 Okay, um, good afternoon. My name is Harriet Chan, as Lori had told you. I am a volunteer with the San Francisco area chapter of better investing. And I'm here to assist better investing with the San Francisco library to help you with your financial literacy. The main library is our host and providing is providing technical support. What is dividend investing usually go back to the previous screen. Okay, what is dividend investing usually large companies have more than enough cash for their operation. So they declare a dividend and that goes to the shareholders. These companies are usually mature, well established companies. And many of these company may be part of a what they call blue chip company, which means you probably will have to pay a premium for the stock. Because they are a large company, their growth is limited to the net single digit numbers, usually about 5 to 9%. Companies who start paying dividends usually need to consider continuing them because Wall Street does not like it when they change. Okay, I'm having technical difficulties. Hold on just a second. Okay. Value line provides free reports on the Dow Jones 30. There is a list of companies that have a history of increasing the dividend for 25 years or more. They're known as the aristocrat dividend companies. And they have an ETF called NOBL. The pro-share mid cap dividend ETF is simple as R-EGL. I will repeat this information at the end. This ETF contains mid cap companies that has been growing their dividends for 15 years. I just found out that Apple have now been paying dividends for 10 years. So here is a growth company that is paying a dividend. Dividend paying stocks are stable. They have good balance sheet. They're less volatile than growth stocks, steady but doubt. But the results can be very impressive at the back end when you see the result of compounding. Next screen. Okay. So something about myself. I belong to the Better Investing Chapter. I've been there since 1999. I quit working in 1999 at the age of 46. And I figure if I could retire, I figure I needed to share this information with other people. I've been investing for 40 years and I've been trading options for about 10 years. My email is skcots at yahoo.com. skcots is the word stocks spelled backwards. I have a degree from Mills College. I was a PLE major which means which stands for political, legal, and economic analysis. And I have an emphasis in economics. Next screen. Rule number one. People tell me that they don't have money or the time. I hear you because I said that myself. Hindsight tells me that this rule of paying yourself first is a very wise rule. If you pay yourself first, you have money. And so at the end of the month, if you don't have any money, then you just don't spend. But what paying yourself will do is that it always will provide you with spending money in the future. So reinvesting your dividend can be automatic. So your contribution say $50 a month takes minimum effort. Rule number one was a solution for me. And because you need to be number one, pay yourself first. And once you do the research and you start, it doesn't take much of your time. Once you see your money working hard for you, you may allocate more time to secure your financial future. Next screen. This is the spoiler. Laurie, I got a note from somebody who would like to join. Sure. Can you forward the note to us so we'll know? You can forward it to Leah because I'm controlling the screen. I can't get to my email. So just forward it to Leah. And she will help that individual to come to join. Okay. Thank you. Sorry. Give me five seconds. Okay. So this is the disclaimer. And I just want to say that this presentation is for education purpose only. Better investing doesn't make any recommendation to buy or sell stocks, mutual funds or ETF. What next screen? The agenda. The goal of this class is to show you the results of Procter and Gamble and Johnson & Johnson and to encourage you to start taking control of your financial future. For those who don't know who Better Investing is, let's go to the next screen. Better Investing is a unique organization that has helped over five million investors meet their financial goal. We were founded 50 years ago. Well, over 50 years now. We're a community where people like you share their experience and knowledge to become better, more informed investors. I like to think that Better Investing is a community where it's okay to talk about money. I found that very refreshing because our society has all these cultural rules that you're not supposed to talk about money. And that's very disempowering for women. We are a nonprofit. We're volunteer base. We're member driven. We make no commissions and we make no stock fragmentation. www.betterinvesting.org is our web address. If you are interested, we do provide a 90-day free trial membership to BI. No credit card information is required. So if you're interested, send me an email and I'll forward you that form. Once you are in, my advice to you is to take as many free classes in the 90 days as you can. Okay. So let's move on to Procter & Gamble. And Procter & Gamble make brand name consumer packaged goods. And it's sold in 180 countries. For your information, there's 195 countries in the world. The industry is household products. And they have 60 brand names. And let me tell you that I got this from the street. Let's back up one. Yeah. Since 1990, the stock has outpaced the S&P 500 by 600% producing gains of 1,219%. It has $6.2 billion in cash, a healthy balance sheet, and tons of equity. So Procter & Gamble is pretty stable. And with the pandemic, the current rush for toilet paper and cleaning products won't hurt. Okay. Next screen. Here are... Can you hit enter again? Oh, no. Back up one. Something happened. Okay. Here are some of the brand names. Bounce, crest toothpaste, Dawn, tie detergent, Pampers, Swiffer, Scope, Fix the Dead, Downey. So the list goes on head and shoulders. And since Procter & Gamble was a soap company at the very beginning, it has ivory soap. Okay. So next screen. So let's look at the results of investing $50 of Procter & Gamble on a monthly basis and reinvesting that dividend that is paid out quarterly. Okay. Next screen. Now I'm going to be on this screen for a little while and to explain the spreadsheet. Then we'll move on more quickly to the screens that follow. Okay. Over on the left side, we have lavender. If you could see it on line four, line eight, and line 12, the background is highlighted in lavender. That means it's a dividend. The purple Procter & Gamble increased their dividends each year for the last 64 years. Okay. So the months that they increased that quarterly dividend, you could see here on line 16 is highlighted in purple. So you're going to have, since they pay quarterly, so you can see three lavender lines and one purple line. Now on line seven, the value beginning of the new year, every year on a new year, I highlighted in orange. So on line seven, on January 2, 1998, if you look over on column L for the market value, it says $216.83. So you want to keep track of this every year. So that's why I highlighted in orange so you can see that. When we have a stock split, I highlight that in green. So here also in the background, right now it's in light green, which means it's in the bull market. If we are in a recession or downturn, we're going to have, I have a background that is yellow color. Now I was told that some of you guys may not know or use Excel. So I'll go through explaining how I got to the numbers and on the line and on the column. So okay. So let's start with line three, 10, 1, 1997. So we're starting and we're going to invest $50 and you see that in the monthly invest in the column H. The closing price is the closing stop price at $70.69. Now you're only investing $50 when the stock is $70.69. So you take the $50 divided by the $70.69 and you come up with purchase share. You're buying a fractional share. So you're buying 0.71 shares. Okay. And so the amount of total shares you have is on column K, which is 71.71 shares. And the market value is the $50 that you put in. Now on line four, 10, 24, 1997, there was a dividend declare at 0.1253. So about 12.5 cents per share. Okay. So how do I get to the number dividend reinvested that $0.09? Well, you take the dividend declare, which is the 12.5 cents, times it by how many shares you own, which is 0.71. So what you get is your purchase share. And it's this number said zero. That's because I truncated and only did two digits. So you have total shares, this 0.71. And the market value is $50 and that $0.09 is dividend. Okay. Line five on 11.3 1997. We can invest $50 again. And the price went up just a little bit. It's $70 and 74 cents. So $50 now buys 0.7 shares. And what you do is you take the 0.7 shares and you add it to the total market share of 0.71, which is one cell above from 1024 from line four. And you add that 71 plus the purchase share of 0.7. And you get a total of 1.41. So if you, what is the market value? Now you got the dividend and you got the couple months of investing. So now it is worth $100 and 27 cents. So if we go down to, let's go down a few lines and then we're gonna hopefully you will get it and we can move a little faster. Okay. So on 12, 1, 1997, we invest $50 again. 50 divided by 7794 is the price of the stock. You purchase 0.64 shares. 0.64, you add it to that 1.41 from the total shares in column K and you get 2.05 shares. And the value of your portfolio now at December 1st 1997 is $160 and 16 cents. So line seven is in orange. So that's the beginning of the new year. You make a purchase of $50. The stock is now at $80.94. So now that $50 purchase 0.62 shares. And you add that to the 205 and you'll get 267. And the value of your portfolio is $216.32. Is this too complicated? So let's go on. I hope this explains. If you don't get this, you can email me and I can go over it again with you more slowly. Okay. So let's go on to the next screen. Okay. Highlight line 20, 10, 1, 1998. The stock price is at $83.81. We started the stock price at $70.69. The dividend now is $1.17. So one year ago, the dividend was $0.09. And, you know, because we started on 10.1997. So now the dividend is up to $1.17. Okay. Let's look at line 23. New year, the portfolio is worth $891.23. So line 32 is the purple. The yearly dividend increase, it goes from $0.16 from $0.14 and a quarter cents. A lot of people when you say, you're not impressive that they raise it one or two cents. But if you do the percentage, the percentage comes out to a 12.2% increase gain. My question to you is, what other investments do you have that is doing this well or better? Certainly, pay raises are not going up like these dividends are. Okay. I have a comment about though in 1963, the equal pay app was signed, it was never enforced. So as the Asian woman, I was paying $0.60 to a dollar. When I was young, my goal was to get the other 40 cents somehow. It took a while to explore and to learn, but I'm making more than that 40 cents shortfall. And recently I read 40 years later, Asian woman makes 62 cents to a dollar. It's sad because it's not much has improved. I have always worked hard, but learning to invest is working smart. Okay. Next screen. Okay. Line 39, year 2000. The valuations now at $1687.75. Line 42, March 1st, 2000. Under the notes way over on the right hand side, I had to put a note. This was a super bull market that lasted 9.3 years. Usually a business cycle is five years. So this is kind of unusual. Line 43, the recession starts, right? So the color in the background changes and now it's in yellow. Okay. If you look also online, 43, the stock price is down to $59.50. It was $107.19 at the beginning of the year on line 39. Procter and Gamble is on sale. So the question I have for you is would you consider increasing your monthly investment? Oh, sorry. Buying more at a lower price. How many of you would raise your hand to do that? I'm just kind of curious. I also want to say that there is no wrong answer. Asking yourself helps you find out what kind of investor you are. And you need to know why your answer is yes or no. If this is your first experience in a recession, you need to just sit tight. In a recession, a downturn, we still need to wash our clothes. We still use soap, brush our teeth, take heartburn medicine. We need to shampoo our hair. Procter and Gamble is not going out of business. If your answer is no, it's okay. As you gain more insight and gain more experience and learn about Procter and Gamble, you may change your perspective. Line 48, the yearly dividend increase from $0.16 to $0.17.5. That $0.1.5 increase is 9.3% increase. Because the stock price is down to $59.13, the dividend of $3.54 buy a lot more than line 40 when the stock price was $115.38. So your $50 is buying more. 0.06 shares versus the 0.02 shares on line 40. Line 55 will have a new year. This is 2001 now. The valuation is at $19.44.07. Line 55, the market value exceeded the January 2000 high value. The economy is still in the recession, but the stock price is holding up. And in column, if you look at column I, okay, during the recession, people usually want to reduce the risk and they will invest in blue chip companies. So in most recessions, the blue chips are doing well. It's called a flight to quality. Line 64, 718, 2001 is the purple line. So this is the yearly increase from $0.17.5 to $0.19. That's an 8.6% increase. Where else can you find $50 that could grow at 8.6% in a recession? Okay, line 66, over in the notes, this was the 9-11, 2001 attack. This shut down Wall Street for four days. It really was a scary and confusing time. Okay, the recession continues from 2001 into 2002, but the stock prices are improving. Okay, next screen. Okay, we have the recession continues in 2002, and the stock prices are improving. On line 71, the new year valuation, now we have the stock portfolio worth $2,624.60. So you can see the quarterly dividend and lavender and purple. Okay, so on line 80, in purple, in July, it goes from 19 cents to 20.5 cents. So that's a 7.9% increase. Okay, next screen. On line 87, new year in orange, new year, the new year valuation is $3,509.50. Quarterly dividends, and you can see the online 96, the dividend goes from 20.5 cents to 22.75 cents, 11% increase in the dividend. And you can see here in this particular screen, we have another new year on line 103, 2004, the new year valuation is at $4,653.49. So you can compare that line 87 compared to a line 103. And how do you feel about that? Are you happy? They're growing fast enough, considering that you put in $50 a month and $600 a year, and it has appreciated over $1,000. Next screen. On line 111, on 6, 18, 2004, the stock price is at $110.19. On line 112, on 621, we have a 2 for 1 stock split. So that's in green highlighted. Okay, the stock price is half. So it goes from $110.19 to a stock price on column 11 to $55.50. So take a look at column K, total shares. Okay, on line 110, if you look at it, the total shares you have was 48 shares 0.63. Okay, so after the split, what do you have? You have 97 shares, 97.26 shares. Okay, so your shares doubled because you had a 2 for 1 stock split. In reality, that doesn't is supposed to be a non-event because it's like getting $2, $5 bill for a $110 bill. However, it does mean that management is bullish. And look, the dividend should be half too. I mean, if back on line 108, before the stock split, the dividend was at $0.25. And you had the stock split and the price of the stock is one half now at $0.55, the dividend should be one half. So it should go down to $0.12.50. But what happened on line 114, the dividend stays at $0.25. That means that dividend has increased 100%. So check out the column G on 108, on line 108 and 114. So you can see the dividend on 108, on line 108 was $11.90. And then on line 114, the dividend is now $24.54. So that's a nice percentage increase. I had a similar incident with a semiconductor back in 2018. They raised their dividend from 50 cents to $1.10. That brought a smile to my face. Okay, next screen. Okay, line 121. New year and the valuation now stands at $5,775.89. You have a dividend increase on line 126. It goes from $0.25 to $0.28. That's a 12% increase. And we have another new year valuation for 2006, and it stands at $6,916.65. So I want to know here that on line 126, it's April. It's not July. After the split in 2004, the company changed and started increasing their dividends from July to April of each year. Just want to take a note, take notice of that. Okay, next screen. Line 142. We have the yearly increased dividend from 28 cents to 31 cents. And that's a 10.71% increase. Double digit increase makes me happy. It should make you happy too. Line 153. New year valuation. It is now worth $8,408.92. Next screen. Line 158. New year dividend increase. It goes from 31 cents to 35 cents, which is a 12.9% increase. I think a lot of people when they, people tell you that, oh, I only got a couple cents. 31 to 35, that's only four cents. But that only four cents. Really, if you do the percentage sign, that's a 12.9% increase. So it's really important. I really, really want to emphasize, do the percentage. Okay. Line 165. 10.1. 2007. This is the 10 year anniversary because we started in 1997. Okay. So up to this point, you have contributed $50 a month, $600 a year times 10 years is equal to $6,000. You collected $583.65 in dividend, but the stock value you have is $9,877.43. The difference, the difference is $3,293.78. And this represents the stock appreciation value. This means that $50 that you've been investing is working hard. I like the high dividends and the $3,200 stock appreciation is nice too. I did tell you that when you're dividend invests, it builds up slowly. It's boring and it's dull, but it's steady. But I'd like to note that it came through a couple of recessions and that's a good thing too. Okay. Line 169. New year valuation now stands at $10,281.95. Next screen. Line 174. For 16, 2008, you have the yearly dividend increase from 35 cents to 40 cents. That is a 14.28% increase. Line 182 denotes on 10, 22, 2008, the market crash. The dividend receives the $60.56 and the stock price is down to $58.78. Now, I always try to look at the positive side. I think about in the very beginning, it was 9 cents and now my dividend is $60.56. And if the price is so low, I'm buying it at a cheaper price. Now, the background is in yellow, so we're in a recession, so this is 2008. In late, I think it was in October of 2008, we had the MAD-OFF scandal. MAD-OFF Ponzi scheme fraud happened in the late 2008. $17 billion was lost. Another reason to take charge of your own finances. I remember 10, 22, 2008, because I was in Japan, powerless to do anything. Next screen. On line 189, March 2, 2009, this is the end of the recession. The stock market is down 57%. But if you look at column I, and you look at the prices at line 189, it was at $46.87. If you look at the bottom at 205, you can see how the prices are rising. Even though I had been investing for 29 years at this point, I felt something like I needed something more in my bag of tools. And I started to learn options and I spent two years learning about options because I learned that using options, you can manage your risk. Because I wanted to reduce my portfolio risk and the volatility of my portfolio. Line 190, April 1, 2009, this is the beginning of the longest bull market. So the background is in green. Line 191, we have a yearly dividend increase in April now. It goes from 40 cents to 44 cents, which is a 10% increase. The dividend is now at $69.93. And the valuation on line 202 is New Year in orange. It's $10,453.99. Next screen. You can see the four quarterly dividends here, clearly. Line 207, April, yearly increase from 44 cents to 48 cents. Four cents again, but it's a 9% increase. And your dividend check is now $83.84. And the valuation for the New Year on line 218, the portfolio is now worth $12,051.19. Next screen. Line 223, April, yearly increase dividend from 48 cents to 53 cents, 10.4% increase. Now, the dividend you receive now is $100, sorry, is over $100. Slow, you can see the effects of $0.09 over $100. That $100 dividend reinvested is equivalent to an additional two months of money invested. And look at it in your nearing on January, okay. Line 234, okay. New Year, your valuation is $13,475. And 43 cents. Look at column K. You have over 200 shares now. That's a milestone. Okay, line 239, the April yearly dividend increase goes from 53 cents to 56 cents, which is a 5.6% increase. It's no longer double digit or near double digit. So I'm a little concerned, okay. But I'm going to hang in there. Next screen. Line 250, which is the New Year valuation, is at $15,131. And on line 255, you had the yearly increase from 56 cents to 60 cents. So that is a 7.1% increase. When I kind of looked at this, I looked at the 7.1% is better than NECDs and it was double the Treasury rate of 2012. Okay, next screen. Line 266, New Year valuation. It is worth now $18,697.78. And on line 271 in April, the yearly increase, dividend increase goes from 60 to 64 cents, which is 6.6% increase. But the dividend, the total dividend you're getting now is $150.94. That's three months of additional investment funding. Next screen. Line 282. This is New Year. This is 2015. The portfolio is worth $22,323.74. The yearly increase is dividend increase is 64 to 66 cents, which is 3.12%. I don't like the small increase in dividend, but I will look at the stock appreciation so you keep an eye open for other dividend-paying companies. Next screen. Line 298. January 4th, 2016. The new valuation is $20,587.77. On line 303, the increase goes from 66 to 67. This is only a 1.5% increase. However, I look at the check and it's $178.77. And when I look over to the purchase shares on column J, I am buying over two shares. So that makes me feel better. I also looked up that GDP. And the GDP grew by 1.6% in 2016, which means that the economy was not producing enough jobs. So it's high unemployment. Next screen. Line 314. So this is New Year in orange. Again, January 3rd, 2014. The valuation of the portfolio is now worth $23,456. The increase on the dividend on line 319 goes from 67 cents to 69 cents. That's a 2.9% increase, but it's still buying over two shares. Next screen. Line 330. This is January 2nd, 2018. New Year valuation. It's $26,658.24. On line 335, the annual April dividend increase goes from 69 cents to 72 cents, which is a 4.34% increase. So I want to note that the background is in green. We're in the bull market. However, Procter & Gamble is having problems and they had to write off some stuff off their books and that affected earnings. The shaving club and the Harry Razer gave them some tough competition. Next screen. Line 342. Up on top. Okay, 10-1. The notation is here that it's almost a bear market. The stock price is down 19.78%. The stock market, they don't call it a correction unless the stock market is down 20%. So it missed it by a hair. If you look at Procter & Gamble on column I, you can see it going from $83.67 and it's down to $80.24. So it's down 4%. But if you look on line 345, six weeks later, Procter & Gamble is at $93.32. So if we're in a recession, is another example of the flight to quality stocks. Line 346. We have the new year valuation of $28,484.83. I also want to note is that at this particular time, the tech stock got hit pretty hard. So you can see on line 349, the market is down 37 cents. But the Procter & Gamble stock is at 98.44. Again, the flight to quality. Now, line 351. 417. The yearly increase went from 72 cents to 75 cents. This is a 44.28% increase. The value is now stands at $33,699. This is also the time of the pandemic, right? And so I'm also thinking this would be a nice little mess egg that would be helpful if you lost your job. Next screen. Line 362. January 2nd, 2020. New year valuation, $40,000. $40,269.50. Line 364 and 365. This is the shortest fair market. It was down 34%. But if you look at the stock price of Procter & Gamble, it's at $119. So it's again, it really held up in a bad market. Line 367. You have the yearly increase and goes from 75 cents to 79 cents. And the Treasury bill, that's a 5.33%. And the Treasury bill is paying below 1%. Final slide. Okay, this is October 1st, 1997 through April 1st, 2021. $50 investment for 282 months, 23 and a half years. That's $14,100. You have collected a total dividend in this time period, $8,479.72. And the portfolio is worth $45,938.81. So you have 342 shares. Not bad to have an extra $46,000 as a supplemental fund. At this point, your dividend, your annual dividend is about $1,000 a month. So your average cost, if you add in the $14,100 plus the dividend that you reinvested, your average cost per share would be $66.60. And if you just calculated based on the $50 that you funded, your cost basis would be $41.21. So I think life is a little better if you didn't invest $50 a month. Is there any questions? Yes, Harriet, this is J.P. with the library. So there's been some questions trickling in. One asks, shouldn't you look at the dividend yield, not the dividend increase? The yield went down because the stock price went up. That was towards the beginning of your presentation. Right. Well, part of it is that if you're looking at the increase, as part of the research when you, I did this because I wanted to use Johnson & Johnson and Procter & Gamble as a starting point because Johnson & Johnson & Procter & Gamble are household names. You can start off with a, if you look at the yield, but if the yield is high, it also means that they probably wouldn't be raising the dividends would be lower. So it becomes like, do you pick a high yield, but it won't grow at the very beginning, but it won't grow very much, or do you pick a lower yield and look at how much they're going to increase it every year? Someone else asks, sorry, but how is the dividend calculated? Does that depend on how the well the stock is doing? Usually when, how they, what they declare for dividend is based on the profit they're making. What do you want to look out, look up, which better investing has what they call stock selection guy, and it figures it out for you and say, okay, this is how much profit do they have, and how much of that profit are they giving back to the shareholders? In the case of Procter & Gamble, the numbers are pretty high. Couple years was up to like 65% of the profit was given back to the shareholders. The latest year, it's went down to 60%. But there are a lot of companies who, you know, you want to, you want the company to grow, you need, they need so, but if they have enough money, they will give it more to the shareholder. It is also important that when a company gives out a dividend that they don't cut the dividend, that absolutely is a no-no. So they have to be able to sustain it. So as earlier, I said Procter & Gamble, they had over $6 billion. So having a dividend increase every year is not a problem for them. And I'll have a couple more and we'll let you go on. Someone asks in the Procter example, are there data points that are important to keep track of for taxes each year? Yes and no. If you're doing this in an IRA or a Roth IRA, then that's not an issue. If you're doing it outside of a Roth and outside of an IRA, then yes, you have to keep track. But if you're holding this for the long term, the dividends are what they call qualified dividends, which is taxed at 15%. Short-term gains is taxed. If you hold something, or you sell something in less than one year and one day, then it's considered ordinary income. So whatever tax bracket you're in, that's the taxes that you will pay. But the dividends, if you hold it for more than one year, the dividend is a qualified dividend and it would be taxed at a lower tax rate at 15%. And someone else asks on your thoughts on buying individual dividend stocks versus ETFs? It's just a matter of preference. I think ETF or ETF is fine just as long as the expense ratio is reasonable to you. Okay, and I'll give you one more and then you can go on. And there's a few more we can get to them later, but someone asks, where do you get the share price and dividend information used to create the spreadsheet used in your presentation? I got it from financeyahoo. I got it from nasdaq.com, marketwatch.com. I use those different sites to verify. I only went back to 1997. I wanted to go back to 1980 and I couldn't figure out those numbers because there are always what you see on a lot of these sites. They adjust it for the stock split. But Laurie, when I was talking to her about it, she found a resource where I can get historical information. So as soon as the library opens up, I will be going down there and looking at those reports for historical prices. I have about one more and we'll let you go on. Someone just asked, how many years in did you start to be able to live off of your dividends? Could I hold that off until we do the Johnson and Johnson? When I couldn't go back to 1980 on Procter & Gamble, as I was cleaning out my house, I found Johnson and Johnson in hard copy that I did back in the 1990s. It started from 1980. I updated from 2001 until 2021. I got 41 years of data. If we go through that one, you will see you can answer your own question about when can you start living off your dividends. Okay, there's a few more, but we'll leave them off and we'll let you go on. Okay. Okay, next screen. Johnson and Johnson. Medical supply, non-invasive. The consumer health segment brand names. Okay. Next screen. These are some of their name brands. Some are more familiar than others, but we all know about Johnson and Johnson baby shampoo, the Tylenol, the Band-Aid, the Motrin, the Benadryl, the Listerine, things like that. Some of the other names are more from other countries, but they also carry a lot of brand names. Okay, next screen. They also have a pharmaceutical segment, Jensen. We know about Jensen because now they have created that one-shot COVID-19 vaccine. They're also noted for their Ebola vaccine. They also have a medical supply, non-invasive segment. I know I saw some stuff that I can't find again and I swear I thought I saw some drills and saws. Okay, next screen. Johnson and Johnson. Let's look at Johnson and Johnson result of investing $50 a month and reinvesting the dividends from 1980 to 2021. So that's 41 years. Okay, next screen. Okay, here we go. Here's the worksheet. If the background is beige color means we're having a recession or a downturn, and if the background is light green, it's a bull market. So here on the right side, the lavender color is a dividend and the purple is the yearly increase. The coral color is the new year of valuation and the yellow signifies there's a stock split. The data starts here with purchasing one share of J&J at $68.25. Johnson and Johnson have what they call a DRIP program. DRIP stands for Dividend Reinvestment Plan. The requirement was that you have to have buy one share and you get it from your broker and you send in the certificate and you can start a DRIP. So unfortunately, they have stopped that. And but I continue doing this just to show you the results of long-term investing and the importance of compounding. Okay, line five. The first dividend is 57 cents. Okay, and that is $1.35 and you reinvest that. So line three and line four, so you're investing that $50. So by the time you get your first dividend on line five, you've now got 2.38 shares. Okay, now in line 21, you have a stock split. In May of May, 1981, you have a 3.41 stock split. So if you look at line 20 on column G, you had 9.22 shares. You just times that by three and you got 27.66 shares. Okay, so line 22, the dividend declared is 22 cents. Prior to the split, it was 57 cents. So if you take 57 cents divided by three, you get 19 cents. But the dividend is 22 cents. So if you compare 19 cents to 22 cents, that is a 15.7% increase. Next screen. There's a long recession in 1980 ended in early 1983. Line 38 is the yearly dividend increase and it goes from 22 cents to 25 cents. This is more than a 13.63% increase. Again, when you're dealing with small amount of money, do the percentage. Okay, line 44, October 1982, that's the Tylenol tampering. And I don't know how many of you remember that. Johnson and Johnson did a recall on Tylenol and it cost them $100 million to do that. About one year later, Tylenol sales were back to where it was. So Johnson and Johnson got praised for doing the right thing. Line 53, line 53, the end of recession. This was said to be the steepest recession since World War II, almost 40 years ago. Okay, but look at the stock price. When it split, it was 3650 in May 1981, but it was steady mid-30s to the high 40s by the end of the recession. So if you look at column E, you can see just from the top, you know, 33 and it goes down and it gets hits in the 40. And by the time it gets to line 53, it's at 4950. Okay, Blue's chip stocks seem to do well in the recession. Okay, so if you get nervous and you're new to investing, review the data, review their balance sheet, check the value line report. It will help you realize that the company is doing okay. Next screen, line 64. So it's four years of investing, $2,300 at $50 a month. It's worth $2,842. And the reinvesting of Diven needs time to be impressive. Do not impress. That's wondering about Diven investing. You see it at the back end. This is not a fast appreciating stock. It's not a growth stock. Growth stock is defining us some company that's growing 20 to 30%. The company was established in 1886. So it's not ever going to be able to ask anymore. My analogy is it's not a racehorse. It's a working horse, like a Clive Dale horse, big and strong and will get things done, but it will not win a race with a racing horse. The line 70, the yearly increase from 1984 went from 28 cents to 30 cents. That is a 7.1% increase. Next screen, line 80. This is a new year, 1995. Now this portfolio is worth $3,279.81. The dividend income on line 86 goes from 30 cents to 32 cents, and that's a 6.6% increase. Line 105, the dividend increase from 32 cents to 35 cents. Three cents only, but that's equivalent to a 9.37% increase. Line 118, dividend increase from 35 cents to 45 cents. That's a 7% increase. Seven cents, and that's equivalent to 20% increase. Next line, line 118. Dividend increase from 35 cents to 42 cents. That's 7%. I'm sorry. I think I repeated myself. That's 20% increase. Line 125, 1027, 1987. This is known as Black Monday. The market was down 22.6%. So you can see from the stock price, it was at $96. And on 10.1, and it goes down to 11.1, it's at $79.25. It's down 27%. Next screen. On line 134, the stock price went down to 69.50, we're down 27%. This is also the yearly increase. This is in purple. We want 42 cents to 45 cents. At least we got a dividend increase. It's a 7.1% increase. But because the stock went down, the dividend is at $59.36 this quarter. That makes it $200 a year. Okay. It's starting to impress me. I was wondering, when you see these numbers, how many people would think about increasing that $50 investment? I think that if you are considering after eight years of increasing it, I think the left side of your brain is working, which is good for you. If this still feels scary, it's also, I would say, this is normal. It's scary because we don't really have a crystal ball. However, I always tell my club members when I had an investment club that you wanted to listen to your feelings, but you also want to give your left side your brains equal time to look at the facts and then decide. Okay. Line 150. We have a yellow background here. We have a stock split. The 142 shares that you own now becomes 284 shares. Okay. And if you look at the yearly increase on line 151, okay. It should be half, right? Because the dividend on line 146 was 45 cents. But it's not. On 151, the dividend is at 29 cents. So we're looking from an increase of 22 and a half cents to 29 cents. And that's a 28.8% increase. That's a large, large amount. Okay. Next screen. 161, line 161 new year valuation. It stands at 17,406.41 cents. Line 167, the yearly increase from 29 cents to 34 cents, is 17.2% increase. So in 1991, you've been investing for 11 years now and the valuation is stands at $22,289.32. Considering that you're putting in $600 a year, 10 years, 11 years is $6,600. And now it's worth $22,000. Line 183, yearly dividend increase, 34 cents to 40 cents. That's a 17.6% increase. And your dividend stands at $126.39 cents for this quarter. Next screen. Line 199, the increase goes from 40 cents to 46 cents. That's a 15% increase. Note that the dividend is now over $150 each quarter, which means four quarters is $600. Now the dividend is equal to the yearly total that you invest at $50 a month. It took 12 years to grow the dividends to match your $50 investment every month. So the investment dollar has doubled. If you had increased the $50, then it would take a new less than 12 years to reach this point. On line 201, June 10, 1992, we have a two full one stock split, the 329 shares, you have become 658 shares. Next screen. Line 210, new year valuation. This is 1993, 13 years. Now you have $33,759.96. Again, on line 216, you have your yearly dividend increase, 23 cents to 26 cents. Again, this is a 13% increase. From this point, your dividend reinvesting is more than your monthly investment. Line 226, 1994, $31,453. And the price of last year stock beginning of the year was $50,25. And now it's only worth $44.75. So the question you need to ask yourself is, does the volatility bothers you? You need to ask those questions about that because you need to find out who you are as an investor. In the beginning, I think volatility bothered me a lot. But now, volatility bothered me less so. I think volatility provides opportunities. Line 232, May 11, 1994, your yearly dividend increase, 26 cents to 29 cents. Another double digit increase at 11.5% increase. Line 242, new year valuation for 1995. Now it's 15 years of investing. Now your portfolio is worth $40,000. Line 248, you have another yearly increase, 29 cents to 33 cents, 13.8% increase. Line 258, the new year valuation now stands at $64,655.80. And now you have 750 shares. The stock appreciation is over 20,000. I think this is a wild factor for me. I hope it is for you. Line 264, 1996, yearly dividend increase 33% to 38%, 15% increase. Line 266, a 241 stock split in 1996. That's 764 shares you have is now 1,529 shares. The valuation, line 275, new year, stands at $77,179.56. Line 281, May 16th, you have the yearly dividend increase, 19 cents to 22 cents. And that is again, double digit increase at 15.7%. Line 291, new year valuation. Your portfolio now stands at $102,789.66. To me, this is a wild factor. The pharmaceutical industry has one of the highest profit margin of any industry. On line 297, you have the yearly increase. Again, from 22 cents to 25 cents, another double digit increase of 13.63%. It's only a 3% increase, but multiply it by the 1,593 shares you have now. Now produce a check of $400 a quarter. The value of this portfolio at this point, over $100,000. And this is year 1998. I first taught this class at Mills at $100,000. If your mother was shampooing your head with Johnson and Johnson baby shampoo, and if she knew to invest $50 a month, this $100,000 would have paid four years of private college. Not bad for $600 times 18 years. You're only talking about a principle of $10,800. That is a wild factor for me. Line 323, on the next page, a new year valuation on January 3rd, 2000. The portfolio stands at $152,000. Line 339, new year valuation for 2001 is that $154,000. At this point, when you get to this point, you have to ask yourself, is this amount a major stress reduction for you? Or are you going into a thriving mode now? Okay, next screen. Line 346, we have another stock split, 241. So now you have 3,356 shares. So on line 353, on 9-1, 2001, the market value is at $186,000. So this is also, again, on 9-11, we had the 9-11 attack, and this shut down Wall Street. Scary, scary time. But the stock price but the stock price held up. So what was happening is the flight to quality to uncertain times. You could see the stock on June, on line 348, the stock was at $49.96. And if you go down to the purple, where they increased it, the stock was at $61.47. Okay. So finally, the recession ends in 2003. Okay, 379, line 379, the yearly increase from 20 cents to 24 cents. That's a 20% increase. And the line 389, you have a new year valuation of $181,493.95. Okay, so we start in 1980. So this is 31 years. Okay, 181. So I want you to kind of remember this spot here. And let's go on for the next 10 years. Okay. Next screen, line 395, yearly increase, again, double digit return, 24 to 28 cents, that's an 18.75 increase. And you look at the dividend check. The dividend check now is over $1,000 every quarter. Line 4405, new year valuation, the portfolio is now worth over $225,000. Line 411, dividend increase for the new year for 2005, 28.5%, to 33%, which is a 15.7% increase. Line 420, next screen, line 420, you have the valuation at the end of the year, $225,555.16. Line 427, we have the yearly increase from 33 cents to 37 cents, which is a 13.63% increase. So the dividends for the year for 2006, totals up to $5,400. That's $450 a month. Okay, so line 437, new year valuation, you've got a quarter of a million dollars now. Okay, line 443, new year yearly dividend increase, 37 cents, 37 and a half cents to 41 and a half cents. This is a 10.66% increase. Okay, skip this next screen. Line 453, 453, new year valuation, it's worth $255,442.40. The dividend increase on line 459 goes from 41 cents to 46 cents, which is a 10.8% increase. So as you look at 49, okay, the dividend is 46 cents and your dividend total is $1,795.92. Okay, and if you're looking at this point, times that by four, okay, it still may not be enough to live off of. Okay, okay, let's look at line 465. This is a 10.12,008. This is the real estate loan crisis. And the stock market goes down. And it's also the same time that Maddox Ponzi scheme scandal. So in line 469, your portfolio drops down to 242,735. Okay, next screen. So but if you look at line 471, your dividend is at 46 cents. You have a dividend check of 18.3794. So on line 475, the yearly increase of the dividend goes to 49 cents from 46 cents. That's a 6.5% increase. But it will give you a quarterly dividend check of 1975. Okay. So again, down to line 491, the yearly increase for 2010, 49 cents goes to 54 cents. And that's a 10.2% increase. And you know, the dividend is 2,254.25 cents. Okay. Can I, JP, can I skip down to screen number 63? And skip wherever you'd like, Harriet. Okay, let's go to 63. So we're on line. Harriet, tell me the line. I don't see the page number here. Oh, okay. Can you tell me which range? Okay, row 626. Okay. Okay, here we go. Okay. All right. So on six, okay, on this, look down to 635. You have the yearly increase. You go from 90 cents to 95 cents, which is a 5.5%. But now the dividend check is $5,272.27. So if this is a quarterly basis, you could say, basically, you can times it by four. Now you got $20,000 a year from your dividend. So the question you need to ask this, is that enough? Okay. Okay. So if you look at line 651, when you have a dividend increase from a dollar, from 95 cents to a dollar one cents, your dividend check is $5,766.65. Okay. But look at the new year, the valuation on 645, new year valuation. Your portfolio, it's worth $827,833.82. So the next room. So at the end of April 1, at $50 investment, your portfolio is worth $955,597.19. Pretty close to a million. So, and if you look on line 663, it is giving you a dividend. It's to say, you want to live off of your dividend. You have to ask yourself is getting a quarterly dividend check of $5,889. Will that be helpful? Okay. So if you, on this particular screen, column C, down the column 668, that is the total amount of dividends you collected over 41 years. $228,377.56. The amount of money that you put in at $50 a month for 41 years only totals to $24,700. But between the $50 investment and the dividend that was reinvested, your cost is $253,000. And the stock appreciation is $702,000. I think that this number is very, very impressive. I said, I know 41 years is a long time. So that's why I keep thinking that if you start in your 20s, you're at, you know, say you're 25, you add 41 years to it, you'll be 66, which is retirement time. And I think that $50 a month and reinvesting the dividend is, takes a minimum of effort. And yet you could see how much difference this would help in your retirement. But I also, when I went back, when I told you that let's mark that 30 year, you had whatever amount that was, and that 10 year difference really makes a difference. Because when we teach that better investing, we teach this, you know, when you start at 25, or when you start at 35, it really makes a difference. And what I wanted to show you in this Excel spreadsheet is that 10 years different, 30 years versus 40 years, it makes a lot of difference. So the earlier you start, the better off you're going to be. Okay, so let's, yes. So I wanted to go back to Value Line, because I taught a Value Line class on April 7th. You can go to Value Line and look for in the pre screens and look for pre-defined screens. I'm getting tongue-tied here. You can look for companies with significant estimated dividend growth, or you can look at highest yield, yielding stocks. So, you know, it's up to you and check them out to see what it is that you like to do. Next screen. So here is the Dow Dirty stocks listing. Notice that the safety ratings are very high. They're just ones and twos. Okay. Next screen. Resources. Next screen. The NOBL is the ETF that contains all the aristocrat dividend members. What is an aristocrat dividend member? Any company that has increased the dividend for a minimum of 25 years. So you can see here in Procter & Gamble, they have increased their dividends for 64 years. And I believe Johnson & Johnson's number was 58 years. Okay. So if you want to look at mid caps that are growing and increasing their dividends, there's an ETF call R-E-G-L. Okay. That stands for the pro-share mid-cap 400 dividend. Okay. Next screen. The S&P yield right now only yields about 1.4 percent. So if you look at the S&P 500, you kind of have to cherry pick for the best yield. Okay. Okay. Next screen. Check out your brokerage firms, resources, or Google the internet for information. But be sure to go to Value Line on Morningstar to check out the companies. Next screen. Good luck. Thank you for attending. Please share whatever you have learned to your loved ones. And please sell out your valuations from the library. Okay. Thank you. Harry, you want some more questions? Sure. So several people are asking about whether you're using software to input the dividend and share price data into your spreadsheet. Are you manually entering that, or can you share any software that you might be using? Well, well, I told you from the Johnson & Johnson, the hard copy, I only had a hard copy. So yes, I had to input that by hand. So is there an app that you can use? Not really. It's very tedious and laborious work. It took me three days to get the data from Johnson & Johnson 1980 to 2001 to put it in manually. Someone else asks, what is the percentage return after 10 years, and what is the percentage return after 10 years when you account for inflation? Well, that's a tricky tip. I would have to sit down and figure that out. And the tricky thing about inflation is that there was a time period where they kept playing around with the CPI. And inflation for the regular population and inflation for seniors are different. Seniors have a higher inflation rate simply because in their older age, they pay more for medication. So they have a different inflation rate. You could say for the last 20 years or so, we basically had a pre-mile inflation rate. I think back in the 1980s, I remember the mortgage rates were like 16%. And now they're down to like 2%. But it's been quote-unquote mile. And I think that one of the fears is that the inflation might flare up again. The S&P 500 returns about 8% or 9% over a very long period of time. Like 50 years. So my goal is just to have to do a little bit better than that. And so I want a double-digit return. So I'm an active trader. But if what I hear constantly is, I don't have the time. I don't have the money. So I'm trying to figure out, say, well, dividend investing, it takes a minimal amount of time. And you could start out with a minimal amount of money. You just have to develop the discipline to do it every month. And I think that you could keep up with inflation that way. But if you look at it, after 41 years, if you have a million dollars, I mean, two-gauge dollars is a million dollars. And if you have an extra million dollars on top of your 401k or in your IRA, I think it puts you in a pretty good position. Okay. And a couple of questions regarding investing. Someone asks, do you recommend investing in dividends in a retirement account like a Roth IRA or a brokerage account? Kind of along those same lines, someone asks, thoughts on investing part of my emergency fund in stocks with dividends versus putting it all into a CD? We're better investing. And from the very beginning, we don't make recommendation. We just give you the tool to try to figure that out. The best answer for the person is whether they should invest in their emergency fund or put it in dividend funds or whatever. The person you need to ask is the person that you see in the mirror. I wouldn't know your circumstances or why you would do that. What's your risk tolerance? So the answer, I had a lot of people say, what should I do? I go, you need to ask yourself, what should you do? Because I can't answer that for you. You need to answer that yourself. Right. And it has to do with exploring how you feel about that. Figure out in what I do when I trade, I always try to figure out what's the best case scenario, what's the worst case scenario and where's my break even point. And when I have those three points, I think I can make a pretty good decision. I think that's what each individual needs to do, too. Here's another one for you, Harriet. How much do you have to invest a month to have the same result in 10 years instead of 40 years? Well, you want a million dollars in 10 years? Well, okay. If a million dollars divided by 10, that's $100,000, right? And then figure out what kind. So you'll need less than $100,000 because you're expecting it to grow. I use the rule of 72 a lot. So 10 years, huh? A million dollars. That reminds me of, you know, that get rich quick. And I go, the flip side of that is you're broke. Because unless you know how to manage your risk, so you really need to, I think that you can get there if you learn how to do options. And you would have to take some risk because you're going to have to speculate a little bit. But if you want your principle to be preserved, and I think that's important for me at my age, the presentation of your principle is really important. I think even for young people, the presentation of your principle is important. Because even if you lost, say $5,000, you not only lost $5,000, you lost all the potential of that $5,000 growing, you know, and times that by, you know, 30, 40 years. That's a lot of money. Great. Someone else asked, for people approaching retirement age or perhaps already passed that, is it wise to invest in stocks? Is it wise to invest in stocks? The spectrum goes from conservative to whatever. You know, Procter & Gamble, like I said, it's sitting on a lot of money. That's $6 billion. So in the stock market, you know, it will go down. But if you also can see that in the Procter & Gamble sample and in Johnson that the fluctuation is there, it's volatile, the market is volatile, but that's where the research comes in to say, does the company has enough money to ride through the recessions? And in the case of both Johnson & Johnson and Procter & Gamble, because they are large companies, they can and they will. But the thing is how, it's a matter of how do you feel about that volatility? Are you scared of it? And why are you scared? And you have to address that issue because if you're scared of the stock market, then you shouldn't be in it because you want to sleep at night. How about, Harriet, is there a way to do auto monthly investment for stocks or does it have to be done manually every month? You know, that's part of when I was doing this class. I used to have what I mentioned, the drips, the Devlin Reinvestment Plan. So Johnson & Johnson, Procter & Gamble, Pepsi, they all had it, but they're stopping it now. They have outsourced it. And I found Capital One, they used to automatically invest for me. I put in the money and savings and every quarter they would buy what I told them to buy, whatever market price at that point. But they left the brokerage market and so they shut down. And I tried to check out all the online and I checked what, Acorn, Dash, Stash, Betterman. You know, unfortunately, they charge, you know, some of them don't charge and some charge from $1 to $10 a month. And I called the Deloadie up and I talked to them and they said, oh, well, well, you know, you can transfer from your checking account into the brokerage account. However, they would not do the investment for you. You would actually have to go in and say you want to do a partial share of $50 a month for whatever company you want. But the dividend reinvesting is automatic. Someone also asking Harriet along the same lines, the two questions, where can we go to find information on companies that pay healthy dividends and appreciate well and don't decrease in the long run? Like I said, you can, well, I mentioned NOBL, okay, those are aristocrat companies. Those are the companies like Procter & Gamble and Johnson & Johnson. You can go into NOBL and they will list all the, all the, all the holdings. And you can take that list and look up a value line and see what you like. You can, if you say, what can I invest in that doesn't, well, keep its value? Well, the value fluctuates up and down. Okay. And it always will be like that in the stock market. And with the stock market, the way it is now, the volatility is greater than it was 20 years ago. I think the volatility is, it swings more. But like I told my club, you, as scary as that is, I go, you have to think about how you can use the volatility to your benefits. And that really cost you to think a lot. But I think that finding somebody to talk to about money and volatility and sharing ideas is a way of doing that. For me, I had, end up studying options. And I taught a class on options last year. But I realized it's too an advanced subject for newbies. But I was excited about teaching it because if you are willing to do it and the learning curve is huge, I have to admit that the learning curve is huge. But you can manage your risks a lot better than just owning stocks by using options. Very. Someone asks, how many dividend aristocrats are there? Off the top of my head, I don't know. Fair enough. Another person asks, is it easiest to simply choose a company to invest in by the sheer numbers versus worry about what product company behavior you are supporting with your investment money? Say that again. Yeah. Sure. So they're asking, is it easier to invest in a company based on the data, the success they're having versus the products in company that perhaps they're doing things that aren't terribly ethical or something along that lines, I believe. Oh, okay. You want to invest with a clear conscience. There are a lot of companies in the world and there are a lot of good companies and there are a lot of bad companies. There are really good companies that make really good money and there are companies that are really bad that makes really good money. I think I would just, I would be ethical about it, you know. And that has grown popular and keeps growing popular, improving. More and more people want to be conscientious about their investing and I think that's a good thing. I started investing in companies where it was a good place for women to work, you know, 40 years ago. So whatever it is, I mean, some people say to be kind to animals, you know, be good to women or whatever. I said whatever because you want to be, you want to feel good about the companies you invest in. How about the recommendations of investment entities that will not need a significant part of your monthly investment with trading fees? You know, the trading fees of, that really has been eliminated. You know, Fidelity, Charles Schwab, they don't charge anything for commission anymore. So now there is some SEC fees, you know, and it's going to be, you know, two cents, three cents, or I've seen it up to five cents, you know, that you still have to pay because it's not going, those fee goes to the SEC. But commission, Fidelity doesn't have a commission. You know, we saw the ads, they used to say $5.95 and it went down to $4.95 and then it got totally eliminated. So there's, but the thing is they don't automatically invest for you. You know, they will reinvest the dividends, but you still have to be active in going in there and putting in the order to buy the stock, which is really kind of sad, you know. Understood. So I think that's all the questions I see. I don't know if Angela sees any more, but lots and lots of people in the chat in the Q&A area thanking you for all your hard work and advice. Thank you. Well, I hope this is enough, you know, when you look at Johnson Johnson and having almost a million dollars, it's like do something, start the sooner the better. That's what I'm hoping for, the newbies and the young people to start learning to invest and start because I've seen too much in my generation and my parents' generation where they didn't get the information about investing and how that affected their lives badly. So I hope this is enough to encourage you to start. Hi Harriet, someone actually had a question. Their question was when Proctor and Gamble had a two-in-one split on June 21, 2004, why did the share price go from $110.19 to $55.50 instead of $255.095, which would be exactly half of the previous price? Can we go back to that? June 21, 2004. Let me blow it up. Okay, the price was, okay, on 2004 the price was $110.19 and on June 21, the price was $55.50. It's a different day, right? $6.18 and it was $110. So it was exactly half, it would be $55.10. But the split happened on June 21, three days later, so the price of the stock was different. Harriet, I think we have time for one more. Someone asked something similar earlier, but during the toll time that you've been a stock investor, can you remember any other time where you felt a stock market economy was in as unprecedented a situation as we are in today? Any other time? No, this is unique. This is unique. With this pandemic, it is truly unique. But I'm looking at the stock market and it's reaching an all-time high. So what I'm seeing is the halves and the have-nots. And that's why I want to encourage people to start investing because between the half and half-nots, the gap is getting bigger. And I don't think that we're addressing the issue about helping people, giving them some help to increase their financial literacy, so that they can take care of themselves so that they can be financially secure. Because you look at it, I talked to some friends of mine and we were all feeling bad because I go, you look at this pandemic, people are being laid off, you see the amount of people being laid off, people losing their job, people are scrambling. And yet I'm sitting here at home and I'm trading and I'm having a good year. And I said it shouldn't be like this. I go, and I'm one of the fortunate ones that have learned to use the financial, the stock market to help me. So I just, what this pandemic has really shown me is that we all need to learn how to create multiple streams of income. We know we need income from our jobs, we need income from our investments, so that when something happens, we can survive it. And that's what I'm not seeing in this pandemic. It's the half and half-nots. And we really need to increase the general population on financial literacy. Thank you so much, Harriet. I think we have all the questions answered. Thank you all for joining. Again, we have recorded this section and we will be sending out the survey together with a link to the recording. So if you want, you can re-watch the recording. Thank you again for everybody for joining and thank you, Harriet, for giving us this wonderful presentation. See you guys next time. Thank you, Harriet. Sorry, it was so long. Okay, bye.