all right good evening everybody welcome
back to our building blocks for a self-directed portfolio my name’s Mike
Fairborn folks there’s my twitter handle love to have you follow me on twitter
folks last week we spoke about dividend investments and why some investors might
choose companies that have a long history a track record of paying
dividends we we chose to look at the dividend aristocrats as an example that
webcast is in the archive section so you can take a look at that today though
what we want to focus in on is actually finding a tool that shows us the amount
of dividends that are being paid into our account
it’s the income estimate it’s a good tool that really goes hand-in-hand with
you know income investing you know looking at dividend paying stocks so I
look forward to going through that with you this evening
as always please feel free to type any questions you might have for me into the
chat box love to address those with you and let’s start off with our disclosures
first with a quick overview of the markets as well Before we jump into this
folks but please remember the points that are listed here and thank you
Ricardo for pointing that out while this webcast discusses technical analysis
other approaches including fundamental analysis may assert very different views
please keep that in mind also payment of dividends is not guaranteed and
dividends may be discontinued the underlying security is subject to market
and business risks including insolvency please keep that in mind these
additional points as well about paper money trading applications for education
purposes only past performance of a security strategy does not guarantee
success guarantee results for future success
and finally all investing does involve risk, including the risk of loss okay so
having said that folks let’s go ahead and jump on into this just a quick
review of the market where we’re at right now in the market you can see the
markets up to 3,100 right now still making higher highs and higher lows
across the board it is interesting to keep a watch on that because often times
frequently investors will want to gauge the market and make sure that the
they’re on the right side of the market prior to deciding to get
in and hold onto specific stocks or to go long in a portfolio so it is still
making higher highs not not to say that this will happen but traditionally
November the month of November has historically been one of the strongest
months out there it doesn’t have to be though things can change it doesn’t have
to be November I mean it could it could rotate last year November was not a
strong month okay but by and large some investors will look at that because
historically it does tend to be strong now we’re going up in November we shall
see what does in fact happen alright now there is my twitter handle once again
love to have you follow me on twitter if you are able to folks the discussion
this evening is utilizing the income estimator we want to tie this in like I
mentioned the last week’s discussion I’m going to close our current account any
time you want to track our current account or positions we’ve got
performances that are related therein we do go through those specifically on the
class on Friday referred to as capitalizing on the long term love to
have you join us if you’re able to where we do to do a full portfolio rundown as
well as any potential stock additions okay so let’s go ahead and move over
here to our dividend aristocrat that we discussed last week so these are
companies folks that have in fact increase their dividend each and every
year for on the minimum of 25 years and so we went through that we explained to
you that some investors will like to look at those types of securities
because they have a history a history of raising those dividends and some
investors like that consistency because there’s no guarantee that that
consistency is going to be there in the future however they do like that
precedence because they’ve been able to show that companies can raise that these
sorts of companies can raise their dividends in good times and in bad all
that’s being equal it can kind of give investors a little bit of that sort of
insight now that might not happen in the future but that like I said some
investors do like the precedence of companies that have been able to prove
that that they’ve been able to do it for so many years but many of these
companies like I mentioned last week coke has raised their dividend
for something on that on the order of 52 years I think are 55 years they’ve
raised their dividend each and every year that is not missing a year that’s
what it takes to be an aristocrat you can’t you have to have consecutive
raising rate increases I should say of the dividend so keep that in mind now in
addition to that what I wanted to point out to you is that yes there are
dividends and we with these particular companies and I showed you what whether
using the dividend aristocrat or not these are a list of the yields that are
associated with them in terms of the dividend we talked last week about
investors getting in trying to time get in at least at the right time when they
thought that you know on a technical basis at least that the trend you know
maybe maybe the stock has pulled back a little bit but the trend is now turning
around and going in their favor so there’s there was a lot of additions
and I recommend you know that you do go in in fact I’ll just show it to you
where it’s at right now under education just click on webcasts
I’ll pull it up just real quick because this is this is good free education I’d
like everybody to take advantage of as you’re learning more about the markets
but under archived webcast I’m just going to put my name in for now just
because we’re talking about this class but we looked at particularly enhancing
a portfolio right there finding historically high dividend yields okay
so you can take a look at that folks there are a lot of additional classes in
here that are taught by other coaches love to have you take advantage of those
as well I’m just going to go ahead and open that up but yeah there’s there’s
technically speaking classes there are technical analysis at cetera but just as
a side note please take advantage of these classes if you’re able to they are
free and they are there for our clients that’s each of you okay so back to the
aristocrats now so that’s what that discussion was on last week but once
you’ve identified a list of companies or where companies even in your own
portfolio that you have right now they might be in a watch list they might
be part of your portfolio you’re wondering how much income those
individual stocks are actually generating or are set to generate into
your portfolio this year and basically what months are those dividends payment
payments coming in because remember those dividends are available for you
too in terms of being able to spend them when they do come out right you can also
reinvest them number of different approaches investors will use but
sometimes investors will utilize those dividends to take or I should say to
make up for them currently being in retirement or not working at a current
job or just wanting to generate additional income so let me show you
this really neat tool that you can use that I don’t ever want to miss any time
I talk about income investing because I think it’s so helpful and useful to look
at now I’m just going to throw in any stock here in fact what I’m gonna do is I’m gonna go ahead and just type in you
have to have any stock up this is Coke Coca Cola right now down here to the
right of okay just below the buy and sell if you keep going along this these
kind of green that this green column of information you get the income estimator
very interesting tool and very useful for understanding potential income
estimated income coming in to your account based upon the holdings that you
have within your account now the neat thing about this is is you can look at a
particular stock symbol and see how much it pays out like what was coke we’re
just gonna try coke we’re gonna we’re gonna go ahead and click on go for now
and it will show you based upon 100 that’s the default 100 shares of Coca
Cola if you’re purchasing it right now you’re gonna generate generate an annual
estimated annual income if you can see that right there a hundred and sixty
dollars okay in dividends and now that dividend yield is one way to check it is
right here it tells you when the next payment date
is some additional information that I’d like to see here I mean you know
when is that dividend paid well it’s on a quarterly basis so that’s Coke now in
addition we could also look at a particular watch list or your own
portfolio of stocks and we would do that instead of going into the symbol box
what we would do is go to the left under select positions or watchlist so if I
click on this folks I can go down and I actually have well I’ve got the dividend
risk guys I don’t think we’d probably own all the dividend risk rats though so
I’ve built this little portfolio and I had it in here for a little bit but it’s
just it’s just based on income and we can add to it to have you show you how
to do that but I’ve clicked on it now what I need to do is go down here and
show you that these are the stocks that are within this portfolio and as you can
see they pay income they do pay dividends you can check right there
because it’s got the dividend frequency you can also check over here or – under
the dividend yield column it tells you what that dividend yield is you can see
it rolling through here okay so there are on so I’ve got a list of securities
here that are part of this portfolio now this could be your actual portfolio it
could be a paper portfolio or simply just a watchlist notice it does not have
the quantities filled in so if I want to go in here I’m just gonna estimate a few
of these so let’s just say I have 250 shares of this particular company its
market values 2794 coca-cola let’s say it’s 150 just gonna throw in some odd
numbers in here know anything we’ve got so this has got 200 this one here is
going to be our biggest holding at 500 Rio Tinto will be 400 just maybe what
you might have in a portfolio AT&T maybe 250 okay so once you put your quantities
in you can go ahead and click on a calculate income can’t miss it folks
it’s right down here in the bottom right hand corner if I click on that it’s
gonna show me now what is the market value of my portfolio is this reasonable
this is 76,000 just roughly just about $77,000 that it costs
for this portfolio get owned this portfolio that’s the value of it right
now I should say that’s the value of the portfolio if we look off to the right
this is the estimated annual income of that portfolio all right so that’s kind
of neat I mean it gives us that amount here in addition to that like I showed
you before it’s got some the dividend payments when they’re pays the dividends
per share how much they’re being paid right now you got your yield the next
payment date when the next dividend is going to be coming out now the neat
thing about this is it does tell you first of all the value of your portfolio
that you’ve got it’s kind of an income based portfolio your dividends each year
off that but also up top it tells you what months you’re going to be receiving
those amounts so you can go through here and take a look at it no no event we’re
in November right now and there okay I guess there’s one position paying at
least from now until the end of the year all right until the end of November but
if you go into December that income jumps up January quite a bit more right
you can kind of go through the list now April is a really big month you’ve got
three positions that are paying at that time the highest but collectively this
is what you’ve got and so what some investors might do is they might arrange
securities based upon well what months do they pay the dividend possibly maybe
they don’t maybe they’re okay getting one larger sum in you know April July
and September and smaller sums but if they do need it from month to month you
know that could be a consideration so some people might not need the income
right now but they want to generate the income so they’re fine with that
annualized number but basically maybe some people want it to be more regular
you’ve got one that’s semiannual and that’s that could be a big dividend
paying you got four hundred shares of this particular stock it’s our second
most expensive position looks like they’re they’re categorized in the
the value of our portfolio based on market value right there from highest to
lowest is how this is being organized and that’s only place twice a year so
here’s something to kind of consider if we look up here now the class that
Barb’s is stocked was on REITs real estate investment trusts and we talked
about REITs a little bit in this class but you know one thing about reads which
move to the big screen here reads what are unique about them or the state
investment trusts along with all the risks associated with it as it states in
the our disclosures and barb reviewed but they can pay dividend income each
month and so investors and it’s not just read so there are other stocks that will
pay monthly income too but that can help to balance out you know some of these
shortcomings I mean a big payment in April
not much in May a big drop-off July not much in August and so what we can do
to assist with that is we can go back I’m kind of pulling that out let me just
go back in 20secs you real quick over here so here’s your April down to your
May right to make up for these kind of shortcomings what we can do we’re going
to add this symbol in here it’s called o Realty income and they do pay monthly
dividend payments can we see it there there it is monthly it’s at three point
six right now now I’m just showing you what you can do with the income
estimator you’d have to go through folks and make sure that you’re fine and the
companies that are selected here you know you’re tapping into the tools in
education and just your own experience and knowledge on choosing the right
companies but once you’ve decided to do so this is how you can track them so
let’s go back down now into Realty income I’m gonna put this in here it’s
trading at let’s see right now well let’s just put this in here I don’t have
the price here but I’m gonna go ahead and put in 450 not our highest position
but we’re gonna calculate it right now let’s just see what that does yeah it’s
it’s definitely our largest position it pushed our our estimated portfolio to 11 111,000 just over that it jumped up our
annual income nicely but look what I did up top you see what it did it added now
we’ve got to paying every month so our monthly income folks just shot up more –
I mean on a month-to-month basis maybe it did overall – because obviously we’re
putting in you know a larger chunk of money in it well more shares in here
right but there’s your yield and that did play a role so I want you to utilize
this tool I think it’s very cool it’s very effective I mean here’s one that
doesn’t pay a dividend right here well let’s see
okay max R does not pay a dividend it doesn’t allow me – does it MA XR yeah
does not pay a dividend so if I add it does it pay a dividend it turns out it
does okay I didn’t think it did let me think for a second um hmm there’s a lot
of companies don’t pay dividends it doesn’t actually add it if you try to
put one in the following simple does not pay a dividend so this is truly an
income estimator income paying investments you can try to put those in
but it will not allow it so wanted to point that out to you folks
you got the calculate income button over the right here of course you’ve got it
down below here but what a cool way to really find out what divins are being
paid okay so that is that tool once again I’m going to show you where you
can go to get that you just go off the main TD Ameritrade page type in a symbol
any symbol this was stabbed to be ko go over to the far right and click on
income estimator right there just above calendar the calendar tab okay click on
that and you can either type an individual symbol in or create a
watchlist position or watchlist to look at so by
the way I just found out at least in terms of my account here you can have 50
watchlist I just hit the maximum today so just a
heads up I assume it’s good the same for everybody per account but just be
mindful that you can have a total of 50 watchlist before it maxes out now that’s
not too bad that’s a lot of watchlist actually that they do keep on file for
us so all right a couple additional items folks if we go in here now and
12.0 so just a review on dividends and we’ll wrap it up for this evening but
down through here now these are dividend payments so anytime you have a stock
that is paying a dividend you can go over here and take a look at it you’ve
got your little green dollar sign icon and that’s the ex-dividend date in order
to receive that dividend you have to purchase the stock and not sell it but
at least purchase it and hold it the day before the ex-dividend date that is this
date right here so here’s the ex-dividend date that’s the day that it
trades without the dividend in order to get it you need to buy it on this day
now you can sell it the very next day you can sell it the very next day
and still receive that dividend most stocks depending upon different market
conditions will adjust for the dividend lower just so people don’t go in and
capture the dividend however that’s not always the case let me give you an
example of a stock that we hold in our own paper portfolio here BKE the buckle
notice this doc actually paid a 25 cent div and it was about five percent
dividend yield per share down here when we bought it in our paper portfolio look
what happened on the ex-dividend date which is this day here folks let me ask
you a question did it trade lower on this day did it
gap lower to account for that 25 percent dividend no it did not
short answer is no it did not you bought it this day which happened to be low a
low on the share you can sell it the very next day if you want to but
investors that bought on this day I believe we bought on this day or before
maybe it might a little bit before but anyways we owned it before the
ex-dividend date not only did you get the 25 cent dividend but you got a very
nice run in the share price that’s a 92 cent move on that day plus you’ve
received a dividend of 25 cents as well so it’s not always the case but it’s
more often the case this was probably a good day on the markets it’s a good day
on the market it paid the dividend folks sometimes I’ve seen stocks pay like a
dollar type sized dividend and gap up higher so you not only do you get the
dividend but the stock price gapped and ran too so there are a lot of different
possibilities that can happen when you are looking at dividends and a lot of
those can’t depend on market conditions the strength of the underlying market so
one dimension that to you folks we wanted to utilize the income investor
today excuse me the income estimator explain to you how that works for those
stocks that are income generators within your own individual portfolio so I hope
you found this useful and that is it for this evening but definitely to you know
use that tool for stocks in your portfolio or
or a watchlist and and see what the payments look like and a great way to
get that information quickly especially if you’re looking for that income so
it’s definitely something that people look forward to getting his income in
their portfolio so remember those can be I believe sent out to you in the form of
a check they can definitely be deposited as cash in your in your account and
withdrawn accordingly if that would be what you’re looking to do so all right
on that note okay and Ricardo’s got a comment there on options as well
mentioning that all right well I appreciate it everybody I hope you have
a great rest of the evening that is what we had for you tonight and definitely
utilize those tools so love to have you get more visibility in your accountants
just see specifically as it relates to income related securities and by the way
you could use bonds ETFs I should say bond ETFs ETFs in general they would
show up in there too so whatever you might have in your portfolio
to be very helpful giving that visit that income type visibility all right so
on that note folks wanted to also mention that in order to demonstrate the
function of the platform we did use actual symbol so our TD Ameritrade does
not make recommendations or determine Sibbett a security strategy for new
traders in investments does you make your substrate account so they
responsibility on that note great Thank You Danielle and Michael happy to be of
assistance to you this evening I hope you all have a great rest of the evening
folks we will catch you next time thanks a lot everybody take care have a good
night bye-bye you