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My high-yield stock watchlist
A Checklist of Dividend Investing Mistakes
The Highest Yielding Dividend Aristocrats
Today is Dividend Day.
The series where I teach you 5 things about dividend investing in less than 5 minutes.
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1️⃣ S&P 500’s record low dividend yield
There’s been a shift in the S&P 500 over the past few decades.
Before the 1990’s, the minimum dividend yield of the S&P 500 was about 3%.
Since then, it’s only crossed above 3% at the bottom of 2008 crash.
Today the dividend yield sits barely above 1%, around the same level as at the peak of 2000 dot com bubble.
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2️⃣ If you’re not buying income, what are you buying?
The S&P 500’s profit margins are very high right now.
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But the dividend yield above shows that when you buy the S&P 500, you’re not buying a very big slice of those profits.
What are you buying?
Increasingly, you’re buying the Magnificent 7, and AI-related companies.
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And the hyperscalers are now spending more on CapEx than they make in Free Cash Flow.
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