We have received a lot of questions from subscribers over the years. We’ve compiled those questions – with their answers – below.
I am a new subscriber. What should I do first?
Log into your member area on the Investorsalley.com website and watch the New Subscriber Orientation Video. This is hosted live on the second Tuesday of every other month: January, March, May, July, September, November. New subscribers should watch their email for an invitation. A copy of the most recent orientation is always posted online.
I am a new subscriber and would like to know how to build my portfolio. Should I buy all the stocks in your current portfolio including preferreds?
If you can it would be great to own the full list of recommended investments.
Tim has designed the Dividend Hunter portfolio to provide as much balance for risk and return as possible across the different types of high yield investments.
Tim provided some portfolio construction ideas and guidance in the April 2021 issue of the Dividend Hunter newsletter. Log in to get your copy if you’re a current subscriber.
I tried to buy a preferred stock in the portfolio but cannot find it in my brokerage account. What should I do?
Check out the May 2021 issue of the Dividend Hunter or the preferred stocks special report. In both you’ll find information on how broker lists preferred shares. They’re all different.
Once I clicked on the Start Out Portfolio link, I notice the top 5 stocks recommended do not match the ones chosen for the plan outlined in the report, “The #1 Strategy That Turns $25K Into Income For Life”. Is there a reason for this?
The special report discusses taking that money, investing it, and putting the dividends on automatic reinvestment for a period of years. It is a focused strategy for a limited amount of money. The broader Dividend Hunter strategy advises to own all the stocks on the recommendations list, with the five stocks in the Start Out Portfolio providing a good way to get started if you’re a new subscriber.
Does Dividend Hunter work for Canadian investors or recommend any Canadian stocks?
There are many Canadians who subscribe to the Dividend Hunter. The service only covers shares of U.S. companies. A Canadian subscriber recommended these two low cost brokers: TD Direct & Questrade , both in Canada.
And be sure to read my report, “U.S. Dividend Stock Investing for Canadian Investors,” co-written by Tim and a Canadian CPA. Log in and go to the Special Reports section of the Dividend Hunter.
Can I start the Dividend Hunter with less than $25,000 in my account? What is the least amount that someone can start building on your monthly dividend calendar program? Several times you mention $25,000 but I don’t have anywhere near that much. Is it possible to start with less and progressively build it up?
You can start building a Dividend Hunter portfolio with any amount of money. Online brokers now charge zero commissions and many let you invest by dollar amount instead of shares. In any case you can always invest what you have, buy a few shares, such as 3, or 10, or 25. Any number.
The $25,000 minimum is for a special strategy within the Dividend Hunter for those with at least that amount in their account and looking to focus on that strategy.
For the “36-Month Accelerated Income Plan” should we be using drip to get cash and buy more of the three stocks from the list or should we be buying with outside contributions, for example cash we put into the account?
The 36-Month Accelerated Income Plan provides a path to get started as a Dividend Hunter with a small amount of money. After picking three stocks out of the report, you should work to grow the holdings with both dividend reinvestment and added more money to buy more shares.
The ultimate goal is to build and income-focused portfolio that includes all of the Dividend Hunter recommended investments.
Why are AMZA (or from any investment) dividends classified as Return of Capital?
AMZA is an ETF that invests in Master Limited Partnerships (MLPs). The distributions paid by MLPs are always classified as return of capital. Taxes are taken care of from the Schedules K-1 sent to investors. AMZA handles the K-1 reporting and issues a Form 1099. The tax characteristics of ETF portfolio income passes through to ETF investors, thus AMZA dividends will be return of capital.
Should I buy shares before or after the ex-dividend date?
The Dividend Hunter is not a trading service, so purchase timing is not a big deal. Also, read this article, which will make you smarter than most about dividend dates: https://www.investorsalley.com/everything-you-need-to-know-about-dividends/
If you do want to time dividend dates, Tim suggests you consider buying on the ex-dividend, when the share price is down. You will not receive the immediate dividend, but you will lower your average share cost.
Do any of the Dividend Hunter investments report tax information using Schedules K-1?
It is Tim’s policy to only include IRS Form 1099 reporting investments on the Dividend Hunter recommendations list. There will never be any K-1 reporting investments.
Do you recommend using Stop-Loss orders to avoid large losses in your Dividend Hunter investments?
My quick answer is that from my experience, stop-loss orders always turn into guaranteed losses. I don’t like selling for a loss, especially if it happens automatically.
The longer answer is that the Dividend Hunter strategy is different. The goal is to generate a high-yield cash income from our Dividend Hunter investments. If you sell shares, such as through a stop-loss order, the income stops. Also, even if the market goes down, your income will continue, so share price declines are much less of a concern.
Once you “get” the Dividend Hunter strategy, lower share prices become view as an opportunity. If you average down your cost, you average up your yield and cash flow.
Is it better to follow Dividend Hunter or Monthly Dividend Multiplier, or combinations? I am semi-retired.
The two services, Dividend Hunter and Monthly Dividend Multiplier are highly complementary.
The Dividend Hunter strategy and recommended investments will generate a high-yield cash flow from your portfolio. The cash flow can be used as retirement income or reinvested for compound growth, which will produce even greater income in the future.
The goal for Monthly Dividend Multiplier is to provide guidance to grow the committed money over a period of five years or longer. This would be money that you don’t plan to access for at least five years and you would like to see the amount grow substantially. The goal is to generate a double, or 100% return over that time frame. Of course that is not guaranteed, but the dividend growth strategy has produced excellent, reliable returns in the past.
Weekly Income Accelerator
What is the lowest investment amount can I start with in Weekly Income Accelerator?
Because with covered calls you have to buy 100 share lots of stock, an absolute minimum of $5,000 in your account would allow you to participate in two trades at a time. We recommend however to most subscribers that they start with at least $25,000 in their account that they can put toward our trades. And if you’re looking to make approximately $3,600 a month as suggested in recent promotional copy you’ll need to commit $100,000.
Does Weekly Income Accelerator use Dividend Hunter stocks for the covered call trades?
No, Dividend Hunter stocks generally are not well suited to successful options strategies. Moreover, we own the Dividend Hunter stocks for the income stream and that would go away if a stock got called away.
What’s the difference between the Dividend Hunter, Dividend Hunter Insiders, Monthly Dividend Multiplier, and Weekly Income Accelerator?
See this overview for a complete description of each highlighting their differences, similarities, and objective. Click here.
Will there be a recording of the webinar(s)?
Yes, we record every live session and webinar. The recordings are generally posted by the afternoon of the following day to the appropriate section in your Member Area.
Will Tim review other stocks of interest or in my portfolio?
Stocks not in the portfolio of any of my services are generally not within the scope of discussion. If Tim happens to know a bit about the stock he’ll provide an answer but because there are so many dividend stocks he usually will not be able to respond.
Can Tim provide me with advice on which stocks to buy and how to set up my portfolio and how much to invest?
No. By law Tim is not allowed to provide personal investment advice. Tim can give his thoughts on stocks on his recommendations list in the portfolio and updates on those stocks and how they fit into the strategy. He cannot however tell you such things as how much to invest, how many shares of a particular stock to own, or how to structure or fund your accounts. If you need guidance contact a registered financial advisor who will review your entire financial situation with you to provide proper direction.