Why Dividend Investing Is Hard & Most People Cannot Make It Work

Living the passive income FIRE (financial independence retire early) dream on dividend income is hard. I share in today's video stocks I own that are facing real drama: Altria (MO), Philip Morris (PM), Johnson & Johnson (JNJ), and 3M (MMM). Learn how I approach this drama as a #dividend #stock #investor with 20+ years experience. I'm excited to share the key strategies that make dividend growth investing work for me, the frameworks that I personally leverage in my own investing.

Timestamps:
0:00 Intro – Tons of drama right now for dividend stock investors
1:40 Looks like Altria (MO) and Philip Morris (PM) are considering joining forces again. Here’s what I think about it!
3:40 In general, I'm a fan if they combine forces or if they stay separate. They will do what's best for shareholders.
4:14 Altria (MO) just raised the dividend. My dividend yield on cost is 21% on my first tranche.
5:30 How are the stocks reacting? (It gets complex because even more news came out today.)
7:23 Once you have built-in gains, the drama is not as scary. Newer investors have it the roughest.
7:43 MO
9:40 PM
10:46 BTI
11:13 What is my strategy right now in the sin stock sector?
12:25 JNJ
13:15 An important note on the Johnson & Johnson opioid trail and my discussions of it here.
14:49 I actually think there exists some risk here with JNJ: What if other states come in (in addition to Oklahoma)?
15:25 This is why I diversify in my dividend stock portfolio.
17:17 The way society is going with big government creates more risk for dividend investors.
19:00 MMM
19:40 What are the key lessons from all of this? What do these examples teach dividend investors?
20:46 STRATEGY: How I dollar cost average
22:25 IMPORTANT: This is why dividend investing is REALLY hard and most people cannot do it. I expect to be down on every tranche in the coming years in the short-run (during a down market).
24:33 STRATEGY: In a bad market, it is oftentimes better to stay high level during the drama.
25:31 STRATEGY: Am I buying more here?
26:27 STRATEGY: We're going to get a lot of "I told you so". Be careful to stay in a supportive investing community.
27:52 STRATEGY: Diversification is everything!
28:36 I want to discuss running and how it relates to dividend stock investing.
29:19 KEY: Stay excited in the stock market over time, over the long-term.
29:47 KEY: Stay a little distracted so the process goes by faster.
30:31 KEY: Consider zoning out a bit during the long marathon of dividend investing for FIRE.
31:35 KEY POINT: Dividend growth investing is hard!
33:41 KEY: It always takes longer than you think. It's always more difficult than you think.
34:24 KEY: It's the mental side of it!
34:49 KEY: Listen to your heart when investing.
35:49 KEY: Stay away from negative self-talk.
36:15 KEY: It's hard, but what other options really are there? Dividend growth investing is the best true passive income strategy, in my opinion.
39:52 Gilroy Gardens

Download my entire dividend stock portfolio here:

I'm now paying bills with dividends:

Here's what we discussed at our recent PPC Ian meet-up in San Francisco:

DISCLOSURE: I am long Altria (MO), Philip Morris (PM), BTI (BTI), Johnson & Johnson (JNJ), 3M (MMM), Cedar Fair (FUN), and McDonalds (MCD). I own these stocks in my stock portfolio. Also, my kids own Disney (DIS).

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Because the information herein is based on my personal opinion and experience, it should not be considered professional financial investment advice or tax advice. The ideas and strategies that I provide should never be used without first assessing your own personal/financial situation, or without consulting a financial and/or tax professional. My thoughts and opinions may also change from time to time as I acquire more knowledge. These are, as discussed above, solely my thoughts and opinions. I reserve the right to delete any comments for any reason (abusive in nature, contain profanity, etc.). Your continued reading/use of my YouTube Channel, blog, email newsletters, whitepapers, Excel files, and other materials constitutes your agreement with and acceptance of this disclaimer.

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