Dividents/Stocks

[nickenburg]

Do you guys buy any high paying divident stocks, and if so which ones do you have or would you recommend?
How much do they pay you and do they pay out every month/ 3 months?

Since the stockmarket went up a lot in 2019, im interested to buy some stocks next to my crypto portfolio.

I have been looking at some Divident stocks and they seem to be good to be true, Some stocks like apple or google are way to expensive in my opinion, and not really interesting for me since you cant really buy a lot of a stock only a part of it.

Also would something like Robinhood be a good place to buy stocks do you actually own them if u buy them there?
Or should I go to the actual stock market and buy them there, or is everything done digitally now? 

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[bitmover]

You shouldn't be asking random strangers in the internet which stick to buy.
There is plenty good materials in the internet about how to analyze stocks in your own and choose the ones that fit your needs and investing style. There are also funds of stocks focused in dividends,  where you pay professionals to choose the stocks for you.

[nickenburg]

You shouldn't be asking random strangers in the internet which stick to buy.
There is plenty good materials in the internet about how to analyze stocks in your own and choose the ones that fit your needs and investing style. There are also funds of stocks focused in dividends,  where you pay professionals to choose the stocks for you.

Dont worrie it's not like im blindly gonna do what someone tells me to buy  I am just wondering if people on here do have/buy stocks or that they are only focussing on Crypto it self.
And if they do what stocks and why.

I know there are a lot of websites I have found a few myself with a lot of info on the highly paying dividend stocks but I have never invested in any stocks so I dont know where to start.
There are a lot of different compagnies and some of them have high paying dividends with a low stockprice.

And im not really looking to pay someone to choose stocks for me, I like to do the research myself and look for them but I tought people on here maybe would have some experience and could help.

[bitmover]

And im not really looking to pay someone to choose stocks for me, I like to do the research myself and look for them but I tought people on here maybe would have some experience and could help.

Buying stock through funds is a lot safer (for dozens of reasons: they know CEOs, CTOs, they have a team of people researching about where to invest, etc etc). As you said, you never bought any and you clearly don't know a lot about them, so it would be like gambling in the beginning.
You can pay like 0,5% or even less (like 0,005%) to have professionals managing your money for you.

Personally, I don't focus on dividends and neither care about them, but there are many good funds which are focused on good companies which pay dividends.

Everything depends on where you live, because some places really have problems in the financial market. But if you live in a rich country you are fine.

Vanguard would be may personal choice if I lived in a decent country, and they have low cost funds with very good returns.

[nickenburg]

And im not really looking to pay someone to choose stocks for me, I like to do the research myself and look for them but I tought people on here maybe would have some experience and could help.

Buying stock through funds is a lot safer (for dozens of reasons: they know CEOs, CTOs, they have a team of people researching about where to invest, etc etc). As you said, you never bought any and you clearly don't know a lot about them, so it would be like gambling in the beginning.
You can pay like 0,5% or even less (like 0,005%) to have professionals managing your money for you.

Personally, I don't focus on dividends and neither care about them, but there are many good funds which are focused on good companies which pay dividends.

Everything depends on where you live, because some places really have problems in the financial market. But if you live in a rich country you are fine.

Vanguard would be may personal choice if I lived in a decent country, and they have low cost funds with very good returns.

Ah I didnt realise the fee's where so low indeed, that might be interesting, and obviously im not gonna buy a random stock im going to research it first ofcourse.
Yeh I kinda like the idea to get a passive income from the dividents (do you invest in non divident stocks tho?)

And im from The Netherlands but I could invest in companies from other country's as well, and I never heard of Vanguard ill give it a look.
What do you mean with if I lived in a decent country are the tax rates to high in ur country or something?

[bitmover]

Yeh I kinda like the idea to get a passive income from the dividents (do you invest in non divident stocks tho?)

No, i don't buy stocks directly.  What I told you to do is what I do: I buy funds.
The funds I buy reinvest the dividends automatically (they never arrive in my checkings account), and the price of the fund increases slightly every time it happens. Those are called accumulative funds.

I don't need passive income now because I work. I am in an accumulative phase, saving for retirement.

However,  you can find the same funds paying dividends to your checking account.

And im from The Netherlands but I could invest in companies from other country's as well, and I never heard of Vanguard ill give it a look.
What do you mean with if I lived in a decent country are the tax rates to high in ur country or something?

I live in Brazil and we lack decent instruments to invest. We don't have many low cost funds, we don't have access to many markets from another countries and so on...

[nickenburg]

No, i don't buy stocks directly.  What I told you to do is what I do: I buy funds.
The funds I buy reinvest the dividends automatically (they never arrive in my checkings account), and the price of the fund increases slightly every time it happens. Those are called accumulative funds.

I don't need passive income now because I work. I am in an accumulative phase, saving for retirement.

However,  you can find the same funds paying dividends to your checking account.

Yeh I definitely need to do some research in to funds then, I already saw some of the vanguard funds are not available in my country.
And I would also try to reinvest the dividends of course, but all the way till retirement that is a bit long unless you are going for a early retirement

I live in Brazil and we lack decent instruments to invest. We don't have many low cost funds, we don't have access to many markets from another countries and so on...

So because you live in Brazil you can mostly only invest in companies from Brazil?
Are you invested in something like the iBovespa then?
And isnt it possible to download apps like Robinhood to invest in different country's?
Thanks for answering my questions as well it's appreciated!

[bitmover]

Yeh I definitely need to do some research in to funds then, I already saw some of the vanguard funds are not available in my country.
And I would also try to reinvest the dividends of course, but all the way till retirement that is a bit long unless you are going for a early retirement

Early retirement is my goal since I started working lol

So because you live in Brazil you can mostly only invest in companies from Brazil?
Are you invested in something like the iBovespa then?
And isnt it possible to download apps like Robinhood to invest in different country's?
Thanks for answering my questions as well it's appreciated!

Basically  yes. It is possible to buy a low cost ETF of sp500, but that's it.

However,  it is legal to send money abroad and invest through brokers from any country. There are costs and legal implications related to taxes and heritage , but it is still worth.

Yes, I invest mainly in Ibovespa index and a small caps index funds (biggest 80 small caps of brazil). I invest in bonds as well, as we still have a decent interest rate in Brazil. (About 4% per year real returns)

I recommend you take a look at degiro.nl , as it is a very good low cost broker from your country.

[nickenburg]

Early retirement is my goal since I started working lol

That is a nice goal for me it is a goal as well but it is very hard to do.

Basically  yes. It is possible to buy a low cost ETF of sp500, but that's it.

However,  it is legal to send money abroad and invest through brokers from any country. There are costs and legal implications related to taxes and heritage , but it is still worth.

Yes, I invest mainly in Ibovespa index and a small caps index funds (biggest 80 small caps of brazil). I invest in bonds as well, as we still have a decent interest rate in Brazil. (About 4% per year real returns)

I recommend you take a look at degiro.nl , as it is a very good low cost broker from your country.

Ahh ye I heard the Ibovespa is very good and you can only invest in it if u are living in Brazil.
To me Bonds dont really sound interesting because 4% a year sounds very low right, unless your investing a big amount of course.

If u would invest 100$ that is only 4 dollar a year, but if u invest 1 million its 40000$ which is a lot per year, so it is kinda unfair if u dont have a lot of money.
To me there are more interesting things then bonds, but I guess people choose them because they are a safe investment?

I will take a look at Degiro, Thanks!

[bitmover]

Ahh ye I heard the Ibovespa is very good and you can only invest in it if u are living in Brazil.

I don't know if you can really buy Ibovespa from DeGIro, but maybe something similar to it.

See if you can find any Brazil ETF in degiro. Some of them are highly exposed to Brazil large caps.

https://etfdb.com/etfs/country/brazil/

To me Bonds dont really sound interesting because 4% a year sounds very low right, unless your investing a big amount of course.

If u would invest 100$ that is only 4 dollar a year, but if u invest 1 million its 40000$ which is a lot per year, so it is kinda unfair if u dont have a lot of money.
To me there are more interesting things then bonds, but I guess people choose them because they are a safe investment?

Fixed Income is powerful over the years, due to Compound interest.

If you same 10,000 at 4% a year + inflation, in 10 years you will have 14,845 plus inflation with very little risky (Nearly 50% in 10 years). You can still find that in emerging markets.

[nickenburg]

I don't know if you can really buy Ibovespa from DeGIro, but maybe something similar to it.

See if you can find any Brazil ETF in degiro. Some of them are highly exposed to Brazil large caps.

https://etfdb.com/etfs/country/brazil/

I have checked and there are no Latin American stocks or ETF's at all at Degiro, their fees however are really cheap compared to the other brokers overhere.
So I will definitely be making a account on there.
 

Fixed Income is powerful over the years, due to Compound interest.

If you same 10,000 at 4% a year + inflation, in 10 years you will have 14,845 plus inflation with very little risky (Nearly 50% in 10 years). You can still find that in emerging markets.

Yeh if u put it like that it sounds nice, I guess you really have to look at it in the long term/big picture way, and with inflation in mind I guess it's worth it.
Do you think Cryptocurrency's over a 10 year period time are a better investment now a days or would you do both?

[bitmover]

Do you think Cryptocurrency's over a 10 year period time are a better investment now a days or would you do both?

I think bitcoin has a great potential for explosive gains. Altcoins will probably all fail so the risk is too high. Based in my experience,  100% bitcoin is the best cryptocurrency portfolio.

I wouldn't put more than 10% of my savings in it. If that small percentage capital becomes 50%-80% it is good. But it may also go to 1%...

[TimtheYoutuber]

Dividends are given when a company doesn't know what to do with extra money, and they are used to excite people about the stock. Some dividend stocks are awesome, but just because they are giving away money doesn't mean they are good.

Example: If a bad stock offers 10% and you make $100 from it, that seems awesome, but if the stock goes down 30% then you actually lost money.


Many of the big companies don't offer dividends because they are using the money to fund new business and execute mergers.


If you don't know what to buy then I would hire an advisor or just buy mutual funds and let someone else take care of it for you. Finding a stock to invest in can be really hard because financial statements can be long to read.

[nickenburg]

Dividends are given when a company doesn't know what to do with extra money, and they are used to excite people about the stock. Some dividend stocks are awesome, but just because they are giving away money doesn't mean they are good.

Example: If a bad stock offers 10% and you make $100 from it, that seems awesome, but if the stock goes down 30% then you actually lost money.


Many of the big companies don't offer dividends because they are using the money to fund new business and execute mergers.


If you don't know what to buy then I would hire an advisor or just buy mutual funds and let someone else take care of it for you. Finding a stock to invest in can be really hard because financial statements can be long to read.

I thought dividents where given out when the company was performing well, for example when they made profit they have to pay out to their stockholders because they have a % of the company?
Not because they are just giving away money that doesn't make any sense..

Makes sense that most company's will use profit to fund research and new business tho.

[TimtheYoutuber]

Dividends are given when a company doesn't know what to do with extra money, and they are used to excite people about the stock. Some dividend stocks are awesome, but just because they are giving away money doesn't mean they are good.

Example: If a bad stock offers 10% and you make $100 from it, that seems awesome, but if the stock goes down 30% then you actually lost money.


Many of the big companies don't offer dividends because they are using the money to fund new business and execute mergers.


If you don't know what to buy then I would hire an advisor or just buy mutual funds and let someone else take care of it for you. Finding a stock to invest in can be really hard because financial statements can be long to read.

I thought dividents where given out when the company was performing well, for example when they made profit they have to pay out to their stockholders because they have a % of the company?
Not because they are just giving away money that doesn't make any sense..

Makes sense that most company's will use profit to fund research and new business tho.

Nope. Companies use dividends to pay out extra money that they are not using. It pays investors for holding on the stock. Companies like Facebook are always buying more companies and so they are not paying a dividend. Microsoft, on the other hand, is paying a small dividend, which allows them to hold some money for purchasing. If a company is offering high dividends I would be careful. Not all dividend stocks are bad, just as not all stocks that are buying companies and adding on are good.

If buying low and selling high was easy everyone would be doing it. If you aren't willing to put in hundreds of hours of research I wouldn't invest a lot and only use the money you want to experiment with. I would get an advisor that spends hundreds of hours looking at the market or mutual funds that will diversify your investments.

[nickenburg]

Nope. Companies use dividends to pay out extra money that they are not using. It pays investors for holding on the stock. Companies like Facebook are always buying more companies and so they are not paying a dividend. Microsoft, on the other hand, is paying a small dividend, which allows them to hold some money for purchasing. If a company is offering high dividends I would be careful. Not all dividend stocks are bad, just as not all stocks that are buying companies and adding on are good.

If buying low and selling high was easy everyone would be doing it. If you aren't willing to put in hundreds of hours of research I wouldn't invest a lot and only use the money you want to experiment with. I would get an advisor that spends hundreds of hours looking at the market or mutual funds that will diversify your investments.

It says on the wiki about dividends it's in the law that dividends are a profit distribution, that's why dividends can only be payed out when the company actually made profits, it may be never financed with their own capital.

And yes I will definitely research some more before I will invest in stocks, maybe even talk to a advisor like you guys proposed!

[TimtheYoutuber]

Nope. Companies use dividends to pay out extra money that they are not using. It pays investors for holding on the stock. Companies like Facebook are always buying more companies and so they are not paying a dividend. Microsoft, on the other hand, is paying a small dividend, which allows them to hold some money for purchasing. If a company is offering high dividends I would be careful. Not all dividend stocks are bad, just as not all stocks that are buying companies and adding on are good.

If buying low and selling high was easy everyone would be doing it. If you aren't willing to put in hundreds of hours of research I wouldn't invest a lot and only use the money you want to experiment with. I would get an advisor that spends hundreds of hours looking at the market or mutual funds that will diversify your investments.

It says on the wiki about dividends it's in the law that dividends are a profit distribution, that's why dividends can only be payed out when the company actually made profits, it may be never financed with their own capital.

And yes I will definitely research some more before I will invest in stocks, maybe even talk to a advisor like you guys proposed!

Correct.

Companies don't have to pay dividends though that are profiting.

So like I said, companies offering dividends are trying to gain more shareholders by giving out money, and they are not sure what to do with the extra money that they have so they give it as dividends. (Extra money = extra money after profit)

Companies that don't offer dividends might not be profiting, but might be doing so because they are trying to scale the company.


This is why reading the financials is the #1 thing when you are trying to buy stocks individually.

*Dividends are not evil. I am just explaining what they are.

[DaveF]

This could turn into a long rambling post from me but:

I have a chunk of money in some senior healthcare REITs (senior housing facilities, skilled nursing facilities, etc.) most of them pay between 4% to 6%
It's a bit cynical but the US population is aging and they are going to be more and more people going to those facilities. Also, they are fed tax free.

Not advice just opinion.

-Dave

[nickenburg]

This could turn into a long rambling post from me but:

I have a chunk of money in some senior healthcare REITs (senior housing facilities, skilled nursing facilities, etc.) most of them pay between 4% to 6%
It's a bit cynical but the US population is aging and they are going to be more and more people going to those facilities. Also, they are fed tax free.

Not advice just opinion.

-Dave

Yeh I noticed that care for older people is big business, My grandma recently had to go in a Carehome and those cost a lot of money.
I didnt know some of them are also a Listed Company, but maybe those are only big enough in the Usa, I will have to look in to that.
Thanks for the advice.

Correct.

Companies don't have to pay dividends though that are profiting.

So like I said, companies offering dividends are trying to gain more shareholders by giving out money, and they are not sure what to do with the extra money that they have so they give it as dividends. (Extra money = extra money after profit)

Companies that don't offer dividends might not be profiting, but might be doing so because they are trying to scale the company.


This is why reading the financials is the #1 thing when you are trying to buy stocks individually.

*Dividends are not evil. I am just explaining what they are.

Yes that makes way more sense that the extra money comes from profits, in my opinion it would be better to probably reinvest that money in the company then instead of paying out dividends only to get more stockholders.
Thanks for the explanation.

[Neloc76]

Do you guys buy any high paying divident stocks, and if so which ones do you have or would you recommend?
How much do they pay you and do they pay out every month/ 3 months?

Since the stockmarket went up a lot in 2019, im interested to buy some stocks next to my crypto portfolio.

I have been looking at some Divident stocks and they seem to be good to be true, Some stocks like apple or google are way to expensive in my opinion, and not really interesting for me since you cant really buy a lot of a stock only a part of it.

Also would something like Robinhood be a good place to buy stocks do you actually own them if u buy them there?
Or should I go to the actual stock market and buy them there, or is everything done digitally now? 

Not really, I prefer crypto over stocks due to the insane volatility.