Residing off of Dividend Stocks

#Dividends #Passiveincome #Investing

Living off of Dividend Stocks

Many passive income investors dream of the day they can finally kick back and completely live off of their dividend income 100%. While this truly is an attainable reality for those who choose to make it so, there are certain things to be aware of.

When I invest for sustainable long-term dividend income, I focus on diversification, inflation, and realistic returns.

I never invest more than 5% of my portfolio in any one stock. Many of us (including myself) have favorite stocks that we have completely gulped down the “Kool-Aid” on (Realty Income (O), Waste Management (WM), or Aqua America (WTR) for example), but it’s vitally important to never expose your dividend stock portfolio to concentration risk. Again I stick to a max portfolio representation of 5%.

To further reduce risk inside of a dividend portfolio, I find it’s helpful to diversify geographically. It seems that a lot of my favorite domestic dividend ETFs also have foreign counterparts that can be found on the ETF company’s website.

Additionally, I always try and invest in companies that continually (and safely) raise their dividend. These dividend stocks are known as “Dividend Aristocrats” and boy are they special. At the time of this video there are 53 companies that are on this prestigious list and I purchased all of them with one buy order: ticker (NOBL).

Finally, I always factor in 3% inflation when I’m calculating ROI. It’s a total drag I know, but it must be considered if one wants to be successful in passive income endeavors.

If you found this information helpful, please like this video and join our community by subscribing. Have a friend that might like this video? Please share my channel with them. Thank you.

Inflation video: https://www.youtube.com/watch?v=xr7m0kr991g&t=93s

Portfolio construction: https://www.youtube.com/watch?v=PqpzPv7gzXU&t=653s

Besides the videos linked above, here’s my M1 Finance dividend portfolio: https://m1.finance/yxC-u__-8

Want free cash to get started? Find it here: https://mbsy.co/qgvmm

Connect with me on Instagram: @kennyrrobinson

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Disclaimer: I’m not your financial advisor, attorney, or tax professional, and nothing I say is meant to be a recommendation to buy or sell any financial instrument. This video is intended for entertainment purposes only. Do your own due diligence, and take 100% responsibility for your financial decisions. Seek professional advice and guidance to aid your financial decisions.
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Live Guide: How to Buy Stocks Online (Step-by-Step)

One of the most basic lessons to be learned in online trading is learning how to buy stocks. If you are a new trader or maybe just looking to buy stocks for long term investing, the process is the same. I take you through a step-by-step walk through using money in my retirement account to buy a stock. When you have finished watching this video you’ll have a complete guide that you can refer back to for when you make your first stock purchase online.

Come join me for a live session where I talk more about trading, the markets and all the money that can be made. Claim a seat here: https://claytrader.com/1-hour-trader-transformation/

Part 1: How to Buy Stocks Online – https://claytrader.com/videos/trading-101-buy-stocks/
How To Find an Online Broker – https://claytrader.com/blog/best-online-stock-broker/
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39 Antworten auf „Residing off of Dividend Stocks“

  1. Some Canadian banks yield between 5-6% in dividends.
    If you have a 500k portfolio, at a 5-6% yield, that can be enough money to live off of in retirement without having to touch the principal and make withdrawals. Especially if you have a monthly pension as well, it can be enough income.

    And to touch on what you said, most if not all of these cdn banks raise their dividends and have never missed a dividend in over 50 years. Even through the 2008 crisis.

  2. I came across this channel looking for dividend investment tips. My compliments to you Kenny, for your educational vids. I am from Holland and i want to retire with dividends income. can you give me tips how to buy reits perhaps by mail contact? Thanx for sharing your knowledge.

  3. Would you say dividends make sense only in a low interest rate environment? By contrast you can currently ladder 5 yr CDs with the same 500k and get 2.5-3.0%/yr at ZERO risk to principal. I say this with the obvious exception being the Realty Income Trust.

  4. Kenny, what happens to dividend stocks when interest rates invariably rise? Answer: Trouble. See 2016 dividend stock performance when just the fear of rising rates caused these stocks to fall dramatically.

  5. For dividend investment you need high cash flow to make it work. If u just a average joe making less the 6 figure income no point getting into taxable account just roth ira. My 2cent bois n gals

  6. Dividends serve as a great way to build income for sure. Still, there a lot of pitfalls to watch out for, and there is an upfront tax on dividends(even with DRIP), so you miss out on the compounding effect on growth. Jealous of the IRA system over in the states, though!

    Channels like yours make it much easier for people to get educated and avoid all the traps out there! Appreciate the content, Kenny.

  7. I really wish someone could mentor me on this. I know very little about investments, but show so much interest on this topic. My wife and I want to start, but don't know where to start at. Great video btw!

  8. That's for doing this video Clay. I've been out the market for about 10 months. I have stocks I had purchased last year and wanted to get back in the market. I totally forgot that I needed to divide the amount of shares with the cost. I wanted to multiply the amount with the cost which would have bankrupted me, LOL. Thanks again! 😉

  9. So when you buy shares it's your and yours only until you sell. I don't get when you select the duration being one day or good until cancelled…What's the point in the one day or GUC? The difference? I watched your previous video about market, limit, limit less etc…I just don't get how that affects your stock….

  10. Pretty much once you have selected the stock and duration and you get that the order is complete in that one day duration what happens or what do I need to do?

  11. I am totally new to day trading but i am looking at using the same broker (boa) to use so my question is what happens once you set your duration and it ends? if there is profit their what happens?

  12. What if you have let’s say $100 of funds in your account. And you bought shares of a company then ended up being bearish, and it went below “$100” and now you are in the negative. Do you owe money to the company, or the brokerage?

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