MAKE MONEY OFF DIVIDEND STOCKS

so dividends right because this is something that we haven't covered and a lot of people have heard of dividends but they don't fully understand what a dividend is so what what is the dividend yeah you said that's one of the strategies you use yeah i love them stocks yeah so what happens is dividends are a portion of the profit that companies pay to people who are invested in a business not the revenue but the profit so if i have a business that brings in uh ten thousand dollars a month and i profit five thousand dollars a month then out of that five thousand dollars i'll take a percentage of that which is called the dividend yield and i'll pay it to my investors as a part of saying hey thank you for investing in my business is it paid equally or is it obviously depending on how many shares you have you get more not yeah well it the dividend is the same so if i pay 50 cent a share right which is two dollars a year everybody gets that depending on how much you have if you got five i have ten he have fifteen then we will all get a different amount but the the underlying asset value is the same so what are what are what are some top companies as far as dividends these days what are they uh att pays seven six percent six percent that's major now they so this is a dope part so we talk about real estate right the real estate aspect of the stock market which is called real estate investment trust which is a wreath which is saying i can own walmart as a business and i can own the people who walmart pay rent to because they don't own the building they just own the name [Music] like amazon has a warehouse i can on amazon and i can also own the warehouse who paid who amazon pays the rent to reits pay higher dividends we talking 12 9 7 so individual stocks uh att macy's centurylink now that's a bad business but they pay a high dividend that's what's called a dividend trap we're not gonna get into that how are they dispersed quarterly how they disperse so every business is different so with a lot of the reits they come out uh some of them pay monthly and so man i was telling you that i have businesses one of my businesses is apple realty they own 128 sheratons and hiltons and 200 and something marriotts they're not going out of business anytime zoom but they pay me i think at a 9 rate on their reits and they pay that monthly so every month they're paying me so that's nine percent of the money that you have invested no that's nine percent of the stock price okay right so that's all the dividend yield is so a dividend yield is this if the stock price is a hundred dollars and a dividend yield is five percent then your dividend is five percent of that one hundred dollars okay that's what you're getting paid okay that makes sense it's passive uh super pass passive but you do have to have large amounts for it to this is true but you were saying that you should you have to start looking at it like okay this will pay my cell phone bill what's the freedom process can you explain that you talk about 18 t but you got to create so what happened to me was i started asking myself how do i buy back my freedom right like how do i buy it back that's powerful right because it's not given to you just like you know shadow slavery like i'm not gonna give it to you you gotta buy it back you gotta fight for it so i was like how do i buy back my freedom with the stock market because you can't save to investigate it back right we know that you can't work a bunch of hours to get it back so the next best thing for me was dividends so i was like okay what do i use every day my phone bill tnt and i have apple product so because atnt pays a five percent six percent dividend yield i was like okay i need this many this many shares of this business to pay off my phone bill every four months because at t pays quarterly which is every three months disney pays semi annually which is twice a year and then you have some businesses that pay every month right so i was like okay if i can get att to pay my phone bill through their dividends four times a year then i have essentially bought back my freedom because i no longer have to work to pay for that phone bill att paying it for me and so you can do that with your if you're in georgia you can use southern company which is another great dividend business how much is your phone bill i mean your light bill 80 100 they pay like three four percent dividend figure out how much the dividend is per quarter how many shares you'll need of that business and then let that pay your life bill so if you can use your dividends from a business to pay your light bill and your phone bill you've bought back some of your freedom because now you can take that money and invest it and do something else with it absolutely that's optimizing your money the money is just a tool we know that much so if we can use the tool to do this supposed to do then we getting maximum value for it and that's um so once you fully understand investing you start to understand that it's like spanish right so i don't know how many span people in new orleans but they got a few half of them like 70 of new york is expanding maybe not fifty percent of your city yeah fifty percent of new york expansion that's a lot so i say i have to say when you're around spanish enough you start to understand it a little bit better maybe you might not be able to speak it but you can kind of have a general understanding of it right the same thing with investing when you're around the language of investing it starts to make sense and you realize that they're all kind of similar it's just like um actually when you learn foreign languages like spanish is similar to french they all come from like spanish portuguese yeah they're all kind of similar i forget where they actually the root came from but long story short of it is that what you just explained was the same theory that dj envy explained to us when he says that he doesn't buy any liability until he has an asset to pay for his thing is real estate so he buys a home and now he has a home to actually pay rental for his lamborghini or something like that like i'm saying you just bring it down on a small level right but because i mean that that's keto right if you break it out a small level like well yeah well and then also what people have to understand too is that so people might say okay well i got to put 2 000 into a stock to get a hundred dollar dividend it's not worth it but the thing about it is that it's not like you're paying for something you're investing so that 2000 is going to grow over the course of time while you're getting your dividend so it's not like you just putting your money into neverever land it's actually going to an investment that'll probably gain value over the course of time but in the meantime you're actually gaining uh income that you can use via the dividend and now you can actually use that to support your lifestyle because like you said there's only you got to find a way to actually make money while you're sleeping that's what warren buffett said right if you don't make money while you're sleeping you're working yeah so by doing that now you're actually okay now i can like you say you can focus on okay now i did that now i gotta do something to pay all right i gotta pay my mortgage and i gotta do something to pay my car bill and then before you know it you're not actually paying anything yourself it's all being paid for you which leaves you more money because that 200 that now you can actually reinvest and do other things and just kind of like a domino effect like lord of the sun said it was like yo i treat money like little soldiers they have to go work listen but also also he's forgetting something that's major the ownership you feel me so while your money is working for you through the dividends your ownership your equity is also increasing yeah so that's how you like you leverage the game with that yeah and that's something that people don't understand either it's like he was like well everybody's not an entrepreneur i don't want to own a business there's a lot that comes with owning a business but there's more than one way to own a business if you buy stock you're an owner in that company that's one that's probably the easiest way to own a business now you're not going to be a majority owner but it doesn't matter it doesn't you're still a owner one percent of something is better but listen so warren buffett owns six percent of coca-cola right so he's still not a majority owner but he still has cecil and this is the one thing about the stock market that i love i still can vote on every business that i own and they have to acknowledge me like i literally bought three shares of berkshire hathaway b let's make sure i say that b what's there's a difference it's a big difference so let me see because i want nobody to be like hey man you gotta you ain't gonna do it i heard it so i literally bought three shares of berkshire b which is which is warren buffett's company for anybody yes i bought my daughter that's another thing so at three years old my daughter has five thousand dollars invested in the stock market oh yeah i want to talk about that yeah i'm asked about that but i bought uh three shares of berkshire b so i could go to the warren buffett annual meeting and i had a right to vote on anything in omaha yeah did you know i went to nips uh that's when everything happened i'm going next year okay for sure for sure and the only way you can go is if you own at least one share right so i was like okay cool and you actually get to talk to this man [Applause] [Music] [Applause] you

Channel: Earn Your Leisure

Views: 49,547

Rating: 4.9809809 out of 5

Keywords: earn your leisure, business, finance, dividend stocks, Stock market, Investing

Id: FA2ftLfqpYg

Length: 10min 56sec (656 seconds)

Published: Thu Jul 30 2020