DIVIDEND INVESTING MAY NOT WORK (When These Mistakes Are Made)

The dividend stock investing strategy may not work, if these critical mistakes are made. Learn about 5 mistakes to avoid as a dividend stock investor. (And, don't worry. All investors make mistakes and evolve.)
#dividend #stock #investing

Timestamps:
0:00 INTRODUCTION
0:23 MISTAKE 1: Taking a Setback and Letting It Derail The Investor's Journey
0:36 Check out my Patreon in the pinned comment below.
0:48 I faced a huge setback in 2023. I faced a huge value decline on Hawaiian Electric (HE) and, more importantly, a huge dividend income drop (with their dividend being suspended).
1:36 I took this setback to refocus on Realty Income (O), and I bought a ton of units below $50 and slightly above.
1:50 KEY: Take a bad situation and refocus on the positive.
3:01 KEY: It is inevitable that the investor will face setbacks on the journey.
3:24 My portfolio is down -1.3%, but my dividend income is up 2.28%. And, that’s even with the HE dividend suspension. I went aggressively on Realty Income (O).
3:47 If HE did not have issues, my portfolio would have been up 0.5%, and my dividend income would have been up a staggering 5.71%.
4:12 LESSON: Smaller companies are not as exciting to me anymore in our "winner takes all" society.
4:47 MISTAKE 2: Getting Bored and Making Sub-Optimal Investments (or giving up altogether)
5:10 Selecting the right stocks is key, but it’s not that difficult.
5:33 There's so much more to dividend investing: persistence, determination, grit, not giving up, not getting bored.
6:26 In my early days, I had so much great stock picks: ABBV, GIS, SO, SBUX.
6:48 My portfolio got too big, but now I've trimmed it back down.
7:05 Some of the incremental companies I added (past position 37 were not as successful for me).
8:00 KEY: Don't focus so much time on stock picking. Focus on not getting bored.
8:30 KEY POINT: In the early days of my channel, the stock market was in a very favorable place. It was easier to pick great stocks. Stock picking has become more difficult.
9:11 Dividend investing works with individual stocks, it works with ETFs, it works with both.
10:09 MISTAKE 3: Being Fearful in Down Markets. (Buying High and Selling Low.)
10:30 The money is made in bear markets. I was buying Starbucks (SBUX) during the depths of the pandemic bear market.
12:09 BEAR MARKET RULES
12:54 Value stocks are lagging Growth stocks this year (since July).
14:15 MISTAKE 4: Thinking That It's All About Stock Picking
14:27 It's about time-in-market, capital deployed, being frugal.
15:27 MISTAKE 5: Listening To the Media
25:54 Often, I like to do the opposite of what mainstream media says.
16:17 Mainstream media would lead you to believe that big oil has no future.
17:01 Contrarian Investing
17:30 PPC Ian Is Here Because I Want You To Succeed
18:29 I'm still reinvesting a good 45%+ of my dividends, but over time I will use more dividends to fund my life.
18:59 SLIDE: DIVIDEND STOCK SELECTION
19:10 Dividend Aristocrats
19:42 SLIDE: MY DIVIDEND STOCK INVESTING PHILOSOPHY
20:38 KEY: Have excess cash on the sidelines to avoid tapping into the portfolio for large purchases.
21:02 DISCLOSURE AND DISCLAIMER

DISCLOSURE: I am long Johnson & Johnson (JNJ), PepsiCo (PEP), Procter & Gamble (PG), Realty Income (O), Hawaiian Electric (HE), Southern Company (SO), General Mills (GIS), AbbVie (ABBV), Starbucks (SBUX), Utz Brands Inc. (UTZ), The Home Depot (HD), and SCHD. I own these stocks in my personal dividend stock portfolio.

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