Covering SPY History & Why I Changed From Growth To Dividend Investor


hello everyone and thanks for tuning
into the financial investor Channel and
today’s video we’re gonna go over the
power of dividends and why I became a
dividend ambassador back in 2017 so if
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to all your guys’s comments and let’s go
ahead and get into the video so back in
2017 I made a pretty big transition
moving from a growth investor where I
had been over a motive and then Robin
Hood I had owned stocks such as Amazon
eBay Tesla I own Facebook Weight
Watchers and a few others out there
primarily invested in growth socks I had
owned Amazon since I believe Nate what
was 2013 2014 and I had held it all the
way until 2017 when I transitioned out
of my motive investing over to Robin
Hood and then I was taking a look at the
market and it was began to get to a
point where I was feeling a little bit
uncomfortable holding growth stocks I
had achieved so much when looking back
that past performance during the 2000
tech bubble they had lost more than 50
percent of their equity now the S&P 500
is currently pulled up here on the
screen and here over the course now I’m
using s P Y this is one of the
longest-running ETF’s
much longer than ticker symbol vu I know
a lot of you guys like to invest into I
actually invest and view myself but for
this example I’m using the S P Y because
this has been around since back in 1994
and its inception and shows a 24 year
period of the stock market now taking a
look at the graph we can see that it’s
very common for there are two B cycle
there bear markets ever
ten you know eight to ten years so here
we are in the longest-running bull
market currently we were recovered back
in 2009 we’re now in 2008 nineteen it’s
been ten years here we had a stock
market crash back in 2002 another one in
2008
well basically 2008-2009 that right
there was a six seven-year difference
right there right now you know when I
was looking at becoming a divin investor
these doctormick had already been at
some all-time highs
we had already recovered everything from
2008 recession plus we had doubled since
then now currently looking at the market
back in 2017 I asked myself am i
comfortable holding growth companies
that may fall such as let’s go ahead and
bring up Cisco and IBM we’ll just look
up Cisco right now but back in 2000
Cisco was a crazy stock jumping at over
$75 a share now tech bubble took place
the recession Shrove it’s priced down –
I’m sorry
I drove its price down to under $20 per
share there now it has trended signed
aways from 2002 all the way until 2015
before I began to get some traction and
the $30 point I started buying it back
in 2017 and it is now worth $56.95
so this one has not yet recovered to
that share price that I had prior to
that tech bubble now another one here is
IBM IBM did go through the tech bubble
it did take quite a while for it to
fully recover from that tech bubble and
then since this point in 2010 it shot to
highs in 2014 15 before falling and have
not yet recovered it may never recover
due to its earnings and its growth
potential kind of going forward now
there are a few other companies out here
such as into it which has gone through
that tech bubble they didn’t really you
can see here that there was a bit of a
fall between 2000 and 2002 but for the
most part they just kind of continued to
training sideways here
at this slow if you had bought and these
little spikes that probably would have
recovered for you for quite a while it
looks like maybe tell 2011 or so but as
at this point into it which is not turbo
I believe it’s turbo tax tax layer yeah
it’s terrible tax from this point it has
gone nowhere but up and currently
they’re working with others such as H&R
Block and a few other tax preparers to
try and make it so that the IRS is not
able to give out free software they’re
making it so the IRS is not able to push
free software for individuals to use for
their tax services right now if you make
less than I believe 66,000 a year you
can actually go to the IRS website and
have your taxes done free but they’re
trying to make it into it and a few
others are trying to make it illegal or
just not right for the IRS to do that so
they’re gonna try and make it and make
themselves a bit more profitable now
eBay did go through that tech bubble
here back in 2000 but it just similar to
Amazon has done a very nice recovery
from this sort of tech bubble here you
can see that it did rise up and actually
had a little bit of a recession or pull
back here back in 2005 falling during
the recession down all the way down to
basically become nearly a penny stock
and then has recovered since then now we
can see some recent earnings popping
that stock from nearly 25 $28 point
probably a little bit Frei around $30 to
about $36 and 39 cents now we have
Oracle here as well during that
recession or the tech bubble that was up
at $45 per share fell all the way down
to about 10 $14 in this range and as
that the point has steadily increased
but it wasn’t until 2016 2017 where this
finally recovered to that stock price of
where it had been prior to that tech
bubble now Facebook Netflix and Google
here have not been around through the
tech bubble the oldest of these three is
Netflix which started back in 2002 it
looks like maybe two
three 2004 . and we can see here has
trended sideways for quite a while it
wasn’t until recently when Netflix
started to become more profitable that
this stock started to show some very
good growth signs now 2015 it must have
had some really good earnings because
this company went from being valued of
around eighty ninety dollars here within
this range to now over three hundred and
fifty nine dollars and forty six cents
now when you take a look at this graph
and you take a look at Cisco or you take
a look at eBay or IBM are you
comfortable with holding a company
through a recession that has never
actually made it through a recession it
hasn’t had that 50 60 70 percent
pullback it hasn’t had years where you
know now it’s making really good profits
but into the future when times get tough
and not the the the sort of users of the
program are they going to be wanting to
kind of keep their subscriptions around
for Netflix or are they going to look
for other options try and trim down
their subscriptions I know the fire
movements out there making use of kind
of thinning down becoming frugal on your
subscriptions and items that you do not
need Facebook and Google here Facebook
they spit Dave in really steady they
haven’t had a whole lot of spikes until
what looked to 2019 or maybe what 2018
towards the end it wasn’t until that
sort of what was it called I can’t think
of the college or the whole scam not the
scam but they had a big leak with a lot
of their information whether the Russia
and for me I can’t think of it right now
but add to that point Facebook just fell
hard here from a 220 dollar point to now
about a hundred and seventy eight
dollars and this was not even considered
a very big correction I mean it was a
very big correction but imagine Facebook
going into a downturn where people
aren’t buying up their ads they’re not
using the platform and they’re not
producing as much income as they
normally would during this growth period
would Facebook maybe fall back 50 60 70
percent from these highs currently
to be more valued I say $60 or maybe a
hundred and twenty dollars from this
point who knows I’m you know Facebook
was down in that 140 range I’m not sure
where it would actually fall to if it
did fall but kind of going back here now
I became a dividend investor back in
2017 buying up companies you’ve seen my
portfolio out there but one of them here
at Cisco Systems I have bought into this
one I have not bought into into it or
eBay or Oracle or IBM but all what these
five stocks here have in common is that
they currently all pay out a dividend
now during times of pullback yes
companies all companies normally will
lose some sort of equity even some of
the biggest names out there for dividend
companies Johnson & Johnson being one of
those goliaths has gone down and priced
during those recessions here if we take
a look at the recession over the
ten-year period I will have to look at
the graph here you know for the most
part we can see the tech bubble this one
did get drove and driven down but it did
recover here within just a few years and
then during the 2008 recession this one
also fell pretty hard but by 2012 2013
it looks like there it had recover so
between 2009 2008 8 until 2013 that’s
about a four year period this company
and many others out there were in the
negative territory now this company for
example they pay out a dividend this one
pays out now 90 cents per share but back
in let’s see 2008 this one paid roughly
40 cents per share a little for 40 cents
per share so during this whole downturn
yes you would not have got any sort of
capital appreciation but you would have
got paid out 40 cents per share every
single quarter that you held that stock
and if you continue to buy into that
stock buying back more shares getting
paid out more dividends using those
dividends to buy back more shares and
just continue that process over that
four year period by the time you
actually reach this you know being back
positive
in your portfolio the company has
recovered through that recession you
would have actually probably have
achieved a 3% annual return during the
same timeframe actually keeping yourself
out of being into the negative there
whereas companies that do not pay out a
dividend let’s use em Amazon for example
there would be no sort of dividend or
payout to the shareholder you would have
not have been able to buy back more
shares you basically just want to had at
brand-new equity into the market in
order to buy back those shares so that’s
just sort of a quick summary of the S&P
500 the history and such I probably want
to create some sort of a better visual
video kind of going forward but for the
main part I was a big growth investor
back in the past I’ve doubled my equity
since investing back in I started
investing in 2004 but this is just
meaning through my thrift savings plan
it wasn’t until 2008 2009 that I started
creating my own portfolio outside and
began invest in at a taxable count over
at Vanguard and then I transitioned in
2015 to motive investing when they
started offering free then I moved over
to Robin Hood in 2017 where they had
free and they also started offer some
other bonuses that motive was starting
to get expensive to kind of use and in
2017 I transitioned from a growth
ambassador to a different investor being
focused more not on equity gains at this
current time because equity gains in a
in a after a bear market it’s very easy
you invest in companies they’re gonna
rise but during the end of a stick here
you know we’re kind of we have a stick
it’s lit and it’s currently kind of
coming back towards their hand
eventually it’s gonna get too hot for us
to hold and we’re gonna have to drop it
we’re gonna have to drop out of the
market or the markets gonna itself just
kind of drop and as long as you’re
comfortable holding those growth
companies when they’re making no equity
they’re not making any sort of return
over a one-year two-year three-year
period and you may lose 20 30 40 percent
in your equity just within a few weeks
or months very quickly which I took in
place back in
2018 where Facebook Apple Amazon and
many of these other companies lost over
20% of their equity just within a week a
couple weeks period there you know it’s
just things to consider so this is just
a very quick video kind of going over
the history the S&P 500 taking a look at
four of the biggest growth companies
along with some of the companies back in
the tech bubble that just never
recovered and just kind of given you a
sort of heads up go on into the future
as long as you’re comfortable holding
those tech companies if that works for
you and you continue to hold and buy
through the recession you’ll probably
end up pretty well in the future but can
your can you stomach and take that gut
punch there from these companies losing
so much equity there within a short
amount of time so that is basically all
I wanted to cover in today’s videos so
if you did enjoy the video hit that
thumbs up button below if you do enjoy
these sort of history taking a look at
the growth stocks and dividend stocks
let me know in the comment section below
and of course if you aren’t brand new to
the channel have not yet subscribed hit
that subscribe button below and that is
it I will see you guys next time have a
great day bye

6 thoughts on “Covering SPY History & Why I Changed From Growth To Dividend Investor

  1. Video Notes: There were STOCK SPLITS with CSCO / ORCL.
    #ORCL (2 Splits in 2000 (18JAN / 12OCT) 2/1 Split) $45.47/2=22.75 | 29/2=14.5, 09 Recovered.
    #CSCO (1 Splits in 2000 (22Mar) 2/1 Split) $77/2 = $38.5 – Fell $12 Range, Dec 17 Recovered.


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  2. Nice discussion of your thinking as you transitioned from a growth to a DGI strategy. CSCO & ORCL are survivors from that time. Back in the 90s one of the big names was Iomega,of Zip drive fame. Meteoric rise in price, but just as spectacular in its fall. If you invested big in that, you would have lost everything. Seeing div cash flow rise is tangible

  3. I've miss out on a few Growth stocks, but I feel better about dividends $fb will be fined soon I'll buy some then..Political heads mad with them over the Russia stuff.

  4. Start Your Own Investment Account This Year – Take Action Today!

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  5. High I had a quick question I was looking at my portfolio and I seen that my dividend yield is 3.31% is that ok for just making my portfolio about 7 or 8 months ago?

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