dividends are not super complicated to understand but they can get a little bit
techie if you're new to investing and that's why I'm making this video for you
guys so that you can understand the basics and then you can move on from
there so in today's video I'm gonna explain how dividend paying stocks work
but I'm actually going to be using the Robinhood app specifically so that you
guys can navigate through it and see how it works I'll just cover the basics and
how to navigate everything directly through your phone so that you guys can
see exactly how easy Robinhood is to use especially when you're looking at
dividends dividends are gonna pay out the exact same way no matter which
brokerage you're using so it doesn't really matter if you're using Robinhood
or if you're using someone else but the point of this video is that I am gonna
show you how to navigate Robinhood so that you can find the dividends so that
you can research them and then you can also see where they're paying you and
how to find that stuff out now if you just found this channel I'm Jason with
honest finance and I make a lot of videos on different topics that will
give your life and your finances more value so if you guys are interested in
this type of content definitely consider subscribing but for now let's just talk
about Robinhood and specifically dividend stocks through their app now
before I go into the app I do need to show you guys just a few of the basics
so that you understand how dividends work before we get started so basically
the way that dividends work is that if you want a share of a company that
actually pays out a dividend then what this means is that they're actually
gonna give you a tiny little piece of their earnings through what's called a
dividend and they're usually gonna pay that out about four times a year in the
form of cash and that is a really good thing because it's true passive income
like I said earlier they usually payout four times a year but this can actually
fluctuate because I found companies out there that payout once a month and
that's pretty cool because that's happening twelve times a year
rather than just four times a year like most companies and then every once in a
while a company you own might actually declare a special dividend and that's
actually really cool because those can be a lot more money than typically their
normal dividends and so that's always a really cool surprise honestly in my
opinion I think the dividends are freaking sweet because they are truly
passive income and you don't have to do anything except just own a share of a
company in order to get paid out a dividend you can also benefit from tax
savings as well because if you want a qualified dividend then that actually
means that you're gonna be taxed at the capital gains rate rather than the
marginal rate that we're all used to and that can actually save you a lot of
money too on how much money you're making in
dividends and how much money you make per year that stuff does get a little
bit too techy to talk about in a video like this so you'll definitely want to
speak to a professional about the tax savings capital gains and stuff like
that but just keep in mind that if you buy the right type of dividends that are
qualified you can save quite a bit of money on your taxes I'll link up an
older video that I made on dividend stocks and I'll have that right up here
if you guys want more technical details on them but for right now we are gonna
go into the Robin Hood app and we're gonna specifically show you how to go
through the dividends how they pay you out and all that kind of stuff so let's
go right into that and then we'll just move on okay so the way dividends work
inside of Robin Hood is super easy you just have to look up a specific company
and then you need to find out yourself if they actually pay out a dividend or
if they don't okay so for example I know that Microsoft actually pays out a
dividend and their ticker symbol is MSFT and right here it's on this watchlist
but if you can't find it you can always search for it so we're just gonna click
on that and go right into Microsoft and then right at the top here that's the
value of their shares right now so one 3738 looks like they were down today 1.2
6% anyways all you're gonna do is just
scroll down here until you get into the stats section and this is exactly gonna
be the same on all the different companies that you look at so inside of
the stats just look here at the bottom right and it's gonna say div yield okay
and what that means is the dividend yield and yield is a percentage so it
doesn't mean that they're paying you a dollar 37 per dividend it means that
it's actually 1.3 7% as a dividend yield and then just keep in mind that the
yield is actually an annual percentage okay so if you've got one point 3 7
percent just keep in mind that you need to divide that by 4 if they're paying
four times out of year and you're not actually getting paid one point three
seven percent every single time that they pay out now if you want to find out
how often a company actually pays out a dividend you can't find that out on
Robin Hood which is kind of annoying but it's not the end of the world so all
you're gonna have to do is just go to the Investor Relations page on the exact
company that you're looking up or you can go to Yahoo Finance or you can look
it up on like the NASDAQ and stuff like that and you can find out how often
they're paying a dividend and you can see the entire history of the dividends
but if you're inside Robin Hood you are not going to have any of that
information the only information you have is the div yield which is just fine
but I can see right here that is just one point three seven percent and that's
a pretty low yield but I got to consider here that it's a tech company and
usually tech companies don't even pay out a dividend so that's a good thing
now I'm gonna back out right here and I'm gonna show you guys another company
that doesn't pay out a dividend okay so amazon.com right now they currently
don't pay out a dividend so I'm just going to click on that AMZN
we're gonna go right into them and it looks like their shares currently are
seventeen hundred and forty-two bucks and eighty five cents so let's go down
to the stats now look on the bottom right just like I told you guys earlier
and you're gonna see that it is a zero dividend yield and that implies
instantly that they don't actually pay out a dividend which is okay because
they're a growth stock and you could expect them to grow tremendously over
the next probably ten to fifty years I bet but as of now they do not pay a
dividend and that is exactly how you can find that out through Robinhood is just
by checking the specific company that you're looking into so zero for Amazon
and then I also know that Google doesn't pay a dividend right now but don't wait
that on the stocks that you're actually gonna buy because you've got to consider
that they can grow tremendously over time and a lot of the companies that are
paying out dividends probably you're not going to have the same growth that some
of these other companies do also don't be deceived by companies that have
really high dividend yields because a lot of the time that might sound good
like you're gonna get paid a lot but the thing is is that a lot of the time that
company can actually be struggling and you need to look into a lot of other
factors before you just buy a company based on the dividend yield so for
example if you look up gamestop here I know that they have a really high
dividend yield right now okay game stop right here GM e we're gonna go into them
I haven't really looked into this company so just take this with a grain
of salt but if you look at their five-year track record it does not look
like they're doing very well their shares are five dollars and twelve cents
right now but you know maybe they maybe they do have some stuff on the books
that's really good but like I said I haven't looked into all of that stuff
but from a very shallow perspective I don't see people buying physical games
in the future I see them buying digital games and so that's why I'm not really
into these guys but if you look at the stats okay let's go down here to the div
yield thirteen point five two percent that is freaking amazing
but the problem is is that if you look here back at the five year track record
you're losing money on your shares okay so just keep that in mind and do your
research and just don't fall into the trap of buying a bunch of different
companies just because they have really high dividends you don't want to be
doing that you really want to be just making smart moves and buy your shares
for a very long period of time and hold them for a long period of time and in
that context you're probably going to do just fine okay but just keep that in
mind okay so the way that you actually find out where you're getting paid your
dividends is really simple in Robinhood all you're gonna do is click the little
person symbol on the bottom right and it's gonna go into this main menu here
that has your history your settings account summary and stuff like that and
also just so you guys are aware where you see the thing where it says invite
friends get a free stock what this means is if you actually give them a referral
link you get a free share and they get a free share and it's totally random
you're probably not gonna get anything that special but I do know a ton of
people that have got like Apple shares and stuff like that so I will leave a
referral link in the description to get a free stock if you guys want to take
advantage which means if you just sign up within 24 hours you'll get a free
stock and I'll get a free stock and then also if the program ever does change I
will disclose that in the description so like if it turns into an affiliate link
or something like that I will let you guys know or if their terms change as
far as getting a free stock and stuff like that so just keep in mind that I'm
just being transparent with you guys so that you know exactly what you're
signing up for if you click on the link okay so now we're gonna look at where
our dividends reside inside of Robin Hood and all you have to do is just
click history on this menu and that's all we have to do so we're gonna go
right into my history here and you guys can see there's not much happening in my
account right now I'll be honest I've moved a ton of money into different
brokerage accounts so you're not gonna see much fanciness going on here but it
looks like G ood paid a dividend of 50 cents and then over the last 30 days
Ford paid a dividend of 90 cents I got another dividend from good G ood because
they actually pay monthly and then you go down here and these are my different
random transactions that I've had so looks like I took out 526 bucks let's
see here let's keep going okay here's another dividend SCH X
dividend so that would be a Charles Schwab index fund that I used to have
and then Ford so yeah that's how you're gonna tell where your dividend
come through and they're just gonna come in in the form of cash and they're just
gonna sit right inside of your account and they're not gonna do a thing until
you either transfer it to your bank or you buy another share with it otherwise
they're just gonna sit in a giant pot and that is exactly how you find out
where your dividends are inside of Robin Hood
so just remember all you do is you just click the little person on the bottom
right okay you're gonna go down to history you're gonna click on history
and then right here it's gonna tell you everything that's happening so that's
exactly how it works and that's all there is to it
dividends are very easy to understand on Robin Hood but just keep in mind that
dividends are the same everywhere because they're following the exact same
rules it's just a matter of how you can actually see they're benefitting you and
I think that on Robin Hood it's really easy to understand that and I like that
transparency about them and then also keep in mind if you guys do want to take
advantage of the free referral stock definitely go for it right now I've got
the link in the description and once again I'm Jason with honest finance and
I make a ton of different types of videos that will give your life and your
finances more value so if you guys are interested in any type of content along
those lines definitely subscribe but I'm just gonna leave some other Robinhood
videos over here that you guys can watch and that's all let me know how you guys
like the video Thanks