Dividend and Value Investing

 Amazon has grown its valuation from around a $300 million market cap when it went public in 1997 to now $1.966 trillion, making it the world's fifth most valuable company by market cap. Amazon has been able to do this because of their founder and ex-CEO Jeff Bezos and his drive for success. Jeff Bezos started Amazon as an online bookstore which was meant to compete with brick and mortar bookstores. As this worked out very well by the late 1990s Jeff Bezos decided to expand past just selling books. He also realized how important the internet was going to be and created AWS in 2006 for cloud computing which now makes up about half of Amazon's revenue. Amazon says their mission goal is to be “Earth’s most customer centric company”. They also say they want to be Earth’s best employer and Earth’s safest place to work. They are incredibly customer centric as their claim to fame is their 2 day shipping and they have an incredible return policy in which almost all items can be returne...

 Realty Income may be the most popular dividend stock on the internet. Realty Income is a REIT which specializes in triple net leases in single tenant commercial properties it currently has a 5.72% dividend yield. In this article I’ll share 3 reasons why dividend investors love this dividend stock. 1- Monthly Dividends As you can see in the picture Realty Income calls themselves “The Monthly Dividend Company” and they are known as just that. Realty Income has paid 646 consecutive monthly dividends! Dividend investors like monthly dividends more than quarterly dividends because they can compound faster which is amazing. Investors also like monthly dividends because they get paid more often.                                 2 - Dividend Growth Realty Income is a dividend aristocrat which means they’ve raised their dividends every year for at least the past 25 years. Since Reality Income went public in 1994...

You’ve probably seen people on the Internet, talking about how Blackrock and Vanguard control the world. It’s not just random people either, Vivek Ramaswamy former presidential candidate has said this too. This isn’t a new theory as people have been saying this for a while. The reason they’re saying this is because Blackrock and Vanguard combined manage about $17 TRILLION! That’s around half of the U.S’s debt and together they owned 21% of the S&P in 2021.  If you look at most stocks top holders Blackrock and Vanguard are normally at the top of the list. As an example look at Apple’s shareholders with voting power over 5% in 2023. Vanguard is the biggest and Blackrock is right behind it. This makes it seem that Vanguard and Blackrock really do control these companies.   So do Blackrock and Vanguard really control the world?  To put it very simply…. No they don’t.  You may have noticed in the first paragraph how I wrote they manage $17 trillion. That’s ...

There has been a massive influx of high yield dividend paying ETFs that have joined the market in the past couple of years. The problem is some of these ETF may have great dividend yields but keep on dropping in share price for a number of reasons. In this article I will specifically be talking about is TSLY which currently has a 94% dividend yield.  TSLY was created by Yieldmax on October 22, 2022 and its purpose is to produce a high dividend yield that pays out monthly. It currently pays a whopping 94.95% dividend yield! This means for every 100$ you invest it should (the dividend yield fluctuates so this isn't guaranteed as we'll discuss soon) pay you 94.95$ in dividends per year. The way it works is by buying call options and selling put options to mimic Tesla's price movement. They also sell covered calls and have short positions which have cash and U.S bonds as collateral for it if the strategy takes a wrong turn. All the money TSLY generates from the premiums on the ...

Why Dividend Investors Love SCHD   The Schwab U.S. Dividend Equity ETF (SCHD) has become a favorite among dividend investors, and for good reason. This ETF offers a great combination of features that specifically cater to a dividend investor’s strategy. In this article, we’ll explore three specific characteristics that make SCHD so attractive to dividend investors. 1-How SCHD Selects Dividend Stocks SCHD has some strict requirements for stocks to be in it’s portfolio. The first requirement is that the company is in the Dow Jones broad market index and has had to have been paying a dividend for at least 10 consecutive years. It then checks free cash flow to total debt, shareholders equity, and the five year dividend growth rate to determine which stocks make it into the portfolio. This means they search through 2,526 individual stocks and end up only choosing around 100 of those stocks to put into the portfolio. Below is a visual representation of the process. For those wondering ab...