Dividend Investing and Dividend Stocks
In Biden Recession
(Listen to audio version of me reading👆)
We have shown each month our asset allocation model and where we put all of our wealth.
We break it down into six different quadrants to make it simple for ourselves and to show others.
We do not want to over complicate the process.
Society has been told that we must invest in one asset class (paper); stocks and bonds traditionally.
We personally have very little in the stock market right now because it has proven to be an asset where you have some of the least control out of anything you could put your money in.
2022 is also showing to be a very volatile year which we have expected.
I also expect stocks may go down another 50-90% from where we sit today.
They may not do it in dollar terms, but I expect them to continue falling against hard assets like oil, bitcoin, or gold/silver in the coming years and have an “invisible crash.”
This will allow us to turn those other assets into even more dividend paying stocks as this decade progresses.
Intelligent investors invest for cash flow regardless of asset class.
This provides us financial freedom and stability in a changing economy.
There are times to buy for appreciation but I generally always want to buy something for cash flow whether it is stocks or real estate etc..
When market liquidity crises (like now) rear its ugly head those in positions that are unsustainable, get exposed.
Like the story of this year of people losing their assets because they bought in the hopes things would “appreciate” and got stuck with an asset they couldn’t pay for monthly.
Cash flow provides financial stability and gives you the chance to ride out market volatility.
You can get squeezed out of the market if you have no income coming in and you have only bought for appreciation and cannot handle the drawdowns on your stocks or maybe your rental units with no tenants in them paying off the mortgage.
“PHASE 2” plan
Dividend stocks are part of our “phase 2” plan where the economy has gone off the cliff and we have our insurance payouts from silver, gold, and bitcoin where we lend against those assets and purchase dividend-paying stocks.
Corporate dividend aristocrats are awesome companies to own but there are many great companies that slightly miss the “aristocrat” moniker that are excellent to own as well.
The beauty of socks is that you can get in and out easily though you don’t really want to if possible because that will increase your capital gains taxes.
We make money when we buy. So buying at a great price is very important and then we let it ride for as long as possible compounding your efforts and reinvesting as much of it as possible.
In general we want to buy blue chip companies at incredible low prices that provide minimum 2 1/2 to 3% dividend payments or more.
Dividend aristocrat stocks give you confidence that they will continue to pay you cash low long-term however there are many great dividend paying stocks that are up-and-coming that will be in that crowd someday that pay even higher dividends currently.
As we progress forward we will continue giving the investments that we are in sharing our portfolio and wins and learning lessons with you.
New idea to help you invest
What are the biggest things that I have started doing which has helped greatly is keeping a trading journal for every investment.
Jotting down why you are making the trade, what kind of emotion you had going into the trade, and what you expected to happen, where you thought the market was going, etc..
These are super important things to look back on and figure out where things went right or where things went wrong to monitor your progress and learn from your past.
This will only make you a better investor moving forward.
Stay strong,
Brandon
Ps. Not financial advice***