How to create Income stream with Dividends.

[Konebhar6]

A lot of people here are investing in real estate with an intention to create an alternate income stream. For those who do not want the hassle of housing markets, there is an option with Stocks. Of course you need to carefully pick and choose the stocks. Found this excellent article and thought I will share with you all

https://finance.yahoo.com/news/much-dividends-100k-143957889.html

[Konebhar6]

• Choose Reliable Companies - Buy stocks with strong fundamentals and consistent dividend. 
• Evaluate the Company’s Position in the Industry - Look for Industry leaders. 
• Diversify - Diversify your investments across sectors.
• Consistent dividend - Look for companies that pay consistent dividend over a period of time.
• Dividend growth - Dividend payouts should be increasing over years.
• Growth Potential - Companies should also be growing over a period of time.
• Consistent Cash Flow - Read financials to look for companies with consistent operating cash flow that can sustain paying dividends.
• Consider Debt-to-Equity Ratios - Indicates financial condition of company. Look for <1.
• Payout Ratio - Means Money distribution vs. Money it makes. Can't be high or low. High payout ratios are not sustainable.

 

[Tellugodu]

22 minutes ago, Konebhar6 said:

A lot of people here are investing in real estate with an intention to create an alternate income stream. For those who do not want the hassle of housing markets, there is an option with Stocks. Of course you need to carefully pick and choose the stocks. Found this excellent article and thought I will share with you all

https://finance.yahoo.com/news/much-dividends-100k-143957889.html

Main disadvantage with dividend stock is the high tax rate , almost 50% gone for taxes kada Anna. Real estate aythe possibly no taxes kada.

[Konebhar6]

2 minutes ago, Tellugodu said:

Main disadvantage with dividend stock is the high tax rate , almost 50% gone for taxes kada Anna. Real estate aythe possibly no taxes kada.

They fall under the regular tax bracket. Most of us fall somewhere in between 25-30%. Actual ga ayithe real estate rents kudaa taxable ee kada? Somehow ppl manage not showing it. But eppudanna IRS query padithe anthe.

Even dividend distributions lo if money is distributed as "Long term investment or return of capital" its not taxed. Only a few ETFs do that. E.g. BST, BSTZ. I am trying to find more of such funds/ETFs.

[Sonu_Patel]

Thanks bhayya.. super info idi..

Can you post the tickers with growth oriented companies which offer dividends for long term.

[Konebhar6]

2 minutes ago, Sonu_Patel said:

Thanks bhayya.. super info idi..

Can you post the tickers with growth oriented companies which offer dividends for long term.

I have shared these sheets before in other threads. Here you go

https://docs.google.com/spreadsheets/d/10z8HBmXI8apRz7C5qqLVsqYyFFpb4CsFP75UxfQwcGI/edit#gid=243618173

Let me know if you have other good stocks which you want me to add to it. I am still adding more whenever I get time.

[Konebhar6]

An open question to all restaurant owners and people who bought investment homes. Have you ever calculated absolute returns after removing all your expenses? What's the number. Can you share?

 You can also take the home/business valuation increase into consideration.

[Thantrik]

9 minutes ago, Konebhar6 said:

I have shared these sheets before in other threads. Here you go

https://docs.google.com/spreadsheets/d/10z8HBmXI8apRz7C5qqLVsqYyFFpb4CsFP75UxfQwcGI/edit#gid=243618173

Let me know if you have other good stocks which you want me to add to it. I am still adding more whenever I get time.

Thanks bro super useful info.. nako doubt ticker GOF teesukunte oka 5k invest chesthe divi manaki 80*12 =960$ per annum vasthundi anthe na or am i missing something?

[Jatka Bandi]

18 minutes ago, Konebhar6 said:

An open question to all restaurant owners and people who bought investment homes. Have you ever calculated absolute returns after removing all your expenses? What's the number. Can you share?

 You can also take the home/business valuation increase into consideration.

Year end ki chepta.

[Konebhar6]

7 minutes ago, Thantrik said:

Thanks bro super useful info.. nako doubt ticker GOF teesukunte oka 5k invest chesthe divi manaki 80*12 =960$ per annum vasthundi anthe na or am i missing something?

If you buy GOF at current prices investing $5000, It will generate monthly Income of $67.8, paid monthly. I added another section called Projected Income at Target Prices. If GOF its my target price which is usually 52 week low or 5 yr low price, you get an income of $82. Its just to keep track of the stocks. 

Please make your own research before buying anything. Understand the factors influencing it. 

[Konebhar6]

There are some misleading Dividend paying stocks that I listed in red. I added the reasons to not buy in PastDivHistory sheet. Mostly because of capital erosion. These are scam funds that are built on Pyramid investing schemes or Ponzi schemes. Avoid them.

[Konebhar6]

My favs so far .. JEPQ, JEPI, PDI, GOF, PFE, MO, VZ, etc.

[JackSeal]

23 minutes ago, Konebhar6 said:

My favs so far .. JEPQ, JEPI, PDI, GOF, PFE, MO, VZ, etc.

QYLD ?

[Konebhar6]

Just now, JackSeal said:

QYLD ?

Never ever buy

[Konebhar6]

Just now, JackSeal said:

QYLD ?

I will add that analysis too. But I do remember all those Qyld, xyld.