I bought Universal at a starting yield of 5.83% and PPL at 4.87%.

The simple average of those is 5.35% starting yield starting dividend yield cash flow that I can use immediately to pay my bills. 00:00:42.980 --> 00:01:0.990 This is the theme of 2020 for me high yielding stocks I'm gonna share with you today the nine high yielding stocks that I'm gonna be focused on for 2020 these air the nine stocks throughout the year that I'm gonna stay laser focused on when I'm deploying capital in the stock market. 00:01:1.190 --> 00:01:3.370 And so I'm gonna share today those stocks. 00:01:3.370 --> 00:01:11.750 But I'm also going to share the complete methodology that I used to select those stocks because a lot of analysis went into it.

A lot of numbers, a lot of numbers crunching, and I want to share with everyone out there how I approach the stock market and how I came up with these nine stocks that I will be focused on next year, and I'm already starting to focus on here in December.

But before I even do that, I want to set the stage.

How am I thinking about money this year?

So I'm thinking about money strategically, this way.

First and foremost, you all know, or if you've been here for a while, you know that I work in the real estate space.

I have another deal in escrow that is really important to me.

That deal is going to require capital is going to require investment.

And so, first and foremost, when I look forward to 2020 it's kind of hard. 00:01:54.690 --> 00:02:3.100 It's hard for a dividend investor who loves putting as much money as possible into dividend stocks, but I'm going to have to restrain myself a bit. 00:02:3.100 --> 00:02:15.560 I'm going to have to refrain from putting as much money into dividend stocks as I otherwise would have, why I need to stockpile some money on the side for that real estate deal.

And so this dwindles the amount of money that I'm gonna have for dividend stocks next year.

But what I'm gonna do is I'm going to focus the money that I do have to deploy on dividend stocks.

I'm gonna focus it on high yielders.

The reason that I'm going to do this is twofold.

First and foremost, I want to get a CZ much for my money as possible because I'm going to be deploying a little less money in the stock market next year than I otherwise would have.

Because I have a strategic life goal of making my real estate business.

My real estate dealings work out very well, which are another way of getting passive income as well. 00:02:54.200 --> 00:03:1.550 But because of that, I want the money that I am deploying in dividend stocks toe work as hard as possible on the harder it can work, the better. 00:03:1.670 --> 00:03:6.400 And I'm gonna get my money toe work harder by focusing on high yielding stocks. 00:03:6.410 --> 00:03:17.710 Also, it just so happens that I am at a life stage, married two kids, lots of family expenses where we're starting to use some of the dividend income to pay bills.

I see that trend increasing over time.

And so because of that trend, I am drawn to these high yield stocks because I need current income now.

And so that's how I'm looking at 2020.

I'm gonna share with you today the nine stocks that I am focused on, and I'm gonna share the complete methodology behind it.

So get ready.

This is gonna be an exciting video about high yielding dividend stocks.

All right, so I want to jump into the analysis.

If you've been on my channel for you for a while.

You know, I'm all about the analysis, and so I'm gonna work my way through the analysis to the conclusion at the end of the video of the nine stocks that I chose, And so first and foremost knowing that I had the strategic goal for 2020 what I did as I looked at all 43 stocks that I own and I picked, I picked all of them that have a starting yield right now of 4% or greater cause 4% are greater that I consider in the range of my portfolio of higher yielders.

Now I know their stocks out there that are yielding way more than that.

But for me, I own 43 dividend stocks.

I don't want to add more, and I focus on quality.

And so I'm not only focused on high yield, but on quality, and I believe all the stocks presented today have both of those characteristics.

And so you'll see on the screen right now the complete list of all of the stocks that I analyzed that met that initial filter of 4% dividend yield or greater, and you'll see if you count them up. 00:04:59.140 --> 00:05:2.150 If I actually I have the excel in front of me right now. 00:05:3.120 --> 00:05:5.410 The count comes out to 14. 00:05:5.410 --> 00:05:8.120 And so I actually eliminated five of these. 00:05:8.180 --> 00:05:21.090 But I kept most of them, which is interesting as candidates of 4 2020 Now, mind you, I prioritize them, and I'll share the priority the order of priority later in the video today.

And so the first thing I did is I include just some simple metrics.

What is the price per share?

What is the current year estimated earnings per share?

I pull the estimated earnings per share from Yahoo finance from the analyst consensus estimates, and then I just pull some simple for forward peace now Forward P was not available on BT I or Cedar Fair just because these companies don't have analysts in the United States analyzing them close enough to be making those forecasts.

Or at least those forecasts are not available on Yahoo Finance.

But all of the others had it.

And so I include a forward P E.

This is filter number one. 00:05:59.970 --> 00:06:1.630 Yellow means it's okay. 00:06:1.730 --> 00:06:3.730 Green means that it's good. 00:06:3.810 --> 00:06:5.280 Red means that it's bad. 00:06:5.430 --> 00:06:13.090 You'll notice, though, that I actually assigned Green to be t I just cause I know they're Ford Pius Low in terms of Cedar Fair, I kind of left it blank.

I would say they're forward, P.

A.

The reason I left it blank, quite frankly, is P is not a valid metric for Cedar Fair, either, because it's a master limited partnership, so it really needs to be analyzed on a cash flow basis.

But all same based on recent videos that I have produced in recent analysis, I have completed Cedar Fair.

Right now it is a it's it's a reasonable value, although I'll talk later about some challenges that the company that give me a little concern.

Um, not changing course or anything, but I'm just being a little more hesitant on Cedar Fair these days.

We'll get to that later.

Anyways.

You see off the bat that Duke, it's okay.

It's got a P E in the seventeen's, more or less that is OK in this market. 00:06:58.510 --> 00:07:2.010 Maybe a little overvalued, but hey, I'll take it. 00:07:2.720 --> 00:07:6.080 Altria is a bargain p e in the Elevens. 00:07:6.300 --> 00:07:13.030 Ah, Philip Morris, I would say for the industry that it's in that P e is pretty high.

In fact, it's kind of getting to the point where I may stop reinvesting dividends in this one, although I'm leaving it for now.

BT I we already discussed um, Chevron.

This is a pretty high P e of 18.55 I can't see myself buying Chevron there.

Same with Southern in the 19.

Pretty high.

I can't see myself buying Southern in the 19 p e Range Bank of Montreal.

Reasonable p either in the Elevens, Royal Dutch Shell, Reasonable p either in the twelves Universal.

It's okay.

That's why I made it a, um, yellow box.

But I'll tell you, universal, there's a much bigger story behind this Basically, it's trading at book value, and we've discussed this. 00:07:56.380 --> 00:08:0.870 I discussed this with you all in previous videos, but again on the p E metric. 00:08:0.870 --> 00:08:1.670 It's OK. 00:08:1.780 --> 00:08:2.850 BP is nice. 00:08:2.850 --> 00:08:3.710 12. 00:08:3.900 --> 00:08:6.180 Ah, IBM Wow. 00:08:6.190 --> 00:08:7.210 In the tens. 00:08:7.210 --> 00:08:8.500 I love this. 00:08:8.500 --> 00:08:11.150 And, um, Abbvie in the nines.

I love you, Abby.

I'm gonna share on the screen right now.

What did my family do last weekend?

Hey, I dragged the whole family overto abbvie Redwood City headquarters because I wanted to get a photo in front of the sign to show my support for all of the hard working people, the employees, the leaders, the people working so hard at abbvie on innovating medical solutions that benefits society.

Thank you, Abby.

And thank you for allowing me to invest my hard earned money to support your cause.

And thank you for rewarding me with dividends along the way.

I love you, Abby.

Anyways, in the nines PPL in the 13 since so you quickly see just on the Ford P E basis.

Some of these are in a reasonable buy zone.

Some are not.

And obviously I adjust these green and red box is a little bit for industry because different industries carry different P e ranges with them and so moving on, I then just wanted to look roughly what percentage of my portfolio are these stocks right now, and where do I want them to be?

And so oh, you'll see, actually pretty quickly that some of them are already over allocated.

Some of them are on point.

Some are under allocated, although most of these are kind of over half educated.

Is this sense I got?

You'll also see your as a percentage of portfolio goal.

I made some of them.

I tallis sized.

The reason I did that is some of the ones in italics.

I actually changed the goals.

If you've downloaded my full portfolio, I'll link in the description below how you can do so if you have not.

But if you already have that, you'll know in my full, full portfolio, I have goals.

I have various goals for different positions.

Some of those I'm adjusting, and I'll talk about those in a minute. 00:09:59.360 --> 00:10:3.180 So, Duke, thankfully, it's below allocation. 00:10:3.180 --> 00:10:7.320 I actually recently added some duke not too long ago to the portfolio. 00:10:7.320 --> 00:10:8.350 I'm glad I did that. 00:10:8.560 --> 00:10:12.640 It's it's below, and so I give it a green altria.

It's a little below kind of on point, but I gave it a Green PM way over allocated.

So it's a red and quite frankly, PM right now trading at that 16 p.

E.

I'm not gonna be buying more p M, although I'm happy to own it.

Bt.

I gave it a red.

It's a little over allocated Chevron read over, allocated Southern under allocated.

So I gave it a green.

Although I don't think I'll be going too much Southern here at these prices.

Um, Bank of Montreal.

It's over allocated, but the percentage goal of portfolio here I made it.

I tallis sized.

I think I raised it.

I bumped up the allocation for BMO just cause I have really low application to banks.

And so I like that diversification.

And so I think it was, like 1% before or less. 00:10:58.740 --> 00:11:0.030 A little less than 1%. 00:11:0.030 --> 00:11:1.550 I bumped bmo up. 00:11:1.880 --> 00:11:3.570 Um, you'll see where it came from. 00:11:3.570 --> 00:11:4.030 In a minute. 00:11:4.030 --> 00:11:15.170 It came from Cedar Fair, um, Royal Dutch Shell over allocated universal kind of on point, but over allocated BP over allocated.

It's tough.

A lot of these smaller positions, quite frankly, are over allocated.

And so this is a conundrum for me.

I have a lot of positions in the portfolio core positions that I need to grow.

But my focus this year or next year, 2020 it's not going to be core positions.

Surely I will continue adding 23 m, for example, as we get into the new year, because I love three M and it's still a value, and I'll keep adding to it.

And so that 2019 gold probably push over a little bit into 2020.

But in general, corps stocks are not gonna be my focus in 2020.

A lot of these the majority of the ones you see here, these air ancillary positions Ah, lot of them already over allocated.

But that being said this overriding goal of yield, that's what's governing my decision ing here. 00:11:59.650 --> 00:12:3.620 So, um, IBM, it's right on point. 00:12:3.630 --> 00:12:7.800 Um, in fact, I think I raised my allocation here to IBM. 00:12:7.990 --> 00:12:10.810 That's why it's italicized cedar Fair.

Right on point, I lowered my portfolio allocation to Cedar Fair.

The reason that I did this is in the last few years, with all of the acquisition's going on.

There's a lot of good activity at the company.

The revenue top line growth is growing.

It's up into the right now.

The distribution, the rate of growth of the distribution has slowed.

And this is less than I would have expected because just a year or two ago, they said they're gonna try to maintain a long term distribution growth in the 3 to 5% range, or 3 to 4.

The latest increase was a token increase.

It was really slow.

That alone doesn't bother me.

But the reason it was slower is when I really dig into the numbers and I do my deep financial analysis that I shared with you guys in previous videos. 00:12:55.340 --> 00:13:0.350 Cash flow right now is not covering the full length of the distribution. 00:13:1.020 --> 00:13:1.780 That's an issue. 00:13:1.780 --> 00:13:4.580 Cash flow needs to cover the distribution, and so I wanna wait. 00:13:4.580 --> 00:13:6.050 I want to see that snap back. 00:13:6.190 --> 00:13:11.000 Until then, I'll probably still add some more cedar Fair because I have faith in the long term of the business.

I know it's a smaller company that just just did a bunch of acquisitions.

It goes three cycles and so they're working through cycles, but I have to be careful.

And that's why I downgraded the allocation to Cedar Fair a little bit.

But I still love you.

Cedar Fair Still talk 15 positions.

Still solid 2% in the portfolio, which is a pretty big allocation for me.

Abby.

Um, it's at a 0.9.

The target is the one I love, Abby.

I just want to add more.

I might bump up the allocation to Alvey.

It's such a good bargain, relatively speaking, right now, given the strong starting yield giving the P E.

Given the dividend growth rate, given the payout ratio given their amazing pipeline, I would say the only thing bad about Abbvie is Humira coming off patent protection in the U S. 00:13:59.010 --> 00:14:2.230 Pretty soon here and, um, the debt levels. 00:14:2.230 --> 00:14:6.500 But I think their pipeline Al Ergen acquisition all that's gonna make up for it. 00:14:6.500 --> 00:14:9.150 So I'm buying more Abby PPL. 00:14:9.810 --> 00:14:11.920 This money's I, tallis sized as well.

I, um I slightly increased allocation here.

A swell PPL is really small, so I'm happy.

I just bought some more PPL today, and it's still really small fraction of the portfolio.

I need to bring that to size and it's nice.

It just so happens that it overlays with my strategic goals as well.

Now, mind you, PPL, it's up quite a bit from where I first started buying it.

I shared a video a while ago when I first initiated a positional linked to that in the description below.

I wish it hadn't surge so much already.

But I'm still buying here.

I still think it's a reasonable value, although we'll get to this later.

All of these carry risk and so risk with PPL is Brexit All right.

So I start looking now just at dividends. 00:14:57.830 --> 00:15:3.810 I'm gonna keep scrolling over on my laptop on Ah, the analysis I'm looking at on the screen. 00:15:3.900 --> 00:15:5.960 I'm gonna keep refreshing what you see. 00:15:5.960 --> 00:15:8.350 So it moves over in the analysis. 00:15:8.440 --> 00:15:14.230 By the way, if you want to follow along at home, I'm just gonna link to this thing in the description below.

You can download it.

Enjoy it.

Ah, you don't have to sign up for anything, just go for it.

I hope you enjoy the analysis.

And that's, um, one of the things that I'm trying to do on this channel is set the bar higher.

Provide the best quality content I can.

And sharing these analyses is one way I could do that.

So dividend, um, yields.

All right.

Um, as I look through these, I just kind of separated.

Which one's air higher yielders.

Which ones are lower yielders?

The ones in read our high are lower.

The ones in green are higher.

And so I guess I left some of them on highlighted.