Prof. Rex Jacobsen

@DividendGrowth Great summary!

A lot of people would tell you that receiving a dividend is the same as selling stock That's deceptive at best, and an outright lie at worst First of all, when you receive a dividend, that money comes directly from the company. Every shareholder is treated the same way, equally, proportionate to their ownership. When you sell a stock, that money comes from the person who is buying it from you. Every shareholder is treated differently, unequally in this case, as prices you get can vary from second to second... Second of all, undistributed cash on the balance sheet is not going to be valued at 100% by the marketplace. It makes sense that cash on the balance sheet would be valued at a discount, since there is uncertainty as to when this cash would be distributed, uncertainty as to whether it could be allocated, and uncertainty as to whether it could be wasted. When a company holds cash on the balance sheet, it is valued at a discount. Paying a dividend unlocks that discount, and you receive 100% on the dollar for the dollars you receive. If that cash still sits on the company balance sheet, and you sell stock, you risk actually receiving less than what that cash is worth. Third, dividends are distributed from excess cash that management has determined cannot be reasonably allocated back into the business at a good rate of return. Hence, it makes sense that excess cash should be distributed back to shareholders. Saying that "it's best to just reinvest it" ignores the reality that most businesses cannot intelligently reinvest ALL cash at High Rates. By keeping that cash on the balance sheet, management is wasting resources and you end up with a large pile of unused cash that just gathers dust. Note, this discussion is specifically debunking the myth that "selling shares is the same as receiving a dividend" This myth is founded on the incorrect beliefs that 1) all companies can reinvest everything into the business (not true) 2) Cash that is gathering dust on the balance sheet is always valued at 100% (not true) This discussion is not arguing whether companies should reinvest everything or not. It is specifically targeting the companies that have excess cashflow that they cannot reinvest at an intelligent rate of return. (Which is most companies in the world)

@DividendGrowth I reinvest my dividends only into stocks that I consider to be a "buy" at that time. So no auto-DRIP

Do you reinvest dividends automatically (DRIP) or reinvest into other companies?

@DividendWave @NanoBanana Your graphs are some of my faves 💯

@DividendWave @NanoBanana What do you normally use to create your graphs and is it labor intensive?

$AVGO  FY25 Free cash flow +39% YoY Dividend payout 41% (was 51% in FY24) Just tried to have $GOOG @NanoBanana update a previous graph I’d done after 3Q.  Lots of prompting, but results are not great (4Q data was not added but replaced, etc) Definitely not overwhelming me…

@DividendGrowth 💯 💯 💯

I'd likely never retire, because I'd always end up doing something productive I find it very important to try and achieve Financial Independence as early as possible however, in order to have more options in life and a solid back up to carry me through life's ups and downs

+21.47% per Year Dividend-Growth Stock Portfolio (+38.14% per Year Tech Strategy) - Update 189 youtu.be/kdTVkDe2G8A $schd $vig $acn $dhr $eog $intu $ice $lad $mas $msci $br $amp $low $nvda $mtb $pnc $aos $msft $rmd $schw $tmo $zts $nee $lly $noc $a $csx $lmt $stz $avgo $bk $gs $axp $ms $lrcx $klac $evr

Outlook Turns Negative for the Real Estate Sector substack.com/home/post/p-17… $vnq $schh $xlre $iyr $usrt $pld $amt $eqix $spg $psa $cci $dlr $sbac $o $vici

Annual Re-Balance of our Best-of-S&P-500 Portfolio: +63.4% versus S&P 500. Also, Wide-Moat Portfolio & Tech-Stock Portfolio Updates (both beating the market) $aapl $msft $now $nvda $crm $avgo $cmg $v $adbe $acn $msft $mdlz $ice $amd $googl $meta $orcl $pltr $vrt $vst $gev $etn $nem $rgld $rklb youtu.be/IqvzIW8De0Q

@BusinessFamous Via an old-school cable package. Prefer to not watch on streaming (more difficult to rewind to see a play again)

How do you guys even figure out where/how to watch NFL games anymore? You have to have 5 different streaming services to even have a chance of watching one

@DividendGrowth 💯

Do you agree?

A simple way to invest in real estate is through real estate investment trusts (REITs). I was recently asked which publicly-traded REITs are my favorite, so this video shows my top 6 at the moment. Most REITs don’t qualify for our two dividend-centered portfolios as explained in the video (due to a lack of a strong moat), so let me know if you would be interested in us starting a REIT-only Portfolio. $vici $o $sbac $are $amt $pld $egp youtu.be/ydV4uUvebPU

@DividendGrowth 💯

Dividend Stock Portfolio Update ... High-Yield Stock Portfolio: +21.11% Per Year, Dividend-Growth Stock Portfolio: +20.59% Per Year - 24 Best Dividend Stocks - Research Update 188 $hd $schd $vig $avgo $klac $lrcx $bk $gs $itt $intu $msft $ice $shop $anet $crh $aapl $deo $tmo $cmcsa $zts $dhr $mas $msci $stz $mrk $mdlz $schw $pnc $fds $aos $acn $pep $ci $unp $br $bac $ms $stt $epd $eog $googl $amp $alle $axp $ma $v $nvda youtu.be/u6DO_RiHALw

While our dividend strategies are my personal favorite, this week’s video highlights our Tech-Stock, Wide-Moat, Capital-Light Investing Strategies as well as a new Sector/Industry Rotation & Secular Trend strategy $asml $adbe $crm $msi $adi $wday $now $acn $manh $epam $aph $msft $aapl $nxpi $infy $shop $cprt $crm $cp $zts $msci $cost $ice $xlc $xlf $xlk $fcx $bx $googl $orcl $nem #investing #stocks youtu.be/sLbxTywhdE8

Dividend Stock Portfolio Update ... High-Yield Stock Portfolio: +24.65% Per Year, Dividend-Growth Stock Portfolio: +22.28% Per Year - 25 Best Dividend Stocks - Research Update 186 youtu.be/q2dKJEarBP4 $schd $vig $avgo $evr $klac $lrcx $bk $gs $cr $itt $intu $klg $mst $ice $wst $lw $tmo $gev $nov $alle $tmus $nvo $mrk $gsk $ups $hii $stt $sony $amgn $slb $vrt $gd $mlm $dhr $zts $cmcsa $schw $mas $lad $stz $pnc $ci $msi $bac $ms $epd $low $pep $aapl $nvda

Portfolio holding Morgan Stanley $MS increased quarterly dividends 8.1%, marking the 10th consecutive year of dividend increases. The company has paid a dividend for 32 consecutive years, according to company reports. The company's 10-year dividend growth rate is 26.1% per year. Morgan Stanley is a holding in 2 of our stock portfolios: 1) Dividend-Growth Stock Portfolio 2) High-Yield Stock Portfolio For our Dividend-Growth Stock Portfolio, the company has provided a total return of +81.1% based on our initial investment. For our High-Yield Stock Portfolio, Morgan Stanley has provided a total return of +86.9% based on our initial investment. Morgan Stanley is among the largest financial services firms in the U.S. with operations in investment banking, securities, and investment and wealth management. The company resides in the Investment Banking & Brokerage sub-industry of the Financials sector. Images: Calendar-Year Dividend History (annual change in green) and dividend statistics. Image Source: Charles Schwab

While our dividend strategies are my personal favorite, this week’s video highlights our Tech-Stock, Wide-Moat, Capital-Light Investing Strategies as well as a new Sector/Industry Rotation & Secular Trend strategy youtu.be/Q8OJ5asZVZM $nvda $asml $adi $anet $epam $intu $tsm $aapl $acn $now $msft $wday $crm $msi $adbe $jd $lulu $deck $cprt $tmo $zts $pep $ma $v $ice $amd $gev $amzn $avgo $meta $fcx $nem $mp $iau

@DividendGrowth All but $XOM

The 10 largest Dividend Growth Companies in the US include: Microsoft $MSFT Apple $AAPL Broadcom $AVGO J.P. Morgan Chase $JPM Eli Llly $LLY Visa $V Exxon Mobil $XOM Mastercard $MA Costco $COST Wal-Mart $WMT Do you own any of them?

A 12.8% dividend increase was announced by the Bank of New York Mellon Corporation $BK, marking its 13th consecutive year of dividend increases. BK is part of both of our dividend portfolios. For our Dividend-Growth Portfolio, the company has provided a total return of +135.8% based our initial investment.The average total return on our 12 investments in the company is +81.61% (+57.6% annual return). BK is also part of our High-Yield Portfolio and has provided a total return of +120.4% based on our initial investment. The average total return on our 15 investments in the company is +126.71% (+55.5% annual return). BK is a leading global asset servicer that provides securities processing, asset management, and servicing to institutional and individual clients.

Today shares of NVIDIA Corp. $NVDA rose +4.04% as artificial intelligence (AI) sales to China are set to resume after the U.S. government assured that licenses will be granted. Deliveries are expected to begin soon. With a $50B+ AI market, China is the second largest AI market and this should significantly boost sales for NVDA. This news should also be beneficial to other AI semiconductor companies like AMD which will likely regain permission to sell to China. NVIDIA is a part of several of our strategies as listed below. Strategy plus performance since initial investment into NVIDIA: Wide-Moat Strategy: +204.5% on first “round-trip” (bought and sold), +45.1% when purchased again Tech-Stock Portfolio: +94.0% Dividend-Growth Stock Portfolio: +61.0% (admittedly, NVDA has not grown its dividend very well) Capital-Light Strategy: +44.5% Also, on Monday, we started a sub-strategy just for the AI/Data Center secular trend and NVIDIA is part of that strategy. More info about this sub-strategy on next week’s YouTube video.