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00:00:00 – 00:12:28
The YouTube video discusses the significance of dividend growth as a reason for loving SD, a strong dividend ETF tracking US dividend-paying stocks. It emphasizes the importance of understanding market insights, diversified investing, and historical average rates of return over at least 10 years. The video highlights SCD's high dividend yield, consistent growth of dividends, and potential long-term benefits, projecting significant passive income from reinvesting dividends. Future dividend projections, investment strategies, and key metrics for selecting dividend ETFs are also addressed. The speaker concludes by mentioning purchasing more of a rising investment monthly and introducing two other ETFs in a 3-ETF portfolio.
00:00:00
In this segment of the video, the speaker emphasizes the key reason for loving SD as its dividend growth each year. They discuss why SD is a strong dividend ETF, tracking a market-cap-weighted index of 100 US dividend-paying stocks with a 10-year history of dividends. The ETF uses fundamental screens to build its portfolio focusing on quality and sustainable dividends, capping individual securities at 4% and sectors at 25%. The video provides insights into future dividend projections, investment strategies, and key metrics for selecting dividend ETFs aligned with financial goals. The importance of understanding market insights for investors is underscored by the speaker.
00:03:00
In this segment of the video, the focus is on discussing an ETF called SCD that has a high dividend yield of around 3.5% to 4%, outperforming the S&P 500’s dividend yield of 1.5%. The video mentions factors like high interest rates, inflation, and geopolitical concerns that might impact the market. Despite a recent drop in SCD’s price by 4.45% over 6 months, it is still up by almost 2% over a year. The video emphasizes the importance of diversified investing and suggests that despite the perceived negativity surrounding SCD’s performance, it still offers a decent return, combining price appreciation and dividend yield.
00:06:00
In this segment of the video, the speaker emphasizes the importance of considering a historical average rate of return over at least 10 years to get an accurate picture. They discuss the average rate of return for the fund SCD since its inception in 2011, which is around 12.5%. They explain how to calculate the actual rate of return taking into account dividends and price appreciation. Using the rule of 72, they estimate that it would take around 6.5 years for the investment to double if reinvesting dividends. The speaker predicts that based on historical data and using a common formula, SCD is expected to double in price by around 2032. They highlight the consistent growth of dividends with SCD over the years, which adds value to the investment.
00:09:00
In this part of the video, the speaker discusses how the dividend for a particular stock (referred to as SCD) has been growing at an impressive rate of 11.3% annually. They use a dividend calculator to predict future dividends if 1,000 shares are bought at the current price of $746, estimating a potential payout of $7,100 annually after 10 years. By reinvesting dividends and letting the investment grow, the speaker projects that over 20 years, the investment could reach over $500,000 with a passive income of almost $2,000 per month. They express confidence in SCD as a long-term investment despite potential upcoming financial challenges and suggest investing more during the expected market downturn for potential long-term gains.
00:12:00
In this segment of the video, the speaker discusses the price of a certain investment rising, leading them to purchase more of it monthly. They also mention two other ETFs that are part of their 3-ETF portfolio, directing viewers to a different video for more details on the ETFs and the recommended buying amounts based on age.