in this video I'm going to show you how to really invest in dividend stocks like
a pro regardless of whether the stock market goes up or down you see most
people get it wrong and frankly even your bankers or accountants tend to
overlook this too and that is why banks and financial institutions hire me to
conduct courses or seminars for their financial advisers and relationship
managers I am CF Lieu the founder of CF Lieu channel the place where financially
intelligent people turn to 100% Financial insights 0% sell stock and
today I'm going to show you the best stocks sector to invest in to get
guaranteed dividend income or cash flow for life and the three reasons why this
is so keep watching
REIT sector or real estate investment trusts sector is my favorite stock
sector to invest into for three reasons which will become obvious in the next
ten minutes a REIT stock is a public listed company that owns operates of
finances income-producing real estate emphasize on the world income producing
now model after mutual funds with stocks provide all investor the chance to own
valuable commercial real estate properties ranging from offices
apartment buildings to warehouses hospitals shopping centers and hotels
the number one reason to invest into REIT stocks is guarantee consistency aka
consistent money flow into your bank account every three to six months how to
REIT stocks accomplish that you may ask to see how consistent it is and why it's
so consistent you need to understand the normal stocks dividend is only given to
shareholder shareholders if the company is profitable if it's not profitable
than no dividends for you now even if the company is profitable there is no
obligation to distribute stocks dividend if the public listed company does not
have a stops dividend payout policy or they just change your existing stocks
dividend paying policy in the future from yes to no and sometimes company
choose not to pay stock dividend for very valid reasons for example like they
need to use their profit the cash flow to retain in the earnings to expand
their business to other region to expand their production and all that rather
than giving this money back to shareholders saying if a company stocks
do pay dividends on a consistent basis it
adopt a low stocks dividend payout ratio for example maybe they just pay the
deeper scent of the accompany net profit while retaining the remaining 70% under
the company
but when you invest in which stops the REIT structure anywhere in the world
requires the REIT stops to pay 90% or more of the net profit in order for the
read to be exempt from corporate tax
reread that again because of this because REIT stocks not only pay
dividends but it also must have a minimum payout ratio minimum stops
dividend payout ratio of 90% just so they can enjoy this tax exemption in
short you have a guarantee consistency guarantee flow of cash flow of dividend
formal read and you have a guarantee 90% minimum payout ratio when it comes to
stocks dividend now number two reason is about inflation hedge dividends now
here's a simple analogy if you have a 1 million shares of a company starts
paying you eight cents per share every year you easily have 80,000 passive
stops dividend income which you can live off to pay for your living expenses you
know that living expenses are always prone to inflation maybe it's 2 percent
per year maybe it's 5 percent a year depending on
where you live but the point is if you're 80 thousand per year dividend
passive dividend from stock investing is not increasing every year or at least
matching or at least increase at the matching rate of the inflation rate then
in fact you are losing the real value of your money aka you are really losing
your purchasing power now let's examine company stocks dividend
they are derived from net profit which in turn net profit are actually a factor of
how much the business earns revenue in terms of revenue they generate and also
how much expenses they spend to run the business now higher revenue and lower
expenses brings us higher net profit this is very understandable which means
higher dividends now how much dividend accompany starts can give you from this
top process is very clear that it depends on how well they can forever
grow their business and control their business expenses and also it depends on
other factors like the nature of this business and this can be very uncertain
for example a new technology could make a company called business obsolete or a
change in the commodity prices could make a business suffer losses now how
about let's say business they manufacture alcoholic beverages and
suddenly they say a hypothetical scenario nobody in the world wants to
drink any alcoholic beverages anymore so this company will go out of business but
for a rate 99% of a reit revenue comes from its rental income from it beauty as
their properties now this is really no rocket science when they talk about
rental income from real estate properties although this is a stocks but
you have to understand the underlying asset of a REIT started actually have
physical brick and mortar commercial property use for various types of
business now rental is not something imaginary it's really hard cold cash
that is paid money from the tenants to the land and in the modern economy
commercial real estate is always in demand due to business demand whenever
this business going on you need a premise you need a premise you need a
place in your real estate to conduct businesses so it does not really matter
how the economic changes on the short-term changes and all that so
you see how resilient is the underlying asset of any stops anywhere in the world
anywhere in the world rental rate actually follows the inflation that is
just logic there's only one way for rental rate anywhere to go as the time
goes by and that is up up and up at this discussion today on how to invest in
dividend stocks like a pro wouldn't be complete without this third point and
that is pricing power REIT stocks with great great and the line and said have
this great pricing power and I'm talking about high quality commercial real
estate properties and that means that they can secure high quality tenants who
are willing to pay a premium rental rate to be located in a strategic location
where the business environment is thriving anyway that host property for
lease of all ran in the central business district area we have a high pricing
power in other words these rates have a high negotiation power we're a long list
of potential tenants are bidding to ram these premium properties in the premium
location and naturally you won if you're the REIT manager you will always want to
run it to the highest bidder and due to this fact at minimum a REIT usually have
a very stable recurring profits due to a stable demand from customers and this
also allows it to raise rental prices for its existing tenants without losing
businesses to a competitor over time in a nutshell if you invest in the right
REIT stocks then you I actually guarantee a steady flow of increasingly stocks
dividend income for life and that my friend is how you invest in dividend
stocks like a pro okay if this lesson has given you
and aha moments on how to invest in dividend stocks make sure to subscribe
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everything now I wanted to turn it to you to turn it over to you which of
these three reason we just cover to invest in dividend stocks I read that
you can relate to the most let me know by leaving a comment below
you
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