EP #163 | Why Dividend Growth Investing is Better than working a 14-hour day | & Our thoughts on Apple's share price drop
Sep 9, 2023
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In this podcast, the hosts discuss the benefits of dividend growth investing and its potential for financial freedom. They cover news on prominent companies like Walgreens Boots Alliance, Philips, and Apple. They also analyze recent dividend hikes from VICI Properties, Verizon Communications, and KLA Corporation. The main topic dives into the struggles of a 14-hour workday and the pursuit of financial freedom through dividend investing. They answer questions from the audience and discuss specific stocks like LVMH, ASML, and more.
Analyzing the payout ratio is crucial for evaluating future growth in dividend stocks.
Taking a long-term perspective is important in dividend growth investing, considering historical performance, future potential, and sustainability of dividends.
Balancing work commitments with family time is challenging, and finding a work-life balance is essential for personal well-being.
Deep dives
Dividend Talk Podcast Episode 163: European Dividend Stocks
This episode of the Dividend Talk podcast explores European dividend stocks and their unique flavor. The hosts discuss the importance of dividend growth investing and how it compares to working long hours. They also touch on the latest news in the market, including updates on Walgreens, Philips, Verizon, and more. The hosts share their insights on specific stocks and discuss the factors to consider when evaluating future growth. They also answer questions from listeners about upcoming newsletter stocks, book recommendations, tax liabilities, and hypothetical scenarios of holding only one stock for a lifetime.
The Importance of Payout Ratio in Dividend Growth Investing
When evaluating future growth in dividend stocks, the hosts highlight the significance of the payout ratio. A consistent payout ratio indicates a company's ability to sustain its dividend payments over time. They emphasize the importance of understanding the business and its competitive advantage, as well as its ability to generate free cash flow. By analyzing the payout ratio, investors can gauge the likelihood of future dividend growth and make informed investment decisions.
Long-Term Perspective and Factors to Consider
The hosts stress the importance of taking a long-term perspective when investing in dividend stocks. They discuss the need to consider historical performance, future growth potential, and the sustainability of dividend payments. While history can provide some guidance, it should not be the sole factor in determining future performance. Other considerations include the competitive advantage, management's ability to navigate challenges, and the overall financial health of the company. By assessing these factors, investors can make better-informed decisions and potentially achieve long-term success in dividend growth investing.
Balancing Work and Family
The podcast episode discusses the challenge of balancing work commitments with family time. The speaker shares their personal experience of working hard and sacrificing family events, highlighting the importance of finding a work-life balance. While work often brings self-satisfaction and a sense of purpose, missing out on family moments can be more upsetting than long work hours. The speaker expresses the desire for a normal 40-hour job with less pressure to prioritize family time.
Discipline and Personal Choices
The podcast delves into the importance of discipline and personal choices in pursuing financial independence. The speaker emphasizes the value of consistency and the need to set a good example for children. The conversation also touches on the motivation to work hard, exploring the idea that work should not consume all aspects of life. The speaker reflects on personal decisions and the trade-offs involved in prioritizing financial goals while ensuring a balanced life.
Welcome to Episode 163 of Dividend Talk, where we dive deep into the world of dividend growth investing and explore the benefits of this strategy compared to the grind of a 14-hour workday.
In our news segment, we cover the latest updates on prominent companies like Walgreens Boots Alliance, Philips, and Apple, shedding light on significant developments that may impact the market.
Then, we turn our attention to the world of dividends, discussing exciting increases from companies like VICI Properties Inc. ($VICI), Verizon Communications Inc. ($VZ), and KLA Corporation. We also delve into T-Mobile US's initiation of dividends and their ambitious plans for dividend growth.
Our main topic for this episode delves into the life of our co-host Derek, an engineer for a high-volume manufacturing plant. We explore the pressures of the job, work-life balance challenges, and the pursuit of financial freedom. We contemplate the value of hard work and how dividend investing fits into the picture, offering a way to grow wealth without constant portfolio management.
As we navigate through these topics, we also answer questions from our audience, touching on various aspects of dividend growth investing and discussing specific stocks like LVMH ($LMVH), ASML, and more.
Summary with Tickers:
$WBA (Walgreens Boots Alliance)
$PHIA (Philips)
$AAPL (Apple)
$VICI (VICI Properties Inc.)
$VZ (Verizon Communications Inc.)
$TMUS (T-Mobile US)
$KLA (KLA Corporation)
$LMVH (LVMH)
$BATS (British American Tobacco)
$ASML (ASML)
$PHNX (Phoenix Group Holdings)
Join us in this episode to gain insights into dividend growth investing and discover how it can change your financial journey.
Feel free to also join the discussion at our Facebook group:
https://www.facebook.com/groups/dividendtalk
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