Hello everyone, this is destiny with free spirit finances and in today’s video, I’m going to be talking to you about What’s in my stock portfolio Okay, I know that you were probably like this is clickbait No, it’s not the title says what’s in my stock portfolio and not what’s in my purse or in my handbag the reason why I’m not doing a what’s in my Handbag video is because everybody and their mother on YouTube does a what’s in my handbag video? I don’t know why we get sucked into watching it because it’s the same crap in every handbag my gross disgusting half used chapstick and my falling apart wallet I Know I’m not showing you what’s in my bag because it’s the same as all you guys’s and girls is handbags I am I’m going to tell you however, what is in my stock portfolio? Hence the title now.
This is not my IRA guys. This is not my individual retirement account They sir. These are specific stocks that I have bought throughout the years and I Get dividends Upon dividends coming back to me from these companies that grow my account that grow my assets You don’t again don’t need a whole lot of money to start off with this I recommend Depending on how many stocks you want to buy I would recommend starting off with fifteen hundred dollars You know and and buying certain stocks So what I’m gonna do is I’m going to show you on my phone the different stocks that I have in my portfolio And I’m not gonna give the amounts that I have in there because that’s my information But I am going to tell you how they have performed and I am going to tell you about how they have held up over the last two years that I have been doing it and Why I chose these stocks one more thing before we get into that.
I am not Licensed to tell you what stocks do buy Can’t do that. I don’t have those credentials yet. I’m not there yet. I am gonna tell you what happened in my personal experience You decide for yourself what you would like to do and let me know in the comments below what stocks you have Chosen if you have or if you haven’t had any have you have if you haven’t bought it yet what you’re interested in Please let me know in the comments below and another thing I want to share before I take you to my phone Is these stocks I looked at the metrics of these stocks to decide if I wanted to buy This stock and how the overall performance was.
I am gonna be getting into that It’s gonna be a little technical and a little nerdy again If you are just starting out investing you can buy mutual funds you can buy ETF They’re basically a conglomeration of a bunch of different companies Shares of their profits so that if one company goes up in the other one tanks, you don’t really lose that much return And if you’re just starting out and you want to do that, that’s great I’m gonna be getting a little nerdy in this video, but this is like beginner level nerdy. Okay This is that there’s some there is some finance terms that I’m still learning about and I’m like, wow, what is that? But this is like basic level nerdiness here in this video. So let’s get into it Okay, everyone. I am taking you inside my Vanguard portfolio for individual stocks.
Now, this is not my IRA I might do another video on that later on but these are my individual stocks that I have picked and I’m gonna go through them and explain to you why I picked them and a little bit on the nerdy side of The technical aspects of why I chose these particular stocks So before I get into it I want you to know that I did read a few books on this And one of the big ones was called get rich with dividends. I will put that in the description below I forget the guy’s last name, but I’ll put it in the description below and I will link have that link there for you But he basically broke down and went through everything on why you pick what you pick when it comes to Getting the best rate of return for a stock portfolio You cannot time the market.
You cannot predict the market that is impossible The idea and the goal is to have this be a long-term thing where you get dividend reinvestment Sfrom blue chip stocks. And so I’ve been doing this for about two years. I’ve already seen a profit but this is like a 3040 year project for me and Yes, I make money on capital gains but I’m also making money through dividend reinvesting so let’s go Let’s just break this down. Let me go my favorite one that I like to talk about. I have two favorites first off All these are in alphabetical order and I have Apple Abby Aurora cannabis, I’ll explain this one because this is like, excuse me. Aurora cannabis is my wildcard and so is Amazon and Let’s see what also I have I have Grainger JPMorgan Chase Scotts Miracle Grow target Toyota Motor I do have a Vanguard retirement fund. I don’t know why Oh anything that’s not a Retirement in my IRA is listed here. And this technically isn’t a stock So ignore that one and then ExxonMobil so that’s what I have right now Now this is I used to have a few others, but I did a purge a few months ago going you know What these stocks are not performing to the best of their ability.
I also needed some cash so I got rid of them but this is what I got now and I will always be can increase in my portfolio and Doing more research on it. And as I update my portfolio, I’ll make another video on it But this is what I have for right now now I have made About a 12 percent rate of return In the last couple years It was a little bit higher a little while ago and I think that’s because I had more money in there But for right now as of today, I’ve made about a 12 percent rate of return in it overall And I’ve had another video explaining why you cannot just buy all shares in Apple Like you cannot just buy all shares and Apple you cannot buy all shares in just one stock. There has to be a diversified portfolio There is this place called market beat and it gives you up to date information on dividends so I’m gonna do to use Apple everybody knows Apple and that one’s that wouldn’t Showcases what I want to show you so Apple is trading at one eighty nine.
Ninety five and I Bought it a couple years ago for one forty five a share. So I’ve made a capital gains profit I have made about what they forty five I have made about a forty five dollar Profit on the capital gains and I bought several shares. I didn’t just buy one. So I’ve made some money with Apple on capital gain, however, the opposite of the capital gain is the capital loss and the capital loss that can be uh, What do you say that can be you know? You lose money for money that you put into it It comes and goes the stock market goes up and down That’s not what you hope for but it’s it’s part of life it you do lose some money on on it, but The whole goal is to have it long-term and over time. The stock market goes up so It’s at one eighty nine. Ninety five for share now This is where I that there’s a bunch of stuff that you can look at here that goes into the details of Apple Because ultimately I’m not here just for capital gains.
That’s cool. If the stock price goes up. I am here for dividend reinvesting Alright, so let’s look at the dividend tab right here Okay, so the most recent dividend was paid out February 14th of 2019 so their quarterly dividends the annual dividend is – now that doesn’t sound like a lot you’re like really three dollars a year really? Like that’s not a lot the reason why you may think that is yes, it’s a low number but Over time this pays back greatly because you have a lot of factors compounding here.
So for example what you have for the for the annual dividend is 292 and But say you have more than one share you have ten shares you have twenty shares Just multiply that by this number That’s how much money you’re getting back in a year, which is not bad. Like say you have you know, 20 shares of Apple Which I again not everybody starts out being able to buy 10 shares their 2005 shares So you have five shares of Apple and that’s 14 dot 60 cents a year That you get back which hey, you’re not doing anything you bought the stock Sitting there, you’re not working quote-unquote going to work over this.
So you’re making 14 dollars a year on five shares That sounds minimal, but those shares are those. Um dividends are reinvested back into Your portfolio and you get more shares of Apple Now you’re probably wondering what happens if the stock market goes down Say it goes back down from 189 back down to where I bought it at 145 The dividend is not going to change it is still the regardless of the price of the stock. You are still getting that $if you have five shares or the 292 per share You’re still getting that so it doesn’t matter if the stock goes up or down you still get your dividends and if you reinvest them They go back in and they buy more partial shares until they accumulate and to get whole shares So again, this is not a one-year project a six-month project. This is a 3040 year project I don’t know how many shares I’m gonna be having in 30 or 40 years of Apple if I keep this okay, so that is My that is a the annual dividend for Apple The dividend yield is one point five four.
That is pretty low. I Ideally you want something at four percent for the dividend yield just to keep up with inflation But this is the big one that I like to look at and that’s the dividend growth rate Dividend growth rate. Those are pretty high 11% growth now, what does that mean? That means that every year? This is a three-year average but for dumper for simplicity, I’m just gonna say for every like a one-year average for every year your dividend up here the 292 is increasing by eleven point six percent Eleven point six percent now that this is a three-year average that they have right here where they’re talking you about it I’m just gonna for a number sake make it a one-year average which is really high like for it to be eleven sixty, but hey What you do is two point ninety two times point eleven That means that next year the Annual dividend if it grows eleven percent a year the annual dividend will be three dollars and 38 cents For the next year, but this is a three year average I think it’s it fluctuates a little bit because of the three year average.
Anyway, the point being is that this is your dividend Growth rate and that’s a pretty decent growth rate. So That means that every year the company is making more and more money So it’s able to shell out more money in dividends to its shareholders. And so that’s pretty good payout ratios What are the payout ratios well, I look at well, actually I look at all of them But I’ll just do this top one here for for simplicity sake you want to payout ratio of 75% or less what a payout ratio means is you have a company that makes money and After its operating capital like after after it’s done paying all its bills. There’s a net profit that’s left over and you Want to pay your shareholders, but you also want to keep some money back as profit so that you can reinvest in your business Because if you give away too much money in your shares to all your shareholders ya the share people are happy But you won’t have any money for the following year to grow your business which is why it is very important to keep some money back so you can continue to grow the business if you’re a company as you can see Apple only has twenty four point five five two payout ratio and what that means is after the Company is done paying its bills Whatever’s left over they’re only paying out twenty four point five two percent To its shareholders and dividends which means that the other seventy five seventy four percent is going to growing the company Which can make sense because Apple just keeps going and going and going it makes sense why it’s only twenty four point five two percent Alright, so track record right here.
Your track record is Six years of consecutive dividend growth now Normally when you’re hunting for blue chip stocks to have dividend reinvestment you need to have A good track record. So for example coca-cola McDonald’s Some of the older companies that have been around since the 1940s and 50s. Those are the ones that you usually go for They’ve been they’ve been steadily Increasing over time.
They’ve been giving out dividends forever the reason why I’m okay with only having six years of Consecutive dividend growth for Apple is because Apple is Apple like Apple took over the world. I Don’t think it’s going anywhere. I really think it’s gonna stay put for a very long time so I don’t mind it It’s just six years of consecutive dividend growth Normally you want to look for something that has 20 30 40 years of consecutive dividend growth frequency quarterly dividends so you could pay it every three months and then the most recent increase was ten cents in May so that is Market beats website and down here.
You can also see per like the amount per dividend You know how it fluctuated because the yield sometimes changes and The ex-dividend date like when it was last so there’s more information about that there. So that is basically what Market beat does it breaks down for you the formula of the dividends and they got all kinds of tabs here. They have charts they have They have earnings financials. I can you know make another video on those. I just wanted to talk about dividends for right now So that’s market B. Let’s get back to my account I Did a whole thing with Apple now? Why did I pick Apple? So this is what I’m gonna do right now I’m gonna go through each one on why I picked these Apple and again.
They’re what I showed you for dividends. There is no cookie cutter formula of Finding the perfect stock that has everything I mentioned that you need to have So that’s why you need a bunch because not all of them are going to fit that cookie cutter mold But they’re there one stock is gonna have an attribute of what you need and the other stocks are gonna have other attributes So you may find one with an impressive growth rate but the dividend yield like Apple the greatest or you may find an amazing dividend yield and the growth rate of average or Like below average, but it doesn’t matter its overall. What is it’s gonna give you the best rate of return or not And again, I am still in the new as far as like, I’ve only been doing this two years I’m still in the experimental phase as far as what would produce the most and that’s why I go through a purge every I say every year I go through a purge of things that I’m like, you know what this is not performing for me This is not performing for me right now I’m going to change it and when I get another chunk of change, I’m gonna pick something else So let’s go we talked about Apple Apple.
The reason why I picked Apple is because Apple is Not going anywhere. Apple is a tech giant taking over the world is a great tech company AB v IV has great dividend growth rates. That one’s a pharmaceutical company And again, I’m also looking across sectors. So Apple was Tech Ivy is pharmaceutical I’ll get back to our or cannabis here in a little bit I’ll explain that in a minute Amazon is my wild card Amazon I bought it for a thousand dollars a share and as you can see, I’ve made a pretty nice profit Because they’re now at seventeen eighty a share it’s been really nice and then this one right here is Granger Granger’s basically industrial supplies again, Industrial supplies in the industry of industrial supplies. Okay, that sounds weird. But like Infrastructure is not going anywhere. People are always going to be needing safety equipment and Refrigeration and air-conditioning and light bulbs like that’s not going anywhere. So this company is pretty solid I don’t think it’s gonna be going anywhere anytime soon.
And so that’s why I picked Granger and it also has a really good dividend growth rate. I’ve been making money on it And I also it’s gone up since I bought it so it’s been nice JP Morgan Chase that’s banking Banking is good banks aren’t going anywhere JP Morgan has a very strong presence in the US. So I picked JP Morgan Scott’s miracle-gro People are always going to be needing a lawn service. People are always going to be mowing their lawn and That one I picked.
I looked at the dividends. I forgot the exact numbers, but I liked that one when I got it Target target look at this. It’s red right here. Target has gone down a little bit And I forgot when I the price exact price I bought it from but I did overall make some kind of capital gain on it but again target as much as I think Amazon is taking over the world I think target is Doing a good job of competing because they’ve been they’ve remodeled their stores recently They’re trying to make it feel like a a mall experience when you get in there. It’s really nice in there now I don’t think that target is going to be dropping off anytime soon. I don’t think target is going anywhere for the time being Toyota again. Okay, so I have a couple retail stocks and then this one is a motor vehicle Motor vehicle stock I have Toyota Toyota Toyota’s were made in heaven by angels. I mean, sorry, I’m very partial very biased to Toyota I always Drive Toyota and that’s what I’m like well I might as well earn stock in it.
Yes, it has gone down In the last couple days But again, I think the gains have gone up now again capital gains could change it could go back down. There are market Corrections I’m not really too worried about that. The dividends were pretty good So that’s why I picked Toyota again another it’s a diversified portfolio So I have different companies from different sectors. So that was my automotive Exxon Mobil Exxon Mobil is that oil and gas and that is What I am doing right now just for that one. I think that one has gone down in capital gains I think I bought it for 90 and it’s gone down to 80 However, it has great dividends as as far as dividend growth and it has definite quarterly difference because I’m not worried About the capital gains so much. Okay Sometimes if the stock is completely tanking like GE in the last year has gone kaput Okay, that’s time to bail.
But if it goes down a little bit, I know next year. It’ll go back up and it’s okay I’m looking for the dividend growth because it keeps investing in more So let me go back up here to Aurora cannabis. You’re probably wondering. Okay. What is this? So Canada legalized pot in October of last year and there was a big hype that’s like, oh my gosh doctors are gonna like skyrocket and they’re gonna go through the roof and they’re gonna be amazing and we’re gonna get rich and That didn’t happen like the boy cried wolf or whatever you call it. People said this guy was falling and it didn’t fall I’m mixing up my favorite tales.
But anyway Nothing really happened, but I did, you know, I wanted to see what it would happen and I did invest in aurora cannabis on over-the-counter market Not a Canadian stock. Um, excuse me. It was a Canadian song. It wasn’t an American stock one by the time I bought it So I bought it for like eight dollars or something. So I did make some that I made a dollar a share, you know. Yay, whoopty-doo. I made a dollar a share And the reason why I bought it and I kept it because even though the hype is over is because sometime in October last year aurora cannabis came over From the over-the-counter markets in canada, which means that they’re not really stable companies They’re stable stocks.
It came over to the new york stock stock exchange. So I have held onto it because it’s now a part of the new york stock exchange and We’ll see what happens It may completely go kaput But it also may be the next Google and I don’t necessarily need the money that I have in it right now Let’s see what happens. I I’m I’m not saying it’s going to become the next Google But it would be nice if it did and it did come over here and I know slowly but surely This country will be allowing more medical marijuana and recreational marijuana In case you’re wondering no, I don’t use weed I don’t I don’t personally like it for myself But I’m not against other people using it and I’m not against it becoming legal. So I Think that this if it does take all the way people say it, is it be great. If not, You know if it goes below eight dollars a share then I’ll probably sell it.
But right now it’s okay it’s just it’s just there and We’ll see what happens again. It’s my wildcard So this one and again Amazon my was also a wild card because both Aurora and Amazon They don’t Give out dividends those that’s why I call them wild cards because I’m not in it for the dividends on those I want to see what happens and I have made a really nice chunk of change on Amazon Amazon’s been great. But as far as Aurora cannabis that has been my my fun card. That’s been like, okay. Let’s see what happens here. I’m not Concerned about it going getting any dividends from it. I just want to see what happens. So there’s that so that’s my Portfolio, let me see. Is there anything else I needed to explain to you guys? Oh all right, so What does a realize gain and an unrealized gain? Right now because I haven’t sold any of these I bought them but I haven’t sold them that is called the unrealized gain So, um, for example Apple I bought it at like a thousand dollars a share and it’s at 780 That means that I have made 780 dollars in a capital gain, however, it’s called an unrealized gain Because I haven’t sold it.
So technically this money isn’t in my bank in my account. Like I don’t have the cash this is just what I could withdraw if I sold the stock and when you get that it’s called a realized game and your taxes will be Adjusted because of that because it’s considered as income So watch out for that if you decide to sell during a year Like I sold some stuff in 2018 I had to watch out for it for my taxes the next year because I did sell I made a profit in again You’re not making a profit off of the original money You’re not paying taxes off of the original money you put in I put a thousand dollars in I didn’t make I didn’t pay taxes On that I did pay taxes on the stuff.
I did sell in capital gains. I haven’t sold my amazon shares yet, though I’m hanging on to this one. Let’s see what happens So this is a good basic rundown of stocks. If you have more questions about this and you want to know more, please Leave me a comment. I’ll try to I answer all my comments So if you want me to make another video on this topic, please let me know This is destiny with free spirit finances. I will see you again in another video .
Dividend Growth Investing for Beginners!
How to invest for beginners:
This is a tutorial video.
This video is not sponsored.
I am not licensed to tell you what stocks to pick! This is just what I have done, and perhaps you can clean some guidance from it.
Resources I use:
Get Rich with Dividends!
By: Mark Lichtenfield
By: Matthew Paulson
This is a very basic nerdy overview on investing for dividends. Capital gains are a plus, but the long term goal is to collect dividends.