My Current Dividend Stock Investing Strategy (Recently Updated)

I'm excited to share my revised dividend stock investing strategy (for Q4, 2024 and beyond). I'm now targeting a dividend yield of 6.16% for my net new purchases, on a blended basis. See how my dividend yield aligns with my personal journey. I'm excited to share my free framework with everyone.
#dividend #stock #strategy

Timestamps:
0:00 INTRODUCTION
0:51 PPC IAN DIVIDEND INVESTING STRATEGIC FRAMEWORK (6 Questions To Answer)
1:14 QUESTION 1: Timeline? Lots of time until retirement, or not much time until retirement.
1:40 I ranked myself a 9 on question 1, since I have little time until retirement. I'm ready to retire now (yesterday?)
2:35 NOTE: You may not be able to work as long as you think.
3:12 It's not only about number of years, but how many hard years one has worked.
4:14 QUESTION 2: Stress level? Low stress level, or high stress level?
4:41 My stress level is high, so I answered 8 for myself. (I just need the cash flow to cover the bills NOW. I need the weight off my shoulders.)
5:27 QUESTION 3: Risk tolerance? Low or high?
5:50 My risk tolerance is low. I answered with a 4. I cannot afford large volatility (and/or large losses) at this stage in the game.
6:32 Typically, those dividend stocks with lower dividend yields (2-4%) carry less risk. This is why my portfolio skews a little lower in dividend yield.
7:30 QUESTION 4: Portfolio size? Larger or smaller?
7:49 I answered 4 because my portfolio skews larger in size. This is helpful, because it affords me the ability to skew towards lower-yielding dividend stocks (which often carry less risk).
9:00 QUESTION 5: Cost of living? Low overhead or high overhead?
9:14 I'm a 9 because of my high cost of living. I have always been going for Fat F.I.RE.
9:27 KEY: Living expenses have skyrocketed. Overhead is higher for all of us.
10:18 QUESTION 6: Account structure? Taxable account structure or retirement structure (or in the middle)?
11:00 I rank as a 3 because I skew heavily towards taxable accounts. (I can tap into dividends right away right now.)
11:30 SUMMARY
12:01 I'm coming in about 3.76% portfolio-wide yield. (This is a bit lower than where my gut tells me I should be. I should have more yield, leverage on funds deployed, given where I'm at in my own journey.)
13:32 I average at 6.16% when I sum up my answers and dividend by 6.
14:00 Based on my answers to my strategic framework, I'm undershooting on yield. I should be deploying my funds in higher-yielding stocks.
14:44 When I did my portfolio update, I felt like mid 4% range makes the most sense.
15:03 DEPLOYING MY FUNDS INTO DIVIDEND STOCKS
15:33 This week, I plan on buying SCHD.
15:45 I bought Chevron (CVX) stock last week.
16:18 My trades from the last two weeks get me to a 3.94%. This dividend yield (on new funds deployed) is not high enough.
16:43 Alternate: SCHD and FOF. I get a blended 5.8%. This makes a lot more sense given my strategic score of 6.16%.
19:15 DISCLOSURE AND DISCLAIMER

DISCLOSURE: I am long Johnson & Johnson (JNJ), Altria (MO), British American (BTI), Chevron (CVX), and SCHD. I own these stocks and ETF in my personal dividend stock portfolio.

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Because the information herein is based on my personal opinion and experience, it should not be considered professional financial investment advice or tax advice. The ideas and strategies that I provide should never be used without first assessing your own personal/financial situation, or without consulting a financial and/or tax professional. My thoughts and opinions may also change from time to time as I acquire more knowledge. These are, as discussed above, solely my thoughts and opinions. I reserve the right to delete any comments for any reason (abusive in nature, contain profanity, etc.). Your continued reading/use of my YouTube Channel, blog, email newsletters, whitepapers, Excel files, and other materials constitutes your agreement with and acceptance of this disclaimer.

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