Now we're going to go through a couple other sites to get more ideas of different dividend paying stocks. Basically, as a shopping list they could take a look at. One is dividend champions. This guy works the money paper. This is the website. He actually has a monster spreadsheet.

And I'll show this to you right here where he keeps track of over 100 stocks. And these stocks have a history of paying out dividends that increase in in payouts over time. So it's a very good spreadsheet because you can actually look at the stocks that are currently paying out high dividends usually same as the dogs. Hey, got some temporary issues that have lowered the stock price, and you can get in on a bargain rate and then build your Your stock base over time. Now, if I'm overwhelming you with too many sites and too many choices, that's fine, don't feel bad you could this is just for people that want to look at more possible shopping candidates. You can always go back and just use the dogs of the down and stick with the Dow bottom five and that's it and that's perfectly fine.

There's no issues with that. So some options. So that's the dividend champions for money paper, which is a nice newsletter, they have their lists of dividend aristocrats, which is against companies that have paid out over time, increasing amount and dividends. And their big thing with the money paper is no feed reps meaning that if you purchase directly from the company, sometimes at a discount, you can add through dividend payments, more shares of stock no cost to you. And these are the companies right here and the money people will help you out with that. And then here are a list of other stocks that do charge fees for their drip program dividend reinvestment program.

What I like to do is I actually put these stocks symbols into Yahoo Finance, and then I keep track of these. And then over time I check them periodically and once in a while, some of these will show up on the 52 week high and low list and I'm looking for the lowest of the shares in terms of pricing. And then from there I take a closer look at the stock see if it's low PE low price the book, low price sales, and look forward to purchasing it and hanging on to it. I usually hang on to it for a year or two why comes back up and I think about selling when it's usually reached about a 20% Price improvement. So this is directed esteem through the money paper here. Another site which also I put in Yahoo Finance to monitor is the Morningstar moat ETF and what they have done is they've basically taken the moat type of industries.

These are companies that a huge large cap blue chip stocks with what they call moat wide moat is Warren Buffett refers to, which means that they have an aspect of business as hard to replicate or other competitors to come in and out of the list of 44 stocks that says the actual listings are 25 here, and again, you can put this into a list and look for their 52 week highs and lows and when they hit the lows, all stocks eventually Hit a low, just a matter of when under high dividend payout. That's when it gets interesting. You want to take a look to see if it's worthwhile to invest in. For example, here we look at Elle brands, year to date returns pretty low, negative 19%. So this might be worth further study here's PE under 15. But the next one is lows here today, not much less than 1%.

But these kind of high at 22. And so on and so forth. You can see here stocks that appear to be over price like Vf Corp at 30 or Amazon at 317 on the PE ridiculous. And then you can look at socks that appear to be under price like this one at seven kenzan Corp and so on so forth. And again, you're trying We'll find value stocks that are under invested in that eventually the market is going to move to. As we talked earlier growth and value.

Value stocks tend to fall less in a declining market than growth. And again, value stocks because of that, because of the dividends can give you about 30% increase in profit. Don't forget your profits add to positions and diversify in different sectors of the market. Never want more than five to 10% invested in a particular stock, especially if the stock is highly volatile, or risky because that will cost you money. You also want exposure to foreign markets in addition to the US markets, about half of the stocks available In the US from foreign markets make up about 48% 52% of all stocks available are basically US stocks. Now foreign markets are interesting because the accounting principles are not quite as exacting as the US market.

Foreign markets can go up and down much more quickly than US markets much more risk. However, if you buy foreign markets usually instead of buying individual stocks you want to buy commission free vehicles or low cost vehicles like ETFs index funds, no load funds and spread your risk out. There's quite a few that you can find through your discount broker. Now a side note on brokers, there's full service brokers which charge you premium dollar there's discount for brokers which is what I use, which have lower costs usually through internet trading at quite a bargain. Examples of discount brokers could be swab. Fidelity, TD Ameritrade, I use TD Ameritrade just for convenience.

I like currently their Commission's are $6 and 95 cents per trade. And they do have actual commission free vehicles, no charge ETFs usually Vanguard, and the reason why they do that is because when you put money in these commission free vehicles, you commit to having the money in there for three months, six months or a year to waver the commission of buying and selling on the on the one hand allows them to use the money most efficiently. On the other hand, it saves you money and it keeps you from being a day trader. Now if you don't want to use commission free vehicles You can use to CTF straight up. And you can trade as much as you want course pay the Commission's you can use index funds as well, which allows you to trade at the end of the day. And finally, no load funds, which involves commissions.

But on the other hand, it's cheaper than using rubber loaded funds. As a side note, no load funds is exactly the same as loaded funds. The only difference is you're not paying commission loaded funds. They have a B and C shares, you pay a load going in the payload, I own the shares of stock or time or you pay a load on exit. I would never use a loaded fun, except if I'm trying to get into a particular sector, that there is no other way in which in today's market, there's pretty much index funds and ETFs for everything. But it's You feel that particular sector can use an active manager and that the Commission is worthwhile.

You can look at a loaded funny get in there. My rule on funds are you want to use funds where the manager has been around least 10 years and they've been through bull and bear markets. In other words a bull markets and up market a bear market is a down market. And an active manager can actually minimize the effect of a bear market. That's where funds can become very handy. The other thing with funds is that if you don't get one with an active manager has been there for 10 years you want to look at mechanical funds.

And there's quite a few of those. The Hennessy that I spoke about earlier is very mechanical, these computer programs to buy and sell their stocks once a year so they have very low turnover. Very low expenses have very low active management expenses. And what I like about these funds is if they have a bad year, and you can follow it on the web, that's usually a good time to invest. For example, they may have a year where they're down 5% 10% 15%. The following year, they may be up 1020 30%.

So the trick is to get in on a bad year. And because they use mechanical or computer programs to buy and sell their stocks with their methodology, there's a high chance that the fun not only comes back and does profit The following year, but can actually come back and do significant profit on an up year. So with funds I like mechanical funds, that uses stock computer programs for investing, not so much dependent upon a manager. I like low cost low maintenance. index funds where they just mimic the index are excellent too, because a low cost basis, you also have ETFs, where they buy straight up baskets of stock, very similar to index funds. The differences with ETFs you pay commission going in and out using index funds, there is no commission.

You have to check with your brokerage company, there may be a commission or a fee if you buy or sell within a certain timeframe. And finally, commission free vehicles which is the best of all worlds, where you get exposure you can actually buy ETFs they cost you nothing. However, it does tie up your money for a period of time. So these are all different vehicles to use with your profits from your dog. So the Dow strategy and again he wants to get exposure not only in the US market, but in foreign markets last year or foreign markets have definitely made a comeback. Last year some of the foreign markets outperform the US market.

Just saying I want to mention to spreading your risk, and this is alternative investments down here. The reason why is because so yeah $100,000 in the market, US market in the Dow or the s&p has a bad year, and you're down 10% or 10% $10,000 at $100,000. That's not bad. It's not great. That's livable. But if on the other hand, you had some foreign funds in there and say the foreign funds are up 10% yet equal weighting, you haven't lost any money or if foreign funds composed of 20% your portfolio then your overall performance is only down 8%.

And so 10%. Now that may not seem like very much money, but add an extra zero in there when you have a million dollar account. If you're down 10% on a million dollar account, it's $100,000. And that can knock you out of the market all together, where they have a mixture of foreign funds and other type of alternative investments, he may be able to neutralize, or in fact, come up with a slight profit on a bad year. Two stories here, I had a friend that bought individual stocks and he violated that five to 10% rule we talked about earlier. He took $12,000 and in one year, he ran it up to $90,000, which sounded great problem was the market moved against them did that reversal the means that we spoke about earlier and the real stocks that he was Investing in all of a sudden fell with the big market meltdown, as we call back in, I believe it was 2001.

So it's $93,000 that he made all of a sudden shrank down to $9,000. So not only do you have to pay taxes on those profits up to then he had to give back all that money he made plus more. And he never got back into the market ever again, because it was too devastating. Psychologically for him to get back in another person, that option plays only and ran up to a million dollars, starting with 50 grand, and after a year to last at all, and when right back down to less than $10,000. And again, he had to pay taxes, knocked him out of the market. He never got involved in the option play again.

So as you make money, you want to look at all Turn investments to put your profits in some alternative investments or REITs, real estate investment trusts, sector ETFs micro cap, small cap mid cap and mechanical investing funds. Again, my favorites just happens to be the Hennessy funds. We have a mixture of stocks and bonds, the dogs, that kind of thing. And also different sectors like the dividend dogs. The reason why you want to have other options where your profits are going to suffer in case you have a bad year or a bad stock picking environment, you don't lose it all get knocked out of the market all together. Ultimately, your goal in life or at least my goal is get those monthly dividend checks.

And if you've reached the point where you never sell Those dividends you never sell the stocks underneath. You can live quite well on these dividends and that's what some people do in a way because the Dow stocks, you have 30 stocks and what one of the strategies involves is you buy the dogs of the Dow and you never sell off the winners ever. And you just let it keep accumulating with dividend reinvesting keep buying more shares. Eventually when you retire you live off the dividends because you have 30 stocks you're going to get monthly dividend checks for many different companies every month. So this is kind of an interesting goal to have. And I saw one study where they did that they took the actual dogs of the Dow and he never sold when he went off the dogs list and he kept adding to the bottom 10 stocks and in After 2030 years, they're making over 20% a year on just capital gains plus the dividends on top of that, and they just live off the dividends.

Another alternative is selling covered calls and sell inputs. And again, this is a way of generating cash in your account. Now covered calls we talked about and I'll give you some real life examples. Remember a covered call, you own the stock, you sell the call the church, the person that's giving you the cash up front, at some point in time, they may like to take the stock away from you, but you're making a profit. When they do that. Selling puts same idea you're interested in buying the stock and then you want to buy the stock under the current cost in the market.

So you're getting stock at a wholesale price. Now retail price and somebody actually giving you cash to put the stock to you at a particular price. And again, both of these methods is similar to collect and dividend. Your goal is to live off 4% of your total investments. And that way you can spend 4% a year he never touched principle. This is what most financial experts say four to 6%.

I like using the number 4% because it's very conservative number. So if I have $100,000 invested and I'm getting 4% a year that's 4000 a year. If I take 4000 a year, and divide that by 12. I come up with $333 doesn't seem like much but if I did a million dollars at 4% a year then That actually comes up to 3333 per month that you live off. And that's in addition to my social security or any bonds or any alternative investment vehicles that I have putting out money. So your goal in the market should be at least a million.

And when you hit that, you can get up to 1.2 1.4 1.6 at 4% rule and see how much that can reach for your retirement. Don't forget your Social Security, any pension plans you have any non traded rates, which is another alternative account as a bond component, because it pay out a fixed amount over time. On trading beats, you got to get these two financial services. They're basically real estate investment trusts that don't trade on the market. So they're not as volatile, but they do pay out a fixed percentage, a currently non traded read so you can get paid out six and a half to seven to seven half percent a year. And of course, you can use the income from those to buy more non traded reads to build up your fixed income portfolio.

Any pension plans which are impossible to find the day, usually through large companies, they pay out a fixed percentage per year that counts in my book like a bond. And then Social Security, which is through the government also pays a fixed amount monthly, just like a bond. So this all counts as part of your bond portfolio. So when you're ready to retire, you want to have a mix of stocks and bonds because you can't depend upon one or the other. By itself, the rule of thumb in the old days was 100 or 110 minus your age, that would equal your amount of bonds versus the amount of stocks. Basically what you're looking at as a 6040 mix of stocks, the bonds are 5050.

Mix stocks, the bonds, some people say today should have 7030. Stocks, the bond idea is that stocks can and do decline in value at times do crash. But you don't want to run out of money at the most critical time when you're retiring, because it's almost impossible for you to go back to work. So the idea is that if you have 7030, stocks, the bonds, your 70% in stocks, will eventually come back for a few years crashing and start down Perform again, allow you to put the the money generated by the dividends and the capital gains back into your bonds. So the principle is you live off your bonds for the first few years of retirement as you build up your stock account, and then if there's a crash, you won't be able to survive on your bonds for a number of years. While the stocks recover.

Historically, stocks have not really crashed beyond 10 years, except when you get back to the depression there. And even that was about a 12 year cycle. So rule of thumb is a 6040 mix or a 5050. Mix stocks to bonds when you're ready to retire and of course factor in your Social Security pension and other type of non traded REITs etc. Counting as your bond portfolio. Well, last thing I want to talk about is closing funds.

Closed end funds are very interesting. There are different vehicle altogether. Closing fund, basically, our asset managers that collect stocks, and then they present it to the market as a fund mutual fund, but instead of being a regular mutual fund, or it's open ended, people can buy and sell all day long. It's a closed end fund it's price as if it's an individual stock and it's limited. So with closed end funds, you get the best of several worlds in terms of your buying a fixed price, you're usually getting stated return, high rate of return back. And even though it goes up and down as the stock market goes up and down, because it's diversified in many different funds.

The risk has been spread Now there's a couple things we're going to talk about with closing funds.