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Making HUGE MONEY With DIVIDEND STOCKS Everyone Hates








When sentiment is bad, the highest-quality dividend stocks can go on deep discount sale. When others are running away, I take notice. This strategy has worked well for me with AbbVie (ABBV) and also Starbucks (SBUX). Now, I have identified 4 more stocks with negative sentiment right now. Do you enjoy a contrarian investing strategy?
#dividend #stock #investing

Timestamps:
0:00 INTRODUCTION
0:01 Warren Buffett: “Be fearful when others are greedy, and be greedy when others are fearful.”
0:48 SEGMENT 1: I WON BIG WITH ABBVIE (ABBV) WHEN EVERYONE ELSE WAS FEARFUL
1:48 AbbVie (ABBV) Google Trends – Huge spike in 2019 during the fear cycle.
2:46 ABBVIE (ABBV) DIVIDEND STOCK ANALYSIS
2:58 I bought at $67.76 and it’s now at $145.11, because I bought a great dividend stock into the fear cycle.
3:33 PE Ratio-On-Cost of 6.19
4:08 Simple Dividend Yield-On-Cost is 8.7%.
5:11 I’m taking a look back in time at what I did right. I have been really right when I’ve been greedy when others are fearful.
5:28 KEY: I can only be greedy with quality, blue chip companies I know well.
5:51 SEGMENT 2: I ALSO DID GREAT WITH STARBUCKS (SBUX) WHEN EVERYONE WAS FEARFUL ABOUT UNIONS
6:50 KEY POINT: I know the numbers, I know the data. I only buy into fear when the fear is overblown based on my understanding of the fundamentals.
7:35 I look for mis-matches between sentiment and data! I need to be careful, because sometimes investors are fearful for good reasons.
8:05 In 2022, I added to Starbucks (SBUX) in a huge way. I understood what I was buying, and believed the union news was overblown.
9:13 STARBUCKS (SBUX) DIVIDEND STOCK ANALYSIS
9:35 In just under 1 year, I’m up 37.7%. I was greedy when others were irrationally fearful.
10:17 My PE-On-Cost is in the low 20s.
10:29 My simple dividend yield-on-cost is 2.8%
11:45 SEGMENT 3: JARED DILLIAN’S PRESENTATION AT MAULDIN SIC (Follow Jared on Twitter)
13:06 Millions of investors are fooled every single day in financial markets! They panic at the bottom and pile in at the top.
13:33 Take in all the sensory inputs to understand sentiment.
13:51 Bullish during lows, and bearish during highs.
14:00 Ian’s Take: It pays to be a contrarian when the investor knows the investment well, and it’s one of quality.
14:26 He looks for people making fun of those on the other side of the trade.
15:37 Newspapers report on the here and now. It’s the present, not the future.
16:17 Regional banks are all the talk right now. Probably won’t be the topic 6 months from now.
16:48 ABBV: I knew Skyrizi was just around the corner.
17:29 SEGMENT 4: DIVIDEND STOCK INVESTING FRAMEWORK
17:57 Step 1: Identify a basket of amazing, quality stocks
18:05 Step 2: Wait for a great entry point
18:33 SEGMENT 5: GREAT DIVIDEND STOCKS WITH TERRIBLE SENTIMENT (RIGHT NOW)
19:04 Altria (MO) 8.3% dividend yield – Is this the best sentiment stock ever? It’s almost always out-of-favor.
21:29 Johnson & Johnson (JNJ) 3.0% dividend yield
22:57 Bank of Montreal (BMO) 4.9% dividend yield
24:34 3M (MMM) 6.1% dividend yield – tremendous negative sentiment right now
26:07 DISCLOSURE AND DISCLAIMER

DISCLOSURE: I am long Starbucks (SBUX), Johnson & Johnson (JNJ), PepsiCo (PEP), 3M (MMM), Altria (MO), Bank of Montreal (BMO), and AbbVie (ABBV). I own these stocks in my personal dividend stock portfolio.

DISCLAIMER: All information and data on my YouTube Channel, blog, email newsletters, white papers, Excel files, and other materials is solely for informational purposes. I make no representations as to the accuracy, completeness, suitability or validity of any information. I will not be liable for any errors, omissions, losses, injuries or damages arising from its display or use. All information is provided AS IS with no warranties, and confers no rights. I will not be responsible for the accuracy of material that is linked on this site.

Because the information herein is based on my personal opinion and experience, it should not be considered professional financial investment advice or tax advice. The ideas and strategies that I provide should never be used without first assessing your own personal/financial situation, or without consulting a financial and/or tax professional. My thoughts and opinions may also change from time to time as I acquire more knowledge. These are, as discussed above, solely my thoughts and opinions. I reserve the right to delete any comments for any reason (abusive in nature, contain profanity, etc.). Your continued reading/use of my YouTube Channel, blog, email newsletters, whitepapers, Excel files, and other materials constitutes your agreement with and acceptance of this disclaimer.

COPYRIGHT: All PPC Ian videos, Excel files, guides, and other content are (c) Copyright IJL Productions LLC. PPC Ian is a registered trademark ™ of IJL Productions LLC.

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44 Comentários

  1. IMPORTANT ANNOUNCEMENTS:
    Thanks for watching! If you enjoyed the video, please don't forget to "like" and "subscribe". Please share in the comments below what you think of my favorite dividend stocks.

    HELPFUL RESOURCES:

    Here's my first AbbVie (ABBV) video review from 2019: https://youtu.be/PencxhwwfIY

    Here's my second AbbVie (ABBV) video review from 2019: https://youtu.be/D14hmitCI4E

    Here's my 2022 video about Starbucks (SBUX), and how it was destined to become my top position: https://youtu.be/I6Ko6y7VWzM

    And, here's my video about my new number 1 stock, Starbucks (SBUX): https://youtu.be/gdYEQK9Vp-M

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    (Disclosure and Disclaimer: Please see video description for all disclosures and disclaimers. I’m long ABBV and SBUX.)

  2. You sir are not a contrarian investor. I do admit you bought well in 2018. You want to know MY contractarian pick? Natural Gas. That has been beaten to a bloody pulp.

  3. I bought Canadian bank stocks in March of 2020. People said I was a crazy idiot. I thought people were over reacting. Made a lot of money.

  4. Hey ian, whats your take on high yield vs high growth for long term? If i plan to tap in to the dividends for not less than 15 years from now, should i invest in low yield high growth or the opposite?

  5. Great video, Ian! You nailed it, couldn't agree more on buying when the sentiment is negative. ABBV seems to be one that goes through that cycle, SBUX has bounced back nicely and am long the others you mentioned as well, I picked up more MMM yesterday. I am always adding chunks of MO throughout the year.

    We've been seeing this sentiment with the Canadian banks, the 4 I tend to buy and focus on – BMO, BNS, CM and RY. All have seen a decline from the collapse of the few US banks that have gone under, it's been a great time to buy especially with dividend yields being anywhere between mid 4 to high 6%. You're likely to see capital appreciation along with a nice dividend. You are correct with your mention of the government not wanting to see BMO go down, I do believe the government would make sure the banks were protected in the event of a collapse but do see that as unlikely.

  6. Altria has such bad management. Big mess up with Juul, and they've underinvested in reduced risk products. There's a reason Philip Morris has a PE ratio twice that of MO

  7. Appreciate your insights as always Ian! Some of these stocks could be value traps. MMM for example has had a horrid management team for over 5 years now. CEO compensation has been in the millions, while stock returns have been over 100% (-50% returns while SPY has been +50%) below that of the index. How do they justify keeping them in place when returns have been this abysmal? Their legal team has been losing a lot of cases in the earplug hearings and PFAS related rulings haven't even started yet.

  8. Ian,
    I always love you’re humbleness and very insightful ideas! 👍
    Always appreciate you’re love of Dividend paying companies and the love for the community at wide! Amen! God bless Brother always! ☝️🙌

  9. @ppcian Hi Ian! Love your content. Since you asked about what co's could be potential a potential "value" i thought i might throw this one at you: International Paper $IP and British Tobacco $BTI.
    For IP: Since the general digitalization of everything, you would think that paper is going to become obsolete, and yet we still use and need alot of paper. This seems to be a similar story to any tobacco company without the negativity.
    For BTI: What can I say, you pobably know better than most here, but of all SIN stocks this seems to be a better value compared to MO.
    Thank you for everything and have a great day! 🙂

  10. I think banks stocks are on great sale and they will recover eventually. I'm buying FHN as I have friends working there and I know the bank is in a great condition

  11. I live in the Netherlands. There is a lot to do about 3M. Government of the province I live in is talking about claims for the PFAS 3M "dumped" in the water that caused damage to the environment. Fisherman arn't allowed to fish in water where PFAS is found. They are preparing for claims also. There are also reports of people getting sick from the PFAS the province government is putting together a plan to claim money from 3M for those people. Some farmers have PFAS on their land, they also want to get money from 3M. So there are a lot more claims coming for 3M. I own 3M but a bit to risky for me to buy more. And i'm not sure if i want to buy more/hold the MMM stock now I see people getting ill or loosing their business because of the MMM factory.

  12. I have been a subscriber of this channel for at least 5 years. I still remember your video when you bought general mills. At that time, all consumer package stocks were out of favor, and general mills has had quite a nice ride upwards over the last few years. Excellent timing on that one!

  13. working with an investment professional could help you prepare for life. While others were whining about inflation, I was busily cashing out my Diversified-portfolio, eventually earning more than $370,000 for the first quarter of the year. I'm grateful that I was able to get in touch with my coach, Joseph Sullivan Anderson, early in the year. Thanks to Joseph Sullivan Anderson, we were able to pay off our debt and begin saving for retirement.

  14. I have a small position in UNIT (15% div !) and SABR (no div), bouth are under stress due to old debt, among other things. Thing is for UNIT the CEO bought 1mill of his own stocks, and SABR is one of Terry Smiths buys. Also have been stacking up on PFE in the last month as well.

  15. Comerica is one negative sentiment stock i am picking up. As you mentioned, regional banks have all gotten crushed

    I have been better served getting into stocks i like and DCA into them. Some great companies never seem to have a "good' entry point. Plus i use M1 for one of my portfolios. Set the target % for your positions and out of favor stocks will get more money by default. I have only had one occasion in my life where i had a big enough pike of cash to deploy in one shot where i was very concerned with price.

  16. MMM looks undervalued considering their financials are still solid. It will eventually turn around in the long run.

  17. The goat! That’s the video that led me to my best investment ever Abbie !! At $67 🙂

  18. @ppcian have you considered picture in picture in your videos? That way you don't have to worry about timestamps for when switching to the spreadsheets. By the way thanks a lot for your videos, and greetings from Hungary!

  19. No need to read a ton of newspapers, watch google trends and so on. There is a much easier way. The value of a stock determines the sentiment. That's all you need to know. The daily value of a stock relative to its highest value. That's it's.
    A rule of conduct that I impose on myself is not to invest when a stock marks a historic high or low. I invest when the stock is in the middle of an all time high and an all time low. It frees you from all that bullshit, people talk, around the future of a company because then nobody talks about and you escape all kinds of manipulation 😉.

  20. Seems like all of the Canadian big 5/6 banks have taken an undeserved hit due to the American regional bank problems, not just BMO.

  21. Although my investing strategy has changed from DGI to ETF because of tax issues here in Europe, I still love your investing wisdom and insight that helped me to start investing and persist. Starting and persisting is the key 🙂 Thank you Ian.

  22. Sure, MO gives a great dividend.
    Their balance sheet is great, but in my opinion, there are much better options out there because the stock has been stagnant and depreciated by almost 20% over 5 years.

    With an annual dividend of around 8%, you'd have a total return of around 20% in that time or 5% on average.

    You'd get much better results with VOO or Schd.
    The stock prices will not rise either because of the nature of the business they're in.

  23. $VZ is another I would say where the sentiment is too negative now. A 7.25% yield on a market leader. I understand growth will be low or non existent, but the valuation level is very low now. Always a good job on the videos Ian!

  24. Good and informative video Ian, thanks.

    Could you explain why you're more hesitant on 3M than Altria? 3M has gone down from recent highs much more so more of a safety margin it seems, at a pretty high dividend yield. Any specific concerns you have about 3M?

  25. Hi. Can you please explain what exactly is the problem with Starbucks and the unionisation? Im from Europe and unions are just a part of company vs employee relationship, so i don't really understand the issue.

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