1 00:00:29,670 --> 00:00:34,990 Suze: June 26, 2025. Welcome everybody to the Women and Money podcast, 2 00:00:35,069 --> 00:00:38,529 Suze: as well as everybody smart enough to listen. Suze O, 3 00:00:38,630 --> 00:00:41,580 Suze: here and today is going to be Suze School. I know, 4 00:00:42,110 --> 00:00:46,029 Suze: I know you all miss KT already, but since we 5 00:00:46,029 --> 00:00:51,400 Suze: missed last Sundays when everything was going on in the world, 6 00:00:51,668 --> 00:00:54,389 Suze: I thought today would be better if I did a 7 00:00:54,389 --> 00:00:58,180 Suze: Suze School and reiterated the things that I really want 8 00:00:58,180 --> 00:00:59,340 Suze: you to know. 9 00:00:59,860 --> 00:01:03,060 Suze: Why did I say reiterated? Because the truth of the 10 00:01:03,060 --> 00:01:07,378 Suze: matter is we have called it exactly right. 11 00:01:08,019 --> 00:01:10,679 Suze: Did I not tell you a little bit ago that 12 00:01:10,680 --> 00:01:13,080 Suze: the markets would go up and then they would go down? 13 00:01:13,089 --> 00:01:17,349 Suze: They'd be like a roller coaster, but coming around July 4th, 14 00:01:17,599 --> 00:01:20,878 Suze: don't be surprised if in fact you see the Standard 15 00:01:20,879 --> 00:01:24,629 Suze: and Poor's go through it's high. The summer should continue, 16 00:01:24,839 --> 00:01:27,519 Suze: and then we go higher and we'll see how it 17 00:01:27,519 --> 00:01:30,400 Suze: goes after that. But right now. 18 00:01:31,059 --> 00:01:35,559 Suze: I get that the world is just crazy, but look 19 00:01:35,559 --> 00:01:39,970 Suze: at what the stock market did. It was as if 20 00:01:40,480 --> 00:01:45,959 Suze: we never attacked those nuclear facilities in Iran. It was 21 00:01:45,959 --> 00:01:49,440 Suze: as if we weren't worried about oil production. 22 00:01:50,129 --> 00:01:54,519 Suze: Oil on the rumor, by the way, that this was 23 00:01:54,519 --> 00:02:00,010 Suze: going to happen skyrocketed from about 64 to $65 a 24 00:02:00,010 --> 00:02:03,760 Suze: barrel for crude all the way up to $75 and 25 00:02:03,760 --> 00:02:06,169 Suze: I would be watching the news and they said, Oh, 26 00:02:06,400 --> 00:02:09,038 Suze: oil's going to go to $150. Oil's going to go 27 00:02:09,038 --> 00:02:12,990 Suze: through the roof. Look at everybody, we're having trouble over there. 28 00:02:13,199 --> 00:02:16,609 Suze: They can close the access to oil. All these things 29 00:02:16,610 --> 00:02:17,399 Suze: can happen. 30 00:02:17,610 --> 00:02:22,190 Suze: And I was like, no, oil is in a down trend. 31 00:02:22,520 --> 00:02:27,149 Suze: It met its resistance level at about 79, and again, 32 00:02:27,240 --> 00:02:30,320 Suze: for those of you who don't know, a resistance level 33 00:02:30,320 --> 00:02:33,329 Suze: is it hits a level that's its highest it's been 34 00:02:33,330 --> 00:02:36,720 Suze: in a while, and if it goes through that, it 35 00:02:36,720 --> 00:02:40,080 Suze: will go higher. If it doesn't, it will tend to 36 00:02:40,080 --> 00:02:43,350 Suze: go down, and I again believe. 37 00:02:44,038 --> 00:02:46,919 Suze: Unless they close the Strait, in case they do just 38 00:02:46,919 --> 00:02:49,919 Suze: something crazy over there, which I just don't think they 39 00:02:49,919 --> 00:02:50,549 Suze: will do. 40 00:02:52,179 --> 00:02:55,809 Suze: I don't think oil is going to go up, and 41 00:02:55,809 --> 00:03:00,479 Suze: it is in a down trend. Same thing with bonds. 42 00:03:00,729 --> 00:03:05,770 Suze: I think bonds are very, very weak here, and that's 43 00:03:05,770 --> 00:03:07,809 Suze: one of the reasons that I wanted to do this 44 00:03:07,809 --> 00:03:12,329 Suze: Suze School because on my YouTube channel, and are you 45 00:03:12,330 --> 00:03:17,970 Suze: all watching it by the way, youTube.com/ Suze Orman. 46 00:03:18,750 --> 00:03:23,190 Suze: A week ago I did a video on there just 47 00:03:23,190 --> 00:03:27,710 Suze: something isn't right with the economy and a few hundred thousand 48 00:03:27,710 --> 00:03:31,619 Suze: of you watched it, which I like a lot. However, 49 00:03:31,949 --> 00:03:35,509 Suze: there I talked about rather than bonds, 50 00:03:36,199 --> 00:03:40,610 Suze: I would like to see you go into dividend paying stocks, 51 00:03:40,789 --> 00:03:43,460 Suze: and I've been telling all of you now for a 52 00:03:43,460 --> 00:03:47,020 Suze: very long period of time dividend paying stocks, if you 53 00:03:47,020 --> 00:03:51,300 Suze: want safety and income, even though I understand everybody that 54 00:03:51,300 --> 00:03:54,699 Suze: dividend paying stocks are not safe if you're comparing them 55 00:03:54,699 --> 00:03:56,500 Suze: to treasuries, but they all. 56 00:03:56,554 --> 00:03:59,464 Suze: So do pay you more, and if you pick your 57 00:03:59,464 --> 00:04:04,304 Suze: dividend paying stocks correctly, you should be OK. That's what 58 00:04:04,304 --> 00:04:08,214 Suze: I was saying on the YouTube and all these people wrote, 59 00:04:08,544 --> 00:04:11,145 Suze: some of them yelling at me saying, Suze, you know 60 00:04:11,145 --> 00:04:14,384 Suze: dividends aren't guaranteed, blah blah blah blah, as if I 61 00:04:14,384 --> 00:04:19,894 Suze: don't know things. However, if you pick the right dividends, 62 00:04:20,105 --> 00:04:23,065 Suze: you should be relatively OK. 63 00:04:23,549 --> 00:04:28,709 Suze: A great deal of my money is in dividend paying 64 00:04:28,709 --> 00:04:34,380 Suze: stocks because I do want income once I stop earning income. 65 00:04:34,670 --> 00:04:37,829 Suze: I would like to live off of the interest in everything, 66 00:04:37,869 --> 00:04:38,989 Suze: not my principal. 67 00:04:39,690 --> 00:04:43,959 Suze: But the interest and the dividend income that my money 68 00:04:43,959 --> 00:04:47,809 Suze: is earning, also the money I have in bonds, the 69 00:04:47,809 --> 00:04:50,769 Suze: money I have in municipal bonds, so I have a 70 00:04:50,769 --> 00:04:53,988 Suze: lot of money, as you know, in different areas, but 71 00:04:53,988 --> 00:04:57,769 Suze: all of that money is starting to be geared towards 72 00:04:57,769 --> 00:05:01,730 Suze: being able to support me in terms of my income 73 00:05:01,730 --> 00:05:04,809 Suze: needs as I get older and when I'm no longer 74 00:05:04,809 --> 00:05:07,409 Suze: generating income from my work. 75 00:05:07,760 --> 00:05:11,380 Suze: That doesn't mean, however, I want you to take all 76 00:05:11,380 --> 00:05:14,730 Suze: of your money and put it into dividend paying stocks, 77 00:05:14,738 --> 00:05:19,380 Suze: because the truth of the matter is the anchor of 78 00:05:19,380 --> 00:05:24,540 Suze: this bull market really is technology. 79 00:05:25,089 --> 00:05:31,039 Suze: You have got to be invested in technology, in Semi's, 80 00:05:31,040 --> 00:05:36,309 Suze: in AI. You have got to be because that really 81 00:05:36,720 --> 00:05:41,399 Suze: is where when you're looking for investments, in my opinion 82 00:05:41,399 --> 00:05:45,320 Suze: you're looking to invest in where is the future, not 83 00:05:45,320 --> 00:05:49,079 Suze: where was big money made in the past, where is 84 00:05:49,079 --> 00:05:51,890 Suze: it going to be made now and in the future, 85 00:05:52,040 --> 00:05:54,510 Suze: and where is the future going. 86 00:05:55,070 --> 00:06:00,339 Suze: And the future is going to artificial intelligence, everybody. There 87 00:06:00,339 --> 00:06:03,910 Suze: have been so many that I've told you about over 88 00:06:03,910 --> 00:06:08,339 Suze: the past year or two, and hopefully you've purchased them. 89 00:06:09,160 --> 00:06:12,760 Suze: You know, starting back in 2024 in October, I told 90 00:06:12,760 --> 00:06:17,390 Suze: you that I loved Palantir then. I loved Avco or Broadcom, 91 00:06:17,559 --> 00:06:19,599 Suze: symbol A V G O. 92 00:06:20,720 --> 00:06:25,799 Suze: I loved Microsoft, MSFT. All of those I told you 93 00:06:25,799 --> 00:06:28,839 Suze: that I loved, and so on and so forth, and 94 00:06:28,839 --> 00:06:34,109 Suze: hopefully you took advantage of them because they are up tremendously, 95 00:06:34,359 --> 00:06:38,359 Suze: but the 3 mega caps right now that I do 96 00:06:38,359 --> 00:06:43,480 Suze: think are going to lead the way are Microsoft, Meta, 97 00:06:43,640 --> 00:06:48,399 Suze: and NVIDIA, and those are really the top 3, 98 00:06:48,809 --> 00:06:52,170 Suze: that hopefully a lot of you have participated in and 99 00:06:52,170 --> 00:06:56,130 Suze: it's still not too late, but there's all kinds of 100 00:06:56,130 --> 00:06:58,890 Suze: ways for you to participate in it. And if you 101 00:06:58,890 --> 00:07:03,170 Suze: don't want to buy individual stocks, then you can obviously 102 00:07:03,170 --> 00:07:06,730 Suze: buy an ETF. What has been one of my favorite 103 00:07:06,730 --> 00:07:09,850 Suze: ETFs in this area that I told all of you 104 00:07:09,850 --> 00:07:12,570 Suze: about symbol SMH. 105 00:07:13,399 --> 00:07:16,839 Suze: Currently it's at 273. Do you remember when it was 106 00:07:16,839 --> 00:07:20,359 Suze: down in the low 200s and everything, and somebody wrote 107 00:07:20,359 --> 00:07:23,160 Suze: into the podcast and how mad they were that they 108 00:07:23,160 --> 00:07:27,119 Suze: thought it was such a crappy ETF and therefore they 109 00:07:27,119 --> 00:07:31,390 Suze: want it out at 235. OK, but I still love 110 00:07:31,559 --> 00:07:34,959 Suze: that ETF. I think it's absolutely possible it could go 111 00:07:34,959 --> 00:07:39,649 Suze: to 350 or 400. There are many things out there 112 00:07:40,040 --> 00:07:41,320 Suze: that you can participate 113 00:07:41,665 --> 00:07:46,304 Suze: in and hopefully you've taken notes over all the podcasts 114 00:07:46,565 --> 00:07:53,005 Suze: that I've been doing this. However, participate in whatever way 115 00:07:53,005 --> 00:07:55,524 Suze: you can. One of my new favorites, by the way, 116 00:07:55,704 --> 00:08:01,320 Suze: is AMD, symbol, so you might want to look that up. However, 117 00:08:01,779 --> 00:08:06,540 Suze: because I do not know your individual situations, and I 118 00:08:06,540 --> 00:08:10,619 Suze: don't know what you want to do financially, you have 119 00:08:10,619 --> 00:08:14,420 Suze: to decide and maybe work with a financial professional. Where 120 00:08:14,420 --> 00:08:18,220 Suze: should you be invested? What should you be doing? Just 121 00:08:18,220 --> 00:08:21,420 Suze: cause you hear me say these stocks, and I've said 122 00:08:21,420 --> 00:08:24,220 Suze: many over the past two years, doesn't mean you should 123 00:08:24,220 --> 00:08:26,220 Suze: just go run out and buy them. 124 00:08:27,149 --> 00:08:31,200 Suze: So it's important that you know what your financial goals are, 125 00:08:31,410 --> 00:08:34,450 Suze: the risks that you could take, and what you want 126 00:08:34,450 --> 00:08:37,919 Suze: to buy and what you don't feel that you're qualified 127 00:08:38,169 --> 00:08:41,090 Suze: to buy, just same. 128 00:08:41,499 --> 00:08:45,218 Suze: But whatever you're buying, make sure that you do it 129 00:08:45,218 --> 00:08:50,598 Suze: on a dollar cost averaging basis. All right, do not 130 00:08:50,598 --> 00:08:53,588 Suze: just go in and put one lump sum in and 131 00:08:53,588 --> 00:08:57,258 Suze: don't take advantage of it when it goes down because things... 132 00:08:57,354 --> 00:09:01,395 Suze: They'll always go down and then come back up hopefully 133 00:09:01,395 --> 00:09:06,864 Suze: if they're good qualities. So think about that Bitcoin. I 134 00:09:06,864 --> 00:09:11,584 Suze: talked about that and I do still like Bitcoin and 135 00:09:11,585 --> 00:09:15,224 Suze: I get that Bitcoin did not act the way you 136 00:09:15,224 --> 00:09:18,335 Suze: wanted it to act recently if you've been following it, 137 00:09:18,385 --> 00:09:22,494 Suze: it went all the way down, you know, to 99,000 recently. 138 00:09:22,664 --> 00:09:25,223 Suze: I think it's back at about 106, 107. 139 00:09:25,539 --> 00:09:30,599 Suze: But Bitcoin is not something that's gonna go up like 140 00:09:30,599 --> 00:09:34,239 Suze: gold when we go to war or there's things that 141 00:09:34,239 --> 00:09:38,599 Suze: we're in conflict. Bitcoin is not like that. It actually, 142 00:09:38,640 --> 00:09:42,270 Suze: if you watch it, doesn't hold up when things are 143 00:09:42,270 --> 00:09:47,079 Suze: not good, but it does eventually come back, and I 144 00:09:47,080 --> 00:09:50,119 Suze: still think that in the long run, everybody, and I 145 00:09:50,119 --> 00:09:51,640 Suze: don't know when that will be. 146 00:09:51,890 --> 00:09:54,468 Suze: I don't think you should be surprised to see it 147 00:09:54,469 --> 00:09:58,419 Suze: at 150 or 170 again. I know so many of 148 00:09:58,419 --> 00:10:00,618 Suze: you get mad at me when I talk about it. 149 00:10:00,909 --> 00:10:06,159 Suze: Too many things are just going in that way, including 150 00:10:06,159 --> 00:10:07,109 Suze: certain things that the. 151 00:10:07,250 --> 00:10:10,340 Suze: The government has just done with Stablecoins and maybe we'll 152 00:10:10,340 --> 00:10:14,559 Suze: do a podcast on that, but it's just something that 153 00:10:14,559 --> 00:10:17,880 Suze: I don't think it's a bad idea to have a 154 00:10:17,880 --> 00:10:23,840 Suze: little bit, especially if you can afford to lose it. Gold... 155 00:10:23,840 --> 00:10:26,200 Suze: haven't been that pleased with gold, but I still would 156 00:10:26,200 --> 00:10:27,359 Suze: hold a little bit of it. 157 00:10:27,690 --> 00:10:30,880 Suze: I wanted it to react a little better, especially with 158 00:10:30,880 --> 00:10:34,510 Suze: the happenings of last week. It didn't, but doesn't mean 159 00:10:34,510 --> 00:10:37,679 Suze: that we should just hold on to a little bit, 160 00:10:37,960 --> 00:10:39,640 Suze: but overall, 161 00:10:40,830 --> 00:10:45,780 Suze: everything is doing exactly what we've said it would be doing. 162 00:10:46,030 --> 00:10:48,939 Suze: Real estate is starting to go down a little bit. 163 00:10:49,150 --> 00:10:51,859 Suze: It's having a little bit of a hard time here. 164 00:10:52,270 --> 00:10:54,750 Suze: So if you're a buyer, I would just hold on 165 00:10:54,750 --> 00:10:55,349 Suze: for a little. 166 00:10:56,090 --> 00:10:59,189 Suze: And if you're a seller, I would not be that stuck 167 00:10:59,190 --> 00:11:02,030 Suze: on your price at this point in time. 168 00:11:02,750 --> 00:11:05,960 Suze: So those are the things that we've already talked about, 169 00:11:06,090 --> 00:11:08,890 Suze: you're up to date on now, but you should not 170 00:11:08,890 --> 00:11:10,090 Suze: be freaking out. 171 00:11:10,520 --> 00:11:15,070 Suze: Do not freak out. The markets are showing you that 172 00:11:15,070 --> 00:11:20,869 Suze: they're stronger than things that are happening outside like Iran 173 00:11:20,869 --> 00:11:24,390 Suze: and what's happening with Gaza and Israel and everything. It's 174 00:11:24,390 --> 00:11:27,419 Suze: like they have a mind of their own right now. 175 00:11:27,669 --> 00:11:30,869 Suze: That's not to say if something dramatic happened in the 176 00:11:30,869 --> 00:11:33,309 Suze: United States or whatever, they won't respond. 177 00:11:34,210 --> 00:11:39,319 Suze: They're strong right now, so hopefully you are taking advantage 178 00:11:39,320 --> 00:11:40,210 Suze: of that. 179 00:11:40,979 --> 00:11:44,979 Suze: Now what I wanted to talk to you about Suze 180 00:11:44,979 --> 00:11:49,479 Suze: School today is and you need to really take out 181 00:11:49,479 --> 00:11:54,890 Suze: your notebooks for this one, OK? I want to clarify 182 00:11:54,890 --> 00:11:59,099 Suze: why on the YouTube video that I made, and you 183 00:11:59,099 --> 00:12:01,289 Suze: might all want to go and take a look at it. 184 00:12:02,140 --> 00:12:05,539 Suze: Why I was talking about I'd rather see you go 185 00:12:05,539 --> 00:12:12,020 Suze: into dividend paying stocks than bonds, and again the reason 186 00:12:12,020 --> 00:12:16,020 Suze: is I just think bonds are weak, and I think 187 00:12:16,020 --> 00:12:21,900 Suze: that dividend paying stocks can actually give you more income 188 00:12:21,900 --> 00:12:27,419 Suze: per year than bonds. Did you hear what I said? 189 00:12:27,789 --> 00:12:31,750 Suze: Now I understand very well that stocks go up and 190 00:12:31,750 --> 00:12:32,900 Suze: down in value. 191 00:12:33,679 --> 00:12:38,260 Suze: But if you select, like I said, good quality dividend 192 00:12:38,260 --> 00:12:39,459 Suze: paying stocks. 193 00:12:40,260 --> 00:12:44,849 Suze: That pay a dividend and that have been pretty consistent 194 00:12:45,210 --> 00:12:48,760 Suze: with raising their dividends or paying a dividend over a 195 00:12:48,760 --> 00:12:52,689 Suze: long period of time that doesn't mean that in certain 196 00:12:52,690 --> 00:12:55,200 Suze: years they didn't stop paying a dividend but they came 197 00:12:55,200 --> 00:12:56,969 Suze: back and continued to pay. 198 00:12:57,609 --> 00:12:59,309 Suze: And everything that... 199 00:13:00,450 --> 00:13:05,640 Suze: not only can you get income, but in certain markets 200 00:13:06,049 --> 00:13:10,130 Suze: you could also see those stocks go up in value 201 00:13:10,130 --> 00:13:14,619 Suze: as well. So here's what I want you to understand 202 00:13:14,619 --> 00:13:15,689 Suze: about a dividend. 203 00:13:17,140 --> 00:13:19,760 Suze: Not all stocks pay a dividend. 204 00:13:20,640 --> 00:13:25,369 Suze: But many stocks do. What is a dividend? A dividend 205 00:13:25,369 --> 00:13:30,340 Suze: is the company that you're purchasing. The stock company decides 206 00:13:30,340 --> 00:13:32,890 Suze: on an amount of money per share. 207 00:13:33,830 --> 00:13:37,900 Suze: That usually every quarter, so they divide it by 4 208 00:13:38,099 --> 00:13:41,979 Suze: if they're going to give you $2 a share, every quarter, 209 00:13:42,109 --> 00:13:46,869 Suze: every 3 months, they pay you 50 cents per share. 210 00:13:47,940 --> 00:13:51,809 Suze: So that dividend can go up every year. The dividend 211 00:13:51,809 --> 00:13:54,949 Suze: can go down, and the company, if it gets in trouble, 212 00:13:55,030 --> 00:14:03,570 Suze: they can also absolutely delete the dividend altogether. Stop paying it. 213 00:14:03,890 --> 00:14:06,709 Suze: So those are things that you need to know about 214 00:14:06,710 --> 00:14:12,468 Suze: dividend paying stocks. When a dividend is paid, however, 215 00:14:13,000 --> 00:14:16,260 Suze: You do not pay tax on it the way you 216 00:14:16,260 --> 00:14:19,859 Suze: pay tax, let's say on a Treasury bill bond or note. 217 00:14:20,580 --> 00:14:24,340 Suze: When you get interest from a treasury note, let's say 218 00:14:24,340 --> 00:14:28,820 Suze: it's a 10 year Treasury note, you pay ordinary income 219 00:14:28,820 --> 00:14:33,260 Suze: tax on that interest, and you pay it on your 220 00:14:33,260 --> 00:14:37,219 Suze: federal level. You obviously do not pay any tax on 221 00:14:37,219 --> 00:14:38,900 Suze: it on the state level. 222 00:14:39,260 --> 00:14:43,119 Suze: But you do pay ordinary income tax on the federal level. 223 00:14:43,929 --> 00:14:49,929 Suze: On dividend stocks. Now listen to me closely. On dividend stocks, 224 00:14:50,080 --> 00:14:55,210 Suze: the majority of them pay what's called a qualified dividend. 225 00:14:56,049 --> 00:14:59,049 Suze: And a qualified dividend simply means it's been paid out 226 00:14:59,270 --> 00:15:03,520 Suze: by a legitimate corporation that you've held it for at 227 00:15:03,520 --> 00:15:07,440 Suze: least 60 days before it pays its dividend and after 228 00:15:07,440 --> 00:15:10,710 Suze: it paid its dividends, so then the dividend is qualified 229 00:15:10,919 --> 00:15:14,880 Suze: and what is it qualified for? It's qualified to be 230 00:15:14,880 --> 00:15:18,559 Suze: taxed as a capital gain. 231 00:15:19,359 --> 00:15:23,469 Suze: Did you hear me? It's taxed as a capital gain 232 00:15:23,469 --> 00:15:29,880 Suze: versus ordinary income. Now you may think, hey, what difference 233 00:15:29,880 --> 00:15:32,880 Suze: does that make to me? In a second I'm going 234 00:15:32,880 --> 00:15:37,070 Suze: to show you exactly how much of a difference it 235 00:15:37,070 --> 00:15:37,690 Suze: can be. 236 00:15:38,500 --> 00:15:43,070 Suze: Now I went through some of the dividend paying stocks 237 00:15:43,359 --> 00:15:48,760 Suze: that I personally own and I picked out 7 of them. 238 00:15:49,520 --> 00:15:57,239 Suze: That paid a dividend of 3.90% or higher. I have 239 00:15:57,239 --> 00:16:01,719 Suze: many dividend stocks that pay 2%, that pay 1%, whatever 240 00:16:01,719 --> 00:16:05,400 Suze: it may be, but let's say you were out there 241 00:16:05,400 --> 00:16:08,080 Suze: and you wanted to replace the income. 242 00:16:09,020 --> 00:16:14,380 Suze: From a treasury with dividend paying stocks, a 10 year 243 00:16:14,380 --> 00:16:19,239 Suze: treasury is paying, let's just say about 4.3%. 244 00:16:19,849 --> 00:16:24,479 Suze: And you wanted to replace that income. You just wanted 245 00:16:24,479 --> 00:16:27,780 Suze: to see, could it be done, so I picked out 246 00:16:27,780 --> 00:16:35,750 Suze: seven of my stocks that pay a 3.9% yield or above. 247 00:16:36,580 --> 00:16:40,390 Suze: And these are the 7. I'm not saying you should 248 00:16:40,390 --> 00:16:44,669 Suze: buy them. There are sometimes there's risks in everything, but 249 00:16:44,669 --> 00:16:47,030 Suze: I'm just giving you an example. 250 00:16:47,760 --> 00:16:53,599 Suze: The first one is AbbVie, symbol is ABBV. Second one, 251 00:16:53,669 --> 00:16:56,869 Suze: and I've told you I like the stock, AT&T. 252 00:16:57,989 --> 00:17:04,589 Suze: The symbol is T. Prudential Financial symbol is PRU. 253 00:17:06,359 --> 00:17:10,770 Suze: 5th/3rd Bankcorp symbol as FITB. 254 00:17:11,819 --> 00:17:16,170 Suze: Another stock by the name of Sanofi simple as S 255 00:17:16,170 --> 00:17:17,010 Suze: N Y. 256 00:17:18,530 --> 00:17:21,889 Suze: William's company symbol WMB. 257 00:17:22,689 --> 00:17:23,890 Suze: And Amcor, 258 00:17:24,828 --> 00:17:29,989 Suze: symbol AMCR. Now I'm not going to go into what 259 00:17:29,989 --> 00:17:33,707 Suze: all these stocks do and everything about them, but here's 260 00:17:33,708 --> 00:17:38,298 Suze: what I can tell you about them. First of all, 261 00:17:38,828 --> 00:17:42,908 Suze: when you're looking for a good dividend paying stock, you 262 00:17:42,909 --> 00:17:47,499 Suze: want to make sure that the company is making enough money. 263 00:17:47,708 --> 00:17:52,269 Suze: It's called free cash flow, money that isn't committed anywhere. 264 00:17:52,959 --> 00:17:58,469 Suze: But they have enough free cash flow to cover the dividend. 265 00:17:59,280 --> 00:18:02,229 Suze: That's the first thing you really want to look at. 266 00:18:02,680 --> 00:18:11,040 Suze: All of them have essentially strong cash flow. AT&T, it's adequate. 267 00:18:11,829 --> 00:18:18,130 Suze: And really Amcor is adequate, but all the others really 268 00:18:18,130 --> 00:18:25,400 Suze: have strong cash flows. Also, most of them have increased 269 00:18:25,400 --> 00:18:32,739 Suze: their dividends every single year for many, many years, but 270 00:18:32,949 --> 00:18:37,339 Suze: There are some of these that in 2022, for instance, 271 00:18:37,420 --> 00:18:40,419 Suze: I think it was AT&T, cut off their dividend for 272 00:18:40,420 --> 00:18:45,379 Suze: a little bit. Also AbbVie was a spinoff, and they 273 00:18:45,380 --> 00:18:50,020 Suze: have been increasing and paying their dividends since 2013. So 274 00:18:50,020 --> 00:18:54,859 Suze: there's all little nuances with these seven companies, but all 275 00:18:54,859 --> 00:18:59,900 Suze: of them, in my opinion, are absolutely relatively safe. 276 00:19:00,719 --> 00:19:08,469 Suze: Now, let's do a hypothetical situation. Let's assume, OK, that 277 00:19:08,800 --> 00:19:12,129 Suze: you have $100,000 to invest. 278 00:19:13,050 --> 00:19:17,410 Suze: And you live in the state of California and you 279 00:19:17,410 --> 00:19:22,079 Suze: are married and make $200,000 between the two of you. 280 00:19:22,329 --> 00:19:24,679 Suze: Let's just assume that is true. 281 00:19:25,410 --> 00:19:29,349 Suze: And you decide that you want to see the difference 282 00:19:30,000 --> 00:19:34,209 Suze: between if you were to invest $14,000 some odd dollars 283 00:19:34,209 --> 00:19:38,060 Suze: in equal amount of money in each one of these 284 00:19:38,060 --> 00:19:44,479 Suze: seven dividend paying stocks versus if you took the money 285 00:19:44,800 --> 00:19:52,188 Suze: and bought let's say a 10 year treasury note at 4.3%. 286 00:19:52,719 --> 00:19:55,949 Suze: OK. What would that look like? 287 00:19:56,910 --> 00:19:59,910 Suze: Here's what it would look like after one year. 288 00:20:00,750 --> 00:20:04,390 Suze: Now this assumes that over these 10 years, the dividends 289 00:20:04,390 --> 00:20:06,859 Suze: kind of stay the same, they never increase. 290 00:20:07,609 --> 00:20:12,680 Suze: And that everything just with the dividends remains equal and 291 00:20:12,680 --> 00:20:18,150 Suze: that obviously the income on your treasury is equal as well. 292 00:20:18,890 --> 00:20:25,410 Suze: So here's what we have. You have invested $14,285 in 293 00:20:25,410 --> 00:20:29,810 Suze: each one of these, and if you do so, your 294 00:20:29,810 --> 00:20:36,609 Suze: annual average dividend then would be 5.69%. So after write 295 00:20:36,609 --> 00:20:41,130 Suze: this down, everybody, after one year you would have earned 296 00:20:41,130 --> 00:20:47,639 Suze: $5,685.72 in dividends. 297 00:20:48,530 --> 00:20:54,050 Suze: Now, because these are qualified dividends, meaning you pay it 298 00:20:54,050 --> 00:20:56,569 Suze: in the capital gains tax rate. 299 00:20:57,369 --> 00:21:04,160 Suze: You would only be paying on these dividends on this $5,685. 300 00:21:04,449 --> 00:21:09,649 Suze: You would pay to the feds $853 OK, but to 301 00:21:09,650 --> 00:21:13,449 Suze: the state of California, remember you're a California resident, so 302 00:21:13,449 --> 00:21:18,959 Suze: I'm making this really the most fair comparison I can. 303 00:21:19,599 --> 00:21:22,589 Suze: Cause if you didn't live in a state that had taxes, 304 00:21:22,880 --> 00:21:27,400 Suze: you would have just paid $853 on these dividends, and 305 00:21:27,400 --> 00:21:30,680 Suze: that would have been it. However, we're assuming you live 306 00:21:30,680 --> 00:21:32,189 Suze: in the state of California. 307 00:21:32,989 --> 00:21:40,448 Suze: And you will owe $528 in taxes on these dividends 308 00:21:40,689 --> 00:21:47,130 Suze: for a total of $1,381. That means that after all 309 00:21:47,130 --> 00:21:48,410 Suze: taxes are paid. 310 00:21:49,270 --> 00:21:55,989 Suze: You will have put in your pocket $4,304 for you 311 00:21:55,989 --> 00:22:02,260 Suze: to pay your bills. That's a 4.3% after tax return 312 00:22:02,260 --> 00:22:03,839 Suze: on your money. 313 00:22:04,880 --> 00:22:10,609 Suze: Now let's look at the 10-year treasury, giving you 4.3%. 314 00:22:11,479 --> 00:22:15,040 Suze: Obviously at the end of the first year you will 315 00:22:15,040 --> 00:22:21,199 Suze: have been paid out $4300 and again because it's ordinary 316 00:22:21,199 --> 00:22:25,760 Suze: income taxes and you make $200,000 a year jointly, you're 317 00:22:25,760 --> 00:22:31,760 Suze: in the 24% tax bracket that's $1,032. 318 00:22:32,589 --> 00:22:36,500 Suze: In income tax because this is a treasury, you don't 319 00:22:36,500 --> 00:22:42,020 Suze: pay California anything, so there's no state tax. So your 320 00:22:42,020 --> 00:22:48,750 Suze: total tax bill was $1,0032. So after taxes you actually 321 00:22:48,750 --> 00:22:58,739 Suze: have $3,268 to spend on your expenses. That's a 3.27% yield. 322 00:22:59,699 --> 00:23:07,219 Suze: So, one, the dividends are giving you $4,304 after taxes. 323 00:23:07,709 --> 00:23:14,659 Suze: The treasury is giving you $3,268 after taxes. 324 00:23:15,400 --> 00:23:22,478 Suze: That's a big deal, especially if you look out 10 years. 325 00:23:23,119 --> 00:23:27,589 Suze: Again, let's just assume everything stays the same. 326 00:23:28,609 --> 00:23:34,449 Suze: After 10 years you have $43,040 of after tax income 327 00:23:34,449 --> 00:23:35,969 Suze: to do whatever you want with. 328 00:23:36,869 --> 00:23:42,180 Suze: On the treasury, you have only $32,680 that it has 329 00:23:42,180 --> 00:23:45,979 Suze: paid out to you after tax. That's a difference of 330 00:23:45,979 --> 00:23:55,810 Suze: $10,360 or almost 10% of your original investment. Now why 331 00:23:55,810 --> 00:23:57,339 Suze: is that important? 332 00:23:58,380 --> 00:24:01,609 Suze: Yes, I know a lot of you are afraid of 333 00:24:01,609 --> 00:24:05,669 Suze: dividend paying stocks, but there are many of these stocks 334 00:24:05,670 --> 00:24:08,609 Suze: that if you actually look at the growth over the 335 00:24:08,609 --> 00:24:13,089 Suze: past 5 or 10 years, you would have made money 336 00:24:13,089 --> 00:24:16,410 Suze: on many of them as well. Some of them actually 337 00:24:16,410 --> 00:24:19,650 Suze: went up in value. Some of them went down, and 338 00:24:19,650 --> 00:24:22,719 Suze: you would not have lost out. Now there is no 339 00:24:22,719 --> 00:24:26,130 Suze: way that I can guarantee, whether it's these stocks or 340 00:24:26,130 --> 00:24:27,849 Suze: any dividend paying stock. 341 00:24:28,170 --> 00:24:32,119 Suze: As to what is going to happen, but if you 342 00:24:32,119 --> 00:24:35,380 Suze: pick your dividend paying stocks correctly. 343 00:24:37,130 --> 00:24:39,930 Suze: And they're giving you a nice dividend, not too high 344 00:24:39,930 --> 00:24:42,520 Suze: of a dividend. I'm not asking you to go out 345 00:24:42,520 --> 00:24:46,510 Suze: there and look at a dividend that's paying you 18%, 11%, 346 00:24:46,599 --> 00:24:54,199 Suze: just ordinary interest, ordinary ranges of income like these stocks 347 00:24:54,199 --> 00:25:02,479 Suze: go from 3.9% to 6.1% to 4.5% to 3.89 to 8.75% 348 00:25:02,479 --> 00:25:05,209 Suze: to 5.00 to 8%. 349 00:25:05,780 --> 00:25:09,319 Suze: So they're all in the range there, but you don't 350 00:25:09,319 --> 00:25:13,520 Suze: see any at 11, 12, 13, or 15. OK, so 351 00:25:13,520 --> 00:25:17,599 Suze: don't look at how high the yield is. You need 352 00:25:17,599 --> 00:25:21,599 Suze: to look at how safe the yield is, and one 353 00:25:21,599 --> 00:25:26,609 Suze: way you look at that is through free cash flow. 354 00:25:27,209 --> 00:25:31,510 Suze: Now this may seem difficult, but really it is not. 355 00:25:31,979 --> 00:25:37,550 Suze: But dividend paying stocks are a great alternative, especially when 356 00:25:37,550 --> 00:25:41,760 Suze: bonds are kind of weak, and you know you just 357 00:25:41,760 --> 00:25:46,800 Suze: might need more income than what treasuries are paying and 358 00:25:46,800 --> 00:25:52,800 Suze: again look at what you get after taxes. That is 359 00:25:52,800 --> 00:25:56,729 Suze: what really matters and to be taxed on a qualified 360 00:25:56,729 --> 00:25:59,829 Suze: dividend as a capital gain versus. 361 00:26:00,410 --> 00:26:05,880 Suze: On a treasury ordinary income, that is a very, very 362 00:26:05,880 --> 00:26:10,280 Suze: big deal. Also, I just want to say many stocks 363 00:26:10,280 --> 00:26:15,958 Suze: raise their dividends every single year. So unlike a treasury 364 00:26:15,959 --> 00:26:19,839 Suze: where you would be locked in at that 4.3% for 365 00:26:19,839 --> 00:26:23,869 Suze: all those 10 years and if interest rates went up, 366 00:26:23,920 --> 00:26:26,959 Suze: the value of that treasury would go down, so you 367 00:26:26,959 --> 00:26:28,520 Suze: wouldn't be able to sell it. 368 00:26:29,300 --> 00:26:33,319 Suze: And obviously the reverse is true. If interest rates went down, 369 00:26:33,530 --> 00:26:35,650 Suze: the value would go up, but you wouldn't want to 370 00:26:35,650 --> 00:26:39,329 Suze: sell it because then where would you get 4.3% again? 371 00:26:39,650 --> 00:26:44,369 Suze: Just something to think about, but in good quality dividend 372 00:26:44,369 --> 00:26:48,889 Suze: paying stocks, it is not unlikely that the dividend is 373 00:26:48,890 --> 00:26:52,930 Suze: either raised every year or every few years, so your 374 00:26:52,930 --> 00:26:55,849 Suze: income could absolutely go up. 375 00:26:56,560 --> 00:26:59,189 Suze: And to those people who say, but what happens when 376 00:26:59,189 --> 00:27:01,300 Suze: the stack goes down? 377 00:27:02,060 --> 00:27:06,270 Suze: If stocks are going down, at least you're being paid 378 00:27:06,479 --> 00:27:10,839 Suze: to wait until they do come back up. What you 379 00:27:10,839 --> 00:27:14,719 Suze: care about isn't the price of the stock. You care 380 00:27:14,719 --> 00:27:19,319 Suze: about the income that it is paying you in the 381 00:27:19,319 --> 00:27:24,479 Suze: form of a dividend. So should all of your money 382 00:27:24,479 --> 00:27:26,040 Suze: be doing this? No. 383 00:27:26,819 --> 00:27:29,770 Suze: Again, as I started with, I want to see some 384 00:27:29,770 --> 00:27:33,930 Suze: of your money in AI and technology and semis and 385 00:27:33,930 --> 00:27:37,208 Suze: all these things. Absolutely I want you there. 386 00:27:38,180 --> 00:27:41,260 Suze: However, if you have money right now and you're kind 387 00:27:41,260 --> 00:27:45,619 Suze: of deciding, do I do more treasuries, what do I 388 00:27:45,619 --> 00:27:49,170 Suze: do right now? I don't like how bonds are responding. 389 00:27:49,660 --> 00:27:53,780 Suze: All right, everybody, I'm telling you you might want to 390 00:27:53,780 --> 00:27:56,619 Suze: look into good quality. 391 00:27:57,790 --> 00:28:01,819 Suze: Dividend paying stocks. All right, that is your Suzie school 392 00:28:01,819 --> 00:28:05,430 Suze: for today. So again, I do want you to also 393 00:28:05,430 --> 00:28:10,270 Suze: take a look at YouTube.com/ SuzeOrman, see what we have 394 00:28:10,270 --> 00:28:14,890 Suze: going on there. I will be making a new video, 395 00:28:14,949 --> 00:28:16,948 Suze: so I'm sure it will be up either 396 00:28:17,150 --> 00:28:20,930 Suze: today or tomorrow, but it's something that you could use 397 00:28:20,930 --> 00:28:26,550 Suze: in combination with the Suze School and of course nothing 398 00:28:26,550 --> 00:28:31,180 Suze: replaces Ask KT and Suze Anything which will be this Sunday, 399 00:28:31,270 --> 00:28:34,270 Suze: by the way, cause I know many of you cannot 400 00:28:34,270 --> 00:28:36,229 Suze: do without KT. 401 00:28:36,760 --> 00:28:41,109 Suze: And I really understand that very well. All right, so 402 00:28:41,109 --> 00:28:44,069 Suze: until Sunday there's really only one thing that I want 403 00:28:44,069 --> 00:28:48,030 Suze: you to remember, and it is this people first, then money, 404 00:28:48,270 --> 00:28:50,189 Suze: then things. Now you 405 00:28:50,189 --> 00:28:51,579 Suze: stay safe.