Welcome to my second dividend investing vlog, live from Las Vegas! Today’s video, broken into three parts, answers popular subscriber questions about investing for dividends and passive income. In particular, I dive into my averaging down strategy (what I do when I buy a stock and it drops in price) and also my thoughts on the upcoming stock market crash (and how I reacted to the last crash).
In the first segment, discuss how I absolutely love it when a dividend stock that I own drops in price (goes on sale). Lower prices mean higher starting dividend yields, after all. When a stock drops in price, I’ll highly consider averaging down.
In this segment, learn about the two types of stocks I own in my portfolio – new positions and established positions. Learn how I approach each a little differently. General Mills (GIS) is a new position of mine and I’m averaging into the stock every single month until it reaches its target size. By contrast, Caterpillar (CAT) is already at its target size (more or less) and I only average in when the stock goes on sale.
Learn about my frame work for averaging down into a dividend stock:
1) I look for big price drops
2) I analyze how the position compares to its target weight in my stock portfolio
3) I look at the value and fundamentals closely (just because a stock drops doesn’t mean it’s a value)
In today’s second segment, I discuss the upcoming stock market crash. It’s coming and it will be very scary. Learn the lessons I personally learned from the last crash.
1) You do not know how you will react. (As a result, it’s a good idea to formulate a strategy now and get it in writing.)
2) Big money can be made in stock market crashes. Learn how I purchase Altria (MO) after the last crash, and I’m now yielding 20% on cost.
3) Carefully consider how a home buying strategy overlaps with dividend investing. (This is a situation I personally faced during the last stock market crash.)
So, what’s my plan for the next crash? I will be buying all the way down and all the way back up. I’m always averaging in.
In today’s final segment, I’m excited to share a few great updates:
1) For me, dividend investing helps fund my greater purpose of giving back.
2) I ran into a subscriber (randomly) in Las Vegas! Learn all about it.
3) I’m thinking of having a PPC Ian meetup in San Francisco. If you’re interested, please comment below.
Let’s connect on Instagram! You can find me there as @ianlopuch
Want to see my first dividend investing vlog (also from Las Vegas)? Check it out here:
Here’s how I like to weight dividend stocks in my personal portfolio:
I’m buying General Mills (GIS) in 2018:
Learn all about my experience averaging down in Caterpillar (CAT):
Here’s my extensive stock analysis process applied to Cedar Fair (FUN), a new stock that I own:
I like to keep an investing journal:
I also like The Five Minute Journal:
Here are my top 5 investing mistakes:
Disclosure: I am long General Mills (GIS), Caterpillar (CAT), Cedar Fair (FUN), and Altria (MO). I own all of these stocks in my stock portfolio.
Disclaimer: I’m not a licensed investment advisor, and PPC Ian videos, Excel files, and content are just for entertainment and fun. PPC Ian videos, Excel files, and content are NOT investment advice. Also, I’m not a tax advisor and PPC Ian videos, Excel files, and content are NOT tax advice. Please talk to your licensed investment advisor before making any financial decisions. Please talk to your licensed tax advisor before making any tax decisions.
All PPC Ian videos, Excel files, and other content are (c) Copyright IJL Productions LLC.
THE UPCOMING STOCK MARKET CRASH & Subscriber Questions Answered – Dividend Investing Vlog #2