57 share so you can do this by yourself
10:59 when you go research on Yahoo finance
11:01 currently Ford you can get a
11:05 3.47% dividend yield so what does that
11:07 translate to you can get this number
11:10 right here and then you can multiply it
11:12 by the price of a share of shd which is
11:16 around $79 80
11:18 3.47% times $79 or $80 that's going to
11:22 be around
11:24 $2.75 per share I know some of you guys
11:26 are going to be like
11:28 $2.75 that's such little money I buy one
11:30 share and I only get2 $3 I understand
11:34 because from a beginner's investor
11:37 perspective we think a lot of times that
11:40 we just need to buy one or two or three
11:42 shares or just contribute and invest
11:45 $500 once and we think that that money
11:48 is going to turn into a million dollars
11:50 later on this is very far from the truth
11:53 folks remember with wealth building it
11:56 takes time for our portfolios to
11:58 compound over time time and it takes a
12:00 lot of discipline a lot of consistency
12:03 we need to make sure that we contribute
12:05 money and we buy shares in our portfolio
12:08 every two weeks every month or so even
12:11 though I'm A Millionaire right now and I
12:13 have a $1 million portfolio I'm still
12:15 buying shares right I'm still in that
12:16 wealth building mode and I'm still doing
12:19 this I'm still practicing these wealth
12:21 habits here this is a wealth habit that
12:23 every wealthy person has they still
12:26 invest and they still want to grow their
12:28 wealth right they want to compound their
12:30 portfolio and I'm going to talk about
12:33 compounding growth in a little bit so
12:35 thinking long term one share is
12:38 $2.75 right I know but what if we had 10
12:42 shares that's going to be around
12:43 $27.50 worth of dividend 100 shares is
12:46 going to be
12:47 $275 and if you go all the way to 10,000
12:50 shares that's going to be around
12:53 $20,000 worth of dividends right it
12:55 makes sense and again I know that some
12:58 of you guys are are going to go oh like
13:01 is it really possible for me to grow my
13:03 portfolio to 10,000 shares yes because
13:07 again I'm going to show you the compound
13:08 interest growth in a little bit here
13:10 okay folks so keep an open mind here
13:13 keep it positive mindset because I know
13:15 a lot of this we weren't taught this in
13:17 school or from our parents so this
13:20 investing World buying things that are
13:22 going to grow over a time it sounds
13:24 strange it sounds scary but just keep an
13:26 open mind all right okay so here's the
13:29 thing I know when you think about oh
13:33 $20,000 worth of dividends is that a lot
13:36 of money well remember this is a
13:38 beginner's video I'm trying to keep a
13:40 lot of these variables static I'm not
13:42 talking about stock splits or maybe
13:45 dividend growth but I'm going to kind of
13:47 touch upon dividend growth right now all
13:49 right so let's take a look at this this
13:51 is Coca-Cola right now one share of
13:53 Coca-Cola is around
13:55 6263 and it currently pays around4
13:59 849 per share if you want to take a look
14:02 at the dividend history of any stock or
14:05 ETF you can go on to this website called
14:08 nasdaq.com and type in the ticker symbol
14:11 right for Coca-Cola it's KO if you want
14:13 to type in SD you can also do that too
14:15 and it's going to show you all the
14:17 dividend payouts over the last several
14:19 years so again right now it pays around
14:22 49 cents per share but if you look all
14:24 the way down to 2023 all the way back to
14:26 2022 the dividend was 46 cents per share
14:30 44 cents per share let's go back in
14:33 history even more back in 2022 it was 44
14:36 cents per share in 2021 2020 it was 4241
14:40 cents if you keep going back you'll see
14:42 that Coca-Cola used to pay like 15 cents
14:45 per share 12 cents per share right so
14:49 you can see that dividends can increase
14:52 over time which means that what well
14:56 this $20,000 worth of dividends may not
14:59 be $20,000 later on it's most likely
15:02 going to be more maybe $30,000 or
15:05 $40,000 right and just to kind of keep
15:07 things simple not to talk about stock
15:09 splits or ETF splits or anything like
15:11 that right this is around an $800,000
15:13 investment right because 80 per share
15:16 right $80 per share times 10,000 shares
15:18 that's
15:20 $800,000 and again I know some of you
15:22 are going to say is it really possible
15:23 to have an $800,000 portfolio yes it is
15:27 we're going to do the math in a little
15:28 bit okay so hang on tight okay so I'm
15:32 going to go to this compound interest
15:33 calculator that you mostly like most
15:35 likely have seen in a lot of my shorts I
15:38 use this calculator all the time it's
15:40 from investor.gov you can write this
15:42 down right now and go check it out
15:44 yourself later on and let's plug in some
15:46 numbers okay we're going to make some
15:48 numbers nice and round so we can make
15:49 the math a little bit simpler so let's
15:52 say that we have an initial investment
15:53 of $0 because we're all beginners here
15:55 we're just starting out our journey to
15:57 Financial Freedom and then we're going
15:59 to contribute $500 a month and then
16:02 we're going to make sure that we have a
16:04 long time period so this way we are able
16:07 to compound our portfolios and I'll talk
16:09 about why in a little bit we're going to
16:11 say that we're going to invest for the
16:12 next 40 years and we're going to get an
16:15 estimated interest rate of 10% because
16:17 that's what SCD gave us for the last 10
16:20 years or so all right and again we're
16:22 keeping numbers very simple here well
16:25 guess what in 40 years or so with
16:27 Average stock market return returns
16:29 you're going to have a portfolio of
16:31 around
16:32 $2.6 million $2.6 million so some of you
16:37 who ask me right now hey is it possible
16:40 to have an
16:41 $800,000 portfolio yeah you can totally
16:44 grow your portfolio to $2.6 million
16:48 right of course you have to have a lot
16:49 of discipline and you need to make sure
16:51 that you're contributing money into your
16:53 accounts on a regular basis and
16:54 investing your dollar cost averaging
16:57 which again I'll also talk about in a
16:58 little bit but take a look at this box
17:00 right here and let's zoom in because
17:02 this is really cool because if you take
17:05 a look at the total contributions that
17:08 you actually put in yourself you really
17:10 just put in
17:12 $240,000 of your own money and that
17:14 money grew to $2.6 million that
17:18 basically just 10x your initial
17:21 investment
17:23 10x pretty crazy right so when we invest
17:27 in these dividend paying company
17:29 dividend paying ETFs we want to take a
17:31 look at really two things one we want to
17:34 make sure that the asset itself is
17:37 growing in value right so the
17:40 $240,000 here grew to $2.6 Million
17:44 number two we want to make sure that the
17:46 Dividends are also growing too so
17:50 instead of us getting paid like 15 cents
17:52 per share it slowly grows to 20 cents
17:54 per share 25 cents 30 cents per share we
17:58 want to make sure that both variables
18:00 are growing over time and this is going
18:03 to kind of lead into the number one
18:05 beginner's mistake that a lot of people
18:08 make which I'll talk about in a little
18:09 bit so let's kind of think about real
18:13 estate terms here okay so remember if
18:17 you were to say buy a home for $500,000
18:20 you're getting that rental income of
18:22 $1,500 a month and we're going to say
18:25 that this is 2024 later on in 40 years
18:28 that home I know this sounds kind of
18:30 outrageous to think about to believe but
18:34 that home can be around $2.6 million
18:37 like in California you see home prices
18:39 skyrocketing really fast right so this
18:42 is this is basically the investing World
18:45 folks you can look at homes from 10 20
18:48 30 40 years ago take a look at the home
18:50 prices you're going to be amazed at how
18:52 much all of this all of these assets
18:54 have grown over time which again goes
18:56 down to the point of becoming wealthy is
18:59 not us saving money we need to make sure
19:01 that we buy assets that grow over time
19:04 we need to collect assets stocks real
19:07 estates right and if you take a look at
19:09 that rental income instead of just
19:11 getting paid $1,500 a month it's going
19:13 to grow folks okay rent is going to go
19:15 up no matter if we like it or not it's
19:17 going to be around like
19:19 $7,500 a month maybe even $10,000 a
19:22 month all right as unfortunate as it is
19:25 all right okay so hopefully everyone's
19:27 getting a lot of value here if if you're
19:28 taking in notes right now good job give
19:31 yourself a pat on the back let's talk
19:32 about step number two this is going to
19:35 be the when when do we buy shares well
19:38 we're going to use the DCA method or the
19:40 dollar cost averaging method so
19:43 basically you need to First make sure
19:45 that you set up recurring deposits right
19:48 you can say put in $800 a month right
19:51 $500 a month whatever you are
19:53 comfortable with okay and if you're
19:56 someone who says Steve I don't have
19:57 money to invest right now it's okay
20:00 let's go back to wealth pillars numbers
20:02 one and two we're going to make sure
20:05 that we have a budget we really make a
20:08 budgeting sheet right on Excel or you
20:10 can use my budgeting sheet I'll put a
20:12 link down below if you want to download
20:13 that or you can download a budgeting app
20:15 whatever works for you and then wealth
20:17 pillar number two you need to make sure
20:19 that you're constantly increasing your
20:20 skills so this way you can increase your
20:22 income right you want to make sure that
20:24 you're getting that pay raise that
20:25 promotion makes sense so this way then
20:27 you can increase your contributions when
20:30 you start investing all right number two
20:33 you want to buy shares each month no
20:35 matter what the price is we're going to
20:38 buy shares no matter where it is okay
20:41 even if we have a stock market crash
20:42 we're going to still buy a little bit of
20:43 shares every month at the beginning of
20:45 every month right even when the stock
20:47 market goes up we're still going and buy
20:48 some shares all right we need to make
20:50 sure that we are disciplined in
20:52 contributing money and we're just slowly
20:55 building our position over time because
20:57 again this is what all wealthy people do
20:59 and it's okay for you guys to start off
21:02 slow right start off small even with you
21:05 just maybe putting $20 a month or $80 a
21:07 month that's okay because you want to
21:09 get your feet wet right and if you're
21:11 doing that like you should be very proud
21:13 of yourselves and even if you're just
21:14 putting $20 a month we're going to
21:16 slowly baby step our way upwards right
21:19 take baby steps we can then maybe
21:21 deposit $100 a month or maybe U $200 a
21:25 month or maybe $300 a month all the way
21:28 to $0000 a month but you want to do
21:30 something that you can do consistently
21:32 and that is very attainable for you all
21:35 right okay so how do we actually do this
21:38 because I like to show you guys
21:40 actionable steps right so I'm on
21:42 Fidelity right now this is just a
21:44 screenshot when you sign in and yes you
21:46 can do this with other brokerages like
21:48 Vanguard Schwab or eade whatever you're
21:51 comfortable with but I use Fidelity and
21:52 Schwab you can go to the transfer button
21:55 right here we're going to set up
21:57 recurring deposits right we need to put
21:59 in money so remember we're not just
22:02 going to put in money once this is not a
22:04 casino here where we put money and we
22:06 think it's going to grow to a million
22:07 dollars no we are going to make sure
22:09 that we put we set up recurring deposits
22:12 so we're going to click on the recurring
22:14 deposit toggle set the frequency to
22:16 monthly if you're someone who likes to
22:18 do it bi-weekly you can totally do that
22:19 too whatever you like and then you're
22:21 going to put an amount that you feel
22:24 you're most comfortable with by setting
22:27 this up this recurring deposit I promise
22:30 you it's going to hurt less you don't
22:34 want to think about it folks if you
22:35 automate things it will make your life
22:38 easier it will make your investing
22:40 Journey much much easier there's going
22:43 to be less friction okay I promise you
22:45 this this is what all my members do this
22:47 is what a lot of my followers do all
22:49 right okay once you set up your
22:51 recurring deposits you're then going to
22:53 go back to the original dashboard and
22:55 then you're going to click on this
22:57 magnifying glass this is going to be the
22:59 quote button and then you can type in
23:01 your ticker symbol I'm going to say I'm
23:03 going to type in SD right which is a
23:06 ticker symbol for the Charles Schwab
23:08 dividend paying ETF I'm going to then
23:12 set my action to buy I'm going to buy
23:14 however many shares I am allowed to with
23:17 the money that I contribute inside so I
23:18 put in $800 right I'm going to buy say
23:21 10 shares and then I'm going to make
23:23 sure that the order type is Market I
23:26 know some of you in here are going to
23:27 say Market order shouldn't you use limit
23:30 order or maybe trailing stop order or
23:33 you know we're going to keep things
23:34 simple here okay this is a beginner's
23:36 video time and day this is going to time
23:38 and for this is going to be day click on
23:40 preview order and then you can submit
23:42 you have basically 10 shares and you're
23:43 going to repeat this pattern every
23:46 single month okay every month all right
23:50 so let's talk about step number three
23:52 you're almost there hang on tight folks
23:53 you guys are doing great step number
23:56 three let's talk about the where where
23:58 where do we put this money once we
24:00 collect the dividends right every
24:01 quarter or so we're going to collect
24:02 these dividends they're going to come
24:03 into our accounts automatically we don't
24:05 need to do anything at all this is what
24:06 all wealthy people do remember they just
24:08 collect dividends there are three things
24:09 that you can do first you can use drip
24:13 which is a dividend reinvestment plan
24:15 you can turn this on within your
24:17 brokerage there's a little check mark
24:18 and then something that you can like
24:20 read right you can accept it once you
24:22 turn it on basically you're going to
24:24 automatically reinvest back into the
24:27 same thing so for example if you invest
24:30 in SD you turn on drip that dividend
24:33 that comes in every quarter or so maybe
24:35 you get like $2 or $300 or $500 from
24:39 these dividends that money will
24:41 automatically be reinvested back into
24:44 SCD same thing with Coca-Cola that
24:47 dividend that you get from Coca-Cola
24:48 will be reinvested back into Coca-Cola
24:51 the same thing so you can turn this on
24:54 so this way you can automate things now
24:56 if you say I don't want to do this it's
24:59 okay you can do self- reinvestments when
25:01 that money dividends go goes into your
25:04 brokerage account you can let it sit
25:06 there as cash and then you can choose
25:08 yourself where you want to reallocate
25:10 your money into so for me personally I
25:13 like to collect these dividends from
25:15 Costco from Walmart SCD and then I'll
25:18 use those dividends to reinvest back
25:20 into S&P 500 funds me for example I like
25:24 to reinvest into spy but I know a lot of
25:26 you a lot of my members they invest in
25:29 FX vo any of these S&P 500 index funds
25:33 all right step number three you can also
25:37 consider taking out your dividends and
25:39 using it as income and this is something
25:42 that even Warren Buffett does right he
25:44 doesn't work he basically has a huge
25:47 portfolio and dividends just come in and
25:50 he just lives off of his dividends right
25:52 it makes sense it's because he planted
25:54 all his acorns in the beginning of his
25:56 life and grew it to huge Oak trees later
25:58 on now that he's just just sitting there
26:01 on a lawn chair on the beach or
26:03 something sipping on his Coca-Cola just
26:05 collecting dividends right so I hope
26:07 everyone is able to do that one day by
26:09 the time you guys retire so yes you can
26:11 take out your money as income too
26:13 because this is real money it's very
26:15 similar to the interest that you get
26:16 from a high yield savings account and by
26:18 the way if you don't have a high yield
26:20 savings account you should totally open
26:21 one up right now because of the high
26:23 interest environment we're in I'll leave
26:25 some links down below if you want to use
26:27 my links so this way you can help
26:28 support my channel and you will probably
26:31 get some sort of signup bonus too so
26:33 just putting it out there all right okay
26:36 so these are the three steps on how to
26:39 build a dividend paying portfolio here
26:42 is the number one mistake and I really
26:43 hope you guys are paying attention here
26:46 please do not just invest in something
26:48 just because of the high dividend yield
26:50 this is a mistake that I made a lot of
26:53 my followers a lot of my friends also
26:56 made this mistake in the in their
26:58 beginning journey of investing so I'm
27:01 going to talk about why in a little bit
27:03 we're going to do some math here all
27:04 right and it's very important that you
27:06 consider the overall growth of the
27:09 company right don't just focus on the
27:11 high dividend yields and of course like
27:13 what I said before invest in whatever
27:14 you are comfortable with right don't
27:16 just invest in something because I
27:18 invest in it right someone else invest
27:20 in it invest in something that you kind
27:22 of did your research on that you believe
27:25 in with you know what whatever the
27:27 company is doing
27:28 okay so let's talk about an example
27:31 here this is AT&T this company AT&T it's
27:36 around $17 per share right now and if
27:39 you look at AT&T like it looks like a
27:41 pretty good stock because if you look at
27:44 the dividend yield it's
27:47 6.49% that's really high because a lot
27:51 of ETFs like the S&P 500 it only gives
27:54 you like 1.4 1.5% currently right now
27:58 shd gives you around 3 something per.
28:01 but if you take a look at AT&T it's
28:05 6.49% that's really high relative to
28:08 these other companies and ETFs right so
28:12 you might think as a beginner like oh I
28:14 should totally invest in AT&T right no
28:19 don't do this why is this because if you
28:22 take a look at the long-term trend of
28:25 AT&T maybe the five-year Trend take look
28:28 at where the stock was 5 years ago it
28:30 was around $30 per share where is it now
28:34 it's almost around like half right like
28:36 176 $15 right now it lost a lot of value
28:41 so what is the lesson here yes you will
28:44 get this higher dividend payout every
28:46 quarter or so but you need to make sure
28:48 that the company that you're buying is
28:51 also growing too it doesn't make sense
28:54 for you to buy a home for $500,000 and
28:57 you're getting that maybe $2,000 of
29:00 rental income but the home itself is
29:03 really bad right like the foundation
29:06 isn't good the windows are are breaking
29:09 it's in a bad U City right it doesn't
29:12 make sense for you to buy a home that is
29:15 not very good and is going to depreciate
29:17 in value it goes from $500,000 to maybe
29:20 $400,000 to
29:22 $250,000 no this is why I say when you
29:26 buy these dividend paying companies ETFs
29:29 you want to make sure that you focus on
29:31 two things the overall growth of the
29:33 actual asset itself right the house or
29:36 the stock it's going upwards and you
29:38 want to make sure that the dividend is
29:40 also going up too both should go up okay
29:44 folks all right so let's do a recap
29:47 because this is the teacher and me okay
29:50 how do we build a dividend paying
29:51 portfolio Three Steps step number one we
29:54 need to buy dividend paying assets right
29:57 this is the what you can buy ETFs and
30:00 companies right buy whatever you're most
30:02 comfortable with number two you need to
30:04 make sure that you use the DCA method
30:06 set up your recurring deposits and
30:08 you're going to buy a couple of shares
30:09 every month right this is a good wealth
30:11 habit that every wealthy person has step
30:15 number three you can then talk about the
30:17 think about the where where do I want to
30:19 put this money after I get my dividends
30:22 so you can use a drip method you can
30:24 self- reinvest or you can just take it
30:26 out as income especially if if you have
30:28 a taxable brokerage account right and
30:30 please do not just focus on the dividend
30:33 yield okay so you want to make sure that
30:35 both the asset itself and the Dividends
30:37 are growing all right okay and yeah
30:41 that's pretty much it for this video
30:43 hopefully you guys found a lot of value
30:45 I worked really hard for this entire
30:47 presentation so I really hope that you
30:49 guys learned something if you found
30:51 value you can help support me by just
30:53 giving me a like or maybe giving me a
30:55 follow and also let me know in the
30:57 comments if you have any questions at
30:59 all because yeah I know as a beginner
31:02 it's very scary to start buying things
31:05 in your portfolio it's kind of scary to
31:07 get into the stock market so there are
31:09 no stupid questions or anything like
31:10 that I'm going to try my best to answer
31:12 all your questions down below and also
31:14 again if you want to help support me you
31:16 can also use any of my affiliate links
31:18 down below it doesn't cost you anything
31:20 extra it just gives me a little bit of a
31:23 commission so this way I can keep my
31:25 channel running and in particular if
31:28 you're someone who wants to open up a
31:29 high checking High savings account or if
31:31 you want to get a credit card I list all
31:34 of my favorite ones down below so you
31:36 can totally check those out all right
31:38 okay and that's pretty much it folks um
31:41 I hope you guys learned a lot and
31:43 hopefully I will see you guys all in the
31:45 next video bye everyone
Chrome Extension