I have big news! My dividend stock investing strategy is changing for the remainder of 2023 and beyond. I'm now optimizing towards high yield dividend stocks, for current passive income that I can use to pay my bills now. This is informed by my macroeconomic worldview, but also by my personal situation right now. #dividend #stock #investing
Timestamps: 0:00 My dividend strategy is completely evolving in 2023/24. I'm about to embark on a new chapter of my investing. 0:24 SEGMENT 1: THE HISTORY OF PPC IAN DIVIDEND STOCK INVESTOR 0:31 ERA 1 (2008): THUG LIFE INVESTOR 1:30 I did not have a care in the world. I was very confident. I went for high yield because I was just getting started out, and I was not worried about concentration of risk in sin stocks like Altria (MO). 2:25 Dividend stocks that could "show me the money" right now. 3:08 I bought Altria (MO) stock at $15.99 in 2009. I'm yielding 23.5% simple yield-on-cost on my 1st tranche. I'm still adding here at the current 7.9% dividend yield. 4:17 ERA 2 (2011-2022/23): DIVIDEND GROWTH INVESTOR 5:26 Older, more cautious, blue chip, dividend growth investor. Looking towards the future. Investing for 10+ years out, for myself, my wife, and my kids. 6:41 I bought PepsiCo (PEP) in 2011. They just increased their dividend by a staggering 10%. 6:51 NOTE: I just did a fun YouTube Short on PepsiCo (PEP). 6:58 I bought PEP in 2011 for $63.78. My simple yield-on-cost (1st tranche) is a solid 7.9% (which is inline with MO's current starting yield). 8:24 ERA 3 (2023/24 and Beyond): HIGH(ER) YIELD DIVIDEND STOCK INVESTOR (THUG LIFE SKEPTICAL) 8:51 I made some big moves in my portfolio that get me to my 2023 goal. I share these over on Patreon. 10:02 I'm unwilling to wait for cash flow anymore. I'm ready to travel the world right now. It's expensive. I need meaningful cash flow NOW to pay for it all. 10:28 I'm buying Universal (UVV) these days. 11:05 MY DIVIDEND STRATEGY: Everything that exists will remain as-is. My new strategy with net new capital will focus on higher-yield dividend stocks. 12:00 SEGMENT 2: THE MACRO-ECONOMIC ENVIRONMENT INFORMS MY CHANGING DIRECTION 13:03 From 2000-2012, the S&P 500 went nowhere. I think we could be entering a similar period now. 13:41 I believe we are entering a period of slower earnings growth and slower dividend growth. 14:14 There's a lot to worry about: $31.5 trillion debt, bad environment, geo-political tensions, people believe corporations are "greedy", high inflation, high interest rates, layoffs at larger companies, we are very technology-dependent (can create risk), and stocks are very expensive right now. 15:44 KEY: I will never compromise quality for yield. 16:29 I focus on equity due to qualified dividends. 16:38 Keep in mind that my existing portfolio has a current dividend yield of 3.3%, so I'm trying to get that up to say 3.5% or maybe even 4%. I have enough dividend growth. 17:09 DISCLOSURE AND DISCLAIMER
DISCLOSURE: I am long Altria (MO), BTI (BTI), Universal (UVV), PepsiCo (PEP), Starbucks (SBUX), McDonalds (MCD), and Johnson & Johnson (JNJ). I own these stocks in my personal dividend stock portfolio.
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