Dividend Investing Strategy

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There are a lot of different ways to approach dividend investment strategies. Learn about dividend investing strategies with help from a licensed insurance agent in this free video clip.

Part of the Video Series: Financial Planning
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Video Transcript

I'm Jonathan DeYoe the founder of DeYoe Wealth Management in Berkley, California. Today, we're here to talk about dividend investment strategies. There's lots of different ways to approach dividend investing. If you Google value investing you'll find lots of different methods to find companies that pay dividends. The S & P 500 has an index called the dividend aristocrat's index and it's an index of companies that have increased their dividends every year for the last 25 years. There are two important reasons to employ a dividend investment strategy. First is dollar cost averaging. When you dollar cost average, you're re-investing those dividends every single time they come in so that the next dividend you receive will be slightly larger than the last dividend. What this means is over time sometimes measured in years perhaps decades, your income will increase exponentially. Second, consistent dividend payers are often a ballast when markets decline. Whether it's because the consistency of the history of their earnings makes, gives people more faith in the companies themselves or whether it's just because when markets go down even if they go down an equivalent amount for dividend payers, you do receive a dividend for that income, they do tend to be a ballast when markets decline. While we believe that everyone should employ a dividend investment strategy for a portion of their overall portfolios, we do believe it should only be a portion of that portfolio and you should have a broadly diversified set of investment strategies that you are utilizing at all times. I'm Jonathan DeYoe with DeYoe Wealth Management in Berkley, California. Thanks for listening.


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