I'm Buying These 2 DIVIDEND STOCKS (Market Is Down)

The stock market is dropping, so I'm buying high-quality dividend stocks at value prices! I'm excited to cover the 2 value stocks that I purchased this week at great prices. I'm also excited to cover an analogy that illustrates the tradeoffs one makes when investing in different types of dividend stocks.
#dividend #stock #investing

0:00 INTRODUCTION: CPI inflation data is high, so the stock market is correcting.
0:12 Near-term interest rate cuts are unlikely.
0:29 As stocks trend down, starting dividend yields go up.
0:53 I bought 2 dividends stocks this week.
1:12 SEGMENT 1: ANALOGY (BUYING TREES)
2:06 Scenario 1: Buying two large, mature trees for $500. They bear a lot of fruit immediately. But, they are not growing as quickly anymore.
2:51 In my analogy, the fruit on the trees represent dividends.
2:54 This scenario is a current yield situation, like Pfizer (PFE) stock.
4:02 Scenario 2: Buying, many small trees for $500. They bear a small amount of fruit, but it will take years for them to grow to their full potential.
4:38 Over time, these small trees could grow and surpass the fruit yield from the 2 large trees in Scenario 1.
5:00 This example illustrates Starbucks (SBUX) stock.
5:28 Check out my Patreon in the pinned comment below.
5:40 SBUX offers some dividend yield now, but the value really lies in future growth. This is a yield-on-cost scenario.
6:08 This Scenario 2 takes a long-time to pay off (and surpass Scenario 1).
7:51: SEGMENT 2: PFIZER (PFE) DIVIDEND STOCK ANALYSIS
8:08 I love their forward PE of 12.15 (2024) and 9.68 (2025).
8:27 They offer 6.29% starting dividend yield (which is growing at about 3% per year).
8:42 Parallel to PFE and commercial real estate properties.
9:20 Side Note: Coming back from vacation.
10:05 Vacation is a reminder of what the dividend dream lifestyle could look like.
10:48 SEGMENT 3: STARBUCKS (SBUX) DIVIDEND STOCK ANALYSIS
10:55 I'm surprised to see SBUX down 25% from the 52-week high (which was not overvalued IMHO).
12:00 The forward PE is 21 (2024) and 18 (2025). This is low for a quickly-growing enterprise like SBUX.
12:27 The starting dividend yield is 2.65%, but the dividend growth rate is 9.63% per year, on average.
13:20 SEGMENT 4: WHY DID I BUY BOTH STOCKS?
13:49 Part of me wants to buy immediate yield.
13:59 Fire is a continuum. The more cash flow I have coming, the more I can have balance.
14:34 I know from personal experience that dividend growth investing works. PG just increased their dividend by 7%. My 1st tranche simple dividend yield-on-cost is now 6.6%.
15:52 Starbucks is about 11% of my portfolio, but I'd be fine doubling my position from here.
17:03 DISCLOSURE AND DISCLAIMER

DISCLOSURE: I am long Pfizer (PFE), Starbucks (SBUX), Philip Morris (PM), and Procter & Gamble (PG). I own these stocks in my personal dividend stock portfolio. My kids are long Disney (DIS).

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