Welcome to chlorophylls dividend investing class on dividend stocks and portfolio. My name is Ivan and I will be your lead instructor for the entirety of this course. Let's kick start this lecture by defining what dividend investing is and the main goal of this online course. So, what is dividend investing? very broadly speaking, it is simply a strategy of buying into investments that pays out dividends, be it in the form of cash or of shares. Now, the term investments can also mean bonds, preferred shares, private equity and funds.

So, to be more specific in this course, our focus will be unlisted dividend stocks, how to build and manage a dividend portfolio because of dividend portfolio management. This course will also touch a little bit on bonds dividend funds master lease partnership and sprinkle with previews on return investments at the end. As for the main goal of this course, it is essentially to build your very own dividend portfolio in hopes that one day the stream of dividend income coming from that portfolio can replace your salary and help you get closer to that elusive financial freedom status. Just just set your expectation right, know that this course does not promise students financial freedom, but it will definitely give you the steps you can take today investment strategy wise to start building towards this goal. Now, we look at some compelling reasons why you should engage in this type of investing strategy.

Reason one, because it is serious investing. If you have friends who trade often, you've probably heard many stories of them dabbling in various instruments over the years. In one year it will be in commodities and in another it will be some exotic cryptocurrency. These friends are not exactly dedicated traders or investors but Other our trend followers, they enjoy talking about the positions they hold and how well they're doing lately. Some might even do well, making a few thousand here and there. But as time goes by, they are just playing games.

The paper profits they make are not supported by anything real. They know it, their group knows it. And if a huge correction ensues, they either go back to square one breakeven or their paper profits are all wiped out. The spirit of dividend investing is not about short term paper gains, but rather about a craft that must be built over time focusing on wealth accumulation through identifying investments that are backed by real businesses working hard to generate an income for you. reason to it has promising returns. dividend growth investing has historically provided excellent total returns.

Evidence from other dividend funds shows promising results of beating the s&p total returns. As you can see from the charts even the simplest of all dividend investment strategy, the dogs of the Dow strategy, which includes the top 10 highest dividend paying yields out of 30 companies in the index outperformed both the Dow and s&p consistently for many years. Although past performance does not translate to future performance, there is at least strong evidence that a portfolio consisting of companies that give dividends have historically outperformed the market index. But do note that we are comparing total returns not net returns. This is important to note, because some dividend funds in general might be comparatively worse off than the market index in terms of net returns when you account for the other fees. That is why I encourage you to form and manage your own dividend portfolio to put this into practice, spective let's assume you save and invest $12,000 every year, and each year your dividend portfolio grows by 8%.

The 8% here refers to a conservative 16 year average IRR or internal rate of returns of the dogs of the Dow. And it is your net return since you manage the portfolio yourself. So at the end of the fifth year, your portfolio will grow to $158,481. At the end of the 10th year, your portfolio will grow to $187,746. At the end of the 20th year, your portfolio will grow to $416,631 with monthly passive income of more than $2,000. That's per month.

Mind you. And annualized 8% return is enough to double your money every 10 years. And that doesn't count adding new things. Capital each month. So you see, this is what the power of compounding can do with your money, which matters. Although the most important assumption and getting your initial capital from $12,000 to $416,000 is the consistent reinvestment rate of 8%.

Meaning for the coming 20 years, every single year, your investment portfolio must clock in at least an average of 8%. Can you find a fund or an investment a strategy that can provide such returns to you consistently? dividend investing is like the answer because not only does this strategy provide a passive income flow, but that income flow can also be used to purchase additional shares. This can be a powerful way to invest, especially when compounding is brought into the equation. Reason three, dividend investing is a relatively overlooked strategy presumably Based on my experience, not many investors practice this form of investing. Many instead err towards the more popular strategies like value investing or growth investing.

You have heard of Warren Buffett, perhaps it's the allure of being like him and capturing his success of achieving great capital gains that compels me to follow in his footsteps. Let's not forget the great man has certainly not been shy about owning shares of dividend paying stocks. Because of this, there are plenty of opportunities for us as dividend loving investors to find great dividend investments. Moving on to course navigation. When I was structuring this course, I thought to myself, what can I teach from this broad topic called dividend investing and how can I do so in a way that adds the most value to you? Should I share more about dividend stocks or should I talk more on dividend portfolio management?

Because when I first started learning about dividend investing at years ago, the lessons taught to me were very detailed but confusing, confusing because the lecturer did not provide a proper structure. And on top of that, the materials were largely theoretical terms and hypotheses, with chapters bombarded with formulas from another world. In the end, I did learn quite a bit as a student but did not take much away as an investor. This is a crime I want to avoid committing, learning from this, this is how I will structure this course. There are three major sessions and one bonus portion at the end, all designed to contribute to the main goal which is the center d over here. very broadly, in the first session, we will look into some basic topics on dividend investing, such as knowing what types of ideal dividend companies to invest in understanding the implications behind the returns, they give the dividend paying process And what to do with those dividends.

Once the basics are dealt with, we'll move on to the second session. From a bottom up perspective. We'll dive right into analyzing dividend companies discussing important topics like misconceptions, key ratios, and the most exciting part how to screen and pick out great dividend companies for yourself. Then, when we move on to the third session, where I will give you a bird's eye overview on how to build your dividend portfolio from scratch, tackling vital issues like how many stocks to incorporate the different types of dividend investments to add on to enhance your portfolio as well as how to track monitor and rebalance your dividend holdings efficiently. Finally, before I end the course, we will go through the bonus portion which is about master lease partnerships and how to pick the best of them. The materials over here have been vetted through by two other individuals, a finance professor and a dividend fund manager.

So you can be assured that the materials covered here are not only exciting but effective and helping you build a dividend portfolio and unlock a stream of dividend income, which is the main goal of this course. As for the courses target audience, although the course is packed with easy to understand formulas, real life examples, techniques and several case studies, it is not meant for people seeking quick returns, academics, people who are looking for formulas and deep theories or busy individuals looking for purely passive investment strategies. Ideally, this course is made for people with a genuine interest in dividends accumulation and have a long term outlook, people who are able to allocate some time for managing his or her portfolio and have basic knowledge Over investing and Excel. Other than the obvious dividend investing in general is also not meant for people who incur a high marginal tax on their dividends.

The notion is simple, the lower and investors marginal tax rates on dividend as compared to his marginal tax rate on capital gains, the stronger has preference for dividends. This is a rather intuitive notion. But to add more value to you, I rather show you the math of how this notion is derived. Assuming a double taxation regime that applies to an investor meaning to say the company will be taxed once and when you receive those dividends and or sell the stock for a capital gain, you will be taxed again for those returns. This is what it means to be under a double taxation regime. If so, the formula to use when calculating your effective tax rate is denoted as ETR In short, ETR equals to C to your plus One minus CTR multiply by empty rd.

CTR stands for corporate tax rate. MPR stands for marginal tax rate on dividends. In practice, before you go about deciding whether you are suitable for dividend investing or some other capital gains centric investing, find out your tax rate on dividends on capital gains and the amount of tax your government is charging listed companies. For example, if your country charges a corporate tax rate of 20%, your marginal tax rate on dividends is 10%. And your marginal tax rate on capital gains is 29%. using the formula plug in the numbers you get 28% 28% is your effective tax rate on dividends.

Use it to compare with your marginal tax rate on capital gains, which is 29%. Since 29%, is more than 28%. This implies that you should prefer dividend Over capital gains. Now assume a single taxation regime that applies to an investor, implying that there are tax credits offered to investors, where you will only be taxed once and not twice. If this is the case, then the formula to use will be as such. So, for example, if you pay taxes of 20% on the dividends you receive, and 15% on capital gains for any listed stock you sold, would you prefer $1 dividends or $1 capital gain?

To answer this, we apply the Formula One multiply one minus 0.2 divided by one minus 0.15 equals 94 cents. What this means is that for every $1 dividend is equivalent to 94 cents in capital gain, or for every $1 capital gain, you get $1 six cents dividends. Therefore, in theory, you should prefer dividends over capital game. You don't have to use any of the two formulas if you're not taxed on your dividend or capital gain. For example, countries like Singapore, both foreign investors and local residents are not taxed on capital gain and dividends. This is because dividends paid have already been subject to corporate tax on profit, and hence is not taxed again.

Implication of these two slides, do your own due diligence and find out how taxes affect your investment style and preferences. So this is an example of how I go through complex concepts Fingers crossed. My intention is to keep the math simple and applicable. As for the add ons, there will be quotes sprinkled across the course for example, quotes like this. When you see these quotes, I would like you to read and understand their implications. These quotes are from other experienced investors and mentors who have inspired me to create this course, their intent is to help you think deeper or to consider other facts in the topic.

Along with quotes, there will also be an objective page at the start of every major session. And at the end of it, there will be a summary page for the sake of effective learning. Other than that, documents and excel models are also scattered across the course. So be sure to download them for future reading and practicing. And yes, closed captioning will be provided for all video lectures. That is the standard at chlorophyll Inc. And lastly, a big thank you to the people that made this course possible.

This is my personal contact in case you have urgent questions that needs answering. For general questions. Please use the forum to air your inquiries. Do check out The complimentary videos as well. And with that said, I'm proud to present this dividend investing course to you and hope it adds value to your investing journey.