Are Dividends Going Away? (Passive Income Update!)



Are dividends going away? Is our passive income safe? This is a Robinhood update for May

► My Stock Portfolio: https://www.patreon.com/andreijikh
► Get 1 Free Stock on WeBull when you deposit any dollar amount (Valued up to $1400): https://act.webull.com/kol-us/share.html?hl=en&inviteCode=QhhB1aDNwEDP
► ROBINHOOD Invite Code (grab your other free stock): https://robinhood.c3me6x.net/c/1980551/671816/10402
► M1 Finance Roth IRA: https://m1finance.8bxp97.net/c/1980551/696710/10646
► Follow Me On Instagram: https://www.instagram.com/andreijikh/
► Try Audible and Get Two Free Audiobooks: https://amzn.to/2ouTHKS
► Stocking Stuffers for the Holidays: https://www.ipo52.com
► How I Make My Videos: https://www.amazon.com/shop/andreijikh
► Music In My Videos: https://www.epidemicsound.com/referral/cr8cqg/
http://www.MAJIKH.com

I love the stock market, more specifically, I love being a dividend investor, I earn paychecks from companies that I don’t ever work for simply for owning their stock regardless of the stock price. As you may or may not know, the ultimate luxury that money can buy is time. The way I chose to achieve that goal is to invest that money at the golden 4% payout rule, and doing that in theory will pay all my bills.

But with the stock market in turmoil, and everything else going on, are dividends safe anymore? Are dividends finally going away? This is a scary thought for passive income investors and today I wanted to take a look at my portfolio with Robinhood to show you exactly where I’m at because my dividends are being cut.

On top of that, Warren Buffet, the smartest and one of the wealthiest investors of all time has decided to sell all his airline stocks including Delta Airlines, United Airlines, Southwest Airlines, and American Airlines. This is not a good sign.

Furthermore, oil stocks have plunged into some of the lowest prices they’ve ever seen and they’re starting to cut dividends. More bad news. Now I want to compare my passive income from April of 2019, to this year’s April of 2020 to see just how much income I have lost.

But first, why did Warren Buffet sell the airlines? In short, he believes that the future of the airline industry will no longer be the same at least for the foreseeable future. To quote him, “The world has changed for airlines, and I don’t know how it’s changed”, He also said he wasn’t sure whether or not the airlines will be able to recover in the future and if the demand for travel will be there in the next 3 to 4 years. Because of this uncertainty, Warren Buffet decided to sell these stocks.

In addition to that, the following companies from my portfolio also experienced dividend cuts: Shell (RDS.B), Unilever for $2 per year and CNP, Center Point Energy which cut the dividend by 48%, losing me $39 annually, and VTI which has lost $6. All in all, this represents a loss of $208 per year. That’s roughly the equivalent of investing $5,200 at 4%.

However, I got a dividend increases too: Johnson and Johnson, $17 a year, raising it’s dividend by 6.3%. $2 from Qualcomm with an a raise of 4.8%, Southern Company at 3.2% for $3, Travelers company for 3.7% or $2 for my position, Kinder Morgan raising it 5% for $3 per year, and $7 per year or 6.5% from Apple.

In April of 2020, I was paid from PRECISELY 30 companies. Last year, I made exactly $440.41. This year in 2020, in April, I made $475.47. That’s an INCREASE of 7.9% from previous year. Not bad considering all the job layoffs, oil markets crashing, and everything else going on in the economy.

Dividends are here to stay, but we may see a slowed growth for the next 3 to 4 years until we recover.

Sources and further readings:
Warren Buffet Sells Airlines: https://www.bbc.com/news/world-us-canada-52518186
Dividends Historical Performance: https://www.gafunds.com/wp-content/uploads/2012/11/imdf_WhyDividendsMatter.pdf

*Links above include affiliate commission or referrals. I’m part of an affiliate network and I receive compensation from partnering websites. The video is accurate as of the posting date but may not be accurate in the future.

*Links above include affiliate commission or referrals. I’m part of an affiliate network and I receive compensation from partnering websites. The video is accurate as of the posting date but may not be accurate in the future.

source

45 Comments

Leave a Reply
  1. Everyone needs to find their way and investing is better than not.
    But, I have several different strategies going (right or wrong).
    I am building up my passive income with dividend investing, as well as keeping gains ahead of inflation.
    And I also have a small portion of money in both Bitcoin and speculative bids. Looking for long term capital gains off of the speculative portfolio and if luck be a lady, then hopefully some of these companies turn into blue-chip (but that is a pipe dream).

  2. Hey man i have a question, how can u get less dividends when dividend u get from a share was already freezed when u bought the share apart from the price change of the share ??

  3. So quick question. For the 475$ that you made april of this year, could you take that and transfer it to your bank account or is it automatically transferred because its like a paycheck? and if you did transfer it to your bank account, would it affect your purchased dividends?

  4. Hey Andrei, just curious on your thoughts. I have a good amount invested in RDS.B as well, do you think their dividends will ever recover to where they were? And what is your play on them? Are you still buying and holding or are you selling off your shares? Thank you for any response I appreciate and love your channel. Been subscribed since you joined YouTube, keep posting great content man.

  5. Right ? I mean the shadowy things appear when stuff changes between the original and the remake, what’s that about ? So many theories !

    …What ? Dividends..? Oh yeah sure, that’s, uh, that’s cool too.

  6. So, my question is, how many shares of a stock do you need to have to even make the dividends worth the time and money I plan on investing? Can we get an in depth breakdown of one of your stocks, how many shares you hold, how long you have held it and the return on said holdings(maybe even from the start of when you obtained it)?
    As someone completely new to the stock market(started end May 2020), and interested in investing money in any and every way possible(long term, short term) to make me some cash, I wanna know how long will it take for me to achieve something similar to what you have got going on? I mean i know it will take me some years, but I'd like to have an idea of if i'm looking at 10, 20 30 or 100 years at my rate of being able to invest. ya dig me? Please and thank you.

  7. 'The most important thing money buys you…. is time' – this is exactly what so many people don't understand in today's consumerist world! Would you rather have a $100k car to drive around in on the weekends after working 9-5, 5 days a week? Or, have 3 years of your life free to do whatever you want?

    Time > things

  8. Hello Everyone, My name is Giovanni John Los Angeles California I Am here to share my testimony with you. I have always wanted to invest my money, but I was confused about where and how I will invest my money, I was on the internet searching on how I can invest. I came across with this great company name by Fidelity Investment, At first, I was scared because I don't want to lose my money, but I decided to give a try by investing with just 1,000 Dollars to get a return profit sum of 10,000.00 Dollars, I invest in oil and gas productions, to my biggest surprise my profit was transferred directly into my bank account after 10 days. if you looking on how to invest your money. this is a great opportunity for you to invest, Contact them for more info, Email:(customercaremarketing@outlook) thanks to you all

  9. Are gas & oil the main industry stocks that pay dividends? I know some metal stocks do. Dividend income sounds interesting to me but I’m hesitant to obtain gas & oil stocks bc I’m just not a fan of those industries.

  10. I just subscribed to your channel and the knowledge that your sharing is great I have no clue on how to or what to invest in I have 500 bucks to start with could you help me out as a beginner.

  11. What is the best thing to do with the dividends paid by robinhood? Is it best that I send it to my bank account or just keep it in the app? I was wondering if I keep it on robinhood, would I be taxed less long term? Please make a video on how the taxes work with stocks vs dividends! Short term and long term

  12. I would die to know how you made that excel sheet! Is it your own made or did you use ready one? I start to go trough your videos if I can find one where you show that beauty off! <3 If you don't have that kind of video it would really be nice to see one. 🙂

  13. Great job Andrei… I have already invested nearly $15,000 and hopefully I can buy more. I am really excited for my first dividend collection I want to use it to purchase more stocks.

  14. So lets say i hve voo stock n im riding it til age 65. Wht is the process at that point? Is it easy to pull out the money or do i hve to sell it? N what about if the share doesn’t sell? Im a newbie like a newbie…just anxious! Can you pls do a vid on this process. Ty!

Leave a Reply

Your email address will not be published. Required fields are marked *

What Happened To My $100,000 Remodel

(LIVE) FREE YOUTUBE CHANNEL REVIEWS 2020 Part 2 (How to get more Views & Subscribers on YouTube)