- What do you, I have to wait eight days?
That's, eight days, I've got $100,000 I want to give you
and you don't want my money?
(dramatic exhale) I don't get it.
What's going on, y'all.
Welcome back to the channel, Wealth Hacker Labs.
For those that are new here, one, welcome.
Two, this is the channel dedicated to teaching you new ways
to grow wealth that is not taught to you in schools
or by your parents
and what I was just voicing my concern over,
my frustration is that I am trying to invest $100,000
with an app called Robinhood.
And for those that are new to this,
this is all, stems from a challenge that I did last year.
Last year, I did what was called
the Grow Your Dough Challenge
and in that challenge I opened up seven, eight, six,
nine, seven, seven?
I don't know.
Several different investment accounts, mostly online
and I put $1,000 into each of these accounts
just to show people that have never invested that,
how easy it is to invest
and how you can make money by investing.
And some of those accounts were Lending Club and Fundrise
and E-Trade and Betterment, Robinhood, M1 Finance,
E-Trade, I don't know if I even said that one already,
but there were several others.
And that challenge didn't come to an end
but it came to the end of 2019
and I'm going to continue that challenge
and continue to give you updates on how that money is doing.
I wanted to start investing some bigger chunks of money
and in full transparency I have had a decent amount of cash
sitting on the sidelines in a high-yield savings account
making something, but the reality is that, you know,
the S&P 500 was up like 29% last year
and could have made some of that money
but instead I was in that high-yield savings account.
That's for a whole other video.
So with this, I just want to put some of my money to work
and start making some money.
So some of this money I have is sitting in my 401K
which is set up as a trust account.
So this is a self-directed 401K
and this might be too much for this video
but it is a tax-deferred account
and I wanted to take some of that money
and open it up at Robinhood
because that's where you all wanted me to see,
open this account.
This is all from the YouTube community tab
where I took a poll and you guys wanted to see
a $100,000 portfolio of me buying and picking the stocks
and also you wanted me to see,
you wanted to see me use Robinhood
which I wanted to use Robinhood.
Except that Robinhood doesn't do trust accounts.
I don't know why.
I mean, you'll have to ask them why,
but you know who does trust accounts?
Is M1 Finance.
So I thought, okay, okay.
Let's go and have some fun with this.
I mean, one, I've got cash in my 401K
and I've got cash sitting in a savings account,
so let's go ahead and just start investing this money.
So what I am doing is I am opening up
a new Robinhood account,
oh, is it a new?
No, it's the same account.
And I'm currently funding that with $100,000.
But Robinhood does not let you fund $100,000 at once.
You have to do it in $50,000 blocks each business day.
And so I've already initiated that transfer
and then I was told it would take eight days,
I don't even know.
It's like, I think it actually is like
coming up with my birthday
when the money is finally there to invest.
Now they did give me $1,000
that I can start investing right now,
but since that's 1% of the total amount
that I'll be investing, that's gonna take a while.
So in addition to the Robinhood account,
I'm also going to open up an M1 Finance account.
Actually, I've already opened that account
and I'll be transferring $100,000 into that account.
So I've got Robinhood which is predominantly
going to be a taxable account
and then we've got the M1 Finance
which is a retirement account.
And being the fact that I am in a higher tax bracket,
the highest tax bracket,
it's one of those good problems to have,
I thought, you know, okay so with Robinhood
we're gonna focus purely on dividend-paying stocks,
for the most part.
And in the M1 Finance
since we've got some tax protection there,
I'm going to do some dividends
but also a little bit more on the growth,
maybe some speculative, just trying to see
if I can roll the dice and make some money.
So with today's video, what I want to start off with
is sharing what are my first three dividend-paying stocks
that I will be purchasing inside the Robinhood account.
So once again, these are dividends, we like dividends.
I mean, dividends is probably one of the easiest ways
to generate a passive income,
as long as you've got the capital
to buy the stock to get the dividend.
So anyway, let's find out
what the first three dividend-paying stocks are
for this $100K Challenge right now.
(upbeat music)
All right, so let's go ahead and break down
what are my first three dividend-paying stocks.
And stock number one is, can you hear me now?
Can you hear me now?
Verizon.
So, reason I chose Verizon is because well, one,
I have been a Verizon customer for,
I don't even know how long,
even though that really doesn't matter
because when you call these big conglomerates,
they don't care who you are.
(dramatic breath)
Still love you, Verizon.
Still love you.
But Verizon, I mean you can't deny
the current dividend yield is 4.1%.
That is a really, really, really salty dividend.
Current stock price is 59.96 with a P/E ratio of 15.41.
There could be a little bit of room for growth here,
I, not really banking on that,
but as far as, just like a leader in the industry,
especially with 5G coming around,
I really don't know anyone else
that's going to be able to compete,
especially on the US side of things.
I know anybody I talk to right now,
especially living here and even where we moved from,
it was either Verizon or AT&T
and I would say 75% of the time, it was always Verizon.
So, dividend stock number one
with that nice, 4.1% dividend yield, is Verizon.
Number two might be a bit of a surprise.
I don't know if this is considered a pure dividend play,
they do have a very nice dividend.
But for many of you that have been on the channel
for any amount of time, then this probably isn't a surprise.
Stock number two is Foot Locker.
So Foot Locker, this, I mean for me, this is,
I'm a sneaker head, I love sneakers,
I have way more sneakers than I need.
Contentment is something
that I have not figured out yet, with sneakers.
Foot Locker, they have struggled
as far as when it comes to retail sales.
I mean, most people nowadays,
I mean they're not going to the mall like they used to.
But still, what the reason here is that,
Foot Locker recently had a dip in their stock price.
At the time of this recording,
Foot Locker is trading at 39.25
and you can actually pull up the one year chart
and you can see that it has dropped.
They were at a high about 64 bucks
back in the Spring of 2019,
so they have dropped significantly.
So this is a value play plus a dividend.
At the current stock price we've got a dividend yield
of 3.87% with a P/E ratio of $8.49.
So seeing some of these drops,
seeing what's going on with Foot Locker, why?
Why is that something that would be attractive?
Probably one of the biggest things is that Foot Locker,
they totally get the resale market
when it comes to, with sneakers.
And you've got apps now like StockX,
which I've talked about in the past.
Well, another app that is by far
one of StockX's biggest competitors is GOAT.
And Foot Locker, who sells predominantly shoes at retail,
they invested $100 million into GOAT.
This is back in June of, I'm sorry, February of last year.
So, I mean the sneaker head, especially the resale market
is just exploding, continues to explode,
is not going to go anywhere, and Foot Locker gets that.
They're not gonna get caught in the dust,
just trying to figure out what happened
and what is going on.
And the other thing, too, is if you're actually,
I actually discovered this through YouTube,
so just watching different sneaker videos,
as I mentioned, I'm a sneaker head,
so I am consuming some sneaker content,
they just announced
that they are releasing their new FLX app,
which will be coming out here soon.
And once again, Foot Locker is doing what it needs to do,
to adjust to the ever-changing, evolving market
and releasing an app that's going to be more easy to use,
more user-friendly and it's just a good thing.
And obviously you can't deny the dividend yield.
I mean that dividend.
Whoo, 3.87%, with potential room for growth, buying at $39,
the 52-week high projection possibly a $68.
Not saying it's gonna get there,
but you know, if we do see some appreciation
with that dividend, that is pretty salty.
All right, stock number three.
And this is another one that might be a bit of a surprise
but it is Canon.
And the irony is that I am recording this video
not on a Canon.
It's actually on a Panasonic.
But in addition to this Panasonic camera,
I also own a Canon EOS-R, right here,
I have another Canon EOS-R right here.
This one's from my wife.
I also have the Canon 80D, we have a Canon 70D.
I've got the Canon G7 X Mark II and Mark III
and Canon is doing some really good things
with their new RF lens.
Actually pictured here is their new EOS Mark III, I believe,
which is a little bit more higher-end.
Some of the camera that I personally wouldn't buy.
And we're just talking about that dividend, right?
So Canon right now,
and there has been some back and forth between Sony and,
well Panasonic is another one,
Nikon, obviously another competitor.
Their stock price back in June,
looks like a high around $30 a share,
currently trading at 27.92.
52-week high, $30 and a P/E ratio of 20.17.
But that dividend yield, $5.28.
And if I have to fully admit anything,
I mean this is purely a gut play.
This is basically like, all right,
I've been watching a lot of the YouTube community
on the photography space,
just talking about the Canon,
comparing that to the Panasonic,
comparing that to what Sony has going on
and it definitely has been going back and forth
but what I have seen, especially with the EOS-R camera
and their new RF lens, it has, it is picking up traction.
Initially it was bashed when it first came out.
I think it was early part of last year,
but since then I've seen a lot of people
that were bashing it initially, are now coming back
and saying it is one of, is their favorite camera
and they are switching from Sony
and whatever camera they were using.
So right now these are my first three
dividend stock picks for 2020.
Is it my most favorite three?
Is it the best three?
Well, you're gonna have to find out to see.
All right so what did you think
about my first three dividend-paying stocks?
Do you like 'em?
Do you disapprove?
Do you think that I have absolutely zero clue
in what I'm doing?
Either way, let me know in the comments below.
I, this is a lot of fun for me.
I definitely need to get some of my money start working,
start earning some dividends
and also hopefully help educate you in the process.
And if you haven't yet, be sure to subscribe
and hit that notification bell
because I got a lot more stocks to show.
A lot more stocks to buy.
This is just the one Robinhood account
focusing on dividends,
we still gotta talk about M1 Finance and our gross stocks.
And that video is coming up next.
So be sure to subscribe so you don't miss out
on any of the fun action that's going on here
on the Wealth Hacker Channel.
This is Jeff Rose, reminding you
that it's your money, your life
and only you can make it awesome.
Until next time, peace.