Dividend Investing Series

🎥 Video tutorials
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Hey, everyone.

We’ve just started a dividend investing series on our Youtube channel. In the first video, we cover the following topics:

  • The goal of dividend investing
  • What is a dividend
  • Тhe pros and cons of this method

We’d love to hear your thoughts in the comments :point_down:

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It’s a bit lacking for me. It would be good to mention that:

  • What should matter to an investor is total return (price appreciation + dividends), not just the dividends
  • Dividends may be taxed unfavorably in some countries compared to capital gains
  • A dividend is not money out of thin air, so when a company pays a dividend, the price falls by the amount of the dividend paid
  • An investor can create their own dividend by selling some shares
  • A dividend ETF (e.g. Vanguard FTSE All-World high dividend) is better than picking individual stocks, as it’s very diversified
  • Focusing on just the yield is a good way to fall for a value trap
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However, the dividend may suffer from double taxation if held in a taxable account. Vanguard pays 15% tax on the US dividends. A UK taxpayer pays an additional 7.5%, 32.5% or 38.1%. Owning shares instead the ETF has the advantage that the total tax does not suffer from the +15% which Vanguard must pay up front on any US dividends in the ETF.

The basket of shares in VHYL probably return around 3.6%. 40% are US shares. The ETF pays 3.18%. So the ETF is not as low cost as it might first appear.

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In this video, we go over some of the most important terminology related to dividend investing, such as:

  • Declaration date & Ex-div date
  • Record date & Payment date
  • Dividend yield
  • Dividend payment ratio

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In our newest episode on dividend investing, we touch on some techniques that could help you find good dividend stocks.

If you want to learn more, you can watch the full video here :point_down:

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Another episode from our series is here. In the newest video, we talk about using:

  • Automation to simplify dividend investing
  • Trading 212’s Pies to help choose dividend stocks and keep a diversified portfolio
  • AutoInvest from Trading 212 to improve your consistency when investing over time
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A post was merged into an existing topic: Video Tutorials: Investing 101