Welcome to YouTube’s #dividend #stock #investing community. PPC Ian is dividend investing for EVERYONE. Today’s video answers five exciting stock market questions from YOU, my amazing subscribers. We are 25,000 investors strong and I’m celebrating by answering a multitude of financial questions in this video (and others). Thanks so much for being part of our community.
Question 1: Do I DRIP all 40 positions in my dividend stock portfolio?
* Right now, I am dripping my dividends back into the company that paid the dividend.
* I like this strategy because I want to reward winners while also averaging down into those trading at a discount.
* Many investors choose to pool their dividends and reinvest selectively. For me, I prefer just to drip back into the exact company that paid the dividend because I do not want to penalize winners. (in fact, I want to add even more to my best performing stocks.)
* Due to allocation and risk mitigation, I will likely start pooling dividends from sin stocks and reinvesting elsewhere once those stocks reach their fair value.
Question 2: Do I write covered calls to generate more income?
* I do not write covered calls.
* Since I like to buy and hold forever, I would be too concerned my stock would get called away.
* The extra options premiums are not worth it to me.
* Also, I have a lot of built in capital appreciation. A covered call strategy could cause me to sell and experience a taxable event, which I really do not want.
* Learn all about covered calls in today’s investing video.
Question 3: Do I sell puts to maximize my stock market returns?
* I do not sell puts.
* I believe I can experience a better weighted average purchase price by averaging in over time, just like I’m doing with 3M right now.
* In selling puts, I would be too concerned that I would deploy a large lump sum at a sub-optimal purchase price.
Question 4: What do I think about technical analysis?
* Technical Analysis Explained by Martin Pring is a great textbook on the subject.
* I do not pay too much attention to TA, other than utilizing very rudimentary chart analysis when entering value stocks.
Question 5: Am I concerned that 3M (MMM) will cut its dividend, something a JP Morgan analyst just said could happen?
* I do not believe that 3M will cut their dividend. I believe the analyst is incorrect.
* I share stats in today’s video that prove the dividend is safe by a strong margin.
* That said, I could be wrong. Worth noting; 3M is 1.63% of my portfolio. I talk about it a lot, but it’s only a fraction of my portfolio. I diversify to mitigate risk.
I have an active PPC Ian dividend investing community on Twitter too! Please find us here: https://twitter.com/ianlopuch
McDonald’s (MCD) is my #3 favorite dividend stock of all time. Learn more here: https://www.youtube.com/watch?v=WA1baKYgV_0
I’m an expert at investing in sin stocks for dividends. I’m also a bit overweight on this sector (although I love the value). Here is my complete sin stock guide: https://www.youtube.com/watch?v=q8eoj-r51uk
3M (MMM) stock recently tanked in poor earnings. As a shareholder in this dividend stock, here’s what I think about the situation: https://www.youtube.com/watch?v=DyjpvaCHNpY
Want to see my entire dividend stock portfolio? You can download it here:
DISCLOSURE: I am long McDonalds (MCD), 3M (MMM), and Johnson & Johnson (JNJ). I own these stocks in my stock portfolio.
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