Never thought I would use a 🍌 to describe Dividends but here you are 😂 👋 LET’S CONNECT ON INSTAGRAM instagram.com/smartmoneywithkai ⚡ ALL MY FAVOURITE TOOLS smartmoneywithkai.com/tools 🟡 JOIN SMART MONEY CLUB www.smartmoneywithkai.com/smartmoneyclub
@chrisg5853
Ай бұрын
I really appreciate the banana analogy as I'm a visual learner and this makes total sense to me. I have most of my money handled by a financial advisor focused on growth stocks but I have some money on the side that I'm using to learn and build a dividend focused portfolio. I made the beginner mistake of being attracted by high dividend yields even though the companies were preforming poorly. But I'm slowly learning that it's also important that the company is healthy and growing at the same time.
@SmartMoneywithKai
Ай бұрын
Hi Chris, that's awesome to hear 🙌 Well done for starting and learning along your investing journey, we've all been there and I have also been blinded by high dividend yields in the past, but that's just one part of the story and often so high for a reason 😉 Cheers
@hellasgiannis
Ай бұрын
Since you are mentioning dividends, I was looking at Stellantis , the car manufacturer company . The price has recently fallen a lot , and currently, the dividend yield is at 9.7% at a P/E ratio of about 2.7! May I ask what your opinion is on this stock ? I am seriously looking at it , and I can’t quite decide !
@SmartMoneywithKai
Ай бұрын
Hi there, just had a look at them, solid returns over 10 years, almost on par with S&P 500 👌 However, when I pulled it up on Seeking Alpha, I was greeted with a red warning sign that they MIGHT be at risk of cutting dividends, doesn't mean they will. I guess the YOY revenue drop is not good, but apart from that looks like a solid company 💯
@parkdunkin
Ай бұрын
Thanks for the awesome video as always! When it comes to the part where you need to declare the tax for the dividends yourself, do you still find it attractive enough to investing in divendend stocks? Since you need to spend the money, time and energy for the taxes.
@SmartMoneywithKai
Ай бұрын
Hi Seok, many thanks 🙌 The taxes part would apply to any investments you do, no way around unless you live in places like Dubai. So for Dividends the dividend withholding tax for example will be automatically withheld by your broker, nothing for you to do, but the dividend income and capital appreciation if you sell a dividend stock at a profit will need to be declared, though most brokers will prepare you that report once a year which you just submit to your respective authorities, so pretty straightforward actually. But of course, if you do buy US dividend stocks, that extra tax might be a considering when making your investments, which is why I reduced my dividend holdings. Cheers
@parkdunkin
Ай бұрын
@@SmartMoneywithKai Thanks for the reply Kai!😀 All clear. If I may ask one more thing, in your case, the interests you get from the broker app (e.g. T212 interest on your uninvested cash) is also the amount you annually should report to the athority, correct?
@SmartMoneywithKai
Ай бұрын
@@parkdunkin That’s correct, if you live in a country where interest income is a taxable event, which is most countries, then, yes 😉👌
@parkdunkin
Ай бұрын
@@SmartMoneywithKai Understood. Thank you Kai:)
@maxrates
Ай бұрын
The way I look at it, if a company doesn't pay any dividends, what good is the stock for. The only good reason to not pay dividends is if the company is still early in it's growth phase. That way the prospect of holding for a bigger future dividend is appealing. If a company has already made it big and doesn't give back anything to its investors I wouldn't want to hold that ever.
@SmartMoneywithKai
Ай бұрын
Hi and sure a lot of people like to invest for passive income, though as shown in the example, actually many companies paying a high dividend are underperforming market returns, that's why I personally shifted from looking for dividends to favour total returns in the form of price appreciation, if they then also pay dividends, then that's a cherry on top 😉
@maxrates
Ай бұрын
@@SmartMoneywithKai Fundamentally, a business exists to make money for it's owners. If we buy a piece of it we should also get a share of the profits. Many stocks trade at insane valuations and simply use investors to raise more money for themselves rather than trying to bring good value to us.
@SmartMoneywithKai
Ай бұрын
Sure, but again, the company might choose to reinvest or buy back shares which would lead to higher share prices. For example, when people invested in Tesla, Uber or Facebook the first few years, those companies did not make any profits at all, but early investors benefited tremendously from it despite the lack of dividends. That's why I don't care if my personal profit of ownership comes from dividends or share price increase, I look at total returns of my investments.
@ettorelombardi390
Ай бұрын
What do you guys think about kaspa, Tao, Injective?
@SmartMoneywithKai
Ай бұрын
Hi, can't comment as I don't invest in those, just good old Bitcoin for me 😉
@jj-oo3jv
Ай бұрын
Great video man ! Are you still living out in Dubai ? You are living the dream. 🔥
@SmartMoneywithKai
Ай бұрын
Appreciate that and yes I am, though currently in beautiful Vilnius, Lithuania for the summer but back to Dubai from September. I am also grateful to be able to live between cities like that, something that would have never been possible with my previous corporate job. Cheers
@janstarak4877
Ай бұрын
Hello Kai, earning that dividends on spy5 means that you bought 100etfs with the price of 500$?
@SmartMoneywithKai
Ай бұрын
Hello John, yes, almost 👌
@janstarak4877
Ай бұрын
@@SmartMoneywithKai cool, and one more question, is trading212 safe enough or do you own it on another platform?
@SmartMoneywithKai
Ай бұрын
I would say yes and hold my funds with Trading 212 & Interactive Brokers 👌
@nebulka3353
Ай бұрын
Hi Kai. Hope you have some plans to make video about (uniswap/aave/gmx and etc)
@SmartMoneywithKai
Ай бұрын
Hi, and no, not at this stage, I keep my crypto investments simple and only into Bitcoin at this stage so for that there are smarter more crypto specific KZitemrs out here 👌 I enjoy watching Lark Davis. Cheers
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