I'm sharing this in the hopes that you'll find it useful, but also to get feedback, in particular, about monetizing. While I built this to be useful, I would like to make some money on it, so if you have any recommendations, I'm all eyeballs. I fear I may have to resort to advertisements to keep the barrier to entry low.
* Why "monthly"? There may be higher quality companies that pay quarterly. Why exclude them?
* Have you looked at the myriad dividend ETFs? Things like SDY showcase funds that have regularly raised dividends YoY. ETFs may be a better way to get consistent yield and yield growth. Look into SDY, DVY or higher-powered div rates with SDIV, SRET.
* Lots of people noting tax treatment of divs as well as pointing out the "dividend irrelevance theory". Tax treatment will vary depending on the type of income. If you're looking purely at equity dividends then they will most probably be treated as income. However, with ETFs you may be exemptions depending on the income source. For example US Treasury ETFs that pay dividends are exempt from US State taxes (look at Bondbloxx suite of treasury ETFs). Municipal bond ETFs are exempt from both state and federal tax in most cases.
* Dividend irrelevance: If a $100 stock pays $1 div then its stock price is adjusted to $99. So there's no free lunch. The point is you want cash-flow generating businesses where management has decided they don't really know what to do with extra cash laying around so they hand it back to their shareholders. Being able to consistently generate these dividends and GROW the dividends indicates typically high quality, value stocks. The short-term end of the yield curve is yielding 5.4% (https://www.ustreasuryyieldcurve.com/) right now... so a company would -- very broadly speaking -- need to engage in projects with hurdle rates greater than what they could get in very safe bets with the US Government.
* Other forms of yield harvesting or income generation are writing OTM calls. A consistent strategy can be found in ETFs like JEPI or XYLE
* Re: monetizing your site. The web is awash with finance websites. This data can be found in a screener tool (finviz.com amongst many). People want trading ideas, so maybe this is better served as a newsletter or similar. Also, why should I trust your site. Financial data is notoriously finicky. Old data gets re-stated. What are your data sources?
1. I stated index in this post (whoops); luckily I called it a list on the website.
2. Partly, in seeking an income strategy, that seemed important to me. Also, frankly, it allowed me to limit the scope of my dataset a bit. Maybe I should go back to the drawing board and include quarterly stocks as well, though.
3. I'll look into it
I'll jump ahead and answer your last question as it's relevant to the others: I'm using Polygon.io's API to pull financial data. I too have noticed that the data can be unreliable, repeats, and has many records missing certain data. I've sanitized that data on my backend, checking for and removing duplicates, as well as only displaying historical records with adequate data. Beyond that, I'm not sure how to improve the quality.
4. What about dividend reinvesting? Can't you avoid taxes if you do that?
5. Is that also true with leveraged funds? It seems like many of these high yield dividend stocks are in that category.
6. Interesting, I'll look into that.
Hope I responded to all of these points adequately. I appreciate the thoughtful and intelligent answer. I'm still not sure (and need to do more research) on whether such a dividend strategy is useless. It seems like reinvesting could provide good returns as a strategy--when the stock dips, so long as the payout is constant, you simply get more income. Maybe I'm missing something, though.
The way companies get around this (return value to shareholders without triggering a taxable event) is by repurchasing and retiring shares.
For example, there are 100 public shares trading at $1/share. At the end of the quarter, the company has a spare $1. If they issue a dividend, every shareholder gets $0.01, which is taxed.
Instead of issuing a dividend, they repurchase 1 share for $1. Assuming the value of the company hasn't changed, the per-share price should now be $1.01. Basically, they gave you an untaxed $0.01 increase in equity value, which you can choose to recognize on your own schedule.
This might give you another idea, which is to list companies with stock repurchase programs.
Also, re 3: make sure you account for the expense ratio of these funds. Since dividends are relatively volatile (lots of new entrants and exits on the margin), you might be surprised by how much these ETFs charge for their service. Sometimes, it's justifiable as a price worth paying. Other times it isn't, use your judgement and VOO as a benchmark of what bare-minimum expenses look like.
As an example, USOI's expense ratio is 0.85% and VOO's is 0.05%. Over long holding periods, a 17x higher expense ratio is extremely meaningful.
No. Dividends that are reinvested are still taxable.
Clearly that is not how the stock price has developed over the years. Dividend paying stocks don't decline in price. They increase in price, just like any other stock. And some decline, like any other.
> Wrong
You're not smart enough to be this arrogant.
(Even reporters sometimes forget about that and try to find reasons what news caused a stock to drop instantly.)
They decrease in price by the amount of the dividend when the dividend is paid out (it’s actually when it goes ex-dividend, the payout may not happen for a few weeks). It’s extremely simple to understand.
The valuation of the company includes all cash, assets, debt, etc. If AAPL pays out a $1 per share dividend on 15.73B shares, they have $15.73B less cash. The valuation of the company drops by $1/share the instant after the dividend, and so does the share price.
The price action of AAPL after the dividend has been priced in has no relation to the dividend itself.
> Wrong. You claim that AAPL goes from $100 to $99 when it distributes $1. The only way that mean anything is if you also claim that the next year, AAPL hands out $1 and drops to $98.
A stock falling in value by the ex-dividend amount happens every single time a dividend is paid out.
As always, bogleheads has a good writeup on dividends: https://www.bogleheads.org/wiki/Dividend
I think congress was talking about taxing buybacks?
In a taxable account.
I keep high dividend stocks and ETFs in IRA accounts. For taxable accounts, I prefer stocks that are either growing or doing buybacks.
Any company that has paid a dividend and whose stock price has crashed will have a high yield on paper. Those stocks are usually better to avoid rather than rush to buy someone else’s problem investment.
For example, Caterpillar is of them, but its yield is under 3%.
check: rio tinto, bhp, anglo american, glencore.
I hate that dividends have such disadvantageous tax treatment in America because I think dividends are the healthiest relationship between companies and investors. They try to make money and then give you some of it. As long as the dividend amount is healthy for both the investors and the company your interests are aligned.
Stock buybacks are such shenanigans in comparison: they make money and use it to inflate the value of their shares. Often they do this to hit certain price targets that help with executive compensation (or just image). And in order to actually get your profit you have to sell, which means you’re no longer an investor.
Nothing is inflated if you think it through, since the market capitalization does not change.
By that logic, is issuing new stock (or even stock splits!) virtuous, since they both decrease the price per share?
But that is basically because the company bought some shares for you. So if you sell to create your own kind of dividend makes no difference (other than maybe how taxes are handled and psychological).
What do you mean by this? Qualified dividends are taxed at long term capital gains rates, which is an enormous advantage compared to nearly all other forms of income.
* Expand the focus of the site to near-retiree/ retiree/ Fire and their need for regular monthly cash flow.
* Focus on portfolio construction using monthly income securities for different scenarios, economic cycles, etc. use criteria like low monthly cash flow variance, price stability, capital preservation etc.
* Add a blog/article section where you can post articles addressing your target audience.
* get inspiration from a few subreddit focusing on similar topics, for example /r/dividends, /r/qyldgang, /r/jepq, etc. Try to answer questions typically raised in such subreddits and provide tools on your site related to frequent queries made on such forums.
I think this site is giving users some value that stock portals are not. I’d say keep shaping the product till you capture as much value from the big guys. Then hopefully a better idea for monetizing will crop up from this journey.
I'm glad you see some value in this! Based on the feedback I'm getting here, I have plans for some short-term wins that I can execute within the week, and beyond. I'm hopeful they can bare some fruit, or just add more value.
For now in the middle term, a few carefully positioned affiliate marketing links may be the way.
The dividend is a noob test for an investor. Only in very targeted situations should you actually care about this number. Only when every other factor leads you to ??? should you glance at this figure and allow it to push you one way or the other. For example, "Should I buy ATT or VZ"? Trick question - You should buy both. Diversification is more important than dividend yield.
Holding something that yields 20% over the last 5 years sounds great, until the board (or more likely, market/competition forces) decide to light the whole thing on fire. Now, your entire original investment is up in smoke overnight. If you had been listening to the earnings calls, you might have developed some suspicions, but more likely than not your DD consists entirely of websites like this.
That said, I do think that companies with consistent earnings and a solid track record of paying dividends are a different breed than a company than one that is driven by growth (often to their detriment). So it is worth paying attention to.
It does seem to me that there is room for a stock like this in one's portfolio though, as part of a larger strategy. Maybe a high yield leveraged fund is only a small portion of your stock, or you need to convert some of your assets to income for a few years.
And for your target audience, the people who like dividend investing (or liked it in low rate environment, like me) you appear to be missing a key feature... many/most dividend investors are looking for companies with history of uninterrupted payouts with no decreases in dividend (cuts) over at least 10+ years (probably longer now, basically including at least one recession and the more the better). So, # of years without dividend cuts is an interesting number. Another interesting number is yield vs history (for a company with stable payouts it may indicate whether price is high or low, assuming the stable payouts continue).
It's basically supposed to be /a bit/ bond-like :)
What if I just wanted to see normal stocks (however you define that).
Companies that actually make widgets or SaaSes or self-driving cars or other pillars of the 2023 economy seem to pay dividends either quarterly or not at all.
Whether a stock pays dividends really shouldn't factor in to your decision as to whether to buy it. Any dividend a company pays out makes the company worth that much less. Whatever you stand to gain from the dividend, you stand to lose in the value of the stock you own.
When buying a stock the only thing that matters are its fundamentals. Ie. is the company's assets and future earning potential worth more than the current price of the stock to you? Unless you have information that the market doesn't, this is not a question whose answer you will reliably get right.
There may be other reasons not to invest in such a stock, but I seem to keep seeing value investors trying to compare apples to oranges.
- quarterly pays,
- preferreds
- laddered investment grade bond portfolios,
- asset and mortgaged-backed
- high yield bonds,
- REITs, hot sectors are cell towers, datacenters, p ersonal storage units
- LP, MLP (especially energy pipelines) royalty trusts
(and that's just US domestic... )
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this vid (Ben Felix) about JEPI/XYLD type "covered call" etfs is instructive https://www.youtube.com/watch?v=YMLVdY8y8vM&t=312s
Nonsense. The business can choose to issue new shares whenever it pleases. https://en.wikipedia.org/wiki/Follow-on_offering
If it's stock held for more than a year, it's the same. If it's 2-12 months, dividends get better tax treatment. If it's less than 2 months, it's the same.
For the vast majority of people and investment out there on an individual level, they're the same.
Of course, it’s never exactly that simple in practice, as there are many other factors affecting share price. But there’s a point in dividend payout being referred to as forced fractional share sale.
Couldn't find Proximus ( https://finance.yahoo.com/quote/PROX.BR?p=PROX.BR&.tsrc=fin-... )
Since it has a 20% dividend based on it's current share price
Equally important as finding it , is that Belgium has 30% dividend tax.
Why should I care about high dividend yield? FINRA prohibits "selling the dividend"[1], and this project seems one step removed. Not illegal or necessarily deceptive, but seems closer to unsound than sound investing advice.
[1]: https://www.investopedia.com/terms/d/dividend-selling.asp
