It could be easier than you thought!
In today’s episode, we will speak to my friend Joseph from the Youtube channel Let’s Talk Money.
I am quite excited about this episode as I am a subscriber to Joseph’s channel myself and watch it on a regular basis. Joseph loves talking all things money: From the stock market for beginners to how to buy stocks and from passive income and side hustle ideas to the best investments in dividend stocks. My primary interest in watching Joseph’s videos is to learn more about dividend-paying stocks as I want to grow this part of my investment portfolio.
Here is one of Joseph’s most helpful videos for those looking at getting started with stock pickings.
The episode will be a little more technical than usual as we will indeed discuss a few financial ratios (P/E, operating margin,..) but still, Joseph will make it easy to distil the information and guide us through the wonderful world (–> nerd! 😉) of stock pickings and dividend stocks!
This episode is for you if you are interested in learning more about stock pickings or if like me, you want to grasp the essentials behind dividend-paying stocks better!
- If you wish to pick stocks, you need to be willing to put in the extra time to research the stocks/companies. If not, you will be perfectly fine with investing in low-cost index funds.
- To be successful at picking stocks, Joseph advises focusing on one sector and on a small number of companies first to acquire that deep knowledge (just like “real” analysts). The industry you are working in every day is a great place to start doing your research: your company, the competition, your suppliers, clients, the market trends.
- Stocks represent a fantastic opportunity to grow your wealth but you should be diversified with other asset classes such as Real Estate and bonds.
- It is important to make consistent monthly contributions to your stock portfolio, over time this is how you will grow your money.
- Dividends are an important part of the total market returns, about half of it actually!
- Do not focus on the highest dividend yield. Dividend Yield: Dividend per share divided by the share price, here is an example, as per today Apple’s dividend is USD 3.08 with a share price of USD 318, that makes for a dividend yield of 0,97%. Look at the payout ratios instead, for Apple that is about 25% (USD 0.77/3.03) which leaves room for the company to reinvest the profits and continue growing. Compare all ratios within the same industry.
- Errors mistakes are mainly behavioural such as panic selling. Instead, Joseph advises to contribute consistently over time and do not worry about the day-to-day market movements.
- As Peter Lynch said: “Invest in what you know.” (No, you do not know Apple because you love your iPhone).
Who is Joseph?
Born and raised in Iowa, Joseph Hogue graduated from Iowa State University after serving in the Marine Corps. He worked in corporate finance and real estate before starting a career in investment analysis. He has appeared on Bloomberg and CNBC and led a team of equity analysts for a venture capital research firm. He holds a master’s degree in business and the Chartered Financial Analyst (CFA) designation. Joseph left the corporate world in 2014 to build his online businesses, first through creating websites and later through his YouTube channel, Let’s Talk Money. He’s published 12 books on investing and making money on YouTube and has grown the channel to over 120,000 subscribers in just 18 months.
- Youtube: Let’s Talk Money!
- Instagram: @lets_talk_moneyjosephhogue
- Blogs :
- Best purchase under 100 USD: Battery adapter for a camera, it saves time and hassle!
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