investing for income.

What is dividend investment,

and does it make sense?

See, the other day, I got a comment

from one of you.

His name is Jose Silva

and he said,

"How do I find less than

ten dollars dividend paying

stocks that I can keep forever?"

So,

what does this mean when he's

talking about dividend stocks?

Let me show you what this means.

So,

first of all,

I'd did

Google the top

dividend stocks to buy.

So, when you go to Google,

best dividend stocks for 2019,

one of the articles that is coming

up is an article from

Motley Fool.

So, I saw this article,

which is exactly a day old,

and they say: Here are the top

dividend stocks to buy right

now.

And they're talking about Home Depot,

Six Flags,

and General Motors.

So, let's take a look at this.

As we're bringing them up here,

let's type in HD

for Home Depot,

and as it comes up here,

you will see that Home Depot is right

now trading at $189. And

you see that there is a forward

dividend. So, what does this mean?

It means that stocks that are

being publicly traded often pay

a dividend per one share

that you own. So,

if right now, you had one share

of Home Depot,

you would get $5.44.

Now, how often is this dividend being

paid? It is paid four times

a year. There are companies who are paying

it once a month.

Most companies are paying it quarterly,

four times a year.

So, the idea of dividend

investment...

Some people say,

you know. Just buy stocks.

They're not giving you dividends.

As you can see right now,

it's not that good.

It's 2.87%,

but it

is better than putting your money in a C.D.,

right? And this is why some people

say invest in dividend

stocks and then you're getting paid

quarterly.

In fact, I read an article that says

how to make sure that dividend stocks

are paying all your bills.

Well, first of all,

let's think about it.

If you are buying 100

shares of Home Depot,

and let's actually go back,

and take

a look at Home Depot.

And right now,

it's at $189.

And let's say...

Let's go here...

A few weeks ago....

Let's say it was trading at around $200.

So,

if you would buy a 100

of Home Depot,

you would have to tie up

$20,000,

and for this,

you're getting $544

per year.

$20,000 tied up,

you get $544 so

that's two point...

What is it? 2.8% or

something like this?

Now, here's the problem.

The problem is if the stock

goes only down by $5,

you give up

all your dividends.

And if you look at Home Depot right now,

it went from a high of $212,

all the way down to a low

of $158.

That is

25%.

So, dividend stocks

are only good if they

keep going up.

But take a look here at Home Depot.

It has not been going up.

You see that Home Depot has

been going sideways

and hovering between $180

and $190, and

this is the challenge.

So, I think that dividend

income is really,

really tricky because you're betting

on the stock going up.

When the stock goes down,

you give up all your incomes.

Now, let's take a look at the other dividend

stocks that Motley Fool mentions

in their article.

Let's take a look at Six Flags Entertainment.

Six Flags,

the symbol is SIX.

This is another one that they're recommending.

Now, here, as you can see,

the yield is a little bit higher.

6.77%, but

let's take a look at what happened here

with Six Flags.

As you can see,

even this year

has been decreasing tremendously.

I mean, Six Flags was trading at $72

at some point. And right now,

it is trading at $48.

Now let's see...

So, June last year...

So, not quite a year ago,

it was at $71

and now at $48. So,

if you had bought Six Flags

in order to get a dividend of 6%,

my gosh... You would have lost...

Let's quickly take a look

at this.

You would have lost 36%.

Now, let's just do a very last

quick comparison here because

the other stock that they're recommending is General

Motors. General Motors?

Really?

Let's see. Are they paying high interest?

And again, this article that I'm showing

you right now is a day old.

It's from yesterday.

So, Motley Fool?

I don't know guys.

Not too impressed.

So, here, the yield is 4.1%

and if you look at General Motors,

we'll probably see a very similar picture,

where we see that General Motors...

No. Yeah...

This looks pretty ugly.

So,

what does this mean for dividend

investing?

So, for me personally,

I don't think that dividend

investing is a

good approach at all.

Now is it better than putting

money in a C.D?

No! Not even that.

Because if you think about it,

if you put money into a C.D.

or in the money market,

at least you're not losing any

money. As you have seen

with these dividend stocks,

they are

whipping all over the place.

And for the past few months,

they've gone one direction,

and this is down.

Now, I really,

really believe that dividend trading

is extremely risky.

Some people say it's safe.

I don't think it is.

So, what should you do instead?

Instead learn how to

trade stocks

and take advantage of the small moves.

The cool thing is when trading,

you can participate

when the market is going up.

You can participate when the market is going

down.

And there's always these small

moves in between while the market

is in a transition.

So, right now as I'm recording this,

the markets have been sideways for

most of March.

It is now the end of March.

Today's March 27.

And yet,

as you can see, in my portfolio,

I have stocks where I'm betting

on some stocks that are going up,

some stocks that are going down,

and this is the way to go.

Because for me personally,

my goal when trading stocks

is, I want to make sure that I'm making

at least 60% per

year.

Most of the stocks that I'm trading

are at around 70%,

80% so why would you

piddle around

with dividend stocks that make you

2% or 4% if

there are ways how you can make

60%, 70%,

or 80%? And if you're interested

in learning how exactly I do this,

go to mytradingroutine.com.

There is a quick video.

35-minutes that shows you

exactly what I do

or feel free to come

to one of our boot camps that

are several hours.

They're free. They're on a Saturday

and you can find out more about

the boot camps on bootcamp.rockwelltrading.com.

bootcamp.rockwelltrading.com.

This is where you'll see the dates

and locations.

The next ones are coming up in Houston.

The last ones were in California

I believe we'll also go back to Florida.

So, we'll update the dates

and locations there all the time.

So, was this helpful?

Does this help of knowing what

dividend stocks are

and whether it's worth investing

it? If this was helpful,

make sure that you leave a comment,

say "yes".

Give me a thumbs up.

Subscribe to this channel on YouTube.

I hope that you enjoyed watching

this show as much as I enjoyed

making it for you,

and if you know anybody who might

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please,

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Have a fantastic rest of the day.

Thank you so much for being here.

And I will talk to you very soon.

OK. Bye bye.

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