This OVERHYPED Stock Sell-Off Is Great For Long-Term Dividend Investors

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The recent stock market sell-off, in my opinion, is completely overhyped! After all, despite the sell-off, the Dow Jones Industrial Average is still up 22% in the last year! When there’s a sea of red with my stock quotes, I actually love it, as I’m a long-term dividend growth investor (I invest for dividend checks that can be used to pay the bills).

Today’s video starts with some perspective. While the media is talking about the “crash” and “downturn”, we are still up substantially in the past year. In fact, what just happened is a minor correction, in my opinion. Of course, everyone wants something to talk about. Just be cautious around hype.

Next, I discuss why I personally like to avoid the media and water cooler talk. The last thing I need is negativity and pessimism entering my investment strategy. While I value all opinions and like to stay neutral and open to feedback, I want to generally have a climate of positivity surrounding my investments.

As a dividend growth investor, I’m in this for the cash flow. I’m in this for the long-term. Whether the stock market is up or down just does not concern me. Rather, I am in this for the passive income (the dividends). And, dividends will be paid out (and keep getting increased) regardless of market valuations, as long as underlying business fundamentals are strong.

In fact, this may be extreme, but once I buy I assume 100% loss of capital. Since I’m never selling, capital appreciation does not really concern me. (Of course, I’ve done well on capital appreciation, often beating the S&P 500, and that’s nice.) That being said, It’s all about the dividends for this investor.

My favorite part of today’s video: I show two concrete mathematical examples of why lower share prices are really great for dividend investors. The lower the share price, the higher the starting yield. It’s all about getting value for one’s investment dollars.

In fact, I would not be very concerned if the market went down by 50%, as long as underlying business fundamentals are strong. This would only accelerate my financial freedom.

I’m really active on Instagram these days. You can find me here:
https://www.instagram.com/ianlopuch/

Want to learn more about how I’m averaging into Procter & Gamble and Kimberly Clark this year? Check out this video:
https://www.youtube.com/watch?v=uGRmIeiep1g

Disclosure: I am long Kimberly-Clark (KMB) and Procter & Gamble (PG). I own both of these stocks in my portfolio.

Disclaimer: I’m not a licensed investment advisor, and today’s video is just for entertainment and fun. This video is NOT investment advice. Please talk to your licensed investment advisor before making any financial decisions.

All content on my YouTube channel is (c) Copyright IJL Productions LLC.

Comments

Stephen Jedlicki says:

Hey Ian. Thank you for everything you're doing 🙂

Green Ghost says:

If people looked at it as a "stock sale" instead of a "stock sell-off," they'd probably do a lot better… and lower their stress and anxiety levels.

Barrison _ says:

What am I missing with Wells Fargo income ticker "EMC"? Looks way too good to be true. Monthly dividend of around 0.11 per share that hasn't changed even during the low in 2008… at that time an effective yield greater than the 10% it's at now! I put the average share price from 2008 to now of around 12 into a DRIP calculator, said no increase in price, no change in dividend and maximized a Roth IRA at 5500 of this for 30 years it amounts to 923 million. What am I missing?

nathan foster says:

Thanku Ian your information is fantastic keep up the great work @:)

Dwight Plock says:

Good stuff!!

mobbin0 says:

I like how you spread positive encouragement it helps keeps me focused and to stick to the plan.

lazybomb402 says:

Hi! I love your videos but I have a quick question about reinvesting dividends. I currently hold 6 shares of Coca cola, and dividends comes out to be $8 per year. When I reinvest that, am I buying partial shares? (each share of KO is ~$42)

Kathy volpe-schaffer says:

Buy, Buy, Buy!! Everything is on SALE! Lol

John Mersch says:

Ian, great video with good advice.
You briefly mentioned in the video that when you reinvest your dividends you normally invest dividends of stock A into new stock A and dividends of stock B into new stock B. But doesn't that mean you do not get the best value for your money when you make that investment at that point in time?

James Andersen says:

Hit the nail on the head yet again! Dividend focus is so different to a capital gain focus and so much less stressful in my opinion.

What I tell my friends is to look at company earnings rather than company share price – who cares what the price is as long as their earnings are strong.

Joseph Morales says:

LOVE THIS VIDEO IAN…

gooniesnever saydie says:

Great info. I'm curious what your thoughts or recommendations are on REITs dividend stocks?

Henk ter Beest says:

Now i totally understand your concept, and it’s great, but what about the stockprice, when bought at 100$ and want to sell after 10/20/30 years, and the stockprice “raised” again from 50 to say 80$, you would still need to pay for that difference (20% loss in stockprice)

Tony Oliver says:

To me it looks more like a few big players wanted to cash out, thus triggering automatic stop losses, and then machines selling based on this activity. Just a snowball effect from someone

a64750 says:

markets at a top – check derivatives market. Dividends always get cut after business loose profit

Ryan R says:

Thanks Ian. Although, my brokerage account was hard to get in and around during the morning after the "crash" I was able to get SO at a still somewhat undervalued price. I happened to track that stock in my own research and caught you talking about it in other videos; bias confirmation? Nah. Amazing work you're doing here!

Patricia Murphy says:

I have to admit I had a bit of a laugh at all the hype and hysteria surrounding the "crash" yesterday and thinking finally I can buy more stock at a discount. Thanks for your calming advice for all those newbie Dividend Growth Investors out there wanting to learn and grow their own portfolios to provide future income streams.

Milos Ceko says:

Great video as always Ian ! Could you do a video of the best Canadian dividend stocks to invest in for all of your Canadian subscrubers? keep up the great work !

HumbleTrader001 says:

It's hyped up because volatility was so low for over a year…..please let them panic sell so I can scoop up some bargains at the right prices!   🙂

Jason Payne says:

Agreed sir its very healthy. Over the long term stocks go back up. So a correction or a crash even tells us we are buying a a discount. I dont understand why people freak out when stocks fall. If it cost me 25000 to buy a car yesterday and the price fell to 22000 today that gets people excited. But when sticks get cheaper people freak out. I dont get it.

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