What Is Dividend Investing and Why You NEED To Start Doing It

We are back with another gem for him to win, or her to win. I need to figure out an intro thingy for this channel. I have nothing. You know my other channel, I got back with another banger. This channel, I have back with another gem to win. That don't even rhyme, do it? Anyways, y'all read the title. Today I'm gonna be putting y'all to one of the best sources of passive income that I use right now. Now I'm saying it's dividend investing. So I'm about to give you guys a nice little breakdown, a calm, easy-to-understand breakdown. I don't want to get into big words, nothing like that, because I hate when I'm like on YouTube and I'm trying to figure out something and then I watch this video of like this old white guy, this old like Indian guy or something like that, using all these big words. Then I gotta go to dictionary.com, figure out what the heck this word means, and then I gotta— they'd explain it with another big word and I gotta go to another. It's just a whole bunch of nonsense. I'm gonna explain it very simple so you can understand no matter how old you are, no matter if you've ever invested in any stocks or any dividends, or if you know what the word dividend even means. In simple terms, right, dividend trading is basically when a company that is publicly shared— so let's say like, uh, Apple or something like that— they made an excess amount of money that quarter or that month or that year. They just made an excess amount of money and they're like, okay, we're kind of rich now, guys. Let's, let's give back to our shareholders, you feel me? They, they bought a bunch of our shares, they deserve to make some money back. And they all get together and say, as a board of members, 10 board of members, right? Let's say, okay, perfect example, Ju rags. You feel me? Let's say the company is ju rags, right? Let's say we got 10 people on our board of members. We made a billion dollars. We only expected to make $25, but we made a billion dollars. And then now we're like, okay, we got a bunch of excess money. I kind of want to, like, give back to my shareholders, kind of give more people incentives to buy our stock. You feel me? So all the board members get together. We got me, me, me, me, me, me, me, me, and myself, you feel me? All of us together, and I'm like, yo, I think we should give them 1%. Or somebody else, which is also me, says, let's give them 10%. And then another person's like, both of y'all are stupid, let's just give them 5%. So now we've all, all of myself has agreed that we're gonna give everybody a 5% yield on their investments. So what that means, right? I said I wouldn't give y'all like big words. Trust me, it's not big. I'm explaining right now. Yield is like 5 letters. It's not big. So the dividend yield is basically the percentage that they're gonna give back to you. So say you put in $100. What is 5% of $100, everybody? $5. Okay, so if it's a 5% dividend yield and you put $100 into it, you're gonna get 5% back, just either in cash or part of a stock, or it'll go right back into the stock. Let's say you put $100 into it, you'll get $5, right? Either cash. It really depends how you set it up and which different trading platforms you use, but you're basically at $5 worth of something, right? And dividend yields can be paid out, some companies do it monthly, some companies do it quarterly, some companies do it annually, yearly they call it. But let's just say, for example, they're doing it monthly, right? So every month, no matter how much money you have invested in there, and if the company still stays in good standing, like Juwax doesn't crash down and burn and nobody buys Juwax anymore and they still have money to give out, and they're still making a consistent billion dollars, like I said, they're gonna keep doing that 5% every month. So you have $100 in it, right? Every month you get $5 off of your investment, your initial investment of $100, as well as the stock growth going up and down. I'll get into that later on, but I just wanna kinda explain what dividend, like, investing is. It's basically when you invest a certain amount into a company and they pay you a certain percentage off of that company Dang, I'm making it confusing now, ain't I? I'm gonna get into the real, like, deep definition in a second. I just want to explain what the heck dividend trading is. It's basically they're paying you a little percentage off of your investment. Okay, you got it? $100, you put $100 into it, they're like, okay, you're a cool guy, I like you. At the end of the year, we're gonna give you 5%. $100, 5% of $100, what? $5, like I said before. So before I get into, like, the pros and cons of it and how you can get started in it, um, there are many different platforms that you can use. You can use Robinhood, you can use Webull, you can use E-Trade, you can use TD, Ameritrade. You can use a bunch of different things. I personally right now use Webull, and you guys can actually sign up, first link inside the description. You can sign up, if you deposit $100, you'll get— you can get up to $1,400 worth of free stocks. So what I would do personally for y'all, ultimate finesse, right? Click the link inside my bio, sign up, deposit $100, get the 2 free stocks, take your $100 out and trade with the $100. Well, you don't have to take your $100 out. But if you didn't want to keep your $100 in there, you could just put your $100 in it, get the 2 free stocks and whatever it's valued at. Like I said, it could be valued up to $1,400, which is $1,400. $1,400. $1,400 freaking dollars, you feel me? So whatever your stocks are valued at, let's say you get a stock for $50 and a stock for $100. Now you have $150. You could take out the $100 you put in there, so you got your free stock. I'm just showing you how to finesse the game, you feel me? You don't have to do that. You can if you want to, you feel me? Free game. But like I said, I use Webull personally because I don't like Robinhood really, because they do be robbing the hood. But I'll get into a video explaining that before. But like I said, y'all can click the link inside my, uh, description. It's the first thing up there. Sign up, deposit $100, get some free stock, you feel me? But like I said, there are multiple different platforms you can use. I was just telling you guys I use Webull. There's— you can use Robinhood if you want. You can use Ameritrade, TD Ameritrade, sorry. You can use a bunch of different things. I can make a video about that if you guys want me to, but for now we're just gonna pretend we're using Webull, right? Because we're all gonna be using Webull right now because I said use Webull, so you're gonna use Webull, right? Yeah, 2 free stocks. But anyways, now I'm against like pros and cons of it, why I personally think it's good, why it could be bad for some people, kind of just giving my opinion on it. Yes, I do do dividend trading. I should make a video. If y'all want, like the video right now and drop inside the comments down below "Make a video about your top 5 dividend trading stocks," because I really could do that. But there's many different pros of dividend trading. It's a great passive income, which passive income basically means you don't do nothing. It's just money like being brought to you for you really doing the bare minimum work. Another big pro to it, which can be a con as well, but it's— let's go with it's gonna be a pro for now, for an example, right? So let's go back to our DRX example.. You can technically make money off of the growth of the stock as well as the dividend that it's going to pay you. So in simple terms, DRAX, you bought it at $100 a share, you bought one share, right? You have one share of DRAX for $100. You're gonna make that 5% dividend yield, right? So you're gonna make that $5 automatically. But if DRAX keeps doing good, let's see, DRAX makes $10 billion next month, the value of your stock is going to go up as well as they're gonna pay the dividend. So let's say, the value of the stock goes up another $10. So now the one stock you bought of Jurags now is worth $110, plus you got that $5 from the dividend yield that they paid you. So now you got $115. So you can make double profits, but you could also see it the reverse side where if the stock goes down while you're holding the dividend stock, they'll still pay the 5%, but you could've, the stock could've dropped down $10. And you would now have $95 in your portfolio instead of whatever it would be if the stock did not move. But it's a give or take, and if you're— that's why you need to invest in the right companies. That's why I said I could make a video about the 5 companies, well, the top 5 that I'm invested in right now for dividend trading, that most of the time on a yearly basis is continually going up as well as paying good dividend interest on top of it. So let me know if y'all want that video in the comments down below. Another great benefit of dividend trading is It is a very steady source of income. If you guys know who Warren Buffett is, he's really big on dividend trading. If you don't know who Warren Buffett is, I need you to Google him. He's right over there. He's a cool dude. He looks real fly. He's freaking rich. That's all you should care about. But it can be a great source of income. I remember I sat inside the room with some— I was in a meeting with somebody and his financial advisor was going over kind of numbers with this guy that I was in the room with. He asked the dude, hey, how much do you need to survive? Like, how much are your bills on an annual basis, right? So let's say the dude said $10,000. Only got to spend $10,000 to live. That's my rent, that's my food, everything. I only spend $10,000 a year. Now, this is an example. I don't remember the exact number, but he was saying, did you know that you could put $100,000 to a 10%, um, dividend yield stock and never have to work again? Because you put $100 in with 10% coming out every year, What is that, kids? $10,000. So therefore you could not work again and just make $10,000 or your minimum living amount of money. That's another steady source of income. So like I said, it can be a good steady source of income if you're invested in the right stocks, you feel me? If you're not doing your research, it can be pretty bad. But if you're invested in the right stocks, it could be a great steady source of income, kind of like a salary being paid just every month, every 4 months every year. It can be a great steady source of passive income where you're literally doing nothing in it. Another great pro of dividend investing is the fact that it can be great for long term. So let's say a stock that you're investing in for dividend trading— like, this is all based off the fact that you're investing into good stocks. You're not investing into some crap thing that you said, oh, I'll give you 15% annually, and you think, oh, 15% annually is just freaking great and there's no downside. You're like, oh, if I can make 50% on $100 every freaking every month, I'm doing great. But that company is gonna freaking die, you'll lose all your money. But it was 50%. But based off of a good stock, it can be a great long-term investment because you're getting that constant dividend trading as well as the value of the stock is going up while you're holding on to it and it's paying you dividend money. So you're getting— it's, it's a double win. What's that TikTok? Double homicide? Yeah, double homicide, except you're not killing your bank account. You're feeding it. Hey, just to throw out there a great like number, or I believe the average percentage dividend yield is 4.7%. So if you're looking at stocks, let's say you're researching stocks because you don't want to wait for me to put out the video about my 5 top ones. Let's say you start researching some dividend-paying stocks and you're looking at the percentages and you're trying to find a freaking 25% annually dividend payout, it's, it's not gonna happen. I'm telling y'all right now. But anywhere between like a 3 to like a 7% is great. If you find that, you're hitting the sweet spot because like, like I said, I believe the average, um, dividend payout is like 4.7%. So dividend trading is a great source of passive income. It's a great extra source of income that you could add to your portfolio without doing much. That's the thing, like you're investing, right? They could be regular stocks. ET gives out dividend yields. Um, I don't want to get into all the ones that give keep on doing this because then I'm gonna just keep going. But there's a bunch of stocks that a lot of people already have that already pay out dividend deals. They might not be that high, 4%, it might be 1% or 2%, but, um, it's another source of passive income that literally you have to do minimum working, which is great. That's what we all want, more sources of income that we don't have to put 10 hours into. So now that I kind of told you guys the pros, why you should get into it, kind of what it is, I do want to give you guys the cons, like what can be bad about it. Um, of course, for any investment, like I said— wait, let me pause. Any advice I'm giving is not financial advice. I am not a CPA or financial advisor. I am your friend. Yeah, but like I said, any investment you're gonna, um, put money into, there will be risks because, you know, without risk there is no reward. Didn't they say that in Transformers or something like that? I don't even know. But with every single investment, there will be risks. So I kind of want to break down some of the cons that can be, um kind of involved with dividend trading. One could be that the stocks do not grow as fast most of the time. Um, so say back to our whole durags analogy. Now you guys know I love cryptocurrency, right? Crypto moves very fast. In a week it can move 15%. I can make 15% off of my investment on crypto, and that's like regular, regular stocks. You can make 2% a week, 3%, 5% a week. That's kind of much, but you're in that area, like weekly. With dividend, most stocks do not move that much, which can be good and bad because that means the stock value cannot drop down as fast. Most of the time it will not, unless like the company becomes racist or kills children or something like that, then the value of it will go all the way down. But I'm saying like on a normal basis, most of the time dividend stocks do not— they're not that volatile, so they're not moving 10% every freaking week and 20% down every week and 100% up. That's not the type of thing. This is more like a passive income depending on how much upfront money you have. That's another con. If you don't have a lot of upfront money, dividend trading could seem pretty minuscule to you or seem like a waste of your time when it's really not. Because like I said, it is passive income. You're technically not doing any work. So say you put $10 into it with 4% interest dividend annually, you only get off that $10, you're only gonna make what, 40% off that $10 annually?, but at the same time, sitting inside a bank account, it's not gonna do anything better. You're actually gonna lose money. In a savings account, I think you make less than 1% annually, something like that. So you ain't really making nothing. So dividend investing is still beneficial for anybody, no matter how much money you have. You can start off with $10, $100, $1,000, whatever it is, it's beneficial because it is passive income. You're not sitting in front of a computer for 10 hours studying charts to go try and figure out money. You kind of just put money into it, and what you do is, of course, you gotta do the studying up front and make sure you invest into a good company. But then after that, you kind of just let it ride, you feel me? You just collect the money when it sends it to you or reinvest it back into it, you feel me? Another con that I'll get to, probably the last one, 'cause these are like the main ones that I think about when I'm going into investing into dividends, is that any company with a high percentage dividend yield payout most of the time it's not sustainable. So like I said before, if you see a company that's offering you $15 or you see a stock that's offering 15% annually, that's not really maintainable for a long period of time, especially as the company grows, or if a company stops growing. It's just not maintainable. 15% is a lot. So that's why I said stick between the range of like 3% to like 7% is always good. Anything over 10% is I personally would not invest into it, even though it might sound good. 10% sounds good, but it's— well, 50% sounds good. You know what would sound great? 100%, actually. I might just gotta risk it all. Nah, I'm just playing. But I kind of explained what dividend trading is, where you can get on it. Webull, first link in the description. Sign up, finesse the game. You remember how I told you how to do it? Scroll back and watch. I'll rewatch it. You'll see how to do it. Where you could buy it, where you can start getting on it. I told y'all I can put y'all on to the 5 top ones that I use right now. It's pretty good. I told you about the pros of it and the cons of it. So, you know, honestly, it's up to you to see if you're gonna use these tips to make yourself some money. You feel me? I hope you guys enjoyed the video. Hope you were able to learn something, even if it's just a simple explanation about dividend trading, what it is, dividend investing, how you can get into it, what different percentages mean for you. Hope you was able to learn something. Something out of it or pique your interest in it. If you want me to, um, put a video out there, my top 5, drop inside the comments down below. Make sure you like the video. Make sure you go on Webull, first link inside the description, and get started with any stocks. You can watch my other stock video to get it, to understand which ETFs you should invest in, which stocks you should invest in. Make sure you watch my other crypto video so you can start making the big bank. I'm gonna see you on the next video.