 What is going on everybody? It is Stas here. Welcome back to another video. So in today's video, like you guys read in the title, we're going to be talking about some dividend paying stocks. And who doesn't like talking about dividend paying stocks? Stocks that pay you every single quarter a piece of their earnings. We're going to be talking about why these stocks are super important in my personal opinion, especially in the year of 2019 towards the end of the economic cycle that we are currently in right now. But before we do get into these topics, let's talk about what are dividend stocks very quickly for those of you new viewers out there that might not know. Dividend stocks are simply stocks that pay dividends. Then you may be asking yourself, then what are dividend stocks? Well, dividends are earnings, let's say a company has a product, right? They make money from selling that product and they get a profit, right? They can do either a couple of things with this profit that they get. They can reinvest it back into the business, maybe hire new employees, launch a new product, whatever, or they can give a piece of that earnings to the shareholders in a form of dividends. So it's pretty much just income produced from the stock. A dividend investing stock, you invest in a dividend stock so you can have income spit out at you pretty much every single quarter and sometimes monthly. So that's kind of a brief one-minute rundown on why or what dividend stocks are. Now let's get into a couple of reasons as to why they are so essential in my personal opinion here in 2019. And I'm sure a lot of you guys can relate to this. And I do have a list here on my phone. So if you guys see me glancing down, that is what I'm glancing down at. So a couple of companies also to give you guys some stocks to think of, not to invest in because you have to do your own research always, but just think of dividend companies. When you think of those, these are the ones that come to my mind, right? I'm thinking Coca-Cola, I'm thinking Pepsi, I'm thinking McDonald's, right? I'm thinking Procter & Gamble, I'm thinking Johnson & Johnson. These are some of the big, you know, five, six couple of companies that I think of when you think of or when I think of dividend paying stocks. And another thing you notice with these dividend stocks is a lot of these companies are really, they've been in the game in a long time and the companies are really old in a sense and they don't grow as quick as these growth stocks, which is one of the main reasons why they don't reinvest those earnings because they're not growing as much. So why not spit them out to the investors, to the stakeholders in a form of dividends, but that's another little side tangent on dividend stocks. So the most important thing in terms of dividend stocks for 2019 and why I think they're so essential is because they provide you with cash flow. This dividend you're getting, it's a form of cash flow that you can count as income, right? And you can do so many different things with this dividend that you get. You can reinvest it back into the company. And if you, you know, let's say you buy more of stock with the dividends that you got from that company, well, now you have more shares of that company. So the next time dividends roll around in the next two, three months, you're going to get even more dividends because you have more shares, right? And this kind of goes into the next point, which is compound interest. And we'll talk about that in a couple of minutes. You can also do another really cool thing with this cash flow. You can actually live off of it eventually. This is what a lot of people do, right? They work from a young age. They're stashing money into their retirement accounts, either their 401k or their Roth IRA. Maybe they don't really like the retirement account route. Maybe they're simply building a brokerage for themselves and they just put money in every month consistently. You know, their goal one day, you know, when they're done working, when they're, you know, 30 years, maybe 20 years for some people, maybe even 10 years down the road. And they're like, okay, maybe I want to retire now. Their goal is to live off of the cash flow being spit out by, you know, these companies, these companies that are paying the dividends. So it's very powerful because you can literally eventually live off of the dividends. You can pay your mortgage with it. You can pay your rent, your groceries, your bills, your utilities, whatever it may be. You can literally pay all that stuff simply by owning a stock. It's literally the purest form of passive income because you're giving them your money. They're investing it and they're spitting it out, spitting out interest for you, which is pretty much the dividend. You're literally not doing anything, but just simply, you know, watching your portfolio, obviously maybe buying more, maybe selling some at some times, but that stuff doesn't take too much time. It's mostly passive income. Another thing you can do is you can supplement your income with this cash flow. Let's say you're not making enough money from your dividends to live off of them completely. Let's say you still work a job. Let's say you still work nine to five, or let's say you work a sales job or something, and you want to supplement your income, but again, you don't have enough income to live full time. You can simply supplement your income, pay maybe a couple of your bills with your dividends, so you don't have to rely fully on your main income. That's something that's very nice, especially towards the end of the economic cycle that we're in right now. Notice, guys, I made a video on this actually a couple of weeks ago, and if you guys want to see that video, it talks about dividend stocks versus the S&P 500 in terms of their performance. We noticed how the S&P 500 is outperformed by these dividend aristocrat companies. Dividend and aristocrats are companies that have grown their dividends for 25 plus years, so pretty much if you owned that company, a dividend aristocrat company through periods of hard times, you would have done better holding those companies versus holding some growth stocks that got clobbered and that didn't pay a dividend during that time period. It does provide you a security against a recession. You're going to lose money regardless. Well, you won't lose money technically because you're not selling, but you will be down on your positions most likely unless you pick a couple of stocks that don't go down during a recession, which is very, very hard and unlikely to do, but you're not going to be as down as some of these growth stocks and you're going to be getting dividends throughout that time period, which during a recession, guys, people are losing their jobs, people are feeling heat in the workforce, the unemployment rate is going up pretty much, right? And they may need to rely on some dividend income, so this can also help people in that sense as well. Let's say they get laid off. Let's say they have an emergency fund and they also have some dividend income coming in. That can really help them as they try and find a new job in time periods where the economy is in rough times like it is during a recession. So that is some ways that it can help you out from a cash flow perspective. And like I mentioned a couple of minutes ago, on to the second way now, the second topic of how you can really be helped and benefited by dividend stocks is compound interest, guys. And this kind of goes into what I said earlier, how you can reinvest the cash flow. Well, compound interest is the beauty, and people call it the eighth wonder of the world, but it's the beauty of investing in the stock market. And it really goes to show over a span of 10, 20, 30 years how this does end up working. And for those of you guys that don't know, let's just go into it very quickly here. So compound interest is pretty much interest that's earning interest that's earning interest in a way. That's a lot of that's how a lot of people out here in the community, people out there, you know, talking about personal finance and stuff, that's how they break it down, right? And the whole idea here is you're buying dividend stocks, right? And they're spitting out dividends. And when you're getting that cash, you can reinvest it back into the company and buy more shares of that company. And then the next quarter comes around, and you get more dividends, which will turn into more stock buying. And you'll have more stocks after that, right? More shares. So it's a constant buildup. And the snowball gets so big after years and years of doing it that the interest starts making interest on top of all this new money that you're just making simply from reinvesting the dividends, that's making money on top of it. So it's like a crazy cycle. So this is really the main reason why I love long term dividend investing and just reinvesting the profits or the dividends, right? I love this strategy because one day I do want to live off of dividends. I want dividends to be one source of income. My long, long-term goals, I'm looking like 30 years ahead now. I definitely want to have my assets spread out, you know, bonds. I want to be living off some dividend stocks. I want to have some real estate. And it's definitely important to plan these things out years and years and years in advance before you do get to retirement. And you're like, oh, crap, I didn't plan anything, right? So it's important to be like very diligent about this stuff and have a plan so you can live off of your investments, guys. Isn't that like the dream right at one day? You don't have to work anymore. You can literally just live off of your stocks. That's pretty awesome, right? So another topic here is kind of protect against market downside. Dividends, they protect against market downside. Like I said earlier in this video and like I talked about in a completely separate video, dividend aristocrats have beaten the S&P 500 during the bad time periods in the stock market. And again, that video is linked down below. You guys can go check that out and you'll see how the dividend aristocrats performed against the S&P 500. So you could really just do well during a time period of downside with having these companies that are paying you cash flow, right? That's really, really beneficial. And it really does well during time periods where the markets are crashing because think about it, if you only had growth stocks, sure, you're not technically, you didn't lose money because you didn't sell. You'd be down 30, 40% in a lot of cases, right? But these dividend stocks, these dividend aristocrats that kind of weather the storm, yeah, you may be down 20% on your principal, but it's still spitting out interest to you. It's still spitting out dividends that you can utilize these dividends. You can pay bills. You can buy this, right? You can reinvest into the stocks to get more dividends in the next quarter. And the key here is these dividend aristocrat companies, they raise their dividends even in harsh times, even in periods of recessions. So you really can just continue to get more and more cash flow. Let's say if a recession lasts two years, let's say it lasts a year and a half, two years, these companies, they will still be, most of them, paying out increasing amounts of dividends during that time period to be considered a dividend aristocrat. So that's pretty cool as well. So that's kind of it for today's video for this video, guys. If you enjoyed it, feel free to go down below, hit that like button. It really supports me and supports the channel in general. And if you have any insight on dividend stocks, let me know down below, what do you guys think about them? I would love to know which ones you potentially own, which ones you want to own. Are you looking at any right now? I would love to know your opinions on that. And if you enjoy the content and you want to see further content for me on this channel, we're talking about a lot of stock market stuff, trading, investing, dividend, stuff like that, personal finance, entrepreneurship here and there, a lot of stuff being talked on this channel. So hit that subscribe button, hit that notification bell. I'll catch you all in the next video. Thank you all. I appreciate you all so much. Peace out.